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2025.04.15 Work Session Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: April 11, 2025 City Council Work Session Agenda Tuesday, April 15, 2025 6:30 p.m. Upper Community Room/Zoom Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held on Tuesday, April 15, 2025, at ______ p.m. in the upper community room at city hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. If the agenda items are not completed in time for the city council meeting at 7 p.m., the work session will be continued and resumed immediately following the Economic Development Authority meeting. The public may attend the meeting via Zoom by connecting to it through one of the methods identified on the City Council Meeting Schedule for Tuesday, April 15, 2025. I. Attendance Council members Staff ____ Deshler ____ Bell ____ Struve ____ Eidbo ____ Tierney ____ Sutter ____ Kamish ____ Therres ____ Serres ____ Kiser ____ Elholm ____ Onesirosan ____ Larson ____ Budziszewski ____ Kunde ____ Cummings ____ Revering ____ Hubbard II. Agenda The purpose of the work session is to discuss the following agenda items: 1. Community Development quarterly update.* 2. Organized waste collection. 3. Council liaison reports.* 4. Constituent issues update.* 5. City manager update.* 6. New business.* 7. Announcements.* III. Adjournment The work session adjourned at ______ p.m. * Denotes no documentation included in the packet. Auxiliary aids are available upon request to individuals with disabilities by calling the city clerk at (763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. Memorandum DATE: April 11, 2025 TO: Mayor and City Council FROM: Adam R. Bell, City Manager SUBJECT: Organized Waste Collection BACKGROUND At a previous work session, the city council asked staff to present information on organized waste hauling based on recent constituent inquiries. Transitioning to an organized collection system involves the city coordinating waste collection services, either through contracts with haulers or municipal operations. Crystal currently operates an "open hauling" system for solid waste, which means residents choose a hauling company from a list of approved providers. Crystal currently has six licensed haulers that provide service to residents. "Organized hauling" (also called organized collection) is a waste collection system in which the City manages, contracts, and coordinates residential curbside waste. Crystal currently operates as an organized collection system for recycling and organics as a member of the Hennepin Recycling Group (HRG). One organized hauling option is a consortium model, which would provide each hauler that currently operates in Crystal with a certain number of households to serve that is equal to its current market share. This would mean all six haulers that serve Crystal residents now would be included in formulating a consortium system. The city would assign each hauler to a different section of the city and determine which day collection would occur. Another organized hauling option is a single-hauler model, in which only one company provides all services citywide. LEGAL PROCESS FOR TRANSITIONING TO ORGANIZED COLLECTION The transition process is governed by Minnesota Statutes §115A.94, which mandates a structured approach: 1. Initiation: The city must notify all licensed haulers of its intent to consider organized collection. 2. Negotiation Period: A minimum 60-day negotiation period with haulers to discuss potential arrangements. 3. Public Engagement: Conduct public hearings and solicit resident feedback. 4. Implementation: If negotiations fail, the city may proceed with organizing collection, ensuring compliance with statutory requirements. The entire process can span 12 to 24 months, depending on community engagement and potential legal challenges. COMPARATIVE ANALYSIS: OPEN VS. ORGANIZED COLLECTION SYSTEMS A. City Perspective Open Collection Pros: • Minimal administrative oversight. • Encourages market competition among haulers. Cons: • Increased road wear due to multiple haulers operating in the same areas. • Challenges in enforcing service standards and addressing complaints. Organized Collection Pros: • Streamlined operations with designated haulers per area. • Potential for reduced environmental impact and improved public safety. Cons: • Requires significant administrative resources to manage contracts and monitor performance. • Potential legal challenges from haulers or residents opposing the change. B. Resident Perspective Open Collection Pros: • Freedom to choose preferred hauler based on price or service quality. • Established relationships with local haulers. Cons: • Inconsistent service days and potential for higher cumulative costs. • Increased traffic and noise due to multiple haulers servicing the same streets. Organized Collection Pros: • Standardized rates and service levels across the community. • Reduced truck traffic and associated nuisances. Cons: • Limited choice in selecting a hauler. • Concerns about service quality and responsiveness. CHALLENGES IN TRANSITIONING TO ORGANIZED COLLECTION • Political Opposition: Residents and haulers may perceive the change as limiting freedom of choice, leading to public outcry and potential referendums. • Legal Risks: Haulers may initiate legal action if they believe the city has not adhered to statutory procedures, as seen in Anoka and Mounds View. • Operational Complexity: Developing and managing contracts, monitoring performance, and handling billing require enhanced administrative capabilities. • Community Engagement: Effective communication strategies are essential to educate residents on the benefits and address concerns. RECENT MINNESOTA CITIES CONSIDERING TRANSITION 1. St. Paul Outcome: Successfully transitioned to organized collection in 2018. Faced significant opposition, leading to a 2019 referendum where organized collection was upheld. In 2025, the city plans to consolidate services with a single hauler, FCC Environmental, and introduce municipal collection for 10% of households. 