City Solid Waste Management

View the model documents used in this discussion.

This content conveys general information. Do not use it as a substitute for legal advice; consult your attorney for advice concerning specific situations. 

Authority, oversight, and definitions

Authority to regulate

All cities can provide for or regulate by ordinance the disposal of sewage, garbage, and other refuse. This broad grant of police power allows cities to regulate the collection and disposal of solid waste. (Minn. Stat. § 412.221, subd. 22(a)(3); Minn. Stat. § 410.33; Troje v. City Council of City of Hastings, 310 Minn. 183, 245 N.W.2d 596 (1976))

Authority to acquire, construct, and operate solid waste facilities — first class cities

First class cities (Minneapolis, St. Paul, Duluth, and Rochester) are authorized:

• To purchase or condemn lands on which to build plants for the destruction of garbage and other refuse.
• To purchase, build, operate, and maintain the garbage-destruction plants.
• To provide for collecting of all such garbage or refuse and delivering it to destruction plants or other places.
• To pay and contract to pay for collection and delivery in annual installments and at a rate of interest on deferred payments the city council determines.

(Minn. Stat. § 443.18; Minn. Stat. § 410.01.)

Each of these actions must first be authorized by at least three-fourths vote of all members of the council.

First class cities have additional authority for removing, collecting and disposing “rubbish.” “Rubbish” is defined as “offal, garbage, ashes, barnyard litter, manure, rubbish, barnyard cleanings, dead animals, or any other foul or unhealthy stuff or material.” First class cities may also regulate private rubbish disposal and storage, as well as abate rubbish which has become a threat to public health and safety.

See Minn. Stat. §§ 443.18-443.35 for more information about first class cities’ authority and restrictions regarding solid waste management.

State oversight

Before the 1970s, open burning and open dumping were common forms of solid waste management.

Learn more from the Minnesota House of Representatives Research Department, Minnesota Solid Waste History

Beginning in the late 1960s, the Minnesota Legislature adopted a variety of waste management regulations, and it gave the Minnesota Pollution Control Agency (MPCA) regulatory oversight over the management of solid waste and recycling.

The MPCA is the state agency primarily charged with developing and enforcing the state’s solid waste management regulations. It also is responsible for approving the solid waste plans that Greater Minnesota counties must adopt. The MPCA offers a variety of tools to help counties, cities, and townships develop and support systems that recover resources and manage waste. (Minn. Stat. § 115A.06-.07; Minn. Stat. § 115A.46, subd. 1(e).)

Access MPCA materials and waste management resources for government and partners

The Minnesota Legislature adopted the Waste Management Act in 1980 (Minn. Stat. ch. 115A and 1980 Minn Laws ch. 564). Among other things, it now establishes the following descending order of preference for waste management:

• Waste reduction and reuse.
• Waste recycling.
• Composting of source-separated compostable materials.
• Resource recovery through mixed municipal solid waste composting or incineration.
• Land disposal that produces no measurable methane gas or which involves the retrieval of methane gas as a fuel for the production of energy.
• Land disposal that produces measurable methane and which does not involve the retrieval of methane gas as a fuel for the production of energy.

(Minn. Stat. § 115A.02.)

County and management district oversight

Minnesota counties and solid waste management districts have primary responsibility for solid waste management, including recycling. Solid waste management districts are special district government units that are vested with powers similar to a county for managing solid waste. (Minn. Stat. § 115A.46; Minn. Stat. § 400.16; Minn. Stat. § 115A.42; Minn R. 9215.0540)

All counties, solid waste management districts, and multicounty areas outside of the seven-county metropolitan area are required to adopt a solid waste plan. The plans are generally intended to describe solid waste management programs for a 10-year period, containing information related to the unique demographics, geography region, and solid waste system that exists for the area that the plan covers.

The full content requirements of these plans are outside of the scope of this memo but can be accessed in Minnesota Rules, chapter 9215 or through resources prepared by the MPCA. (Minn. Stat. § 115A.03, subd. 32; Minn. Stat. § 115A.715; Minn. R. 9215.0530)

After the MPCA has approved a solid waste plan, a city located in that county or area may not enter into a binding agreement governing solid waste management activity inconsistent with the plan without consent. It may also not develop or implement a solid waste management activity (other than an activity to reduce or reuse waste) that is inconsistent with the plan without consent. (Minn. Stat. § 115A.46 subd. 5.)

Metropolitan counties and cities must follow the solid waste management plans developed by the MPCA for the area. The plan includes goals and policies for solid waste management. Cities must follow the plan when acquiring, building, improving or operating solid waste facilities in the metropolitan area. (Minn. Stat. § 473.149).

