Interlaken proposes ending its public works manager role after a state review found improper procurement

Interlaken’s town administrator has proposed ending the town’s public works manager position and bidding its main contracts starting in 2027, after a state review found the Wasatch County town did not follow Utah’s procurement code. The proposal was listed for discussion at the town council’s Oct. 6 meeting. ^[1][2]

It is a recommendation. The paper says a procurement policy will be drafted for adoption at its December meeting and take effect in January 2027. ^[1]

What the state found

The Office of the Utah State Auditor’s limited review, dated July 28 and covering July 2024 through January 2026, followed a hotline complaint alleging excessive pay and favoritism in hiring for town services. Its three findings concern procurement and worker classification; none concerns pay. ^[3]

Interlaken, established in 2015, contracts out its town administrator and public works manager. The review found the town had issued a new annual contract to the same person for the clerk and administrator role each year since at least 2017 without a procurement process. Its 2024 advertisement for the public works manager ran as a help-wanted listing that lacked the information and public notice state law requires, and a new contract went out in November 2025 without further procurement. ^[3]

The manager contract was signed in the name of the manager’s excavation company. That contract covers managing the town’s roads, water system and permits, but since 2023 the town has also regularly hired the company for repair and maintenance work, including water system upgrades, with no procurement process. That work was billed at a different rate than the contract, with equipment, materials and extra labor the contract does not mention. The town also issued no contract and posted no required documents for emergency water repairs the company did in 2024. ^[3]

The review says the problems happened because the town was unaware it is subject to the procurement code and had no written procurement policy. It says improper procurement increases “the risk of collusion, bias and favoritism.” It does not report finding any of those. ^[3]

The town’s response

In a July 21 response, Mayor Greg Harrigan wrote that the town would adopt a written procurement policy, which would take at least 90 days, and rebid the administrator, public works manager and excavation contracts. The town disputed the finding that the two positions may be misclassified under federal tax rules, saying neither receives benefits, an office, a vehicle or expense reimbursement. The auditor’s office replied that those factors alone do not establish contractor status and kept its recommendation that the town consult legal counsel. ^[3]

At the Sept. 1 council meeting, Harrigan read an email objecting to a KPCW report on the review, saying he was misquoted and that the town’s response was misrepresented, according to the minutes. ^[4]

The October proposal

For the rest of 2026, the proposal by Town Administrator Bart Smith says the public works manager role “is terminated” and road and water work will be billed as time and materials. The administrator contract would not change, and a snow removal contract for this winter would go to the council in October on the same fixed monthly terms as last year. ^[1]

From 2027, the administrator contract would be bid as a three-year professional services contract and road and water maintenance as a three-year on-call contract, with bidding to start after the council adopts a policy in December. The paper includes example purchasing thresholds, such as council approval for purchases of $30,000 or more; these are draft examples, not town rules. It says the changes will increase the town’s costs. ^[1]

The Oct. 6 meeting notice lists the procurement discussion and links the proposal and an audio recording. Minutes of that meeting were not posted as of Oct. 16. ^[2]