City of Ottawa wins Orgaworld contract arbitration, company may appeal decision

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The City of Ottawa has come out on the winning side of virtually every key question in its years-long dispute with organics company Orgaworld, including the ability to include leaf-and-yard waste in the green-bin program. The arbitrator dismissed Orgaworld’s $1.3 million claim against the city.

The arbitration decision also allows the city to release its own internal audit of the Orgaworld contract, which will occur July 9, the city says.

According to a memo sent to members of council Monday by city solicitor Rick O’Connor, the confidential commercial arbitration process resulted in a decision that favours the city. Among the findings, wrote O’Connor, is that “The city is entitled to deliver to Orgaworld . . . a waste stream that is comprised of kitchen organics and leaf and yard waste and these may be co-mingled in the same truck.”

Orgaworld has disputed that it was required to pick up leaf and yard waste and appears not to have done so in some instances, which put the company in default of the contract, according to the decision.

The arbitrator also ruled that the city is allowed to accept green-bin material from other cities, although that is less of an issue now that Ottawa is meeting the minimum requirement of sending 80,000 tonne of organics to Orgaworld for processing.

Dale Harley, the acting general manager for Orgaworld, said he was “surprised and disappointed” by the abritrator’s decision. The company is reviewing the 200-plus page ruling and will probably file an appeal in the next 30 days, he said.

The city did lose on one issue, that of being able to

More to come.

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