View the MPCA Metropolitan Solid Waste Management Policy Plan 2022-2042 (pdf)

Definitions

Mixed municipal solid waste

Mixed municipal solid waste is defined as “garbage, refuse, and other solid waste from residential, commercial, industrial, and community activities that the generator of the waste aggregates for collection.” The term does not include “auto hulks, street sweepings, ash, construction debris, mining waste, sludges, tree and agricultural wastes, tires, lead acid batteries, motor and vehicle fluids and filters, and other materials collected, processed, and disposed of as separate waste streams.” (Minn. Stat. § 115A.03, subd. 21.)

Solid waste

Solid waste is defined as “garbage, refuse, sludge from a water supply treatment plant or air contaminant treatment facility, and other discarded waste materials and sludges, in solid, semisolid, liquid, or contained gaseous form, resulting from industrial, commercial, mining, and agricultural operations, and from community activities.” (Minn. Stat. § 115A.03, subd. 31; Minn. Stat. § 116.06, subd. 22.) Solid waste does not include:

• Hazardous waste.
• Animal waste used as fertilizer.
• Earthen fill, boulders, rock.
• Concrete diamond grinding and saw slurry associated with road work when deposited on the road project site in accordance with MPCA practices and rules.
• Sewage sludge.
• Solid or dissolved material in domestic sewage or other common pollutants in water resources, such as silt, solids in industrial wastewater point sources subject to permits under section 402 of the Federal Water Pollution Control Act, as amended, or dissolved materials in irrigation return flows.
• Source, special nuclear, or by-product material as defined by the Atomic Energy Act of 1954, as amended.

State law prohibits additional items from being included in mixed municipal solid waste or in solid waste, including: telephone directories, household hazardous waste, major appliances, electronic products containing a cathode-ray tube, yard waste, mercury or mercury-containing devices or products from which the mercury has not been removed for reuse or recycling, fluorescent tubes, and certain dry cell or rechargeable batteries. (Minn. Stat. § 115A.951, subd 2; Minn. Stat. § 115A.96, subd. 6; Minn. Stat. § 115A.03, subd. 17a; Minn. Stat. § 115A.9565; Minn. Stat. § 115A.931; Minn. Stat. § 115A.932; Minn. Stat. § 115A.9155; Minn. Stat. § 115A.9157; Minn. Stat. § 115A.9561.)

State law also prohibits the disposal of solid waste generated outside Minnesota unless the waste meets all the solid waste management regulations of the state in which it was generated and contains none of the items otherwise banned from mixed municipal solid waste in Minnesota (Minn. Stat. § 115A.935).

Yard waste

Yard waste is defined as “garden wastes, leaves, lawn cuttings, weeds, shrub and tree waste, and prunings” (Minn. Stat. § 115A.03, subd. 38).

Recyclable materials

Recyclable materials are defined as “materials that are separated from mixed municipal solid waste for the purpose of recycling or composting, including paper, glass, plastics, metals, automobile oil, batteries, source-separated compostable materials, and sole source food waste streams that are managed through biodegradative processes.” Recyclable materials do not include refuse-derived fuel or other material that is destroyed by incineration. (Minn. Stat. § 115A.03, subd. 25a.)

Source-separated recyclable materials

Source-separated recyclable materials are defined as “recyclable materials, including commingled recyclable materials, that are separated by the generator” (Minn. Stat. § 115A.03, subd. 32b).

Source-separated compostable materials

Source-separated compostable materials are defined as materials that meet all of the following requirements:

• Are separated at the source by waste generators for compost.
• Are collected separately from mixed municipal solid waste and are governed by the solid waste licensing provisions of section 115A.93.
• Are comprised of food wastes, fish and animal waste, plant materials, diapers, sanitary products, and paper that is not recyclable.
• Are delivered to a facility to undergo controlled microbial degradation to yield a humus-like product meeting the MPCA compost standards, and where process rejects are 15 percent by weight or less of the total material delivered.
• May be delivered to a transfer station, mixed municipal solid waste processing facility, or recycling facility only for the purposes of composting or transfer to a composting facility, unless the MPCA determines that no other person is willing to accept the materials.

(Minn. Stat. § 115A.03, subd. 32a; Minn. Stat. § 115A.93.)

Organized collection

Organized collection is defined as “a system for collecting solid waste in which a specified collector, or a member of an organization of collectors, is authorized to collect from a defined geographic service area or areas some or all of the solid waste that is released by generators for collection” (Minn. Stat. § 115A.94, subd. 1).

Read more about organized collection

Open collection

Open collection is generally defined as a system for collecting solid waste or recyclable materials where individual residents and businesses are free to contract with any collector licensed to do business in the city.

Learn more from Minnesota State Auditor publication, Waste Management in Minnesota (pdf) 

City regulation and licensing

Required regulation

There are three situations where cities are required to regulate solid waste collection.

County organized collection ordinance

A county can adopt an ordinance requiring cities or towns within its boundaries to organize collection of solid waste. If a city does not comply with the county’s organized collection ordinance, the county can organize collection itself. (Minn. Stat. § 115A.94, subd. 5.)

