The original contracting process started in 1990, but the government ordered a re-run after the lowest private sector tenderer in the first round of bidding was judged to be too 'under-resourced' to carry out the work.
A private company awarded the contract in the second round quickly pulled out over concerns about comparable pensions, a council spokeswoman said.
The in-house team beat off two private bidders to win the contact in August. However, it then had to wait a further month for ministerial approval for the deal.
Contracting services head Ken Lupton said: 'This is great news for our refuse team. They have continued to provide a quality service despite all the years of uncertainty.'