Late payments to Yucca Valley sewer contractors are resulting in huge interest-only payments by the Hi-Desert Water District. Thursday morning, the water district’s board of directors held a special meeting to discuss a late payment owed to contractor W.M. Lyles. Assignment reporter Keith Bailey has the story…
The Hi-Desert Water District uses a grant from the State Revolving Fund Loan to pay its contractors working on the sewer project. General Manager Ed Muzik explained to the district’s board members that contractors for the sewer project have not been paid because the California state revolving fund is late in reimbursing the District. Muzik added that contractors may charge interest on payments that are late, hence the $185,000 payment to W.M. Lyles. And, he warned, other contractors may come forward with their own claims for interest on overdue payments. “In addition to this amount, Sukut, if they made the same cause for late payment, it would be about twice the amount of Lyles.”
