The Cypress City Council on July 14 approved a scope of work and procurement plan for an independent performance review of the citys solid-waste franchise with Valley Vista Services, and expanded the reviews scope to include industry benchmarking and a high-level financial assessment.

Public Works Director Mankal Akhiri said the review responds to a strategic-plan objective to assess the franchise mid-term. The intended scope includes verification of compliance with the franchise agreement, review of financial reporting and payments remitted to the city, evaluation of service performance and diversion targets and confirmation of compliance with state regulations such as SB 1383 (organic waste diversion). The review will also check customer-service records, liquidated damages and other contractual performance measures.

Staff said the city would advertise a request for qualifications this month, return a recommended consultant agreement to council in September and expect the review to be completed in 2026. Director Akhiri said prior local governments had conducted similar reviews; staff provided a list of Orange County jurisdictions that have undertaken comparable audits.

Valley Vista representatives told the council they supported operational benchmarking but cautioned that detailed profitability data are proprietary and could harm the company competitively. City staff said typical practice is for consultants to examine financial records under confidentiality and to report conclusions to the city without making proprietary documents public. The contract contains liquidated damages provisions for violations ($100 to $250 per violation), staff said, and there are no performance bonuses built into the current franchise agreement.

Councilmembers requested the consultant consider comparing collection productivity, safety, customer service and vehicle maintenance to industry norms where possible, and to provide a bottom-line assessment of franchise sustainability without requiring the public disclosure of competitively sensitive proprietary details. The council approved the expanded scope and procurement approach unanimously.