Title
Consider/Discuss/Act on a Resolution Authorizing the Interim City Manager to Sign a Memorandum of Understanding Between North Texas Municipal Water District, Cities of Allen, Frisco, McKinney, Plano, and Richardson Regarding Amended and Restated Regional Composting Interlocal Agreement
Summary
COUNCIL GOAL: Operational Excellence
MEETING DATE: April 19, 2016
DEPARTMENT: Public Works
CONTACT: Eric Hopes, Solid Waste & Fleet Superintendent
RECOMMENDED CITY COUNCIL ACTION:
• Approve Resolution
ITEM SUMMARY:
• Resolution authorizes the Interim City Manager to sign a Memorandum of Understanding between North Texas Municipal Water District, cities of Allen, Frisco, McKinney, Plano, and Richardson regarding amended and restated Regional Composting Interlocal Agreement.
BACKGROUND INFORMATION:
• A 2002 North Texas Municipal Water District (NTMWD) study, the Regional Solid Waste Management Plan, recommended development of a regional composting program. Composting of yard waste, tree trimmings, and organic wastes yields a beneficial use stream of various composted products. Composting is done at a reduced cost to placing compostable materials in the landfill and is viewed as a beneficial "green" initiative. The practice also diverts "compostable" waste from the landfill and thus significantly extends the landfill life. Given the regulatory and environmental challenges to permit the site for a new landfill, waste diversion is a highly meritorious goal as it extends landfill life.
• At the time of the regional study, the City of Plano was already successfully operating a City of Plano compost operation to reduce their waste disposal costs and create a marketable "green" product. With agreement of the other four NTMWD solid waste member cities, the initial contract for composting all of the Member City materials was awarded to the City of Plano. Plano has now operated the NTMWD Member City Compost Program since 2003.
• A small percentage of compostables arrive directly at the 121 Regional Disposal Facility (RDF). However, almost all compostable materials are delivered by member cities to the Custer Road transfer station site for volume reduction by grinding. Plano's equipment reduces the materials and transports the materials to the regional compost site. Since opening of the 121 RDF, the compost site has been located at that site. Plano is responsible for receiving, reducing, processing, and marketing of the various materials produced. Plano effectively pays the same disposal cost for dropping off materials as any other Member City. However, under their NTMWD contract they remain solely responsible for the profit or loss of the overall compost operation.
• Improvements of the Custer Road Transfer Station grind area and development of the 121 RDF composting site infrastructure is undertaken by NTMWD as a member city project funded from solid waste disposal fees paid by all five member cities. NTMWD is budgeting near-term site improvements at both sites that will increase program efficiency and productivity. The NTMWD contractor (Plano) must fund all specialized composting equipment, the compost operation staff, and the marketing/sales efforts for the finished product.
• NTMWD has recently developed an updated Interlocal Cooperation Agreement (ILA) with the City of Plano to continue as contractor for composting operations. At the operational level, the other member cities have enjoyed a positive working relationship with the contractor (Plano) since program inception and therefore support the renewal of Plano's original contract by the NTMWD Board of Directors. A copy of the NTMWD ILA with Plano is provided as an Attachment to this agenda form.
• NTMWD and the member cities have also developed a Memorandum of Understanding (MOU) between the five cities and NTMWD. The MOU guarantees member city support of the composting operation by NTMWD’s contractor (Plano). The MOU includes the following key provisions:
o Cities will deliver all their compostables to either the Custer Road Transfer Station or the 121 RDF for composting.
o Cities may divert to other disposal sites or composting operations their compostable waste stemming from ice or wind storms that cause a short but dramatic rise in compostable materials that cannot be managed at the NTMWD composting site.
o Cities will assist in marketing of the Plano’s “Texas Pure" composting products by advertising to residents in some form at least quarterly. This may be done by efforts such as: the City website, providing utility bill stuffers, providing notes on the City utility bill, or through ACTV promotional spots.
o The contractor may adjust composting drop off charges by the consumer price index annually, however, the cost for composting operations shall never exceed 85% of the overall NTMWD per ton cost charged to the member cities. The composting cost under the new ILA is $23.27 per ton for materials dropped off at the Custer Road Transfer Station versus the $38.25 per ton for other materials going into the landfill; about a 40 percent reduction in cost over "landfilling" compostables.
• Cities will support the composting infrastructure improvements at the Custer Road Transfer station and the 121 RDF Capital Improvement Program. This is largely concrete hard surfaces and road improvements to increase the efficiency of composting. These improvements are already factored into the current NTMWD long-range rate projections.
• All member cities have expressed their agreement with both the ILA and MOU. At the February NTMWD Board of Director’s meeting, the Board approved the NTMWD Executive Director signing both the ILA and MOU contingent upon all member cities signing the MOU to assure everyone is in agreement with the program detailed in the ILA and MOU. Both the Plano-NTMWD ILA and the Member City-NTMWD MOU are straightforward agreements that will preserve currently working relationships related to the NTMWD Member City composting program. To complete the new contract process, the member cities must now sign a MOU with NTMWD to support the composting program operating under the NTMWD and Plano ILA.
• City of McKinney entered into the initial MOU with NTMWD in April 2003. It remains in effect until April 30, 2016.
FINANCIAL SUMMARY:
• Funding in the amount of $100,000 is available in account: 007-4405-503-8516
BOARD OR COMMISSION RECOMMENDATION:
• N/A