Dawson City sewage plant could be a 'lemon', Yukon gov't says
Opposition asks if taxpayers on hook to pay for wastewater treatment facility, or 'WTF'
The MLA for Klondike wants to know if Yukon taxpayers will be on the hook for fixing Dawson City's troubled sewage plant, a facility one government minister admits may be a "lemon."
In the legislature on Wednesday, Klondike MLA and Liberal leader Sandy Silver asked the government to confirm that the wastewater treatment facility — the "WTF", as he called it — costs seven times more to operate than was anticipated.
"In 2014, the government told Yukoners this plant would cost $340,000 a year to operate. Can the minister please confirm for the record the cost to operate the facility is now over $2.4 million dollars a year?"
The plant, which cost $25 million to build, has been plagued by problems since it started operating four years ago.
The Yukon government had intended to turn the plant over to the municipal government to operate, but that never happened. The territory is still responsible for the facility.
"The City of Dawson has rightfully refused to take on this white elephant", Silver said.
Silver also wanted to know who was going to pay for fixing the plant, referring to a report the government received last fall.
"[There are] two different expensive options to fix the WTF. The cost is another $5 to $10 million, depending upon which option is used. Is the company on the hook for these modifications? Or is the taxpayer expected to pay once again?"
Costs 'unacceptably high,' says minister
Community services minister Currie Dixon agreed the cost of operating the plant is "unacceptably high right now," confirming it's "in the neighbourhood" of $2.4 million. He said the government is trying its best to get costs down.
Dixon said the government is also working on a service agreement with the city of Dawson on the long term operation and maintenance of the plant.
"If it's determined that the plant simply doesn't work, that we simply have a lemon, then we will look at other options," he said.
Dixon said that could include holding the company that built the plant, Corix Utilities, "to account" through a dispute resolution process, as specified in the contract.