CC 06-17-2025 Item No. 13. Post-Collection Service Agreements_Staff PresentationCupertino City Council Meeting
June 17, 2025
Post -Collection Services
Garbage and Construction & Demolition Debris
•Current landfill agreement ending, need new agreements:
•Construction & Demolition Debris
•Garbage from homes and businesses
•Costs are passed along as part of Recology’s garbage rates.
•Increased costs are in addition to Recology’s rates.
•Recology offers ~50% discount to low-income residents.
•No impact to General Fund.
Overview: Garbage After Collection
How post-collection works currently
•Recology Franchise Agreement for collection of
all materials (garbage, recyclables, organics)
and construction & demolition (C&D) debris.
•International Disposal Corp. of California, Inc. to:
•Dispose of garbage at Newby Island
Landfill (Newby).
•Process and dispose of C&D debris at
Newby.
Currently two agreements for garbage:
No change to green and blue cart handling. Recology
agreement includes processing recyclables and organics:
•Material in green carts/bins is processed into compost
at two Recology facilities
•Material in blue carts/bins is processed for sale on the
recyclables market at GreenWaste in San Jose
Today’s agreements do not affect these materials .
Recology handles the blue & green cart materials
•Material in gray carts/bins and in debris boxes is taken
directly to Newby Island Landfill:
•Garbage disposed directly to landfill
•C&D debris sorted before disposal
•Agreement ends in November 2025.
•New agreements needed for disposal
of trash and processing of C&D debris.
Disposal of Garbage
•On May 2, 2023, Council considered this topic.
•Council expressed interest in processing if customer cost
increases could be limited to $5 -$8/month.
•Council requested staff conduct RFP for new agreements,
including garbage processing option.
Past Council Direction
New Agreements for Consideration
Garbage and C&D debris boxes only
1.C&D debris processing
2.Landfill disposal of garbage
3.Processing of garbage (removed from RFP)
•Only City of Sunnyvale had capacity to accept
additional tons at SMaRT Station®
•Municipal code allows sole-source discussions with other
public agencies
•Parallel process initiated with Sunnyvale
Proposals for three services:
•Zanker Road Resource
Management, LLC
•Increased diversion for
construction projects helps
meet CalGreen 65%.
•Slightly closer than Newby
•Rates for debris boxes will
increase 7% -10%
($701/box increased to $747).
Winning Proposal for C&D: Zanker (GreenWaste)
•International Disposal Company of
California, Inc. which operates Newby
Island Landfill in the Milpitas area.
•Same destination as now.
•Rates for residents would increase
about $0.06/month.
•Includes exit clause should Council
direct garbage to be processed.
Winning Proposal for Landfill: Newby
•Will reduce tons to landfill by ~half
•Would increase residential
garbage rates by approximately
$6.25/month starting in early 2027.
•Facility will be under construction
for upgrade until late 2026.
Processing Garbage Through the SMaRT Station ®
•“Rescues” recyclable and
compostable material erroneously
disposed in garbage
•Supported by:
•CAP action W1.2
•Sustainability Commission
•Zero Waste Policy items 1&12
•General Plan Policy INF 7.1
Processing Garbage
What does Cupertino put in the garbage?
Garbage
generation by
sector
Single-
Family
36%
Multi-Family
17%
Commercial
47%
Municipal
0.35%
SMaRT Station®: Partner vs Merchant?
•Partner (join Sunnyvale and Mountain View):
•Lower per-ton rate = $6/month extra for residents
•Share in costs, revenues, debt service = budget variability
•Proportional obligation based on tons delivered (~7%)
•Participate in facility oversight and planning
•Access to drop-off area & other ancillary services
SMaRT Station®Ancillary Services
Access for residents 7 days per week at no additional cost:
•Drop-off of electronic waste, used paint, antifreeze, motor oil,
cooking oil batteries, medical “sharps”, recyclables, mattresses.
•Access to the “Reuse Trailer” where usable furniture or other
types of items are available to take
•Pickup of compost and mulch (currently available under short
term agreement)
•Confidential document shredding events, free dump days.
•Pay-to-throw by material type.
Cupertino residents already have access to
most of those services through Recology or third
party take-back programs:
•Environmental Days (shredding, e-waste drop-off)
•Recology picks up batteries, oils, extra bulky items
•Third party take-back available (PaintCare, Med-Project)
•City provides compost seasonally
SMaRT Station®: Partner vs Merchant?
•Merchant (pay by the ton)
•Higher per-ton rate = $6.25/month for residents
•No share in variable costs and revenues = stable budget
•No access to ancillary services
•No participation in oversight and planning
SMaRT Station®:
Partner vs
Merchant?
Rate Impacts
and
Comparisons
* process garbage
Recommendation: Merchant Agreement
•Partnership has financial risks and obligations
•Possibility of unforeseen costs
•Debt service obligation for the upgrade
•Scope of the impact of those risks and obligations is not fully
understood
•Recommend a Merchant agreement, while retaining option
for partnership in future
•Use of SMaRT Station®would only begin after upgrade (2027)
Conclusion
•Approve execution of Zanker agreement to begin receiving
and processing C&D debris starting Nov 21, 2025.
•Approve execution of new IDC agreement to continue
receiving garbage for landfilling starting Nov 21, 2025.
•Rate changes from those will begin Feb 1, 2026.
•Approve execution of SMaRT Station®Merchant agreement to
begin receiving and processing garbage starting AFTER they
complete their upgrade.
Budget Adjustment
•The end of current landfill agreement is November 20, 2025.
•Recology rates adjust on February 1, 2026.
•To avoid changing rates twice, recommend using $35,000 of
Resource Recovery Fund 520 balance to cover the difference
in cost for that 10-week period.
Recommended Actions
1.Adopt Resolution No. 25-___ approving the following agreements for
post-collection services, and authorizing the City Manager to
execute the agreements in substantially the same form as
presented:
a.An agreement with Zanker Road Resource Management, LLC for solid
waste construction and demolition (C&D) material processing services
to begin November 21, 2025, with a ten -year term.
b.An agreement with International Disposal Corporation of California,
Inc., for disposal of garbage at Newby Island Sanitary Landfill Facility
with a ten -year term.
c.A Merchant agreement with the City of Sunnyvale for garbage
processing at the Sunnyvale Materials Recovery and Transfer Station
(SMaRT Station®) and residue disposal for a term of 20 years.
Recommended Actions (cont.)
2.Adopt Resolution No. 25-XXX approving Budget Modification #2526 -
395 increasing appropriations in the Resource Recovery (Fund 520)
budget by $35,000 to cover differences in disposal and C&D
processing cost during the period between November 21, 2025 and
January 31, 2026, allowing customer rates to remain unchanged until
the beginning of Recology’s Rate Period Six, which begins February
1, 2026.
Questions and Discussion