City of Saskatoon says firm that broke green cart contract is on the hook for more costs

How will Saskatoon’s green carts work? Saskatoon’s new green cart program starts next week and city officials are offering answers to some common questions about how the program

The City of Saskatoon says Green Prairie Environmental (GPE) will be responsible for additional costs of organics processing, which are now more than double what was budgeted in 2023.

Contracting Loraas Disposal as a backup organics processor has so far cost the city just over $2.7 million, which the city confirmed is more than twice the $1.2 million that was in this year's city budget.

However, according to city administration, taxpayers won’t be on the hook for the additional costs as the city says that responsibility will fall to GPE.

“Under the terms of the GPE contract, they are responsible for the additional cost,” the city said in an email to CTV News.

On Wednesday, the citysaid GPE was in default of its contract to process organics and Loraas Disposal would continue the work.

GPE was awarded the contract in 2019 to process organics material collected through the green cart program.

Though the company didn’t have an existing facility, it planned to build one at a landfill site it already operated in the RM of Corman Park.

However, GPE was unsuccessful in getting a permit approved by the RM.

The city then turned to Loraas as a backup plan, entering into a contract for $2.7 million, which the city says ran through the end of October.

City administration confirmed that the Lorass contract has not been renewed but they intend to enter into another short-term contract of two years.

Meanwhile, GPE is taking the RM of Corman Park to court.

The firm has submitted an application to Kings Bench court asking it to overrule a decision by Corman Park council not to grant a permit to construct a composting site south of Saskatoon.