Read more about organized collection

A county’s organized collection ordinance — in addition to requiring solid waste collection — may also require the separation and separate collection of recyclable materials, specify the material to be separated, and require cities to meet any performance standards for source separation contained in the county’s solid waste plan.

Cities in the metropolitan area

Cities in the metropolitan area must adopt an ordinance regulating the collection of solid waste within its boundaries. The metropolitan area includes the counties of Anoka, Carver, Dakota (excluding Northfield and Cannon Falls), Hennepin (excluding Hanover and Rockford), Ramsey, Scott (excluding New Prague), and Washington. If a city is located in a metropolitan county that has adopted a collection ordinance, the city must adopt either the county ordinance or a stricter ordinance. If a city is located in a metropolitan county that has adopted a material-separation ordinance, the ordinance applies in all cities within the county that have failed to meet the local abatement performance standards stated in the most recent annual county report. (Minn. Stat. § 473.811, subd. 5(b); Minn. Stat. § 473.121, subd. 2)

Cities with a population of 1,000 or more

Any city, regardless of where it is located, with a population of 1,000 or more must ensure that every residential household and business in the city has solid waste collection service. (Minn. Stat. § 115A.941(a))

To comply with this requirement, cities can organize solid waste collection, provide collection by city employees, or enact an ordinance requiring that every household and business has a contract for collection services. The ordinance must also provide for enforcement. Cities must follow specific procedural requirements before adopting organized collection of solid waste. (Minn. Stat. § 115A.941)

Read more about organized collection

A city with a population of 1,000 or more may exempt a residential household or business from the requirement to have solid waste collection service if the household or business ensures that an environmentally sound alternative is used (Minn. Stat. § 115A.941 (b)).

Recycling required at city facilities

All cities are required to ensure that facilities under their control, from which mixed municipal solid waste is collected, have containers for at least three recyclable materials, such as paper, glass, plastic, and metal. Cities must transfer all the collected recyclable materials to a recycler. (Minn. Stat. § 115A.151(a))

Licensing

Solid waste collectors

State law prohibits any person from collecting mixed municipal solid waste for hire without a license from the jurisdiction where that waste is collected (Minn. Stat. § 115A.93, subd. 1).

Cities are authorized to license solid waste collectors. If a city does so, it must submit a list of licensed collectors to the MPCA. County boards are required to adopt the licensing authority of a city that does not license solid waste collectors. (Minn. Stat. § 115A.93, subd. 2; Minn. Stat. § 115A.93, subd. 1(a); Troje v. City Council of City of Hastings, 310 Minn. 183, 245 N.W.2d 596 (1976))

If a city acts as a licensing authority, it can impose license requirements on collectors that are consistent with the county’s solid waste policies. In addition, state law establishes several requirements that must be imposed for any license issued to a solid waste collector. (Minn. Stat. § 115A.93, subd. 3(b))

First, a city must require waste collectors to impose collection charges that increase with the volume or the weight of waste collected. For example, garbage carts of different sizes, measured by their volume in gallons, could be issued to customers who decide what size garbage cart best suits their disposal needs. The fees charged by the collector would increase for larger sized carts. (Minn. Stat. § 115A.93, subd. 3(a).)

The commissioner of the MPCA may exempt a city from imposing this requirement if the county in which the city is located has an approved solid waste plan that determines variable rate pricing is not appropriate for the jurisdiction, The rationale for this must include a determination that variable pricing is inconsistent with other local incentives and mechanisms that are more effective at discouraging on-site disposal, littering and illegal dumping.

The MPCA may also exempt a city from imposing this requirement while revisions are being made to the county’s solid waste plan if certain conditions are met. The exemption is effective only until the county solid waste plan is revised. (Minn. Stat. § 115A.93, subd. 3(d); Minn. Stat. § 115A.93, subd. 3(e).)

Second, a city that requires a pricing system based on volume instead of weight must determine a base unit size for an average small quantity household generator of waste. The city must also establish, or require the licensee to establish, a multiple unit pricing system to ensure that amount of waste generated in excess of the base unit amount are priced higher than the base unit price (Minn. Stat. § 115A.93, subd. 3a).

Third, a license must prohibit collectors from imposing a greater charge on residents who recycle than on those who do not (Minn. Stat. § 115A.93, subd. 3(c)).

Recycling collectors

Counties can require county or municipal licenses recycling collectors. A person may not collect recyclable materials for hire unless that person is licensed locally or is registered with the MPCA. Counties must ensure that materials separated for recycling are taken to markets for sale or to recyclable material processing centers. But counties cannot prevent a person that generates or collects solid waste from delivering recyclable materials to a recycling facility of its choice. (Minn. Stat. § 115A.553, subd. 2; Minn. Stat. § 115A.93, subd. 1(b).)

If a city acts as the licensing authority for recycling collectors, it may impose requirements that are consistent with the county’s recycling policies. A city can also impose requirements that are in addition to or different from the county’s policies if the city’s requirements are designed to reduce waste generation or promote reusing waste materials without having to get the county’s consent. (Minn. Stat. § 115A.46, subd. 5.)

