Regional Solid Waste System
title
Second Modification of Interlocal Cooperation Agreement between NTMWD and City of Plano, and Companion Memorandum of Understanding between NTMWD and Cities of Allen, Frisco, McKinney, Plano, and Richardson Regarding Amended and Restated Regional Composting Program
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SUBJECT
recommendation
Authorize the Executive Director to execute the Second Modification of Interlocal Cooperation Agreement (ILA) Between North Texas Municipal Water District and the City of Plano, Texas for Amended and Restated Regional Composting Program, and execute the companion Second Modification of Memorandum of Understanding (MOU) Between North Texas Municipal Water District, Cities of Allen, Frisco, McKinney, Plano, and Richardson Regarding Amended and Restated Regional Composting Program Interlocal Agreement.
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PURPOSE
The five Regional Solid Waste Member Cities (Member Cities) desire to modify the ILA between NTMWD and Plano to extend the term through September 30, 2030, and define the process for distributing surplus funds, if any, at the end of each fiscal year, and the deficit true up process, if any, at the end of each fiscal year. The companion MOU is modified to incorporate the surplus funds and deficit true up process and an agreement that the NTMWD and Member Cities will participate and complete negotiations by September 30, 2028, for any future operation changes to the program.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors authorize the Executive Director to execute the Second Modification of the ILA and the Second Modification of the companion MOU for the Amended and Restated Regional Composting Program upon the Plano City Council authorization to execute the same documents and the cities of Allen, Frisco, McKinney, and Richardson executing the companion MOU.
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Contracting Party: |
City of Plano for Second Modification to ILA and Cities of Allen, Frisco, McKinney, Plano, and Richardson for Second Modification to MOU |
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Scope: |
Execution of Second Modification of ILA and Second Modification of companion MOU |
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Project: |
N/A |
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Amount: |
N/A |
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Committee: |
This was a discussion item at the November 19, 2025, and January 21, 2026, Solid Waste Committee meeting |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
2.2 Conscientious Environmental Stewardship |
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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
Second Modification of ILA between NTMWD and Plano
• Original ILA and companion MOU executed April 2016; initial term is 10 years.
• First modification to ILA effective October 1, 2023.
• Second modification extends contract term through September 30, 2030.
• Effective date of October 1, 2025, even if executed after that date.
• Defines Surplus Fund Allocation process.
• Defines Deficit True-Up Allocation process.
• If Member City doesn't reimburse Plano for a shortfall, the amount will be offset from a future year surplus.
Second Modification of the MOU between NTMWD and Solid Waste Member Cities
• Executed concurrently with ILA in April 2016.
• First modification to MOU effective October 1, 2023.
• Contractually commits all Member Cities to follow surplus funds and deficit true-up allocation process.
• If Member City doesn't reimburse Plano for a shortfall, the amount will be offset from a future year surplus.
• Agree to participate in and complete negotiations by September 30, 2028, for long-term operational changes to the program.
• Effective date of October 1, 2025, even if executed after that date.
Both documents are attached.
FUNDING
Funding for the preparation and review of these agreements is to be made available in the Regional Solid Waste System fiscal year 2026 Operating Budget (Account 401-5523-531400 Legal Service).