2. Coon Rapids Outcome: Explored organized collection in 2023 but decided against implementation in 2024. Opted to improve the existing open system through policy changes and enhanced regulations. 3. Anoka Outcome: Faced legal challenges from haulers in 2024 after attempting to form a committee to study organized collection without completing the required negotiation period. Voters amended the charter to require a ballot question for the decision by a vote of 75%-25%. Referendum failed 51%-48% 4. Mounds View Outcome: In 2024, residents approved a charter amendment requiring voter approval before implementing organized collection. Haulers filed lawsuits alleging the city rushed the process, with legal proceedings ongoing. 5. Little Canada Outcome: Transitioned from a three-hauler system to a single-hauler model in 2025, contracting with Republic Services for trash and Waste Management for recycling. The change aimed to ensure uniform service and rates across the city. CONCLUSION AND RECOMMENDATIONS Transitioning to an organized waste collection system offers potential benefits, including standardized services and reduced environmental impact. However, it also presents serious challenges that require careful planning, community engagement, and adherence to legal procedures. Of all the issues that generate angst among residents, the issue of organized collection is at or near the top. At a minimum, staff recommendations include conducting additional community outreach that could include public forums and surveys to gauge resident opinions and address concerns. RECOMMENDATION Staff recommends the City Council take one of the following actions: 1. Decline to pursue investigating organized collection further at this time; 2. Refer the issue of organized waste collection to the Sustainability Commission and direct the commission to continue informally discussing the matter and provide advisory opinion on future actions; or 3. At a regular council meeting, formally initiate preliminary discussions and engage with licensed haulers to discuss potential frameworks for organized collection. ATTACHMENTS • MN ST 115A.94 ORGANIZED COLLECTION. • “Debate over trash collection is causing a big stink in Anoka as haulers sue.” Star Tribune 6/27/2024 • “Anoka will need residents’ approval before enacting city-run garbage collection program.” Star Tribune 8/19/2024 • “City of Anoka Residents vote ‘no’ on single organized trash collection system.” Fox9 11/6/2024 • “Mounds View residents vote ‘no’ on single organized trash collection system.” Fox9 11/6/2024 115A.94 ORGANIZED COLLECTION.​ Subdivision 1.Definition."Organized collection" means 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.​ Subd. 2.Local authority.A city or town may organize collection, after public notification and hearing​ as required in subdivisions 4a to 4f. A county may organize collection as provided in subdivision 5. A city​ or town that has organized collection as of May 1, 2013, is exempt from subdivisions 4a to 4f.​ Subd. 3.General provisions.(a) The local government unit may organize collection as a municipal​ service or by ordinance, franchise, license, negotiated or bidded contract, or other means, using one or more​ collectors or an organization of collectors.​ (b) The local government unit may not establish or administer organized collection in a manner that​ impairs the preservation and development of recycling and markets for recyclable materials. The local​ government unit shall exempt recyclable materials from organized collection upon a showing by the generator​ or collector 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.​ (c) The local government unit shall invite and employ the assistance of interested persons, including​ persons licensed to operate solid waste collection services in the local government unit, in developing plans​ and proposals for organized collection and in establishing the organized collection system.​ (d) Organized collection accomplished by contract or as a municipal service may include a requirement​ that all or any portion of the solid waste, except (1) recyclable materials and (2) materials that are processed​ at a resource recovery facility at the capacity in operation at the time that the requirement is imposed, be​ delivered to a waste facility identified by the local government unit. In a district or county where a resource​ recovery facility has been designated by ordinance under section 115A.86, organized collection must conform​ to the requirements of the designation ordinance.​ Subd. 4.[Repealed, 2013 c 45 s 7]​ Subd. 4a.Committee establishment.(a) Before implementing an ordinance, franchise, license, contract,​ or other means of organizing collection, a city or town, by resolution of the governing body, must establish​ a solid waste collection options committee to identify, examine, and evaluate various methods of solid waste​ collection. The governing body shall appoint the committee members.​ (b) The solid waste collection options committee is subject to chapter 13D.​ Subd. 4b.Committee duties.The committee established under subdivision 4a shall:​ (1) determine which methods of solid waste collection to examine, which must include:​ (i) the existing system of collection;​ (ii) a system in which a single collector collects solid waste from all sections of a city or town; and​ (iii) a system in which multiple collectors, either singly or as members of an organization of collectors,​ collect solid waste from different sections of a city or town;​ (2) establish a list of criteria on which the solid waste collection methods selected for examination will​ be evaluated, which may include: costs to residential subscribers, impacts on residential subscribers' ability​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 115A.94​MINNESOTA STATUTES 2024​1​ to choose a provider of solid waste service based on the desired level of service, costs and 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 to the city 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;​ (3) collect information regarding the operation and efficacy of existing methods of solid waste collection​ in other cities and towns;​ (4) seek input from, at a minimum:​ (i) the governing body of the city or town;​ (ii) the local official of the city or town responsible for solid waste issues;​ (iii) persons currently licensed to operate solid waste collection and recycling services in the city or​ town; and​ (iv) residents of the city or town who currently pay for residential solid waste collection services; and​ (5) issue a report on the committee's research, findings, and any recommendations to the governing body​ of the city or town.