License fees

State law does not address the amount that cities can charge for licenses for collection of solid waste or recyclable materials. Generally, a license fee must be reasonable. (Orr v. City of Rochester, 258 N.W. 569 (Minn. 1935).)

It should not be viewed as a significant source of revenue and should be in an amount that is close to the direct and indirect costs in issuing the license and regulating the licensed activity.

Requiring use of specific waste facility

Some municipalities and counties have adopted ordinances that regulate the flow of solid waste, for example, by designating where it must be taken for disposal. This is generally done as a tool to achieve solid waste management goals. (Waste Systems Corp. v. County of Martin, 985 F.2d 1381 (8th Cir. 1993); C & A Carbone, Inc. v. Town of Clarkstown, New York, 511 U.S. 383 (1994).)

Flow control ordinances can raise constitutional issues under the Commerce Clause of the United States Constitution if they interfere with the flow of interstate commerce. The dormant Commerce Clause in most cases prohibits states from implementing regulations that favor in-state economic interests by burdening out-of-state competitors.

Even if the regulations do not discriminate against out-of-state competitors, they might be struck down if they fail the following test: the burden on interstate commerce is clearly excessive when compared to local benefit of the regulation.  (Ben Oehrleins and Sons and Daughter, Inc. v. Hennepin County, 115 F.3d 1372 (8th Cir. 1997)).

Courts have recognized a distinction under the Commerce Clause that generally allows municipalities more authority to take actions affecting solid waste if they are acting as a “market participant” instead of as a government regulator. When a municipality is providing for or contracting for waste management services, it generally is thought to be acting as a market participant.

Ordinances that purely regulate the flow of solid waste are also not necessarily unconstitutional as a rule. In one case, the United States Supreme Court allowed flow-control ordinances to stand because the ordinance benefited a public waste processing facility. However, the Supreme Court struck down a similar flow-control ordinance that benefited a private water processing facility. (City of Philadelphia v. New Jersey, 437 U.S. 617 (1978); United Haulers Ass’n, Inc. v. Oneida-Herkimer Solid Waste Management Auth., 550 U.S. 330 (2007).)

Courts have also decided that local governments can provide differential treatment to entities that perform different services in the same market when no actual or prospective competition exists. For example, a county ordinance that requires waste to be made into refuse-derived fuel and transferred to a state-run plant instead of contracting with an out of state entity that transfers waste to its landfill does not violate the dormant Commerce Clause. The court determined the out-of-state entity performs a different service. Flow control ordinances that do not restrict out-of-state waste processing or disposal might also be acceptable under the Commerce Clause. A court has held that a flow control ordinance forcing waste that would not leave the state to specific facilities was likely constitutional when the ordinance did not apply to waste that would be disposed of out of state. (LSP Transmission Holdings, LLC v. Sieben, 954 F.3d 1018, 1026 (8th Cir. 2020); General Motors Corporation v. Tracy, 519 U.S. 278, 306 (1997); Paul’s Industrial Garage, Inc. v. Goodhue County, No. 21-2614 (8th Cir. 2022).)

State law authorizes counties or sanitary districts to adopt a designation ordinance requiring that solid waste generated within a specific geographic area must be delivered to a specific solid waste facility (Minn. Stat. §§ 115A.83-115A.86). A designation ordinance does not apply to the following materials:

• Materials separated from solid waste and recovered for reuse in their original form or for use in manufacturing processes.
• Solid waste that is managed as a separate waste stream and is disposed via a waste management practice ranked the same or higher than the practice used at the designated facility on the state’s preferences for waste management listed in Minn. Stat. § 115A.02(b).
• Materials that are processed at a resource recovery facility at the capacity in operation at the time that the designation plan is approved by the MPCA.
• Materials that are separated at a permitted transfer station located within the designating authority’s boundaries for the purpose of recycling the materials if either: (1) the transfer station was in operation on Jan. 1, 1991; or (2) the materials were not being separated for recycling at the designated facility at the time the transfer station began separation of the materials.
• Recyclable materials that are being recycled, and residuals from recycling if there is at least an 85 percent volume reduction in the solid waste processed at the recycling facility and the residuals are managed as separate waste streams.
• Materials the MPCA determines will be processed at a separate resource recovery facility that requests an exclusion from the designation plan.
• Materials the county or district determines will be separated for recycling at a transfer station located outside of the designation area that meets certain qualifications.

(Minn. Stat. § 115A.83 subd. 2; Minn. Stat. § 115A.03, subds. 27 and 28.)

If a city organizes collection, by contract or as a municipal service, it may require that all or any portion of the solid waste be delivered to a waste facility identified by the city. This requirement would not apply to recyclable materials and materials that are processed at a resource recovery facility at the capacity in operation at the time the requirement is imposed. In a district or county where a resource recovery facility has been designated by ordinance, organized collection must conform to the designation ordinance’s requirements. (Minn. Stat. § 115A.94, subd. 3; Minn. Stat. § 115A.86.)

