Report on Organized Collection
Maplewood Report
City of Maplewood, Minnesota
The Creation of a Government Managed Waste Hauling Monopoly
A Case Study
May 21, 2013
Click here to read the full 50 page report.
Executive Summary:
In 2011, the City of Maplewood’s elected officials decided to move the community to a
government managed waste hauling monopoly on a 4-1 vote. As part of this process,
they held a series of public hearings and followed the process outlined in Minnesota
law.
Throughout the consideration of the proposal and up to and including its final
implementation, public opposition was significant. Citizens packed public hearings in
opposition to the proposal and the city received countless phone calls, letters, and
emails in opposition. Garbage haulers in the community were opposed and supported
citizens in their efforts.
In recent years, the City of Maplewood has been under serious financial pressure. In
2011, the council proposed a 5% tax increase, almost double the rate of inflation. The
cost of this proposal included over $100,000 in consultant fees and staff time, plus
$422,019 to purchase carts. The purchasing of carts is typically borne by garbage
haulers in the competitive free market. While the city made various claims about cost
savings, no budget reductions were ever made as a result of creating a government
managed waste hauling monopoly.
During the process, there was significant political upheaval. Prior to the signing of the
contract with a national hauler, the lead proponent on the city council was defeated for
reelection. After the election, the council on a split vote proceeded to sign a contract
with one hauler and established a new government managed monopoly. Several
months later, a proponent resigned from the council and through a special election, was
replaced with a candidate who actively campaigned in opposition to government
managed collection and the city’s contract. Within one year of the council signing the
contract, the council had changed from 4-1 in support, to the opponents now carrying a
3-2 majority. Citizens now look forward to the next city election when the last remaining
proponent will be on the ballot for re-election.
A longtime Minnesota owned hauler in the community lost 20% of his business by one
stroke of the Mayor’s pen. The community continues to remain divided as those in
power ignored the benefits of market driven competition with locally owned businesses.
The issue will continue to divide the community for years to come.
Click here to read the full 50 page report.
Maplewood Report
City of Maplewood, Minnesota
The Creation of a Government Managed Waste Hauling Monopoly
A Case Study
May 21, 2013
Click here to read the full 50 page report.
Executive Summary:
In 2011, the City of Maplewood’s elected officials decided to move the community to a
government managed waste hauling monopoly on a 4-1 vote. As part of this process,
they held a series of public hearings and followed the process outlined in Minnesota
law.
Throughout the consideration of the proposal and up to and including its final
implementation, public opposition was significant. Citizens packed public hearings in
opposition to the proposal and the city received countless phone calls, letters, and
emails in opposition. Garbage haulers in the community were opposed and supported
citizens in their efforts.
In recent years, the City of Maplewood has been under serious financial pressure. In
2011, the council proposed a 5% tax increase, almost double the rate of inflation. The
cost of this proposal included over $100,000 in consultant fees and staff time, plus
$422,019 to purchase carts. The purchasing of carts is typically borne by garbage
haulers in the competitive free market. While the city made various claims about cost
savings, no budget reductions were ever made as a result of creating a government
managed waste hauling monopoly.
During the process, there was significant political upheaval. Prior to the signing of the
contract with a national hauler, the lead proponent on the city council was defeated for
reelection. After the election, the council on a split vote proceeded to sign a contract
with one hauler and established a new government managed monopoly. Several
months later, a proponent resigned from the council and through a special election, was
replaced with a candidate who actively campaigned in opposition to government
managed collection and the city’s contract. Within one year of the council signing the
contract, the council had changed from 4-1 in support, to the opponents now carrying a
3-2 majority. Citizens now look forward to the next city election when the last remaining
proponent will be on the ballot for re-election.
A longtime Minnesota owned hauler in the community lost 20% of his business by one
stroke of the Mayor’s pen. The community continues to remain divided as those in
power ignored the benefits of market driven competition with locally owned businesses.
The issue will continue to divide the community for years to come.
Click here to read the full 50 page report.