7. Clarify Community Event Requirements. Formally clarify with VVS whether community clean-up curbside events now qualify under the Section 4.08 community event provision. Establish a tentative annual events list by no later than February 1 each year to ensure VVS can staff and schedule booths appropriately.
8. Explore SB 1383 Mandatory Procurement Opportunities. Schedule a meeting with VVS to identify qualifying SB 1383 mandatory procurement purchases that would provide credit toward the City’s Waste Hauler Franchise Performance Review – Valley Vista Services | City of Cypress Page 52 procurement obligations. The City should engage in discussions with VVS regarding hauler-assisted procurement credits, as is now standard in most updated California franchise agreements.
9. Commission Organic Waste Generation Study. Direct VVS to perform a waste characterization study focused on organic waste generation per resident. If the City generates below 0.8 tons per resident per year, it may qualify for a reduced SB 1383 procurement obligation – a reduction that some California jurisdictions have achieved by more than 50%.
10. Improve Customer Survey Methodology. For the Year 10 customer satisfaction survey (and any subsequent surveys), require VVS to use a billing insert with QR code to maximize response rates, rather than relying on event-attendance distribution. A statistically meaningful sample will provide more defensible data for future contract negotiations.
11. Establish Annual VVS Reporting Session. Consistent with the level of detail compiled in this review, the City should schedule an annual meeting with VVS to review the prior year’s performance metrics, confirm delivery of all required reports, and address any emerging compliance questions before they become issues requiring formal findings.
Overall Assessment
CityGreen Consulting rates the overall performance of Valley Vista Services as Good to Very Good when measured against California industry standards for franchise hauler compliance. Of the 44 items reviewed, 91% were fully compliant, and the four non-compliant findings were either curable through payment or remediation (Universal Waste recordkeeping, 1.5% Fee under-billing), subject to ongoing monitoring (C&D diversion), or already substantially resolved through corrective action taken during the review period (NPDES/SWPPP).
VVS’s most significant strengths are their waste diversion infrastructure, collection performance, and their approach to above-and-beyond service. The City of Cypress benefits from a hauler whose Grand Central Recycling facility is the most advanced organic waste processor in Southern California, and whose collection metrics rank in the top tier of comparable jurisdictions reviewed by this firm. The aboveaverage ratings assigned across Financial, Compliance, and Operations categories - and the three Exceptional ratings earned in the Compliance section reflect a hauler that takes its franchise obligations seriously and consistently performs at a level that provides real value to Cypress ratepayers.
The areas identified for improvement are addressable. The recommendations above are intended to help the City obtain full resolution of outstanding financial findings, strengthen reporting and monitoring practices for the remaining franchise term, and identify opportunities where the Agreement could be updated to better reflect current industry standards, particularly with respect to SB 1383 procurement assistance and community event coordination.
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01004.0014/750816.2
AMENDMENT NO. 5
TO EXCLUSIVE FRANCHISE AGREEMENT FOR THE PROVISION OF
SOLID WASTE & RECYCLING SERVICES
THIS AMENDMENT NO. 5 (“Amendment No. 5”) by and between the CITY OF CYPRESS, a California municipal corporation and charter city (“City”) and VALLEY VISTA SERVICES, INC., a California corporation, doing business as Valley Vista Services of Orange County (“Collector”) is effective as of July 14, 2026 (“Effective Date”).
RECITALS
A. City granted to Collector an exclusive solid waste and recycling franchise by entering into that certain Exclusive Franchise Agreement for the Provision of Solid Waste & Recycling Services dated September 22, 2014 (“Agreement”), wherein Collector agreed to provide solid waste and recycling collection services to City residents and businesses.
B. The original term of the Agreement was from July 1, 2015, to June 30, 2025. The Agreement has been previously amended four times, including Amendment No. 2 dated August 28, 2017; Amendment No. 3 dated July 12, 2021; and Amendment No. 4 dated November 22, 2021. Amendment No. 2 extended the term of the Agreement to June 30, 2027, and Amendment No. 4 ultimately extended the term of the Agreement to June 30, 2036.