Cities in the metropolitan area have authority to directly negotiate and enter into contracts—for a maximum term of 30 years—for the delivery of solid waste to a waste facility, and the processing of solid waste. These contracts must be approved by resolution. (Minn. Stat. § 473.813.)

Before a city in the metropolitan area enters into such a contract for a period of more than five years, it must submit the proposed contract and a description of the proposed activities under the contract to the MPCA for review and approval.

League of Minnesota Cities Insurance Trust (LMCIT) staff can assist in reviewing city contracts, especially provisions related to insurance and liability. For more information, contact Chris Smith, Risk Management Attorney, at [email protected] or (651) 281-1269.

Customer lists

Customer lists that solid waste collectors provide to cities are private data on individuals, or nonpublic data for data not on individuals, under the Minnesota Government Data Practices Act (Minn. Stat. § 115A.93, subd. 5; Minn. Stat. § 13.02, subds. 9, 12).

City assessments and fees

Assessments for unpaid services

Any statutory city or city of the fourth class that provides for garbage collection and disposal may by ordinance require the owners of all property served to pay the proportionate cost of the service to their properties (Minn. Stat. § 443.015).

View LMC model resolution: Adopting Assessments for Unpaid Charges for Garbage Collection and Disposal Services

The city council may annually levy an assessment equal to the unpaid cost as of Sept. 1 of each year against each lot or parcel of land. The assessment may include a penalty not to exceed 10 percent of the unpaid amount and can bear interest up to 6 percent per year. The assessments must be certified to the county auditor to be collected and remitted to the city treasurer in the same manner as assessments for local improvements.

View LMC model ordinance: Providing for Assessment of Unpaid Charges for Garbage Collection and Disposal Services

First class cities (Minneapolis, St. Paul, Duluth, and Rochester) have additional authority to collect unpaid charges for rubbish disposal in a civil action, or to assess them against the property receiving the service and collect them as other taxes are collected (Minn. Stat § 443.26 – 443.35; Minn. Stat. § 443.29).

City fees

Operators of disposal facilities

A city can charge a fee of up to $1 per cubic yard of waste, or its equivalent, on operators of mixed municipal solid waste disposal facilities located in the city. The fees must be credited to the city’s general fund. Revenue produced by 25 cents of the fee must be used only for purposes of landfill abatement or for mitigating and compensating for the local risks, costs, and other adverse effects of the facilities. (Minn. Stat. § 115A.921, subd. 1.)

Revenue produced by the rest of the fee can be used for any general fund purpose.

Some waste residue from certain facilities are exempt from this fee. For both of these types of facilities to qualify for fee exemption, there must be at least an 85 percent weight reduction in the solid waste processed. (Minn. Stat. § 115A.921, subd. 1(b).) The facilities include:

• Recycling facilities at which recycling materials are separated or processed for recycling purposes.
• Energy and resource recovery facilities at which solid waste is processed for extracting, reducing, converting to energy, or otherwise separating and preparing solid waste for its reusing.

Facilities must obtain verification of the 85 percent weight reduction.

A city also may charge a fee up to 50 cents per cubic yard of waste, or its equivalent, on operators of construction debris disposal facilities located within the city. The revenue from the fees must be credited to the city general fund. Two-thirds of the fee must be used only for landfill abatement or mitigating and compensating for the local risks, costs, and other adverse effects resulting from the facilities. (Minn. Stat. § 115A.921, subd. 2; Minn. Stat. § 115A.03, subd. 7.)

There is an exemption from 25 percent of this fee if the facility has implemented a recycling program that the county has approved, and 25 percent if the facility contains a liner and leachate collection system the MPCA has approved (Minn. Stat. § 115A.921, subd. 2).

Two-thirds of the revenue from the construction debris fee must offset any financial assurances required by the city for a construction debris facility. The maximum revenue that may be collected for this type of fee must be determined by multiplying the total permitted capacity of a facility by 15 cents per cubic yard. This can be visualized as the following: maximum revenue = total permitted facility capacity (in cubic yards) x .15. Once this maximum revenue has been collected for a facility, the construction debris fee in this subdivision may no longer be imposed.

Accounting for fees

Cities that provide for solid waste management have to account for all revenue collected from waste management fees, including interest earned on fee revenue, separately from other revenue collected by the city (Minn. Stat. § 115A.929).

Cities must report revenue collected from the fees and use of the revenue separately from other revenue and use of revenue in any required financial report or audit.

City waste management fees that are subject to this accounting and reporting include:

• All fees, charges, and surcharges collected under Minnesota Statutes sections, 115A.921 (detailing fees on operators of disposal facilities), and 115A.923 (detailing the landfill cleanup fee that applies in Greater Minnesota.
• All tipping fees collected at city owned or operated waste management facilities.
• All city charges for waste collection and management services.
• Any other fees, charges, or surcharges imposed on waste for waste management purposes, whether collected directly from generators, indirectly through property taxes, or as part of utility or other charges for city-provided services.

