REPORT TO COUNCIL
SUBJECT
Title
Authorize an Amendment to the Memorandum of Understanding Between City of Sunnyvale and City of Mountain View Relating to the Operation of SMaRT Station(r)
Report
BACKGROUND
The Sunnyvale Materials Recovery and Transfer (SMaRT) Station is a City-owned facility located at 301 Carl Road, Sunnyvale. The facility receives municipal solid waste (MSW), source-separated recyclables, and organic materials from the Cities of Sunnyvale and Mountain View. Operations at the SMaRT Station include sorting all the material to recover recyclable and compostable materials, with the remaining residue transferred to the Kirby Canyon Landfill. Additional processing activities prepare recyclables for shipment to recycling markets, food scraps to wastewater treatment plants in East Bay and the Peninsula and other organic material to composting facilities nearby.
The cities of Sunnyvale and Mountain View currently have a fifteen-year Memorandum of Understanding (MOU) approved by Council on June 29, 2021 (RTC 21-0082). The MOU outlines the partnership structure for sharing SMaRT Station operating, capital, debt, and other costs and revenues. The current MOU term extends through December 31, 2036. The City of Cupertino recently executed a separate merchant agreement with the City of Sunnyvale to bring their MSW to the SMaRT Station once the SMaRT Station capital improvements are complete, likely around the beginning of 2027.
Cost Allocation
Under the MOU, the allocation of costs for SMaRT Station operations is determined by each partner city's respective share of materials delivered to the facility. Similarly, costs related to debt service for the replacement or refurbishment of capital items are distributed according to each partner city's incoming tonnage at the time of debt issuance.
Revenues from source-separated recycling materials are distributed based on the types and quantities of materials each partner city delivers. Revenues from the re...
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