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Cupertino council approves new garbage and construction‑debris contracts, greenlights Sunnyvale 'smart station' merchant agreement
Summary
Council authorized agreements with Zanker for construction and demolition processing, International Disposal (Newby Island) for landfill disposal, and a merchant agreement with Sunnyvale's smart station; members debated cost impacts and timing for processing that would increase residential bills if implemented.
The Cupertino City Council authorized three post‑collection agreements covering garbage disposal and construction and demolition (C&D) debris processing and approved a budget modification to cover a brief interim period while contracts take effect.
Public works and sustainability staff told the council they negotiated a 10‑year agreement with International Disposal Corporation to continue using Newby Island Landfill for disposal, and an agreement with Zanker Resource Management to process construction and demolition debris. Staff also presented a merchant agreement with the City of Sunnyvale to use Sunnyvale's SMART Station for post‑collection processing of garbage after Sunnyvale's planned facility upgrade is complete. "If Cupertino decided to send garbage to be processed, it would not remove or replace the green carts and bins," sustainability manager Ursula said during the presentation.
The council heard staff estimates for rate impacts. Switching landfill providers would increase the average residential bill by about $0.06 per month. Using the Sunnyvale SMART Station to process garbage — which rescues recyclables and organics from the gray bin — was estimated to add about $6.25 per month (roughly $72 per year) per household, but would not begin until Sunnyvale completes its upgrade, currently estimated near the start of 2027. Staff recommended a merchant agreement with Sunnyvale rather than a partnership to avoid shared bond‑debt risks; a merchant agreement carries no expected unknown future obligations but does not provide access to SMART Station ancillary services and planning oversight.
Council debate and public comment focused heavily on cost and equity. Council member Wong opposed the action, saying a mandatory $72 annual increase would disproportionately affect residents on fixed incomes. Several public speakers urged delaying or rejecting the SMART Station merchant agreement because of the near‑term cost increases and concerns about vendor performance; other speakers supported processing on environmental grounds, noting that about 46% of the city's gray‑bin material is organic and that more than 60% of the current waste stream is recoverable according to a 2024 waste characterization study presented to council.
The council voted to authorize the city manager to execute agreements with Zanker Resource Management (C&D processing) and International Disposal Corporation (Newby Island Landfill) and to enter a merchant agreement with the City of Sunnyvale for SMART Station processing after its upgrade. The motion passed on a roll call vote with Council member Wong voting no (Council members Fruin, Mohan, Vice Mayor Moore and the Mayor voted yes). Staff also obtained council approval to cover an interim rate period from the Resource Recovery Fund (not to exceed $35,000) so rate changes align with Recology's billing cycle.
Staff noted Recology will continue to bill residents and that eligible low‑income customers receive a discount (about 50%) through Recology's assistance program. If the council later chooses to route garbage to processing, staff said they would begin that service after Sunnyvale's upgrades and after the city's next scheduled rate adjustment period.
The agreements approved are scheduled to take effect Nov. 21, 2025; the council approved related budget adjustments and authorized the city manager to sign the contracts.
