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Presentation to Council RTC No 25-0738 - 20250812

Sunnyvale City Council
August 12, 2025

Document
Presentation to Council RTC No 25-0738 - 20250812
Meeting
August 12, 2025
Body
Sunnyvale City Council
Original file
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Text extracted from the city's file for reading and search. Open the original on legistar.granicus.com. That file is the official record.

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!

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