Dawson City sewage plant could be a 'lemon', Yukon gov't says

The MLA for Klondike wants to know if Yukontaxpayers will be on the hook for fixing Dawson City'stroubled sewageplant, 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 tooperate, but that never happened. The territory is still responsible forthe facility.

"The City of Dawson has rightfully refused to take on this white elephant", Silversaid.

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 CurrieDixon 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.

Dixonsaid 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 includeholding the company that built the plant, Corix Utilities, "to account"through a dispute resolution process, as specified in the contract.