D. City and Collector wish to further amend the Agreement, as amended, to update language to reflect the new Waste Infrastructure System Enterprise (“WISE”) Agreement between the City of Cypress and Orange County Waste & Recycling and to revise the terms and scope of services provided to residents.
TERMS
1. Recitals. The recitals set forth above are incorporated herein by this reference.
2. Contract Changes. The Agreement is amended as follows:
2.1 Revisions to Article 4. Article 4, entitled “Collection Services,” shall be modified as follows (bold strikethrough represents deleted language while bold underlined italics represents added language):
ARTICLE 4. COLLECTION SERVICES
“4.05.1 Residential and Multi-Family Premises On-Call Bulky Waste & E-Waste Collection
The Collector shall provide Bulky Waste and Electronic Waste Collection Service to all Customers at Residential and Multi-Family Premises in the Service Area whose Bulky Waste have been placed within three (3) feet of the curb, swale, paved surface of the public roadway, closest accessible - 2 -
01004.0014/750816.2
roadway, or other such location agreed to by the Collector and Customer, that will provide safe and efficient accessibility to the Collector’s Collection crew and vehicle.
Single-Family Residential Customers will be instructed to provide Collector with a minimum of forty-eight (48) hours’ notice of the need for Bulky Waste Collection Service, which shall take place on the Customer’s regular Collection day.
Customers at Single-Family Residential and Multi-Family Premises are entitled to four (4) pickups per calendar year and limited to up to ten (10) bulky items per pickup. set out a total of two (2) items per year in any combination of collection days and number of items per year per Premises at no additional charge. For example, Customers may set out two (2) items for a single collection, or one (1) item on two (2) separate collection days.
Multi-Family Premises shall be entitled to a maximum of four (4) bulky item collection events per calendar year for the Premises as a whole. For each scheduled collection event, each unit within the Premises may dispose of up to four (4) bulky items. The property owner, property manager, and/or authorized representative for the Premises shall coordinate directly with Collector for the scheduling of collection events and shall contact Collector at least fourteen (14) calendar days prior to the desired collection date. Collector shall not be required to provide more than four (4) collection events annually to any individual Multi-Family Premises. The date, time, and location of each collection event shall be mutually agreed upon between Collector and the property owner, manager, or authorized representative.
For calendar year 2026, following the effective date of this Amendment, Single Family Residential Premises and Multi-Family Premises shall be entitled to a maximum of two (2) bulky item pickups following the effective date of this Amendment. Beginning January 1, 2027, customers shall be entitled to four (4) pickups per calendar year.
For any collection of Bulky Waste beyond the services provided in this Agreement, minimum of two (2) items per year, Collector shall provide Bulky Waste Pickup service to Customers at Residential and Multi-Family Premises in accordance with rates set forth in Exhibit 1 or as may be adjusted under the terms of this Agreement.
4.06.1 Household Hazardous Waste Collection from Residential and Multi-Family Premises
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01004.0014/750816.2
Collector will provide, either directly, or through a City-approved subcontractor, one (1) two (2), annual citywide Household Hazardous Waste Collection Events at no additional charge. Electronic Waste will be accepted at each annual citywide Household Hazardous Waste Collection events at no additional charge. The dates and locations of the Events will be coordinated with Cypress City Staff. Customers from Residential and Multi-Family Premises will be allowed to drop off unlimited items at the two events and the acceptable times will include, at a minimum the items listed on the following page. The City and Collector shall endeavor to mutually agree upon the date and location for the Household Hazardous Waste event no later than the end of February of each year.
4.08.4 Citywide Free Disposal Day Events
Collector shall provide two (2) Citywide Curbside Cleanup Events per calendar year for all residential customers within the City. Customers shall be permitted to place unlimited bulky items curbside for collection and disposal or recycling by Collector. Collector may phase collections by regular collection service days to facilitate the efficient and orderly completion of the event, upon approval of the City.
