CC 09-16-2025 Item No. 17 MOU City of Cupertino and public agencies in Santa Clara County_Desk ItemCC 09-16-2025
Item No. 17
MOU City of Cupertino
and other local public
agencies in Santa Clara
County
Desk Item
CITY COUNCIL STAFF REPORT
DESK ITEM
Meeting: September 16, 2025
Agenda Item # 17
Subject
Memorandum of Understanding (MOU) between the City of Cupertino and other
local public agencies in Santa Clara County to fund the Composting Education
Program in the amount of $9,186.90 (January 2026 – June 30, 2027, with an option for
a two-year extension)
Recommended Action
Authorize the City Manager to execute an MOU between the City of Cupertino and
other local public agencies in Santa Clara County to fund the Composting Education
Program and allocate $9,186.90 from Resource Recovery Fund 520 for Cupertino’s
share of program costs for the term January 2026 – June 30, 2027, with no impact to
the General Fund.
Background:
Staff’s responses to questions received from councilmembers are shown in
italics.
Q1: The contract on the agenda is "to fund the Composting Education
Program in the amount of $9,186.90 (January 2026 – June 30, 2027, with an
option for a two-year extension)." Does the contract come back to the Council
for approval before expending for two more years?
Staff response: The contract could come back to Council if so directed but that is not
legally required.
If the answer is no, the total cost of this agenda item, if approved, is in fact 3 x
$9,186.90 for the next three years, right?
Staff response: The cost per year is $4,593.45. The initial agreement term covers FY
25-26 and FY 26-27 for a total of $9,186.89. An extension of two years would cover
FY 27-28 and FY 28-29 at a similar total (most likely adjusted by CPI) that would be
agreed upon by the parties.
Q2: The staff report states "The activities will be funded by the City through
Resource Recovery Fund 520, with no impact to the General Fund." What has
the City budgeted Resource Recovery Fund 520 for in the past? How much
total funding is there a year from this fund? The funding source?
Staff response: Resource Recovery Fund 520 funds the Resource Recovery program
within the Environmental Programs division of Public Works. The Resource Recovery
program manages the City’s garbage and recycling franchised hauler contract and
provides garbage and recycling customer service for residents and business owners;
manages the City's garbage disposal contract; develops and implements programs to
comply with State source reduction and recycling mandates; and represents the City
on countywide committees. The public education and outreach programs led by this
division include visits to businesses and apartment complexes to provide recycling
instruction, kitchen containers, and visual materials; presentations at events and
schools and employee training for businesses on-site as needed.
Approved budget for Resource Recovery for FY 25-26 is approximately $2.96 million.
Resource Recovery Fund 520 is an Enterprise Fund receiving revenue from the solid
waste collection franchise.
Q3: This item is a contract for $9,186.90 for the duration of one year: January 2026 –
June 30, 2027. The staff report states "In 2024, the CEP conducted 37 compost
workshops, 21 events, and worked at 24 schools across Santa Clara County, including
two events hosted in Cupertino. Fifty-two Cupertino residents attended workshops
in 2024, up from 41 in 2023." So, we are spending over $9100 for the 52 residents who
attend the workshop.
Staff response: As noted in the staff report, the following services would be provided under the
scope of the MOU:
• Educational Outreach and Workshops
o Workshop delivery – at least 25 workshops across the County, including 3-6
workshops specifically in the Central area of the county.
o Community engagement – participation in 15 community events across the
County, including some in Cupertino, such as Earth and Arbor Day Festival.
o School composting education and support – support at least ten K-12 schools,
1500 students, and installation of compost systems in up to five K-12 schools
(countywide).
• Technical Support and Services
o Direct assistance – referrals, online requests.
o Resource distribution – inform participants about access to free compost bins for
Cupertino residents who complete trainings.
• Program Development and Expansion
o Regulatory compliance outreach – develop and expand outreach on SB1383
requirements, organic waste recycling, food waste reduction, and curbside
collection.
o Demonstration site operation and enhancement
o Master composter volunteer training
Q4: Some cities have not opted in to the MOU to providing funding for the program,
such as Sunnyvale. What are those cities? Will their residents still attend the
composting workshops, paid for by Cupertino?
Staff response: All jurisdictions in the County were given the option to provide funding. The
cities that did not opt in were Sunnyvale, Campbell, Monte Sereno, Los Altos, Los Altos Hills,
Los Gatos, Milpitas, Saratoga. Non-participating jurisdictions will not be able to host
workshops, but any resident in Santa Clara may attend any workshop.
Q5: The staff report states "The Composting Education Program has historically been
funded by the Solid Waste Planning Fee (SWPF) which is assessed on each ton of
waste disposed of in a landfill in Santa Clara County. ... The successful
implementation of SB 1383 organics diversion programs has significantly reduced
landfill disposal tonnage countywide, causing SWPF revenue to decrease. At the
same time, the costs of the programs have been increasing." It seems such a county-
wide program should be funded by the County. Have they requested funding from
the County?
Staff response: The County provides space for the CEP to operate at the Berger Drive location.
The County was unable to provide funding for the whole program but as a jurisdiction,
Unincorporated County is participating.
Q6: The staff report states "... significantly reduced landfill disposal tonnage
countywide, causing SWPF revenue to decrease. At the same time, the costs of the
programs have been increasing." How much has the program cost increased in the
past years and why? What has been done to control the cost of the program, given the
reduction in funding?
Staff response: CEP cost in recent years has increased by about 4% per year largely due to CPI
adjustment. When advised of the budget issues experienced by the Recycling and Waste
Reduction Commission as a result of declining SWPF revenue, the CEP scaled back its
budget, reducing and consolidating staffing and relying more on volunteers. Budget was
further scaled back to reflect the reduction in participating jurisdictions.
Attachments Provided with Original Staff Report:
A – FY 25-27 Draft MOU