City, OC reach agreement on waste rates

The City Council unanimously approved an agreement with Orange County for solid trash disposal rates on March 23.

Seal Beach’s current waste disposal agreement  was approved in 2009 and extended in 2016 to June 30, 2025, according to the staff report prepared by Management Analyst Lauren Barich. 

“In January 2022, Orange County Waste & Recycling (OCW&R) notified cities of its intent to revise the WDA as the WDA neared expiration,” Barich wrote.

“OCW&R presented a proposed successor agreement to the WDA, titled the Waste Infrastructure System Enterprise (WISE) agreement, in November 2024,” Barich wrote.

The Orange County City Manager Association requested an extension of the agreement so they could negotiate terms, according to the Barich report. 

OCW&R agreed.

“On April 28, 2025, the Seal Beach City Council adopted the Second Amendment via Resolution 7635, extending the term of the WDA to June 30, 2026. The extended term allowed OCCMA time to conduct due diligence and negotiate with the County,” Barich wrote.

“The current WDA limits annual rate increases to CPI and does not account for rising operational, regulatory, and environmental compliance costs given the changing landscape of waste management in the State of California, particularly related to organics mandates and programs,” Barich wrote.

“OCW&R also indicated that additional capital was needed to fund the Brea Olinda landfill closure and to significantly expand the capacity of the landfill in San Juan Capistrano over the course of the 10-year term,” Barich wrote.

“Through negotiations, OCCMA reached an agreement on a phased WISE contract rate structure for the first three (3) years of the WISE Agreement. Starting in FY 29-30, the WISE contract rate includes a CPI increase,” Barich wrote.

In 2026-27, the contract rate would be $67 a ton. In 2027-28, $74/ton. In 2028-29, $81/ton. In 2029-30, the rate would be $81/ton plus CPI.

“Effective July 1, 2026, the increased WISE contract disposal rates will in turn result in increased residential and commercial customer bills in addition to the regular annual increase related to the CPI adjustment. This is because the City’s current solid waste franchise agreement allows Republic Services (Republic) to automatically adjust its solid waste rates upon an increase in tipping fees (like the WISE contract rate) once per year provided certain noticing and other criteria are met,” Barich wrote. WISE stands for Waste Infrastructure System Enterprise. 

“Separately, the City is continuing to negotiate with Republic on an Amended and Restated Solid Waste Franchise Agreement to address compliance with state mandates for organic waste imposed by SB 1383 Short-Lived Climate Pollutants and CalRecycle’s corresponding regulations and to generally modernize the City’s solid waste franchise agreement,” Barich wrote.

The contract rate of $67 per ton will go into effect on July 1, 2026.

The current rate is $43.76.