(Minn. Stat. § 115A.03, subd. 36;.Minn. Stat. § 115A.919; Minn. Stat. § 115A.921; Minn. Stat. § 115A.923; Minn. Stat. § 115A.929.)

Any city that provides or pays for the costs of collecting or disposing solid waste must, through a billing or other system, make the prorated share of those costs visible and obvious to the solid waste generator (Minn. Stat. § 115A.945). Read more about these city fees.

Solid waste and recycling collection

Types of collection systems — open collection and organized collection

The two main types of collection systems for solid waste and recycling are commonly referred to as “open collection” and “organized collection.”

Learn more from MPCA report, Analysis of Waste Collection Service Arrangements (pdf)

A 2009 study authorized by the MPCA estimated that the number of cities with open solid waste collection was between 65 and 80 percent, and the number of cities with organized solid waste collection was between 20 and 35 percent. The same study indicated that the number of cities with open recycling was estimated to be between 40 and 60 percent, and the number of cities with organized recycling was estimated to be between 50 and 60 percent.

Open collection is generally defined as a collection system where individual residents and businesses are free to contract with any collector licensed to do business in the city.

Organized collection is defined as a “system for collecting solid waste in which a specified collector, or a member of an organization of collectors, is authorized to collect from a defined geographic service area or areas some or all of the solid waste that is released by generators for collection” (Minn. Stat. § 115A.94, subds. 1, 3.)

Read more about procedural requirements for adopting organized collection

A city must comply with certain procedural requirements before adopting organized collection of solid waste.

A city can organize collection as a municipal service where city employees collect solid waste from a defined geographic service area or areas. In the alternative, cities may organize collection by using one or more private collectors or an organization of collectors. The agreement with the private collectors may be made through an ordinance, franchise, license, negotiated or bidded contract, or by other means. (Minn. Stat. § 115A.94, subd. 3.)

The competitive bidding requirements in state law do not apply to city contracts for solid waste collection because a contract for these services does not meet the definition of a “contract” that is subject to the Uniform Municipal Contracting Law. However, if a city adopts a competitive bidding procedure for solid waste collection contracts it may not change that process midway through. (Minn. Stat. § 471.345; Minn. Stat. § 412.311; Schwandt Sanitation of Paynesville v. City of Paynesville, 423 N.W.2d 59 (Minn. Ct. App. 1988))

Organized collection accomplished by contract or as a municipal service may include a requirement that all or some of the solid waste—except recyclable materials and materials that are processed at a resource-recovery facility at the capacity in operation at the time the requirement is imposed—be delivered to a waste facility identified by the city. In a district or county where a waste facility has been designated by ordinance, organized collection must conform to the ordinance’s requirements. (Minn. Stat. § 115A.94, subd. 3; Minn. Stat. § 115A.86.)

Cities cannot establish or administer organized collection in a way that impairs recycling. Further, cities must exempt recyclable materials from organized collection upon a showing by the person who generates the recyclables or a collector of recyclables that the materials are or will be separated from mixed municipal solid waste by the generator, separately collected, and delivered for reuse in their original form or for use in a manufacturing process. (Minn. Stat. § 115A.94, subd. 3.)

It is not entirely clear whether a city that decides to enter into an agreement for the collection of recyclable materials, including source-separated compostable materials, is required to comply with the procedural requirements in the organized collection statute. The answer likely depends on whether the definition of “solid waste” referenced in the organized collection statute should be interpreted to include recyclable materials. (Minn. Stat. § 115A.94, subds. 1, 3; Minn. Stat. § 115A.03, subds. 25a, 31; Minn. Stat. § 116.06, subd. 22.)

The Minnesota Court of Appeals, in a precedential opinion, considered a similar issue of whether telephone directories, which were collected in separate bins for recycling, were subject to a county’s designation ordinance requiring mixed municipal solid waste to be disposed of at a county-designated facility. The court of appeals, analyzing older but substantially similar statutory definitions, concluded that the telephone directories did not meet the definition of mixed municipal solid waste or of solid waste because they were being collected for recycling in a “separate waste stream” and were not being “discarded” as solid waste. (Waste Recovery Coop. of Minn. v. Cnty. of Hennepin, 475 N.W.2d 892 (Minn. Ct. App. 1991).)

If a city is considering entering into an agreement for the collection of recyclable materials with one collector or an organization of collectors, it should consult its city attorney to determine whether it must follow the procedural requirements in the organized collection statute.

Organized collection is generally optional

The organized collection statute provides that organizing solid waste collection is optional and is in addition to authority governing solid waste collection granted by other law. The statute also provides that a city may exercise any authority granted by any other law, including a home rule charter, to govern collection of solid waste. A city would be required to organize collection only if the county in which it is located has an ordinance requiring cities within its jurisdiction to organize collection. (Minn. Stat. § 115A.94, subd. 6.)

