Waste Infrastructure System Enterprise Agreement (WISE Agreement)

The City of Newport Beach is entering into a new 10-year Waste Infrastructure System Enterprise (WISE) Agreement with the County of Orange, effective July 1, 2026, to replace the expiring Waste Disposal Agreement (WDA). This agreement secures long-term landfill capacity and establishes a new rate structure for municipal solid waste disposal.

Key Provisions:

• Phased Rate Structure: Landfill disposal rates will increase from the current $43.76/ton (FY 2025-26) to $67/ton in FY 2026-27, $74/ton in FY 2027-28, and $81/ton in FY 2028-29. Starting in FY 2029-30, rates will adjust annually based on a blended Consumer Price Index (CPI).
• Operational Changes: The agreement removes the requirement that all residential organic waste must be sent to County facilities, allowing for optional organic processing services via a separate Organic Services Agreement (OSA). It also implements an annual "true-up" process starting in 2030 to review cost recovery and tonnage revenue.
• Enforcement: The City must adopt an amended Franchise Hauler Acknowledgment for all commercial franchise haulers to ensure they are bound by the same disposal rates and flow control requirements as the City.
• Financial Impact: General fund annual refuse disposal costs are projected to increase by approximately $1,500,000 in FY 2026-27 (totaling $11,120,420) and up to $2,450,000 by FY 2029-30 (totaling $11,994,938).
• Legislative Drivers: The agreement is designed to comply with California Integrated Waste Management Act (AB 939) and SB 1383 (Short-lived Climate Pollutants Reduction Act), which mandate organic waste diversion and methane reduction.

Timeline:

• April 30, 2026: Deadline for cities to ratify the agreement to avoid a 10% "non-participant" surcharge.
• June 30, 2036: Expiration of the initial 10-year term, with one optional 10-year extension.