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By Myrna Trauntvein
Times-News Correspondent
John Kuhni Sons Inc., an animal rendering facility, has now hired a bankruptcy attorney.
"We have begun the bankruptcy process," said Tyler Young, an attorney for brothers, Paul and Greg and who represented Kuhni's at Juab County Commission meeting on Monday.
Paul Kuhni was also present at commission meeting.
"Originally there was a dispute about who had controlling interest in the company but," said Young, "that has now been resolved. Kevin Kuhni no longer has controlling interest."
The plant relocated from Provo to the Mills area of Juab County, just off I-15, about 15 miles south of Nephi, five years ago. Five years ago, the plant was located in East Bay area of Provo. The city contributed more than $2 million to help finance the move.
The move to Juab County brought financial woes, family arguments and environmental violations.
John Kuhni founded the company in Provo in 1937.
The rendering facility processes dead animal carcasses, butcher scraps and restaurant grease collected from all over the state. The raw material is cooked and crushed into meat and bone meal used in animal feeds and as tallow in other products.
Prior to the move to Juab County, Kuhni's grandsons battled in court over ownership. A settlement left Kevin Kuhni with day-to-day control and he was the one who shepherded the move to the new site, in 2004.
"Kevin Kuhni no longer has controlling interest," said Young. "Paul Kuhni is now in charge and Greg and Jeff Kuhni are back full-time."
Paul Kuhni took over operations in March 2010.
Problems began almost immediately following the 2004 move. In January 2005, Juab County Sheriff's Office deputies and officials from the Central Utah Public Health Department found a 10-foot-deep pit next to the plant containing "raw, untreated high-strength slaughterhouse wastes," according to court papers.
The next month, they saw waste water running from the plant into nearby Chicken Creek. The officials notified the state Division of Water Quality, which took samples found to contain fecal bacteria and other contaminants. The division issued the first of six violation notices the company would rack up over the following years.
Court-ordered cleanup measures and state fines of nearly $200,000, followed.
It was alleged that the facility illegally dumped used boiler water from the plant on private property in Sanpete, Juab and Utah counties. Kevin Kuhni blamed the disposal problems on equipment failures, operator error and misunderstandings.
Plant management was resistant to paying the fines and stated, in court papers, that it was in "precarious financial condition."
An agreement with the state was eventually made to reduce fines in exchange for completing facilities to treat waste water on site.
LuWayne Walker, commissioner, asked about storm water pollution and if the problem had been solved.
"There is nothing leaving the property," said Young. "During the last visit, the state was impressed with the progress the company had made."
Besides employing more than 40 people, the company provides a valuable public service.
"If the plant is not operating, there will be an uproar because you can't have that many animals going into landfills," Young said.
As for cleaning up the property and eliminating health issues much had been accomplished.
"Significant strides have been made."
He said that contamination levels were about half the previous levels.
"The plant is operating about 60 hours a week," said Young.
The big challenge facing the plant is its $10 million debt. Filing bankruptcy should provide the needed help in achieving financial health.
Young said that with the rise in fuel costs, the company was concerned. In addition, with the increased distance to many of the company's pickup sites in northern Utah, the truck fuel has been a rising expense.
In addition, the company lacks a direct line for the natural gas needed to heat its boilers. An alternate fuel is delivered by truck which also adds to the cost of operation.
"Is the county still working on a natural gas line?" asked Paul Kuhni.
Val Jones, commission chairman, said the county had been looking at ways to build the needed line. Such a line would also benefit others who might be interested in locating in the county industrial park.
"Yes, the county is trying to help but there are no available funds," said Jones.
"There is a possibility of a grant or a loan from the EDA," said Glenn Greenhalgh, county planning director.
Commissioners also requested that Paul Kuhni provide copies of all reports from the Division of Water Quality to the commission.
"I feel good about coming out of bankruptcy a better company," said Paul Kuhni. |
