The Kalispell City Council cleared one more hurdle to getting the south half of the U.S. 93 Bypass construction under way.

The council formally amended this year's budget so the Public Works Department has the money not only for design work on moving water and sewer lines along the bypass route, but for the actual construction.

It follows the council's approval of the idea two weeks ago.

The department had planned to carry out design work this fiscal year, then do the construction after July 2010 when it expected the state would be ready to proceed. But that's been moved ahead a year.

Montana Department of Transportation officials made remarkable progress this summer and fall with buying land for right-of-way along the bypass route.

The last remaining property is in its final stage of acquisition and the highway department is awaiting a stormwater permit from the U.S. Army Corps of Engineers. As a result, the first segment of the bypass - it's being built in two stages - could go to bid as early as Nov. 5.

Total expense for the city's end of the work is $596,780, the amount of the budget amendment. It takes $306,872 from the water fund and $289,908 from the sewer fund.

In addition, work along Corporate Drive will cost $200,524. It is located inside the Westside Tax Increment Finance district so the money will be taken from that fund.

But the state will reimburse 75 percent of the city's costs, adding a total of $477,585 back into the water and sewer funds and $150,393 back into the Westside district fund.

Council member Wayne Saverud asked Public Works Director Jim Hansz when that 75 percent reimbursement would come from the state, and whether the city has the cash on hand to cover expenses as they arise. Hansz told him the state has pledged timely reimbursements during the course of the city's project.

Council member Tim Kluesner chastised Hansz for not answering Saverud's question about cash on hand, insisting he should have provided that information to the council and the public along with the budget amendment request.

Hansz assured Kluesner that the city has cash in the water impact fee fund that can be used to cover project expenses and that would be reimbursed with state money.

Despite Kluesner saying he was tempted to vote against the budget amendment on principle, the resolution passed on a unanimous vote.

Now it should be another three months or so, Public Works Director Jim Hansz said, before the city's digging can begin.

The city will advertise for bids now, starting a three-week clock ticking. Public Works then will review bids, the council will award a contract, documents will be exchanged and a preconstruction meeting will be held among the involved parties.

Another piece in the bypass puzzle is the Department of Transportation's plan to rebuild Corporate Way and Appleway Drive using federal stimulus dollars.

Corporate Way runs north from U.S. 2 West near Ashley Square Mall, and Appleway Drive is an east-west connection between U.S. 2 West and Meridian Road. Currently they meet the highway a short distance apart.

The highway department plans to reroute both roads to the east, joining them at an intersection that simplifies traffic patterns for the bypass. Both existing roads will be obliterated after the new segments and intersection are built.

After the state finishes construction there - upgrading its sidewalk design so it meets Kalispell's higher sidewalk standards - the new road sections will be turned back over to the city's ownership.

To carry out the plan, the city and state must approve a construction agreement. The council approved that agreement Monday.

Reporter Nancy Kimball can be reached at 758-4483 or by e-mail at nkimball@dailyinterlake.com