Solid Waste Revenue Bonds to Finance SMaRT
Station® Improvements and Equipment
Matt Paulin
Sunnyvale – City Hall, October 21, 2025
2City of Sunnyvale – Topic/Abbreviated Title – Month Year • Authorize Issuance of Solid Waste Revenue Bonds to Finance SMaRT Station® Improvements and Equipment in an Amount Not to Exceed $50 million
• Authorize the City Manager/Executive Director or the Finance Director/Treasurer to Execute all Related Documents
Overview of Recommended Actions
3City of Sunnyvale – Topic/Abbreviated Title – Month Year The City of Sunnyvale owns and operates the SMaRT Station®, the City-owned waste transfer and processing facility that processes garbage, source-separated curbside and commercial recyclable materials, yard trimmings, food scraps, and construction and demolition debris.
Background
4City of Sunnyvale – Topic/Abbreviated Title – Month Year • Mountain View and Cupertino (beginning January 2027) also send their waste to the SMaRT Station®.
• Much of the equipment has reached the end of its useful life and must be replaced.
• Council awarded the main contract to Bulk Handling Systems (BHS) to deliver the Next Gen project in May 2025
• Total project costs are approximately $51.5 million
Background
5City of Sunnyvale – Topic/Abbreviated Title – Month Year *The City issued a $6.9m payment to BHS following contract execution **Mountain View may contribute $4 million to fund a portion of its share of costs; if so, the bond principal would be reduced accordingly.
Next Gen Project Costs & Sources
Project Costs Cost
Project Expenses to Date (excluding BHS costs) $5,540,000 BHS Contract including contingency* 35,063,175
SSI Compactor including contingency 2,672,831
Other Improvements 8,260,000
Total Project Cost $51,536,006
Project Sources
State Recycling Grant $6,575,000
Bond Proceeds** 44,961,006
Total Sources $51,536,006
6City of Sunnyvale – Topic/Abbreviated Title – Month Year • Expected rating: ~AA (S&P)
• Not to exceed par of $50 million
• Final maturity of November 1, 2045 (20-year term)
Level debt service throughout term
• Security
Semi-annual payments from City’s Solid Waste Fund (including Mountain View MOU payments)
Secured by pledge of net revenues of the Solid Waste Fund City covenants to set rates at a level to pay operating costs plus 120% of the debt service payments
Overview of Bonds
7City of Sunnyvale – Topic/Abbreviated Title – Month Year • Bond and Disclosure Counsel: Jones Hall
• Municipal Advisor: Ross Financial
• Underwriter: Stifel
• Trustee: U.S. Bank
Finance Team
8City of Sunnyvale – Topic/Abbreviated Title – Month Year • Bonds to fund:
$45.4 million total
• $44.9 million of Project Costs
• $420,000 of Transaction Costs (Underwriters’ Discount, Bond/Disclosure Counsel, Municipal Advisor, Rating Fees)
• Annual Debt Service: ~$3.3 million
• Anticipated Interest Rate: ~4.1%
• Total Debt Service: ~$67.1 million
• Financial Plan assumes this debt and includes rate increases between 2- 4%
Financial Impacts
9City of Sunnyvale – Topic/Abbreviated Title – Month Year • Preliminary Official Statement (including Continuing Disclosure Certificate)
Must include all material information about the bonds and Solid Waste enterprise
• Indenture of Trust
• Installment Sale Agreement
• Bond Purchase Agreement
Documents to be Approved
10City of Sunnyvale – Topic/Abbreviated Title – Month Year Next Steps
• October 29: Post Preliminary
Official Statement
• Week of November 2: Price
Bonds
• Week of November 10: Close
Bonds
11City of Sunnyvale – Topic/Abbreviated Title – Month Year Recommendation
City
Adopt a Resolution of the City Council of the City of Sunnyvale Approving Solid Waste Revenue Bonds Issued by the Sunnyvale Financing Authority in the Maximum Principal Amount of
$50,000,000 to Finance SMaRT Station Improvements and
Equipment, Approve an Installment Sale Agreement and Other Documents, Authorize Official Actions and Related Matters, and Approve the Financing Team.
Financing Authority
Adopt a Resolution of the Board of Directors of the Sunnyvale Financing Authority Authorizing the Issuance and Sale of Solid Waste Revenue Bonds in the Maximum Principal Amount of $50,000,000 to Finance SMaRT Station Improvements and Equipment, Adopting a Debt Management Policy, and Approving Related Documents and Actions.