On four (4) separate Two days annually, at the discretion of the City, Collector shall provide Cypress residents with the opportunity to deliver any and all Solid Waste for the purpose of disposal or recycling. This will involve the staging of no less than four (4), 40 cubic yard open top roll-offs to collect the unwanted materials. The dates and locations of the Events will be coordinated with Cypress City Staff.
The City and Collector shall endeavor to mutually agree upon the date and location for the Citywide Free Disposal Day events for the remainder of the calendar year by the end of February of each year.”
2.2 Revisions to Article 6. Article 6, entitled “Other Services,” shall be modified as follows (bold strikethrough represents deleted language while bold underlined italics represents added language):
ARTICLE 6. OTHER SERVICES
“6.03.1 Implementation and Ongoing Education Services
• Annual Newsletter – For calendar year 2026, and within 60 days of the effective date of this Amendment, Collector shall prepare and distribute to each Customer a brochure or newsletter describing new or modified services established by Amendment No. 5. The newsletter shall - 4 -
01004.0014/750816.2
be subject to City review and approval prior to distribution and shall be provided at no additional cost to the City.”
2.3 Revisions to Article 7. Article 7, entitled “Requirements for Operations, Equipment and Personnel,” shall be modified as follows (bold strikethrough represents deleted language while bold underlined italics represents added language):
ARTICLE 7. REQUIREMENTS FOR OPERATIONS, EQUIPMENT AND PERSONNEL “7.04.1 Local Office
Collector shall establish a local office within a fifteen (15) mile radius of the City boundaries to provide customer services such as, but not limited to:
bill payment; scheduling of services including on -call bulky waste collection, extra pick -ups and temporary bin service; service initiations, changes or cancellations; and, the documentation and resolution of complaints.
The Collector's local office shall be open from 8: 00 a. m. to 5:00 p.m., Monday through Friday, and Saturdays from 8: 00 a. m. to noon.”
2.4 Revisions to Article 9. Article 9, entitled “Charges and Rates,” shall be modified as follows (bold strikethrough represents deleted language while bold underlined italics represents added language):
ARTICLE 9. CHARGES AND RATES
“9.02.1 Cost Component and Rate Adjustment Indexes
The approved rates consist of the following cost components, followed by the initial weightings of each component. Each cost component may be adjusted by the change in the corresponding index as provided below. See Section 9.02.2 for detailed rate adjustment procedures.
Cost Component
% of Costs (1) Rate Adjustment Index Starting Index Residential Commercial Roll-Offs - 5 -
01004.0014/750816.2
A. Collection 46% 80% 100% Consumer Price Index -
All Urban Consumers,
All items – Los Angeles
– Riverside – Orange
County, CA capped at
3.5% plus 85% of any
increase in CPI above
3.5%.
(2)
The CPI index is
281.347 348.361.
B. Disposal 37% 20% 100% Actual change at
Orange County
Landfills as per waste
disposal agreement
Waste Infrastructure
System Enterprise
(WISE) Agreement
with City of Cypress.
The index is
$35.67 $67.00.
C. Green Waste 17% 20% n/a Consumer Price Index –
All Urban Consumers,
All items – Los Angeles
– Riverside – Orange
County, CA capped at
5% plus 85% of any
increase in CPI above
5%.(3)
The CPI index is
281.347 348.361.
D. Other Service
(including MRF
Service)
n/a n/a 100% Consumer Price Index -
All Urban Consumers,
All items – Los Angeles
– Riverside – Orange
County, CA capped at
3.5% plus 85% of any
increase in CPI above
3.5%.(2)
The CPI index is
281.347 348.361.
(1) Weightings may be adjusted for the rate adjustment following, and based upon results from each audit per Section 8.04.1.
