Board notifies Big Sandy of default over engineer-of-record contract, authorizes HUD outreach

Board legal counsel Dustin told directors the Cold Water (raw water intake / coal water line) engineer-of-record agreement submitted by Big Sandy did not include the district as an owner and therefore failed to protect the district's contractual rights.

Dustin said the district repeatedly requested revisions to the proposal, that Big Sandy refused to make those changes and that the district sent a notice putting Big Sandy on notice of default with a response deadline. "We considered them in default of their obligations under our agreement," Dustin told the board.

Chair reported the board directed counsel to escalate the matter if Big Sandy does not remedy the issue: staff will send a letter to HUD, the grant funding agency, to request guidance and intervention. The board also discussed moving toward depositions as the next step in resolving outstanding disputes if negotiations do not succeed.

The board agreed to take the matter into executive session for additional legal discussion and approved a motion authorizing the board attorney to draft and send the HUD letter.