News Release
(Friday, June 20, 2003) - Halifax Regional Council has refused to accept what it considers to be "fundamental changes" to the agreements signed last Fall with the private consortium selected for the Harbour Solutions Project, it was announced today.
Mayor Peter Kelly and Chief Administrative Officer, George McLellan, both stressed that HRM remains committed to moving forward with the Project within the timeline set for start and completion - but the Harbour Solutions Project will be proceeding under different arrangements. Staff has been instructed to bring forward an action plan for Council's approval within two weeks.
Mayor Kelly said Regional Council would not agree to a change proposed by the private consortium - the Halifax Regional Environmental Partnership - that would have the effect of transferring to the taxpayers of HRM the risk for failing to meet effluent water quality standards in certain circumstances.
The Mayor said the changes proposed by HREP could have HRM responsible for additional costs.
"Council was not prepared to place the citizens of HRM at increased financial risk in the event the effluent (the treated liquid flowing into the Harbour) does not meet the effluent quality requirements. The RFP (request for Proposals) process and the Agreements signed last Fall clearly required the successful proponent to assume all risks and responsibility to meet the effluent quality requirements at all times, except when HRM delivered "abnormal influent" (the sewage going into the sewage treatment plants). The changes recently proposed by HREP would redefine what would be considered "abnormal influent," Mayor Kelly said.
Mr. McLellan said that the Project Agreements, although signed last Fall, were not to be effective until certain conditions were met, including receipt of required environmental approvals. In March of this year, after the required approvals were received but before the effective date of the Agreements, HREP advised the Harbour Solutions Project Team that it wanted to propose changes to the Agreements signed last Fall. HRM's negotiating team has been working with HREP for the past several months trying to resolve this issue.
He said "However, the discussions came to an end this week when Council reaffirmed that it would not agree to any substantive changes to the Agreements, particularly if they required HRM to assume greater risk with respect to the quality of the treated effluent to be discharged into the Halifax Harbour".
In a letter to HREP this week, HRM stated that it expected the private consortium to honour the terms of the Agreements signed in October 2002. HREP is not prepared to honour the terms of the Agreements negotiated and signed. As a result, the existing relationship between HREP and the municipality has terminated.
HRM remains committed to proceed with the project without further delay.
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John O'Brien
Corporate Communications Officer
(902)490-6531
