Bonneville County delays $13.6M road contract until water districts produce written payment commitments

Bonneville County commissioners on Wednesday postponed action on awarding a roughly $13.645 million contract for the 49 North Avenue to 45th East road project after commissioners said they needed written reimbursement commitments from two water districts and the Bonneville Sewer District.

Public works staff told the board that Far Offs Engineering had evaluated the bids and recommended HK Contractors for the project, and that contract documents — notice of award and notice to proceed — were prepared. The staff member leading the presentation (Public works director) said engineers had reported verbal commitments from the two water districts and the sewer district to reimburse portions of the project, including a $1,261,234.08 water-related line item and a $2,040,399 sewer-related portion for the Bonneville Sewer District. "The numbers are right. The math is right. And I've got the verbal commitments from Paul and IBSB to proceed," the Public works director said.

Several commissioners expressed concern about relying on verbal promises. One commissioner who identified themselves as an attorney said the county faced legal and budgetary risk if it signed a large contract without written agreements. "I'm reluctant to sign a contract without something in writing from these water districts," the commissioner said, adding that without memoranda of understanding or other written assurances "we're on the hook" and could exhaust reserves or lose in court.

Board members discussed options including inserting a contractual caveat to remove unreimbursed portions of work, seeking written letters of commitment from the utilities, or delaying the award. Staff said they could likely obtain a written commitment from one district more quickly than from the other, and that delaying could make the project schedule harder to meet; staff emphasized the work is time-sensitive to accommodate an August school opening.

The board agreed to table the award until a special meeting on Thursday at 1:30 p.m. to allow staff to attempt to secure written letters from the water districts and Bonneville Sewer District. Staff said they would seek letters from district boards or their chairs indicating formal approval to reimburse the county for their portions of the work. The county did not approve the HK Contractors contract or issue a notice to proceed at the meeting.

The special meeting will revisit the contract award after staff returns any written confirmations; if the county does not obtain written commitments, commissioners said they would consider removing those portions from the contract or not proceeding with the project.