City wins arbitration in Bullhoook dispute

Havre Public Works Director Dave Peterson told the City Council Monday that the city has won its arbitration in the dispute over work on the Bullhook storm drain system under the city and the bonding company is planning how and when to resume work.

The city entered arbitration last spring with Kincaid Civil Construction out of Mesa, Arizona, the company that Havre awarded the contract to rehabilitate the drainage system that runs under the streets and even buildings of Havre.

Peterson said the arbitration came back in favor of the city, including the city receiving money for attorney fees, and Havre is now moving to next phase with Kincaid’s bonding company, Guaranteed Company of North America, taking over the project.

The remaining part of the project will not be taking funds from city’s coffers, Peterson said.

He said the bonding company is now talking to the city attorney to explore its options and when work will resume on the project and when it will be complete is not set.

Bullhook drainage starts at Saddle Butte southwest of Havre and runs into the city near Havre High School on the south edge of Havre and meanders through the city. A few spots still are open, but most of the drainage has been covered by streets and buildings and dirt work over the last century.

The city grew up around the channel over the years, with some buildings erected right over the drainage, with concrete pipes and metal culverts in the ground to convey storm drainage.

The extent of deterioration of the system became evident in October 2013 when sections of street and sidewalk over the drainage began collapsing.

One of the first, a 10-foot-by 4-foot section of the street near Taco Treat on the 500 Block of Third Street collapsed Oct. 4, 2013.

After investigating, researching, planning and fund seeking for nearly three years, the city contracted with Kinkaid in August 2016 in a $1,972,503 contract, paid through a $500,000 grant from the Treasure State Endowment Program, a loan and city funds.

When Kinkaid did not meet its deadline in December 2016, it sought an extension, and the city then went into negotiations with the company until it entered arbitration this year.