La Paz board weighs action in Yakima case

PARKER – Closure of a biosolids processing facility will be the focus of a closed door meeting of the La Paz County Board of Supervisors today.

The board will consider its position concerning the closure of the Yakima sludge drying facility, litigation with the Yakima company and the Lincoln General Insurance Co. The issue is whether to enter into litigation against the insurance company over a performance bond put in place to cover the closure of the facility or whether to enter into a tolling agreement in regards to claims on the bond.

A tolling agreement allows the two parties in dispute the opportunity to assess their positions, validity of claim(s) and amount of damages without having to file an action in court. While the agreement is in place, both sides agree to waive any statute of limitations defense.

Calls to board chairman Gene Fisher were not immediately returned.

Yakima had operated a sewage sludge drying facility next to the La Paz County landfill, on land the county obtained from the Bureau of Land Management. They were operating under a contract with the county.

From virtually the very start there were disputes between the county and Yakima. The county alleged mismanagement at the facility and that the company broke the contract by not obtaining a performance bond and not securing an aquifer protection permit from the Arizona Department of Environmental Quality.

Yakima filed a counter-claim, saying the county's actions made it impossible for them to fulfill their obligations. They also claimed the county did little to pursue a larger site for Yakima, as the contact required them to do.

On Sept. 4, 2007, after a 10-day trial in La Paz County Superior Court, a jury found in favor of Yakima in litigation brought by the county. The jury awarded the company $9.2 million in damages.

On Oct. 1 of that year, the board voted to appeal the decision.

Not including cost of the trial, the county spent more than $680,000 on legal bills from dealings with Yakima from 2002 through September 2007.

The regular meeting of the board begins at 10 a.m. in Parker. A Fiscal Year 2008-09 budget workshop is also scheduled for today at 2 p.m.

Reporter John Gutekunst contributed to this report.