(2) For example, if the published annual CPI for the region is 6.2%, Collector could request the full 3.5% and 85% of the difference, as shown in the following table:
Published Regional CPI 6.2%
Franchise Cap 3.5%
Difference (6.2% - 3.5%) 2.7%
85% of Difference 2.295%
TOTAL CPI (3.5% + 2.295%) 5.795%
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01004.0014/750816.2
(3) For example, if the published annual CPI for the region is 6.2%, Collector could request the full 5% and 85% of the difference, as shown in the following table:
Published Regional CPI 6.2%
Franchise Cap 5%
Difference (6.2% - 5%) 1.2%
85% of Difference 1.02%
TOTAL CPI (5% + 1.02%) 6.02%
9.02.2 Rate Adjustment for Residential Services and Commercial Refuse Services
Residential Cart rates and Commercial Bin and Cart rates will be adjusted using the same method, but will be calculated separately due to the differences in the weightings of the Collection and Disposal components for each Customer type, as listed in Section 9.02.1.
Step One – Calculate the percentage increase or decrease in Collection, Disposal, and Green Waste Component indices listed in Section 9.02.1. The increase or decrease in the Collection Component index and Green Waste Component index will be based on the twelve (12) month period ending February prior to the July 1 when the rate change will take effect.
The Disposal index will be based on the actual percentage change in the gate rates at Orange County Landfills as per the then-existing waste disposal agreement Waste Infrastructure System Enterprise (WISE) Agreement with the City of Cypress for the twelve (12) month period ending June 30 prior to the July 1 when the rate change will take effect.
The percentage increase for the Collection Component Index shall not exceed 3.5% plus 85% of any increase in CPI above 3.5% for any Rate Year (see chart in Section 9.02.1). The percentage increase for the Green Waste Component index shall not exceed 5% plus 85% of any increase in CPI above 5% for any Rate Year (see chart in Section 9.02.1).
Step Two –Cost components are weighted as listed in Section 9.02.1. For subsequent rate adjustments, the relative weightings of the Collection and Disposal cost components will be determined by the most recent audit conducted per Section 8.04.1.
Multiply the percentage changes for the Collection and Disposal cost components, as determined in Step One, by that component’s weighting as a percentage of total cost.
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01004.0014/750816.2
Step Three – Multiply the weighted permitted percent change from Step Two by the existing maximum Residential Cart, Commercial Bin and Carts Services rates to determine the increase or decrease in maximum rates.
Then add (subtract) the change in rates to (from) the existing maximum rates to determine the new maximum rates. See Exhibits 2A and 2B for examples of rate adjustments procedures.
9.02.3 Rate Adjustment for Roll-Off Box & Other Services Roll-off box rates and Other Services rate adjustments will be calculated separately for the Collection (Pull), Disposal, and MRF Service Component, as listed in Section 9.02.1.
Step One – Calculate the percentage increase or decrease in Collection and Disposal Component indices listed in Section 9.02.1. The increase or decrease in the Collection and MRF Service Component index will be based on the twelve (12) month period ending February prior to the July 1 when the rate change will take effect.
The Disposal index will be based on the actual percentage change in the gate rates at Orange County Landfills as per the then-existing waste disposal agreement Waste Infrastructure System Enterprise (WISE) Agreement with the City of Cypress for the twelve (12) month period ending June 30 prior to the July 1 when the rate change will take effect. The percentage increase for the Collection and MRF Service Component Indices shall not exceed 3.5% plus 85% of any increase in CPI above 3.5% for any Rate Year (see chart in Section 9.02.1).
Step Two –Cost components are weighted as listed in Section 9.02.1. For subsequent rate adjustments, the relative weightings of the Collection and Disposal cost components will be determined by the most recent audit conducted per Section 8.04.1.
Multiply the percentage changes for the Collection, MRF Service and Disposal cost components, as determined in Step One, by that component’s weighting as a percentage of total cost.
Step Three – Multiply the weighted permitted percent change from Step Two by the existing maximum roll-off pull rate, roll-off per ton disposal, roll-off per ton C&D Processing, and other rates. Then add (subtract) the change in rates to (from) the existing maximum rates to determine the new maximum rates. See Exhibits 2C for examples of rate adjustments procedures.”
2.5 Revisions to Exhibit 1. Exhibit 1 shall be modified as follows (bold strikethrough represents deleted language while bold underlined italics represents added language):
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01004.0014/750816.2
RESIDENTIAL SECTOR SERVICES
SERVICE CATEGORIES & FEES MAXIMUM RATES
RESIDENTIAL CART SERVICE – One each of 96-gallon
capacity: refuse, recycling, and green waste carts – weekly collection; billing provided by City billing Agent.
