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Work to begin this fall on new downtown sidewalks and lighting

Lighting and sidewalk improvements for downtown Kenmare and the park square will be much more costly than expected, $1.06 million instead of the estimated $800,000.

10/16/13 (Wed)

Project’s cost will top $1 million

By Terry Froseth

Lighting and sidewalk improvements for downtown Kenmare and the park square will be much more costly than expected, $1.06 million instead of the estimated $800,000.

With a strong desire to get the project moving this fall, and discussion of possible increased prices rather than reduced prices next spring, the Kenmare City Council on Monday accepted the low bid for the project.

City engineer Ryan Ackerman said the low bidder, Capriati Construction Corp. of Las Vegas, has committed to completing the west side of the business square this fall. The entire project is stipulated to be completed by July 15, 2014.

A special assessment district, which puts the cost of the project on the downtown property owners and excludes the rest of the city property owners, was previously approved by the council.

Under the original scenario of a total cost of $800,000, the city was to contribute $336,000 for its share. Using the same formula, that figure would now be over $445,000. Individual downtown property owners will pick up the balance of around $615,000 through special assessments unless the city can come up with other sources of funds to reduce that figure.

Even so, the increase to downtown property owners’ tax statements will likely be significant, although no accurate estimates were immediately available.

Only one other bid was received on the project, that coming from Strata Corporation of Minot.

Capriati Construction’s low bid was $816,676.35 for construction. In addition, planning, engineering and design fees were budgeted at $65,334.11; project representative $49,000.58; contingency $81,667.64; administration fees $49,000.58 for a total of $1,061,679.26.

Strata Corporation’s high bid was $983,179 for construction. Adding in $294,943.70 for engineering, contigency, and other costs related to that bid, the total would have been $1,278,122.70.

The council discussed other alternatives, such as doing only the west side of the square and rebidding the rest of the project next year. It was decided that splitting the project would definitely increase the total cost.

In regards to discussion of contractors becoming hungrier for work if oil activity levels off, thus reducing the cost in the coming months, Ackerman said that wasn’t likely to happen. “This type of infrastructure work is not going to slow down for five years, because they’re that far behind." . . . . Read EVERY WORD on EVERY PAGE of The Kenmare News by subscribing--online or in print!