What began as a $2.5 million lawsuit against Salina City has been settled through an arbitration board. It cost the city $81,000 for attorney fees and court-related costs.
K&P Plumbing of Provo, who contracted with Salina for construction of sewer lagoons, filed the suit. The firm claimed additional costs were involved because soil conditions at the site were not what they were represented to be. The company claimed soil tests were not accurate in determining how the soils would dry.K&P later reduced the damages claimed in the suit to $1.8 million.
The contract called for an arbitration board to settle any differences between the two entities and the case was turned over to a panel selected by the National American Arbitration Association.
The plumbing firm agreed to dismiss the suit after almost two days of testimony, providing Salina City would dismiss a counter claim for attorney fees. These amounted to $178,800, but Salina didn't have to pick up the entire tab. Some 55 percent is being paid by the EPA Water Pollution Board, the same percentage as the participation in the project.
City officials said Salina would pay its portion out of the original bond financing because the total cost of the project was less than the engineer's estimate.