ST PAUL, Minn. — The Minnesota Supreme Court ruled that even if St. Paul voters vote against the city's waste collection system, a five-year contract with haulers will have to paid out.
The Supreme Court explained its reasoning, saying "the city is contractually obligated to allow St. Paul Haulers the exclusive right to provide waste collection services. The outcome of a referendum on an ordinance that establishes waste collection will not terminate the contract and does not rise to the level of a constitutional impairment of a contractual obligation."
Put simply, even if residents vote out the city's single-hauler system, the existing five-year, $27 million contract will have to be paid in full.
St. Paul Mayor Melvin Carter will hold a press conference Wednesday at 2:30 p.m. to discuss the ruling and the city's response.
The Supreme Court had already ruled that residents will have the right to vote on their waste collection system of preference, but had not clarified if voting against the single-hauler system would void the already-established contract with haulers.
The contract was signed November of 2017, and gave haulers specific areas of the city that they would be providing waste services for. Prior to implementing the single-hauler system, residents could choose their own haulers and negotiate rates.
If voters decide against the current system, the $27 million contract would be covered by property taxes.