Regional Solid Waste System
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Authorize Execution of the Regional Solid Waste System Contract with the City of Melissa; Resolution No. 26-05
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SUBJECT
recommendation
Adopt Resolution No. 26-05 authorizing the Execution of the Regional Solid Waste System Contract with the City of Melissa.
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PURPOSE
Consider the request by the City of Melissa (Melissa) to become a Member of the Regional Solid Waste System (RSWS), and authorize execution of a contract between Melissa and NTMWD containing the same material terms as the contract with the five existing Member Cities.
RECOMMENDATION
The Executive Director, NTMWD staff, and Lloyd Gosselink Rochelle & Townsend, P.C. recommend the Board of Directors adopt Resolution No. 26-05, “A Resolution Authorizing And Directing The Execution of the Regional Solid Waste System Contract with City Of Melissa”
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Contracting Party: |
City of Melissa |
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Scope: |
Regional Solid Waste System Contract |
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Project: |
N/A |
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Amount: |
N/A |
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Committee: |
This was an action item at the March 11, 2026, Solid Waste Committee meeting |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
2.1 Effective Business Practices |
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☐ Regulatory Compliance |
☐ Asset Condition |
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☐ Capacity |
☐ Redundancy/Resiliency |
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☒ Relocation or External Requests |
☐ Operational Efficiency |
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☐ Safety |
☒ Administrative |
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☐ Policy |
☐ Other _____________ |
BACKGROUND
• The City of Melissa is an existing Customer of the Regional Water System and a member of the Regional Wastewater System. Melissa requested RSWS membership effective October 1, 2026, if approved. Melissa also requested, upon membership approval, that their residents be allowed to dispose of household waste up to two times per month at any NTMWD facility under the Acceptable Waste program afforded to the RSWS Member City residents.
• City of Melissa is evaluating the logistics and process for implementing the resident participation request, and at this time desires flexibility in setting the start date of the resident drop-off program to a period between approval of this resolution and the effective date of the Contract.
• If the resident drop off program commences before the effective date of the Contract, the District will invoice the City of Melissa at the end of the fiscal year for the disposed resident drop off tons calculated using the same methodology as the current Member Cities at the year-end true-up Member City cost per ton rate.
• Melissa had a population of approximately 26,000 in 2025 and is projected to grow to an anticipated buildout population of approximately 90,000 over the next 15 years.
• For fiscal years 2023, 2024, and 2025, Melissa delivered between 90 and 95 percent of the waste generated within the city to the NTMWD 121 Regional Disposal Facility (RDF) and those tons comprised less than 2 percent of the tons accepted at the landfill during those fiscal years.
• An evaluation was performed on the 121 RDF site life, capital needs, and financial impact on the RSWS 10-year strategic financial plan. There was no impact to the currently projected 41 years of remaining site life if Melissa were to become a RSWS Member City. Additionally, there is no infrastructure to be purchased from Melissa, nor are there any capital improvements or accelerated capital spending required. The 10-year Strategic Financial Plan cost per ton with Melissa as a RSWS Member City projects a $0.42 increase to the current projected fiscal year 2027 RSWS Member City rate and decreases annually until fiscal year 2030, when it becomes lower than without Melissa as a RSWS Member City.
• NTMWD staff reviewed the request and has determined that it is sufficient for presentation to the Board for consideration of approval.
• Section 8.02 (b) of the Amended and Restated Regional Solid Waste System Contract provides the process for a city to become an additional RSWS Member City. This includes:
o Submitting a formal request.
o An evaluation to enable NTMWD to ascertain or estimate the requirements of the proposed additional RSWS Member City for the ensuing ten (10) year period.
o Board of Directors calls a hearing and notifies all RSWS Member Cities to review the request.
o Board of Directors determines if the proposed additional RSWS Member City shall become a RSWS Member City.
• This hearing was authorized at the February 26, 2026, Board of Directors meeting and the hearing was held on March 3, 2026. No comments were received.
• Components of the contract with Melissa include:
o Term: at least until all bonds are paid in full and thereafter throughout the useful life of the RSWS.
o All solid waste to be delivered or caused to be delivered to District facilities.
o Methodology for determining annual financial requirements.
o Melissa pays a proportionate financial share based on tons delivered.
o Break-even financial system with fiscal year-end true-up.
• In accordance with the Amended and Restated Regional Solid Waste System Contract between NTMWD and the current RSWS Member Cities, the contract is, to the extent practicable and applicable, the same terms and provisions in all matters of substance.
• A draft copy of the contract is provided as an attachment.
FUNDING
N/A