DAWSON CITY – While Dawson’s wastewater treatment plant is finally capable of doing the job for which it was built, it will not meet the town’s future needs in a financially sustainable manner.

Consequently, the Yukon government has determined, planning should begin toward finding a replacement system.

This comes not quite 10 years after the first test holes were drilled for the plant’s construction, and seven years after the court-ordered facility went into service.

The $34.3-million plant has been problematic since it became operational in 2012, and has consistently failed to meet the terms of its water licence.

Because of the many issues and cost escalations associated with the plant, the City of Dawson refused to accept final ownership of the facility after its trial run period. The Yukon government has been operating it now for several years.

Just a year ago, the government made what was described as a “last-ditch effort” to make the plant compliant.

While a November 2018 letter to municipal council from Community Services Minister John Streicker indicates that this was successful, there are too many other issues, beginning with the financial burden.

Dawson contributes $210,000 annually to the O&M costs of the plant (a number close to the original projections).

The actual cost, however, has ballooned to $950,000 annually, with “additional costs for building and site maintenance,” and the government is making up the difference.

These costs are “significantly higher than in any other Yukon community, including Whitehorse,” Streicker wrote.

Those costs are better than three times the projections that were stated while the plant was in the planning phase under a Yukon Party government. The selection of this type of system for Dawson “wasn’t a good choice,” as Streicker has put it.

His letter to council paints a grim picture of the future.

“Further, these costs are expected to rise as the plant ages and additional maintenance is required,” he wrote.

“For example, the plant has hundreds of mechanical systems and control elements, each with a scheduled service life.

“Replacement costs for these are expected to jump to $500,000 in 2025, with additional costs of more than $1 million per year in 2030 and 2031, with another $2 million required in 2035.”

Put the plant’s lackluster performance and its escalating costs together, and the government has determined that “the life cycle of the plant is severely limited,” Streicker wrote.

“The Government of Yukon has concluded that it would not be fiscally responsible to operate the DWWTP (Dawson City wastewater treatment plant) beyond 2026.”

The minister was blunt in a news release issued Tuesday.

“This plant has been a costly endeavour for Dawson City and Yukon. It has never operated the way it was intended to, and as Dawson grows, the challenges of maintaining the facility will become even more difficult,” Streicker said.

“We are committed to working with the City of Dawson to develop a sustainable wastewater treatment option.”

In his November letter, which was part of the council package for Monday’s meeting, the minister concedes that “this may well be frustrating news for you as it is for us.

“Therefore we would like to support the City of Dawson to begin planning a new wastewater treatment lagoon, to be operational by 2026 or earlier.”

The plant is now meeting its requirements, after what the minister refers to as “a great deal of effort.”

However, it seems likely that Dawson, which the Yukon Bureau of Statistics currently says has a population of 2,323, up from the 2016 census number of 1,375, will soon exceed the capability of the plant to handle the town’s effluent.

The letter advocates a lagoon solution, which, interestingly enough, was the solution proposed and designed over a decade ago.

It was defeated in a 2008 referendum, which objected to the proposed location at the foot of the Dome Road, and across the highway from the Tr’ondëk subdivision.

The press release contains the following background information.

Construction of the wastewater treatment plant was largely completed in 2012.

Corix Water Systems Inc. – the company contracted to build the plant – began operating it in 2013.

Corix continued to operate the plant, under contract, until February 2017, when the Department of Community Services took over operations and maintenance.

The government has filed a statement of claim against Corix.

Originally, the plant was to be operated and maintained by the City of Dawson.

In 2015, however, it asked the government to manage the plant until it was fully functional and financially sustainable.

From the outset, the plant struggled to meet the requirements of its water licence.

Most of the time, it was less compliant than the primary treatment facility (a screening plant) it was designed to replace.

As a result of changes in the plant design implemented after negotiations with Corix and its subcontractors (mostly at their cost), the plant is now in compliance.

Discussions with Corix are continuing over the performance of the plant and the issue of higher operating costs.

“After a great deal of effort over several years, the wastewater treatment plant is now marginally capable of meeting effluent discharge standards under normal operating conditions,” the minister’s statement says.

“As Dawson grows, the challenges of sustaining this facility will only get more difficult.

“The Government of Yukon will actively support the City of Dawson in the planning of a new wastewater treatment option and will help secure appropriate infrastructure funding for a wastewater treatment facility.”