Contract with Orgaworld Includes Drop Dead Date

Josh Pringle
Thursday, February 18, 2010

The City of Ottawa can terminate its contract with Orgaworld Canada if the new organic waste recycling facility is not operating at full processing capacity by June 1st.

A report for the Planning and Environment Committee responds to questions from Councillor Rainer Bloess about the contract with Orgaworld for the Hawthorne Road facility.

Staff say the agreement contains a Drop Dead Date that allows the city to terminate the contract in its entirety if the facility is not operating at full capacity without any costs.

The Orgaworld plant began accepting organic waste at the end of January, four weeks after the launch of the Green Bin program. If Orgaworld is not in a position to commence full operations by April 1st, the company is responsible for all incurred costs by the city as a result of the delay.

The commencement date for the city's contract is now April 1st.

The report says the contract also contains provisions that allow the city to terminate the contract for convenience at any time after the Commencement Date of the contract, but subject to penalties and a one-year notice period.