Official Newspaper of Eddy County since 1883
Official Newspaper of Eddy County since 1883
A newly-received estimate for school building improvements obtained by board members has prompted the New Rockford-Sheyenne (NR-S) School Board to have an attorney review its contract.
The NR-S School District approved a performance contract with CTS Group on Thursday, April 5 totaling $3.2 million for the completion of school building improvements to include the rebuilding of the exterior walls, installation of new unit ventilators, shop repairs and electrical improvements. Voters approved up to $3.255 million in general obligation bonds for the project last fall.
On April 16, a week and a half after the contract was signed, board members received a construction estimate for the project from a Fargo, N.D. firm totaling $1.8 million, including $112,000 for design costs. This represented a $1.4 million difference from the contract signed by the district, and board members were left wondering why.
At a special board meeting on Monday, April 23, board members reviewed the estimate and pondered what to do next. The building committee had a conference call with Mark Bucholz of CTS Group earlier that day, where Bucholz recused himself from the board meeting. Building committee members said that they were told materials had already been ordered and contracts with subcontractors signed.
Overall, the board members were very concerned about the stark cost difference between the two proposals. “It’s not our money that we’re spending. It’s the taxpayers’ (money),” President John McKnight said. “I think we at least need to look at this.”
A 30-minute discussion ensued that evening, and board members sought to determine whether the CTS contract and this new estimate were an accurate comparison. The discussion resulted in several questions and almost no answers. Eric Myhre concluded, “Until we get these questions answered, it’s hard for us as a board to make any decisions.”
With that, Myhre made a motion to retain an attorney to review the district’s contract with CTS Group. The motion carried unanimously.
On Tuesday morning, Louters emailed board members indicating that she had engaged an attorney. She wrote, “Mr. McLean [of Serkland Law in Fargo] will review the CTS contract...He also indicated that I should contact our financial adviser to inform him of the situation.”
Louters continued, “This is not a viable bid or estimate because the board has not publicly called for bids on this project. We are expecting a funding commitment letter from the Bank of North Dakota at any time [for the 2 percent interest loan]. This letter will require a first draw to take place within one year of the commitment date. There may be extensions to this timeline available and we will reference our financial adviser for that information.”
Read the New Rockford Transcript for updates on this developing story.
