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Council presses Dixie Power to remove lengthy bond and warranty terms from power‑line sale
Summary
Kanosh attorney recommended striking performance assurance and warranty language from a draft sale of an overhead power line to Dixie Power; council directed staff to return a revised bill of sale/quitclaim draft and to negotiate removal of a proposed long‑term bond requirement.
Councilors revisited negotiations with Dixie Power over the possible sale of an overhead power line running north of Kanosh. The draft contract had required significant performance assurance (a bond or posting of funds) and language that mixed quitclaim and warranty concepts. Town attorney Justin Layman recommended removing the performance‑assurance requirement and using a quitclaim or bill of sale that would not impose town liability for preexisting conditions.
Layman explained the practical effect: "A quit claim deed says, I give you whatever interest I have. I make no warranties," and recommended the town avoid guaranteeing long‑term liabilities or posting large bonds. Council members were concerned that the draft could require the town to post tens of thousands of dollars as security or otherwise remain exposed to liability; for that reason the group directed staff to send the agreement back to Dixie Power with the objectionable sections redacted and ask the company to provide a rewritten counterproposal.
Council did not take a final vote to accept or reject sale terms; the direction was procedural — get a revised contract and return it for legal review. Staff and the attorney said they would follow up with Dixie Power and return a redrafted agreement the council could evaluate.
