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Council approves franchise allowing Waste Management to serve Compass data centers; franchise carries 10% commercial sales fee

Red Oak City Council · December 10, 2024
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Summary

After a required public hearing with no speakers, the council approved Ordinance 24‑048 granting Waste Management of Texas a nonexclusive franchise to provide commercial solid waste services to Compass data centers; the franchise returns 10% of commercial sales to the city to offset roadway wear.

The council held a public hearing and approved Ordinance 24‑048 granting Waste Management of Texas a nonexclusive franchise to use city rights‑of‑way to provide commercial solid waste and multistream recycling services to Compass data centers.

Jared Minford (staff) explained the franchise responds to a service need not provided by the city’s current contractor and that the agreement includes a 10% commercial sales franchise fee paid to the city to help offset road wear from heavy trucks. The public hearing was opened and no speakers signed up; council closed the hearing and approved the ordinance in the same motion.

Staff said franchise terms include written acceptance and standard provisions including compensation, use of rights‑of‑way and a severability clause. The ordinance passed with recorded votes following the close of the public hearing.