SMaRT Station® Merchant
User Agreement
Shikha Gupta
Solid Waste Programs Division Manager, ESD
2City of Sunnyvale – Cupertino Merchant agreement – August 2025 SMaRT Station® Details
•Sunnyvale Material Recovery
Transfer Station
•Capacity: 1500 tons / day:
•Available: 800 tons / day
•Operated by Bay Counties
SMaRT
•Partner: City of Mountain View
3City of Sunnyvale – Cupertino Merchant agreement – August 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
4City of Sunnyvale – Cupertino Merchant agreement – August 2025 City of Cupertino
• Waste Hauler - Recology
• Mixed Waste is currently
landfilled at Newby
• Merchant user agreement for:
15,000 tons of Mixed Waste (garbage)
processing and related disposal
Organics Recycling Mixed Waste
Cupertino’s collection system:
5City of Sunnyvale – Cupertino Merchant agreement – August 2025 • Cupertino City council approved RFP for garbage processing on May 2, 2023
• Sunnyvale City Council approved staff to submit a proposal for RFP on June 27, 2023
• Cupertino decided to engage with Sunnyvale in direct negotiations due to proximity and available capacity at SMaRT Station
BACKGROUND
6City of Sunnyvale – Cupertino Merchant agreement – August 2025 • Partner: All costs and benefits are shared (like City of Mountain View)
• Merchant User: Per ton pricing
• Staff negotiated both options with Cupertino
Provided per ton rates
Discussed pros and cons
Discussed draft Assumption agreement for partner
Discussed draft merchant user agreement
Timing of the agreement
Merchant User vs Partner
7City of Sunnyvale – Cupertino Merchant agreement – August 2025 Partner Cities (Sunnyvale & Mountain View)
Economies of scale
Generate ~$2M/year in new revenue; will improve SMaRT Station’s net financial position.
Utilize available capacity
Cupertino
Meet Zero Waste goals
Increase landfill diversion (from 0% to 50%)
Reduced Cost
Benefits to Partner Cities and Cupertino
8City of Sunnyvale – Cupertino Merchant agreement – August 2025 Proposal Details
• Cupertino seeking Merchant User option
• Pricing (per ton) takes into account:
Operating costs
Landfill disposal costs
Equipment and facility maintenance
General Fund Costs
Capital costs (NextGen Improvements)
• Term: 20 years
• Processing will begin after NextGen improvements are
complete (Jan 2027)
9City of Sunnyvale – Cupertino Merchant agreement – August 2025 Alternative 1: Authorize the City Manager to execute
the SMaRT Station Merchant User Agreement between
City of Sunnyvale and City of Cupertino
Staff Recommendation
Thank You!