Old landfill's legal fees piling up
More than $200,000 in legal services and expert fees
paid from the Poplar Springs Landfill post-closure reserve has local
officials concerned about their ability to remediate and maintain
the old site.
The current fund balance is $213,891.58, but was
$437,968 just four years ago.
Expenditures have been largely from Nashville-based
firm Luna Law Group PLLC. Two other organizations paid through April
are Stokes, Williams, Sharp & Davies and Baker Donelson.
“With JW Luna’s firm we actually pay for our
engineering, our consulting and everything that we had to do to get
this site prepped and ready to work as far as designed and sent to
(Tennessee Department of Environment and Conservation) to make sure
we’re approved through TDEC — all of that is through JW Luna’s
firm,” Loudon County Mayor Rollen “Buddy” Bradshaw said. “So that
inflates the numbers. As far as just straight legal fees that’s not
100 person accurate because there are a lot of other fees attached
to them.”
More recently, expenditures have resulted from what
Bradshaw calls “legal wrangling,” notably when officials had to
determine if work would cross into a property owner’s land adjacent
to the landfill.
“So there was legal wrangling there, some follow-ups
as far as making sure we have everything in order,” Bradshaw said.
“Just part of the price of doing business. ... This has been
expensive, there’s no doubt about it.
“... We’re sitting at, golly bum, $200,000 is a whole
lot of money, no doubt about it, but if you look at the worst case
scenario that’s happened in the state of Tennessee we could have
been looking at millions of dollars if we left this thing
unchecked,” he added.
Commissioner Kelly Littleton-Brewster called draining
the fund balance without accomplishing any visible work at the
former landfill “very much a concern” for all entities involved.
“I mean at this point there’s not been any dirt
moved,” Littleton-Brewster said. “There’s not been anything done to
fix the problem except for it seems like legal fees and easements
and — but nothing to actually fix the major problem out there — with
the problem only costing approximately $170,000, but we’ve spent
over $200,000 on legal fees and engineering fees and still haven’t
gotten it fixed yet.”
Loudon County Commission in June 2016 approved a
50-50 matching grant that at the time was for $68,000. Bradshaw said
the figure is now $87,000 due to the state making “several changes”
to the original plans submitted. Plans are to ask for additional
funds upon completion.
“Actually at this point what we were told also was
that the county did not really have an obligation there to fix it
and it was — of course the mayor had decided that was the right
thing to do was to fix it,” Littleton-Brewster said. “And backing
out of it, well, at this point we’ve spent almost all the money and
we might not have any choice but to back out of fixing it because
there might not be any money available to fix it.”
Bradshaw said the county backing out isn’t an option,
adding that making repairs was “the right thing to do.”
“When it comes to this environmental stuff every
attorney I’ve talked to whether it was JW, (county attorney) Bob
Bowman or somebody from TDEC ... you never get out of environmental
stuff,” Bradshaw said. “That’s something that goes forever. ... The
three entities would have been the highest risks because we had the
biggest pockets.”
Loudon County, Lenoir City and the city of Loudon are
the three entities.
Before the county approved the grant last year, TDEC
Director Patrick Flood was present at the June 2016 meeting and
claimed the state would send out an order for potential responsible
parties for a court to determine who bore responsibility.
“This is getting this taken care of,” Bradshaw said.
“Everybody that lives out there had a right to know if their water
was drinkable. Very fortunate that everything was good as far as the
water goes. ... We knew it was going to be pricey, and good lawyers
are not cheap. I think in the end when we get this thing fixed and
put behind us will justify the means.”
Luna Law Group has charged $196,925.62 since April
2013 based on information provided commissioners at the July
workshop. Bradshaw said the county is not contractually obligated to
Luna Law.
“They may do some minor consulting but once we get
this thing done you’re going to see the legal fees decrease
dramatically,” Bradshaw said. “We’ll still have to do our biannual
inspections, and we may use his engineer for that, but we’re talking
just small amounts of money compared to what it is to get it up and
moving.”
An agreement with contractor JD Anderson will not
be signed until commission meets again. Hopes are to break
ground in early September.
“We voted to proceed with taking care of some
issues at Poplar Springs back in May of ‘16 and was under the
impression by Mayor Bradshaw that this would be expedited
quickly,” Steve Harrelson, commission chairman, said. “Here we
are in July of ‘17 and have spent close to $200,000 on attorney
fees and hadn’t moved the first bit of dirt yet. The whole
process has not gone like the commissioners had hoped.”
Money from general fund
Loudon County Attorney Bob Bowman has been paid
$88,000 from general fund dating back to 2013 for work involving
Poplar Springs Landfill.
Bradshaw said Bowman has served as liaison between
the county and Luna Law Group.
“It was a big surprise that we have spent nearly
$200,000 with Luna and $88,000 with Mr. Bowman and not one shovel
full of dirt has been moved,” Commissioner Matthew Tinker said. “The
whole project was supposed to cost less than that. So we were just
very shocked at the amount of money that’s been spent on legal fees
so far. Hopefully at our next meeting we’ll be able to get some
answers to that.”
Littleton-Brewster said money related to the old
landfill should be taken out of its designated fund, but worries are
it might deplete the balance further.
“Any money that we spent on Poplar Springs should
have been taken out of that solid waste money, and I think there
will be probably some recommendations from a couple county
commissioners maybe to transfer that money out of the right
account,” Harrelson said. “It will deplete the funds some more. I’m
hoping that with the state grant money that we’re going to be able
to obtain that it will offset the difference that we’ll still have
money to do the work.”
City of Loudon officials have also expressed concern
over the money being spent on landfill closure without any visible
progress.
Dennis Stewart raised the concern at the city’s July
council meeting. Joe Ford, city attorney, agreed to bring a report
to council during a workshop Aug. 14. Council hopes to have Bradshaw
in attendance.
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7/31/17