Funding Offer Received, Strings Attached

SEELEY LAKE - The Seeley Lake Sewer District (SLSD) board received a possible funding package for the proposed treatment facility and Phase I of the collection system.

The offer from the United States Department of Agriculture Rural Development (RD) was discussed at the board’s March 17 meeting. It consisted of 5.7 million dollars in grants and 4.4 million in loans.

District Manager Greg Robertson called the offer a “recipe for disaster” if the board accepted all the conditions that come with it.

“Based on the structure that they are insisting upon, assessments on a monthly basis will be anywhere from $116 to $178 [per month per user in Phase I for 40 years],” said Robertson.

Robertson explained that the range in cost estimate is due to the operation and maintenance cost estimates for the system. He feels that the project would fail by either a vote or protest provision due to its cost.

“There’s no way I would ever go to the public in Seeley Lake and ask them to do $160 a month,” said board member Bob Skiles.

The main condition driving up the cost per user is how RD is requiring the district to access landowners. The issue is that the cost of the main pipe to the treatment facility and the facility itself would be fully paid for by only landowners in Phases I and II.

The treatment facility has been designed to treat the full district with minor modifications for future phases.

Landowners in future phases of the collection system would not be liable for any of those initial costs. Even though they would be benefiting, those landowners would only have to pay for their local collection system.

Robertson was also frustrated by RD’s refusal to let Missoula County do the construction engineering. He felt that the district could save close to a million dollars by using the county’s staff.

Robertson went on to explain that even if the district is able to cut expenses it might not make a difference. The funding consists of approximately 45 percent loan and 55 percent grants.

RD told the district that any savings would come off the grant, not the loan portion. RD did indicate that they could negotiate that condition but it was not guaranteed.

The Pathfinder contacted RD to clarify this and another concern of whether or not landowners who refuse to hook to the system would be required to pay on the debt. RD’s regional representative Dan Johnson refused to discuss the offer with the Pathfinder. He said the offer would be made public sometime in April as part of a national release.

The SLSD board didn’t shut the door on the funding offer at the meeting as they hope to negotiate a possible solution with RD. The offer required the board to respond by March 23 but they are requesting an extension.

Phase I of the collection system includes all commercial property on the east side of Highway 83, between Cedar Lane and Redwood Lane. Also included are all properties between Tamarack Drive and Highway 83 that are north of Redwood Lane and south of Larch Lane, including all properties fronting Larch Lane and Pine Drive, north to Cedar Lane.

Phase II of the collection system covers the land between Highway 83 and the lake, north of Lindey’s to the Heritage building. Also included is the residential land south of Cedar Lane and west of Tamarack Drive, north of School Lane and East of Pine Drive.

The next regular SLSD board meeting is scheduled for 5:15 p.m. April 21 at the Missoula County Satellite Office.