April 29, 2025
Agenda Item No. 11
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
David A. Webb, Public Works Director - 949-644-3311, [email protected] PREPARED BY:
Charles Springer, Senior Management Analyst - 949-718-3466, [email protected] TITLE:
Approve the Second Amendment to the 2009 Waste Disposal Agreement with the County of Orange (Contract No. 4194) ABSTRACT:
Solid waste disposal at County of Orange owned landfills is governed by a Waste Disposal Agreement (WDA) under which cities and sanitary districts agree to exclusively deposit certain waste at the County’s landfills in exchange for low and stable disposal rates. The current WDA was entered into in 2009 and was subsequently amended to extend the term through June 30, 2025. The Orange County City Managers Association (OCCMA) is currently negotiating a successor agreement to the WDA with OC Waste & Recycling (OCW&R). Additional time is needed to finalize mutually agreeable terms and disposal fees. The proposed amendment extends the current WDA by one year to allow for continued negotiations and includes a 2.6% disposal fee increase, per the escalation formula in the current agreement.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve the Second Amendment to the 2009 Waste Disposal Agreement with the County of Orange (Contract No. 4194), to extend the term of the Agreement for 12 months and allow for a 2.6% disposal fee increase and authorize the Mayor and City Clerk to execute the amendment.
DISCUSSION:
The current WDA between the County of Orange and all Orange County cities and sanitary districts expires on June 30, 2025. In January 2022, OCW&R notified cities of its intent to revise the WDA to align with current legislative requirements such as Senate Bill 1383, which compels local governments to divert organic waste, such as food scraps and landscaping waste, away from the landfills. OCW&R presented a proposed successor agreement to the WDA, titled the Waste Infrastructure System Enhancement (WISE) agreement to Orange County city managers on November 7, 2024.
The draft WISE agreement proposed increasing the landfill disposal rate from $42.65 to $82 per ton (a 92.3% increase). It also proposed a rebate program for composted organic waste and an allocation of capital expenditures for organics recycling infrastructure at County landfills.
The OCCMA formed a committee in December 2024 to negotiate a successor agreement to the WDA and requested an extension of the current WDA to allow time for such negotiations.
OCW&R agreed to a 12-month extension of the WDA agreement and included a 2.6% disposal fee increase, which is consistent with the escalation formula in the current agreement. The extension period will allow stakeholders to conduct due diligence on a successor agreement to the WDA as well as evaluate costs, infrastructure plans, and future fee adjustments. If the OCCMA committee and OCW&R do not reach mutually agreeable terms by September 30, 2025, monthly updates will be provided to all cities/sanitary districts beginning in October 2025.
Staff recommends City Council approval of the Second Amendment to the 2009 WDA Agreement as it will ensure stable disposal rates and collaboration between all County, cities and sanitary districts for an additional year.
FISCAL IMPACT:
The adopted budget includes sufficient funding for the 2.6% disposal fee increase. The disposal fee is a pass-through cost integrated into our residential refuse contract rate.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A – Second Amendment to Waste Disposal Agreement 11-3
11-1
Second Amendment to the 2009 Waste Disposal Agreement
with the County of Orange (Contract No. 4194)
April 29, 2025
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