The construction company that built the Davis County garbage incinerator has filed a $3.7 million federal lawsuit against the plant's operators.
Davis County Construction Contractors contends in the lawsuit filed Wednesday in U.S. District Court that the operators never paid the $3.7 million cost of having the burn plant built at an alternate site.The construction company, a subsidiary of Delaware-based Katy-Seghers Inc., contends it cost at least $3.7 million more than the base-contract price to build the plant near Hill Air Force Base instead of on a Clearfield site that had been named in the original bid.
The suit maintains that the governing board of the Davis County Solid Waste Management Energy Recovery Special Service District has failed to make arrangements to reimburse the company for the difference.
But Jim Young, executive director of the burn plant, said special service district officials have been negotiating with the builders for more than two years and have been unable to reach an agreement.
"We claim the money in dispute is part of their contract and they claim it is an additional amount. We don't believe there was that understanding," Young said.
He said negotiations had come to a standstill and burn-plant officials were waiting to see what action the construction company would take.
In 1982, Katy-Seghers, a company that designs and builds waste-to-energy plants, submitted a low bid of $32.9 million to build the burn plant on a site in Layton.
The site then was changed to Clearfield, and the two parties eventually agreed on a bid of $26.3 million.
However, in September 1984, the district again shifted the site to its current location near Hill Air Force Base.
At that time, Katy-Seghers entered into a contract with the district with the understanding that extra costs to build the facility at the new site would be picked up by the district, the suit said.
Building the plant near the base meant extra costs for site preparation, it said.
When the plant was completed in June 1986, Katy-Seghers submitted a list of additional costs that totaled $3.7 million, the suit said.