Authorizing the City Manager to grant a non-exclusive franchise to DebriCo LLC to use the present and future streets, avenues, alleys, roads, highways, sidewalks, easements and other public rights-of-way of the City of Laredo, Texas for purposes of constructing, maintaining and operating a commercial container refuse gathering and disposing service, setting forth terms and conditions to govern the franchise; providing a severability clause, a savings clause and an effective date. Franchise fees will be deposited in the General Fund.

The City Council is considering authorizing the City Manager to grant a non-exclusive franchise to DebriCo LLC for commercial container refuse gathering and disposal services. This franchise will allow DebriCo LLC to use the City's present and future streets, avenues, alleys, roads, highways, sidewalks, easements, and other public rights-of-way for constructing, maintaining, and operating their service.

Key terms of the franchise include:

• Term: 10 years, ending in 2036, effective 60 days after final adoption.
• Franchise Fee: 4% of gross receipts paid quarterly to the City's General Fund. This fee is subject to review every two years and may be increased based on factors like the Consumer Price Index, customer base growth, economic conditions, and fees paid in comparable communities.
• Service Rates: Initial service charges for customers are detailed in Exhibit A, including a $320.00 rate per empty 14-yard container and an $85.00 per ton fee for weight over 2 tons. These rates can be increased by DebriCo LLC without City Council approval only if the increase directly offsets an increase in landfill fees charged by the City.
• Service Area: The franchise applies to operations within the City Limits of Laredo.
• Indemnification: DebriCo LLC will indemnify and hold harmless the City from any claims arising from their operations.
• Insurance: DebriCo LLC must maintain Workers Compensation, Automobile Liability Insurance (minimum $1,000,000 per occurrence), and General Liability Insurance (minimum $1,000,000 per occurrence).
• Landfill Use: DebriCo LLC agrees to use only the city's municipal solid waste facilities for disposal and will pay all associated landfill fees.
• Default and Termination: The agreement outlines events of default, including failure to perform terms, non-compliance with laws, or bankruptcy. The City may terminate the franchise after providing written notice and an opportunity to cure, with final termination requiring City Council ratification.
• Liquidated Damages: Penalties are established for failure to provide data ($100/day), failure to pay fees ($200/day), and other violations ($100/day).

This ordinance is scheduled for three readings, with the first reading on January 16, 2026. It requires acceptance by DebriCo LLC within five days of final adoption.