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Commissioners hold bond certificate for BRT project pending details on contractor claims against UTA

Utah County Commission · January 8, 2020
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Summary

The county was asked to sign a completion certificate for a 2016 bus‑rapid‑transit bond so remaining construction funds could be transferred to the bond fund; commissioners asked staff to request more detail from UTA after a referenced contractor claim and to delay the certificate until the claims are explained.

Staff presented a written certificate of Utah County RE for $65,000,000 in bonds relating to the 2016 bus rapid transit project and explained the certificate is needed to confirm project completion so construction‑fund balances (if any) can be transferred to the bond fund.

County staff noted the certificate includes a punch list and an attached exhibit that discloses existing contractor claims against UTA related to extended overhead costs. Commissioner 3 said he was not comfortable signing the county certificate until he had more information about the nature of the claims and whether they attach any liability to the county. Staff said any county liability should be covered by UTA’s indemnity obligations under the intergovernmental agreements and offered to request more detail from UTA.

Commissioners directed staff to delay placing the certificate on the next meeting agenda until UTA supplies additional information about the claims so the commission can review potential exposure or other implications. No formal vote to sign took place at the work session.