Daggett County RDA to draft addendum clarifying $120,000 contribution for waterline work on Matt Lucas project

The Daggett County Redevelopment Agency directed staff to draft an addendum to its participation agreement with Matt Lucas that would specify payment and easement terms for up to $120,000 toward water and sewer infrastructure in the Dutch John Community Development Project area, agency members said during an open-session discussion.

The discussion matters because the $120,000 contribution interacts with an ongoing Small Business Administration (SBA) loan process, outstanding legal fees, and property easements that affect future maintenance and extension of the county water and sewer system. Agency staff said they will present the addendum for consideration at the RDA’s next meeting.

Agency members and Mr. Lucas discussed how the RDA should transfer the $120,000 to the contractor building the lines, whether the RDA should contract directly with the contractor or with Lucas, and how to document the arrangement so the SBA will accept it. Kent (staff member) read section 4(c) of the current participation agreement aloud and said the agreement authorizes the agency to make "water and or sewer infrastructure improvements . . . up to $120,000," making clear the payment is “up to” that amount rather than a guaranteed flat payment of $120,000.

Matt Lucas, the project participant, confirmed the RDA previously agreed to contribute roughly $120,000 toward the waterline project and said the RDA’s contribution had been removed from the contractor bid at the SBA’s request. Lucas said the SBA preferred the RDA contribution be removed from the bid package rather than given directly to his entity for the utility work.

The group discussed practical payment options: (1) the county contracting directly with the contractor, (2) the county contracting with Lucas and paying him, or (3) paying the contractor once work is completed and accepted. Agency staff said the simplest path may be an addendum to the existing participation agreement that authorizes payment to Lucas after the water and sewer system inspects and accepts the installed infrastructure.

Agency members emphasized two conditions for payment: the work must be built to specifications acceptable to the water and sewer system, and the system must accept the completed section before payment is released. Agency staff said acceptance would be documented by the water and sewer representative (Trevor) and could trigger payment once Lucas presented an invoice; Lucas noted typical contractor payment terms could require 30–60 days for final payment after billing.

The meeting also covered related issues that the addendum will need to address or clarify: whether recently incurred legal fees (for condemnation work) are to be charged against the $120,000 contribution or treated separately (the agreement language is ambiguous); whether recorded easements along the property frontage already give the county the right to extend and maintain lines (Lucas said he believes a recorded utility easement exists across the frontage up to 50 feet); and the SBA’s position that the RDA contribution should be shown outside the bid scope for the SBA loan. Agency staff said they will verify easement language and coordinate with the county engineer, Paul Hawkes, to ensure access and maintenance rights are properly documented.

No formal vote or final payment was recorded during the discussion. Instead the RDA directed staff to draft the addendum (or third amendment/addendum to the participation agreement) with language to: (a) specify that the RDA will contribute up to $120,000 for water and/or sewer infrastructure built to county/water system standards; (b) require inspection and acceptance by the water and sewer system before disbursement; and (c) document any required easements or deed language to allow future extension and maintenance. Agency staff said they would place the draft addendum on the RDA agenda for the next meeting for formal consideration.

Separately, Kent notified the RDA that an oral argument on an immediate-occupancy matter is scheduled for June 2 before Judge Beach; the judge may rule quickly but technically has up to 60 days to issue a decision. Agency members said they are prepared for that hearing and that it is separate from the infrastructure-addendum work.

The item concluded with staff assignments: agency counsel and staff will prepare the draft addendum, the county engineer will confirm easement language, and Lorinda (staff) will add the item to the RDA agenda for the next meeting. No binding payment or contract change was approved at this meeting.