SMaRT Station® NextGen Project
Equipment Contracts
2City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Agenda
SMaRT Station® Overview
NextGen Project Goals
NextGen Project Scope
Costs and Funding
Recommendations
5 3City of Sunnyvale – SMaRT Station NextGen Project– May 2025 2018
SMaRT Station Opens
NextGen Project
Development
1990 2000 2010 2020
Landfill Closes
SMaRT Timeline
Equipment
Added
NextGen Execution
(2025-2027)
4City of Sunnyvale – SMaRT Station NextGen Project– May 2025 SMaRT Incoming Waste Streams
Garbage/Municipal Solid Waste Tree and Yard Trimmings
Bottles, Cans & Containers Paper & Cardboard
Food Scraps
Construction and Demolition
Material
Source Separated Recyclables
5City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Waste Stream Composition Partner Cities Tonnage Share
Incoming Waste Stream (~185,000 tons/year)
Mountain View 28%
Sunnyvale 72%
Garbage,
71%Source Separated
Recyclables, 9%
Yard
Trimmings, 9%
Food Scraps,
6%
Construction Debris,
5%
6City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Existing Process
Existing
Garbage
Processing System
Existing
Garbage
Compactor
Existing
Source Separated
Recyclables Processing
System
Existing
Yard Trimmings
Processing
Existing
Food Scraps
Processing System
7City of Sunnyvale – SMaRT Station NextGen Project– May 2025 NextGen Project Goals
1. Replace old and failing equipment that is past its useful life
2. Improve efficiency - Provide single integrated system for garbage and source separated recyclables
3. Increase Diversion
• Become a high-diversion organics processing facility
• Increase recyclables recovery
• Increase overall diversion
4. Increase Purity (Quality) of Recovered Material
8City of Sunnyvale – SMaRT Station NextGen Project– May 2025 • Council Policy 3.2.4 - Zero Waste: City will work to reduce the amount of Sunnyvale waste being disposed.
• Council Policy 7.1C.1.3 Capital Improvement Policies
• Council Policy 3.2.1 Solid Waste Management, Goal 3.2F: Maintain sound financial strategies and practices
• SMC Chapter 2.08 - Requests for Proposals Best Value Process and Sole Source Goods or Services
Council Policies and Municipal Codes
9City of Sunnyvale – SMaRT Station NextGen Project– May 2025 • Initial procurement in 2023 rejected all bids – only one bid, substantially over budget
• Readvertised for RFPs in May 2024
• Received 3 proposals in August 2024
One proposal deemed non-responsive
Staff assessed remaining two proposals
Bulk Handling System (BHS) selected as the most qualified candidate Negotiations to refine design, scope of work and cost Procurement Process
10City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Proposed Project
11City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Contract Scope
Bulk Handling System (BHS) System:
• New Equipment
• Supporting structures
• Electrical controls
• Sort cabins with HVAC
• Installation, commissioning, testing & training
BHS - Air Separator
BHS - Optical Sorter
12City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Sierra Recyclables Baler Disc Screens
BHS Contract - New Equipment
13City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Shredding Systems Incorporated (SSI) Contract – Pre-Load Garbage Compactor
14City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Work Done To Date
• Refurbishment of the Tip Floor
• Bag Opener/Shredder
• Electrical Feeder Line
• Other Professional Services
Tip Floor
Bag-opener/Shredder
15City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Other NextGen Improvements (separate contracts)
• Retrofit of existing trommel screens
• Upgrade existing conveyor belts
• Facility-wide Asphalt paving
• Fire suppression system
• Ancillary civil & structural work
Trommels
Old Conveyor Belts
16City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Project Costs
NextGen Project Components Cost (In Millions)
Project Expenses to Date $5.54M
BHS Contract including contingency $35.06M
SSI Compactor including contingency $2.55M
Other NextGen Improvement Projects $8.26M
Total Project Cost $51.41M
CalRecycle Grant* $6.57M
Net Project Cost $44.84M
*Just awarded; will bring to Council for acceptance in June 2025 17City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Project Outcomes
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Garbage Diversion
Organic Diversion from Garbage
Source-Separated Recyclables
Overall SMaRT Station Wide Diversion
Current Diversion Increased Diversion
• Automation is expected to reduce number of manual sorters • Estimated Project timeline is 18 months
18City of Sunnyvale – SMaRT Station NextGen Project– May 2025 • Request budget modification of $16.75M to Project 828260 to fund entire project cost
• Project will be funded through issuance of revenue bonds • Annual Debt service is expected to be $3.4M
• Solid Waste 20-year Financial Plan reflects estimated debt service • Shared between Sunnyvale (~72%) and Mountain View (~28%) • Future partners also expected to pay their share of project costs Fiscal Impact & Project Funding
19City of Sunnyvale – SMaRT Station NextGen Project– May 2025 • City Council certified Environmental Impact Report in 1990. • Addendum #3 prepared for the NextGen Project.
• No major revisions are required as no new environmental impacts.
Environmental Review
20City of Sunnyvale – SMaRT Station NextGen Project– May 2025
1. Accept Addendum #3 to the previously certified Environmental Impact Report (State Clearing House No. 89022812);
2. Award a Service Agreement in substantially the same form as Attachment 1 to this report in an amount not-to-exceed $34,545,000 to Bulk Handling System (BHS) Inc. of Eugene OR. for the purchase and installation of the SMaRT Station Municipal Solid Waste and Source Separated Recyclables Integrated Processing System (NextGen) Project;
3. Approve a 1.5% contingency for the project in an amount not to exceed $518,175;
4. Approve a purchase agreement in the amount of $2,512,147 to Shredding Systems Incorporated (SSI) of Wilsonville OR, for the purchase of a pre-load compactor and approve a 1.5% contingency for the compactor in the amount of $37,682;
5. Approve Budget Modification No. 24 in the amount of $16,735,288;
6. Adopt a Resolution declaring the intention to reimburse expenditures from the proceeds of solid waste revenue bonds to be issued by the Sunnyvale Financing Authority, and directing certain actions;
7. Authorize the City Manager to execute both agreements when all necessary conditions have been met; and
8. Authorize the City Manager to execute amendments to both contracts to incorporate the contingencies Staff Recommendation: Alternatives 1-8
21City of Sunnyvale – SMaRT Station NextGen Project– May 2025 Questions