FORT WAYNE, Ind. (WANE) – Under its contract with Fort Wayne, Red River Waste Solutions is required to post a performance bond at the start of each year of the agreement. This means that, by 2022, Red River and its surety, Argonaut Insurance Company, should have paid this by January 1, 2022.
When asked if Red River and Argo had made this payment on Monday, a spokesperson for the City of Fort Wayne told WANE 15: âAt this time, we have no indication that they are. have done. ”
In December, local officials said WANE 15 Red River / Argo had to pay about $ 800,000 in total on January 1: $ 500,000 (10% of the waste contract) and an additional $ 300,000 (10% of the recycling contract). ) to honor its agreement with the city.
Not paying the bond is technically a breach of contract, but it’s also still stuck in bankruptcy court after Red River filed for Chapter 11 in October 2021.
“The City would have the right, but not the obligation, to make a claim for breach of contract [if the bond is no paid]. It would be up to the bankruptcy court to schedule a hearing on the matter. The city is more interested in finding a long-term solution than a short-term claim, âsaid John Perlich, spokesperson for the City of Fort Wayne.
Although the bond is apparently not paid, Red River continues to collect trash in Fort Wayne. A WANE 15 employee confirmed that his trash was picked up on January 3, noting that it was three days late.
Perlich added that the city was still in talks with Red River to find a solution to the company’s poor performance.
âDuring the holidays, the City, Red River legal counsel and Argos legal counsel (Red River’s performance bond provider) had frequent and constructive dialogue. Much progress has been made. Given the constraints of the bankruptcy process and until a final deal is formally approved by all parties, we cannot comment further at this time, âPerlich said in an email to WANE 15.â We hope to be able to provide an update to the public. in the next weeks. Continuous, reliable and uninterrupted waste collection and recycling services are the City’s top priority, and we remain confident in our ability to meet these goals.
A hearing requested by Argonaut in Texas federal court would have asked a judge to coerce Red River into accepting or rejecting the Fort Wayne contract? It was originally scheduled for December 20, 2021 and was moved to 23 and then canceled.
âWe are aware that it has already been reprogrammed twice and may well be reprogrammed in light of the progress made,â said Perlich.
In the event that Red River is unable to pursue the contract or chooses not to, in December the solid waste advisory board voted to “speed up the search” for Red River’s replacement by reviewing contracts. emergency with three companies currently operating in Fort Wayne. . These companies are Waste Management, Republic and GFL Environmental. WANE 15 has also asked Perlich for an update on these emergency back-up plans.
âI am not in a position to speculate on which supplier (s) would be part of a theoretical contingency plan. It is our duty to be prepared if something goes wrong, âhe said in the emailed response.