The Waste Management Act defines “cities” as “statutory and home rule charter cities … authorized to plan under sections 462.351 to 462.364.”  Both statutory and home rule charter cities may therefor adopt organized collection using the procedures outlined in the organized collection statute. (Minn. Stat. § 115A.03, subd. 4; Minn. Stat. § 115A.94.)

The Minnesota Supreme Court has held that the Waste Management Act does not preempt home rule charter cities from regulating the process for organizing the collection of solid waste. Instead, the Supreme Court concluded that the Act establishes the minimum procedural requirements that cities must follow before adopting organized collection. It further determined that home rule charter cities can add additional procedural requirements to the statutory process, including those adopted through a citizen petition for a referendum or for a proposed charter amendment. (Jennissen v. City of Bloomington, 913 N.W.2d 456 (Minn. 2018); Clark v. City of Saint Paul, 934 N.W.2d 234 (Minn. 2019); Jennissen v. City of Bloomington, 938 N.W.2d 808 (Minn. 2020).)

Open collection versus organized collection: pros and cons

Open collection

There are several frequently cited advantages of open collection:

• Residents have more choice and are free to select a solid waste collector based on their preference.
• There is a direct relationship between the solid waste collector and its customers.
• There are minimal administrative costs for cities.
• Smaller solid waste collectors are better able to enter the market in an open collection system by servicing a portion of city residents.

In contrast, there are several frequently cited disadvantages of open collection:

• Open collection generally results in a more expensive monthly cost for residents.
• Multiple collectors mean more truck traffic and the resulting negative side effects, including the potential for added street maintenance costs, and increased vehicle noise and emissions, lower air quality, fuel consumption, litter and vehicle accidents.
• There may be inconsistent charges for the same level of service in a city.
• Cities have reduced ability to manage solid waste collection.

Organized collection

There are several frequently cited advantages of organized collection:

• The price paid by households in an organized collection system is generally lower per month for similar service levels than in an open collection system due to increased efficiencies from serving every household or business in the community or on a particular route.
• Limiting the number of solid waste collectors allows cities to decrease the impacts of increased truck traffic.
• Cities have greater ability to manage solid waste collection and can establish service requirements.
• Standardized service makes public education easier.
• Cities’ ability to seek requests for proposals on a regular basis helps lower costs.
• Cities with organized recycling generally have higher rates of recycling.

Learn more from the MPCA report, The Benefits of Organized Collection (pdf) 

In contrast, there are several frequently cited disadvantages of organized collection:

• Households and businesses do not get to choose their collector.
• Cities have greater administrative involvement and costs.
• Small collectors have higher entry costs to get into the market and competitive opportunities are limited to contract openings.
• The statutory requirements for switching from open collection to organized collection are time consuming and can be difficult politically.

Learn more from MPCA report, Analysis of Waste Collection Service Arrangements (pdf) 

Procedural requirements for adopting organized collection

There are several procedural steps a city must take before it is authorized to adopt organized collection of solid waste (Minn. Stat. § 115A.94; 2013 Minn. Laws ch. 45).

The Minnesota Legislature adopted significant changes to the organized collection statute in 2013 that were designed to simplify the process for adopting organized collection. Any city that has adopted organized collection as of May 1, 2013, is exempt from the new requirements.

View a flow chart that provides a summary of the major procedural steps for adopting organized collection (pdf)

Notice to public and to licensed collectors

A city with more than one licensed collector must first give notice to the public and to all licensed collectors that it is considering adopting organized collection. State law does not specify how notice should be provided. The League recommends providing both published notice and individual mailed notice to each licensed collector. (Minn. Stat. § 115A.94, subd. 4d; Minn. Stat. § 331A.03.)

Exclusive negotiation period with licensed collectors

After the city provides notice of its intent to consider adopting organized collection, it must provide a negotiation period that is exclusive between the city and all collectors licensed to operate in the city. This exclusive negotiation period must be at least 60 days, but it may be longer if the city chooses. (Minn. Stat. § 115A.94, subd. 4d.)

Before the exclusive meetings and negotiation, participating licensed collectors and elected officials must meet and confer regarding waste collection issues, including but not limited to road deterioration, public safety, pricing mechanisms, and contractual considerations unique to organized collection (Minn. Stat. § 115A.94, subd. 4e).

A city is not required to reach an agreement with the licensed collectors during this period. The purpose of the exclusive negotiation period is to allow the licensed collectors an opportunity to develop a proposal in which they, as members of an organization of collectors, will collect solid waste from designated sections of the city. (Minn. Stat. § 115A.94, subd. 4d.)

