District Accepts Second Chance at Funding

SEELEY LAKE - The Seeley Lake Sewer District (SLSD) Board received a second chance at funding the construction of the proposed wastewater treatment plant and Sub-District/Phase I of the collection system. The funding package consists of $5.7 million in grants and $4.4 million in loans.

The news came in a letter to the district, dated March 20, from Steve Troendle, United States Department of Agriculture, Rural Development (RD) Community Programs Director.

The board had requested a second chance after the bond election failed last December. The board argued that the election was flawed and a vote was not required. RD agreed, but stopped short of invalidating the election.

RD’s letter states, “In our opinion the results of the election are valid, we do agree however, that there may be extenuating circumstances which warrant further efforts to secure the community’s support of this project.”

In an email to the Pathfinder, Troendle explained further, “It was apparent to us that the planned community education activities were not facilitated in the manner the board had planned prior to the vote.”

RD’s letter to the board gave three options the district could take. Option A outlined additional conditions the district must meet to secure the funding package. Option B allowed the board to request mediation or an appeal while Option C was to take no action and let the funds be canceled.

Option A gives the district a full year to meet the conditions and get the project ready to bid by the end of March 2018.

In order to show community support for the project, Option A requires the district to have at least 155 signed Sewer User Agreements for Sub-district/Phase I. This is approximately 75 percent of the parcels in Phase I. Only properties that currently have businesses or residences built on them or have building permits issued subject to construction of the sewer can sign the agreements.

Option A requests a review of the project. The district is to make sure all of the other funding sources are still available.

RD also wants the district to provide an updated cost projection with a 2018/2019-construction schedule and account for costs of all final Rights of Ways needed. If those cost estimates increase over the current estimates, the district is required to explain how those costs will be funded.

The district had proposed using subsidies to offset the initial startup of the sewer system. One source of the subsidy funding was Missoula County. Option A requires the county commissioners to provide a written commitment for those funds.

Additionally, the district is required to provide a detailed description of how all the subsidies, district funds and future revenues will be used to fund operations. Option A states that this should be available for the general public to understand the current and long-term costs to operate the project.

The district must also have a reserve or other method of covering delinquent payments.

RD recommends, but does not require, the district consider a resort tax to help fund the project.

Option A also requires the district to provide a public outreach and education plan.

RD requires the district to provide a schedule with milestones to achieve the March 30, 2018 project-bidding deadline.

In an email to Troendle, the Pathfinder asked if these conditions were negotiable to which he replied, “No, Option A was based on needed project development activities.”

In a letter dated March 31, SLSD Board Chairman Mike Boltz responded to RD’s letter: “The Seeley Lake Sewer District Board of Directors genuinely appreciates your willingness to move the project forward to the next step. The District Board wishes to exercise Option A and will be addressing the content of your letter in terms of providing answers in the near future.”

The next sewer board meeting is 5:15 p.m. Thursday, April 20 at the Missoula County Satellite Office located at 3360 Highway 83.