Whitehorse Daily Star

Ruling helps Dawson avoid trusteeship

Dawson City won't need to bring in a trustee to take over from the town council.

By Whitehorse Star on March 17, 2004

Dawson City won't need to bring in a trustee to take over from the town council.

Mayor Glen Everitt said in an interview today the arbitrator's ruling on the dispute between the town and TSL Contractors Ltd. came down last Friday, and he's pleased with it.

'I'm happy with what the arbitrator had done,' Everitt said of the ruling.

However, the town cannot release the total amount of the award without agreement from TSL.

While he was forced to stay mum on the total, Everitt hinted it will not exceed $1.35 million.

It appears the town will be paying something out, however.

As laid out in the town's new financial plan it drew up earlier this year, contingencies were set out in anticipation of having to pay out to TSL as a result of the arbitration.

The final report of Andre Carrel, the government-appointed supervisor of the town who helped council draw up the plan, noted that if the award was under $1.35 million, a contingency fund had been built through cuts and a loan from the territory to enable the town to make the payout to TSL without any difficulties.

However, if the ruling exceeded $1.35 million, it was indicated the town would be thrust into a tough position.

In his report, Carrel recommended the government seriously consider firing the council and putting a trustee in charge of the town.

He also recommended to the town council that it consider asking the government to appoint a trustee.

'We won't be requesting a trustee,' said Everitt.

He said the total will not be final until after the arbitrator rules on how much to award each side to pay for legal fees. But even after that is resolved, Everitt doesn't think the town will need to ask for a trustee.

'The city budgeted for this ruling and, in our opinion, our budgeting was pretty close.'

Everitt wants the decision made public. TSL will have to OK whether the award is made public.

'We want the public to see the award,' the mayor said.

Even if TSL refuses to permit the figure to be released, Everitt said, the final decision will come out one way or another.

According to the mayor, the arbitrator's decision will make up part of the city's lawsuit with TSL and architecture firm Ferguson, Simek, Clark over the roof of the recreation centre.

The mayor also said the final total could be found once it is paid out because it will be in the town's books under accounts payable.

The dispute is over the construction of the town's new recreation centre, which TSL was hired to do by the town.

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