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Utah County adds late‑payment penalty and insurance clause to Eagle Mountain interlocal agreement, approves 3–0

Board of County Commissioners (Utah County) · December 2, 2020
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Summary

The Utah County Board of County Commissioners approved an amended interlocal agreement with Eagle Mountain, adding a 1% per‑month late payment provision and a clause making the insurance charge the greater of $1,174.47 or actual cost (adjusted annually). The motion passed 3–0.

The Utah County Board of County Commissioners voted 3–0 to approve an amended interlocal agreement with the City of Eagle Mountain, adopting staff-recommended language to address late payments and insurance-cost accounting.

Commissioners and county counsel discussed a redlined revision to the agreement that arrived shortly before the meeting and flagged two substantive concerns: (1) the draft lacked a late-payment provision and (2) it carried an insurance line-item that appears to be a legacy figure. A commissioner noted an outstanding invoice balance linked to the arrangement of $234,000 dating to April 1 and urged the contract be clarified before approval.

County counsel and finance staff proposed adding standard late-payment language and an insurance-cost mechanism. Dave Shatcroft, who identified himself as county finance staff, told the commission the amendment could be approved "with the addition of language indicating that on anything more than 30 days delinquent, there would be an interest applied at 1% per month." Counsel said the insurance line could be set as a dollar amount for the first year and adjusted annually to reflect actual cost.

Under the motion the commission approved, the contract now includes a late-payment penalty equal to 1% per month on amounts more than 30 days delinquent and an insurance provision applying the greater of a hard-coded base ($1,174.47) or the actual per-employee insurance cost, with annual adjustments.

Commissioners also discussed concerns about how invoices are issued; one commissioner said Eagle Mountain reported it "never received that bill," a point county staff said they would address through follow-up and improved billing practices.

The commission recorded the vote on item 8 as 3–0 in favor. The amended agreement will be forwarded for signature and the county said it would continue to reconcile outstanding invoices and update the contract's numerical exhibits as needed.