Plasco tries to woo Ottawa council

Ottawa city councillors got their first look at a proposed garbage-processing deal that led to the city's withdrawal from the Ontario Waste Management Association.

The long-term contract negotiated with Plasco Energy Group was presented at a briefing Friday by city manager Kent Kirkpatrick, environment committee chairwoman Maria McRae and Plasco CEO Rod Bryden.

The 20-year deal features a clause saying Plasco must complete construction of the waste-processing plantby 2016. There must also be a proof of financing by 2013.

McRae explained to council Plasco would get 300 tonnes a day of residential waste, which is currently half of what is sent to the city's Trail Road landfill.

The deal also includes Plasco getting $83 per tonne, which amounts to about $9 million a year. The city would start making money, though, if Plasco decides to build other plants in North America.

If Plasco can't process that amount of waste, the city will not cover any of the costs.

City council will hear more details from a staff reportMonday and the environment committee will look at it Dec. 12. Council will vote on the proposed deal Dec. 14.

City pulls out of provincial waste management organization

There has been some controversy surrounding this deal. Robert Cook, the chief executive officer of the OWNA, sent Mayor Jim Watson, McRae and council members a letter on Nov. 28 asking them to cease negotiations with Plasco, citing recent media reports that outlined possible conflicts of interest of someone in city hall who did work for both Plasco and the city.

The association, which represents hundreds of private garbage collecting and waste disposal businesses, as well as a number of municipalities, said the city should conduct an independent review of the procurement process.

But in a strongly worded response McRae rebuked the group for its "unprofessional and unilateral approach" in dealing with the city.

"Surprisingly, this frank demand was sent by your organization without first seeking any additional background information on this matter from the City of Ottawa," McRae wrote.

Plasco plans to process garbage through "plasma gasification," a process that involves heating shredded garbage to very high temperatures in the absence of oxygen so the waste does not burn.