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City reviews insurance language in Granite Construction PSA amid dust concerns
Summary
Willard City Attorney reported concerns from the City's insurance trust that a primary noncontributory endorsement in the Granite Construction purchase-and-sale agreement could shift near-term liability to the city; the matter remains under review and a meeting with the trust is planned.
City Attorney Amy Hugie told the council that the City's insurance trust (UMIA) raised concerns about a proposed primary noncontributory endorsement in the Granite Construction purchase-and-sale agreement, saying that language "could shift liability to the City's insurance program even in cases where another party is responsible for the loss." Hugie said she has asked Granite's attorney to identify the PSA sections that provide indemnity and has scheduled a meeting with the trust to clarify whether its concerns apply only to the due-diligence period or to the broader agreement.
Council members expressed unease about potential exposure for a city of Willard's size if the City's insurance were required to respond first. Planning Commission member Diana Baker also relayed public concern about dust generated by the Granite pit during high-wind events; council members noted dust-mitigation provisions are in the draft and that quarterly meetings with the pit operator were contemplated once agreements are finalized. The matter remains under review and no council action to execute the PSA was taken at this meeting.