The proposal must contain identified city priorities, including issues related to zone creation, traffic, safety, environmental performance, service provided, and price. It also must reflect existing collectors maintaining their respective market share of business as determined by each hauler’s average customer count during the six months before the start of the exclusive negotiation period (Minn. Stat. § 115A.94, subd. 4d).

If an existing collector decides to be excluded from the proposal, the city can allocate its customers proportionally based on market share to the participating collectors (Minn. Stat. § 115A.94, subd. 4d).

If an organized collection agreement is reached from the exclusive negotiation period, the initial agreement must be in effect for seven years. Upon execution of an agreement between the participating licensed collectors and the city, the city must establish organized collection through appropriate local controls. The city does not need to establish a solid waste collection options committee if it reaches an agreement with the licensed haulers during the exclusive negotiation period; however, the city must first provide public notice and a public hearing before officially deciding to implement organized collection. (Minn. Stat. § 115A.94, subd. 4d; Minn. Stat. § 115A.94, subd 4c.)

LMCIT staff can assist in reviewing city contracts, especially provisions related to insurance and liability. For more information, contact Chris Smith, Risk Management Attorney, at [email protected] or (651) 281-1269.

Solid waste collection options committee

If a city does not reach an agreement with its licensed collectors during the exclusive negotiation period, it may form by resolution a solid waste collection options committee to study additional methods of solid waste collection. The city council appoints the committee members. The committee is subject to the Open Meeting Law and has several mandatory duties. (Minn. Stat. § 115A.94 subd 4a; Minn. Stat. ch. 13D.)

First, the committee determines which methods of solid waste collection to examine, which must include at least three methods of collection: (1) the existing collection system; (2) a system in which a single collector collects solid waste from all sections of the city; and (3) a system in which multiple collectors, either singly or as members of an organization of collectors, collect solid waste from different sections of the city. (Minn. Stat. § 115A.94, subd. 4b.)

Second, the committee establishes a list of criteria on which the organized collection methods selected for examination will be evaluated. The criteria can include: costs to residential subscribers; the impacts on residential subscribers’ ability to choose a provider of solid waste service based on the desired level of service, costs, and any other factors; the impact of miles driven on city streets and alleys and the incremental impact of miles driven by collection vehicles; initial and operating costs of implementing the solid waste collection system; providing incentives for waste reduction; impacts on solid waste collectors; and other physical, economic, fiscal, social, environmental, and aesthetic impacts (Minn. Stat. § 115A.94, subd. 4b).

Third, the committee collects information regarding the operation and efficacy of existing methods of organized collection in other cities and towns (Minn. Stat. § 115A.94, subd. 4b).

Fourth, the committee seeks input from, at a minimum:

• The city council.
• The city official responsible for solid waste issues.
• People currently licensed to operate solid waste collection and recycling services in the city.
• City residents who currently pay for residential solid waste collection services.

(Minn. Stat. § 115A.94, subd. 4b.)

Finally, the committee must issue a report on its research, findings, and any recommendations to the city council (Minn. Stat. § 115A.94, subd. 4b).

Public notice and public hearing

The city council must consider the committee’s report and recommendations. The city must provide public notice and hold at least one public hearing before deciding whether to implement organized collection. (Minn. Stat. § 115A.94, subd. 4c.)

Implementation

The city can begin organized collection no sooner than six months after the effective date of the city’s decision to implement organized collection. The city can organize collection as a municipal service where city employees collect solid waste from a defined geographic service area or areas. In the alternative, cities may organize collection by using one or more private solid waste collectors or an organization of collectors. An agreement with private collectors may be made through an ordinance, franchise, license, negotiated or bidded contract, or by other means. (Minn. Stat. § 115A.94, subd. 4c; Minn. Stat. § 115A.94, subd. 3.)

Anticompetitive conduct

A city that organizes collection and participating city-supervised solid waste collectors are authorized to engage in anticompetitive conduct to the extent necessary to plan and implement their chosen organized collection system. They are immune from liability under state laws relating to antitrust, restraint of trade, unfair practices, and other regulation of trade or commerce (Minn. Stat. § 115A.94, subd. 7).

Joint liability limited

An organized collection agreement must not obligate a participating licensed collector for damages to third parties caused solely by another participating collector. The organized collection agreement may include joint obligations for actions that are undertaken by all the participating collectors. (Minn. Stat. § 115A.94, subd. 4f; Minn. Stat. § 604.02.)

Conclusion

Cities have broad authority to regulate the collection and disposal of solid waste. Cities exercise this authority subject to state and county oversight. Cities should work closely with their city attorneys when exercising this authority by requiring licenses, imposing fees and assessments, entering into contracts, and adopting ordinances. Cities must comply with procedural requirements in the organized collection statute before they may adopt organized collection of solid waste.

Use these models with the discussion on “City Solid Waste Management”:

• Providing for Assessment of Unpaid Charges for Garbage Collection, LMC model ordinance (doc)
• Adopting Assessment for Unpaid Charges for Garbage Collection, LMC model resolution (doc)