31.05 Per Month
Additional Refuse Cart(s) – Each. 9.16 Per Month
Addiutional Green Waste Cart(s) – Each after first 2. 45.86 Per Month First Additional Green Waste Cart and All Additional Recycling Carts will be free of charge. No Charge
Cart Delivery (addition, removal or exchange) beyond two (2) per type of customer. 45.86 Per Trip
Cart Replacement Due to Customer Damage. 91.67 Per Event On-Call Bulky Waste / E-Waste (Up to two (2) items per year four (4) pickups per year, up to ten (10) items per pickup) No Charge
On-Call Bulky Waste / E-Waste (beyond two (2) per year four (4) pickups per year, up to ten (10) items per pickup.) 91.67 Per item Annual Holiday Tree Collection No Charge
Cart Roll-Out Service – Incremental Charge (in addition to base charge in line A). No Charge
Cart Washing Service per cart per occurrence
(Residential Carts only) $25.00 Per Cart
ANCILLARY SERVICES & MISCELLANEOUS FEES
SERVICE CATEGORIES & FEES MAXIMUM RATES
On-Call Bulky Waste – Commercial Premises 82.35 Per Item On-Call Bulky Waste / E-Waste – Multi-Family Premises (Up to two (2) items per year four (4) pickups per year, up to four (4) items per unit per pickup.)
No Charge
On-Call Bulky Waste / E-Waste – Multi-Family Premises
(Beyond two (2) items per year four (4) pickups per year, up to four (4) items per unit per pickup.)
82.35 Per Item
On-Call E-Waste & U-Waste Collection & Recycling –
Commercial & Multi-Family Premises 82.35 Per Item
Household Hazardous Waste Collection – Multi-Family
Premises 82.35 Per Item
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01004.0014/750816.2
Emergency Service 82.45 Per Hour
Maximum Late Fee 7.89% Per Annum
Bin Washing Service beyond Once a Year No Charge
2.6 Effective Date. This Amendment No. 5 shall not be effective and operative until approved by the City Council.
3. Continuing Effect of Agreement. Except as amended by this Amendment No. 5, all provisions of the Agreement, as amended, shall remain unchanged and in full force and effect.
From and after the date of this Amendment No. 5, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by this Amendment No. 5.
4. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Collector each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement, as amended. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement, as amended, other than as provided herein. Each party represents and warrants to the other that the Agreement, as amended, is currently an effective, valid, and binding obligation.
Collector represents and warrants to City that, as of the date of this Amendment No. 5, City is not in default of any material term of the Agreement, as amended, and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement, as amended.
City represents and warrants to Collector that, as of the date of this Amendment No. 5, Collector is not in default of any material term of the Agreement, as amended, and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement, as amended.
5. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 5.
6. Authority. The persons executing this Amendment No. 5 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 5 on behalf of said party, (iii) by so executing this Amendment, such party is formally bound to the provisions of this Amendment No. 5, and (iv) entering into this Amendment No. 5 does not violate any provision of any other agreement to which said party is bound.
[SIGNATURES ON FOLLOWING PAGE]
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01004.0014/750816.2
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 5 on the date and year first-above written.
CITY:
CITY OF CYPRESS, a municipal corporation
Leo Medrano, Mayor
ATTEST:
Lisa Berglund, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
William Wynder, City Attorney
COLLECTOR:
VALLEY VISTA SERVICES, INC., a California
corporation, doing business as Valley Vista Services
of Orange County
By:
Name:
Title:
By:
Name:
Title:
Address:
Two corporate officer signatures required when Collector is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. COLLECTOR’S SIGNATURES
SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS
MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO COLLECTOR’S BUSINESS ENTITY.
01004.0014/750816.2
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF ORANGE
On __________, 202__ before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. 01004.0014/750816.2
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF ORANGE
On __________, 202__ before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.