​ Subd. 4c.Governing body; implementation.The governing body of the city or town shall consider​ the report and recommendations of the solid waste collection options committee. The governing body must​ provide public notice and hold at least one public hearing before deciding whether to implement organized​ collection. Organized collection may begin no sooner than six months after the effective date of the decision​ of the governing body of the city or town to implement organized collection.​ Subd. 4d.Participating collectors proposal; requirement.Before establishing a committee under​ subdivision 4a to consider organizing residential solid waste collection, a city or town with more than one​ licensed collector must notify the public and all licensed collectors in the community. The city or town must​ provide a period of at least 60 days in which meetings and negotiations shall occur exclusively between​ licensed collectors and the city or town to develop a proposal in which interested licensed collectors, as​ members of an organization of collectors, collect solid waste from designated sections of the city or town.​ The proposal shall include identified city or town priorities, including issues related to zone creation, traffic,​ safety, environmental performance, service provided, and price, and shall reflect existing haulers maintaining​ their respective market share of business as determined by each hauler's average customer count during the​ six months prior to the commencement of the exclusive negotiation period. If an existing hauler opts to be​ excluded from the proposal, the city may allocate their customers proportionally based on market share to​ the participating collectors who choose to negotiate. The initial organized collection agreement executed​ under this subdivision must be for seven years. Upon execution of an agreement between the participating​ licensed collectors and city or town, the city or town shall establish organized collection through appropriate​ local controls and is not required to fulfill the requirements of subdivisions 4a, 4b, and 4c, except that the​ governing body must provide the public notification and hearing required under subdivision 4c.​ Subd. 4e.Parties to meet and confer.Before the exclusive meetings and negotiations under subdivision​ 4d, participating licensed collectors and elected officials of the city or town 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.​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 2​MINNESOTA STATUTES 2024​115A.94​ Subd. 4f.Joint liability limited.Notwithstanding section 604.02, an organized collection agreement​ must not obligate a participating licensed collector for damages to third parties solely caused by another​ participating licensed collector. The organized collection agreement may include joint obligations for actions​ that are undertaken by all the participating licensed collectors under this section.​ Subd. 5.Counties; organized collection.(a) A county may by ordinance require cities and towns within​ the county to organize collection. Organized collection ordinances of counties may:​ (1) require cities and towns to require the separation and separate collection of recyclable materials;​ (2) specify the material to be separated; and​ (3) require cities and towns to meet any performance standards for source separation that are contained​ in the county solid waste plan.​ (b) A county may itself organize collection under subdivisions 4a to 4f in any city or town that does not​ comply with a county organized collection ordinance adopted under this subdivision, and the county may​ implement, as part of its organized collection, the source separation program and performance standards​ required by its organized collection ordinance.​ Subd. 6.Organized collection not required or prevented.(a) The authority granted in this section to​ organize solid waste collection is optional and is in addition to authority to govern solid waste collection​ granted by other law.​ (b) Except as provided in subdivision 5, a city, town, or county is not:​ (1) required to organize collection; or​ (2) prevented from organizing collection of solid waste or recyclable material.​ (c) Except as provided in subdivision 5, a city, town, or county may exercise any authority granted by​ any other law, including a home rule charter, to govern collection of solid waste.​ Subd. 7.Anticompetitive conduct.(a) A political subdivision that organizes collection under this section​ is authorized to engage in anticompetitive conduct to the extent necessary to plan and implement its chosen​ organized collection system and is immune from liability under state laws relating to antitrust, restraint of​ trade, unfair trade practices, and other regulation of trade or commerce.​ (b) An organization of solid waste collectors, an individual collector, and their officers, members,​ employees, and agents who cooperate with a political subdivision that organizes collection under this section​ are authorized to engage in anticompetitive conduct to the extent necessary to plan and implement the​ organized collection system, provided that the political subdivision actively supervises the participation of​ each entity. An organization, entity, or person covered by this paragraph is immune from liability under​ state law relating to antitrust, restraint of trade, unfair trade practices, and other regulation of trade or​ commerce.​ History: 1987 c 348 s 27; 1989 c 325 s 26,27; 1990 c 600 s 1,2; 1991 c 337 s 46; 1993 c 249 s 20,21;​ 2013 c 45 s 1-6; 2018 c 177 s 1-8​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 115A.94​MINNESOTA STATUTES 2024​3​