Bonds fail, funding canceled, Hill resigns

SEELEY LAKE - Voters in the Seeley Lake Sewer District rejected a pair of bonds by a 70% margin Feb. 23 that were proposed to pay for construction of a wastewater treatment plant and Phase 1 of the collection system. As a result of the failed election, the Sewer District Board received a letter canceling the primary funding package.

The results of the election were discussed at a Feb. 24

Board meeting where Director Walt Hill also resigned his position on the Board.

The General Obligation bond for the treatment plant was turned down by a vote of 198 “no” to 98 “yes” votes in the entire District. A vote of 80 “no” votes to 33 “yes” votes in Phase 1 rejected the Revenue bonds for their collection system. Voter turnout was 70% with 298 of approximately 430 ballots sent out being returned by the deadline.

Within 24 hours of the elections results being released, the Board received a letter from the United States Department of Agriculture - Rural Development (RD) stating that it plans to cancel $6.7 million in grants and $5.7 million in loans from RD on April 1. The letter also states that the funding application for Phase 2 of the collection system was being canceled.

RD’s letter stated that several conditions of its funding offer haven’t been met including the timeline to complete construction and now the ability to sell bonds.

District Manager Jean Curtiss said there is a process to appeal the decision to cancel the funding but without the bonds there is no way to repay the loans.

“Apparently the community is not ready to build a sewer. They’re not ready to fund a portion of it and I think we’re kind of on hold,” said Curtiss.

Missoula City-County Health Department Sanitarian Jim Erven said he was disappointed that all of the work that has gone into the proposed sewer was not going to result in a solution to the groundwater contamination issue. He asked the Board what they intend to do next to address the issue.

“I for one, don’t want to give anyone the impression that we’re abandoning wastewater treatment,” said Vice President Beth Hutchinson.

Hutchinson suggested that an alternative solution could involve a more focused sewer and or a variety of more advance treatment systems for individual properties.

“At this time we still have a resolution that says we’re going to pursue this project. So until a new resolution is passed, we’re on the same path with a big stumbling block in our pathway,” said President Tom Morris. “Whether alternatives are the solution, I don’t have that answer, but I think as a Board we have to move forward and look for that answer.”

Curtiss suggested that the Board have their attorney present at the next meeting to discuss options moving forward.

At the beginning of the meeting Director Hill read a resignation letter.

“I have served as an advocate and advisor to and a member of the Board for about 15 years and feel it necessary to resign at this time,” said Hill.

Hill recommended the Board appoint Duane Anderson, the runner up in the 2020 Director election, to fill out his term that ends in May of 2022. His recommendation drew criticism during public comment suggesting that a person who didn’t receive the majority of votes in an election should not be appointed.

The Board will discuss the process for appointing Hill’s replacement at next month’s meeting.

In other business, the Board discussed House Bill 255 that is making its way through the legislature. The bill could impact the amount of notice the District must give to allow for protests to the assessment methodology and could impact the ability of the Board to fill vacancies like Hill’s. The bill, as currently written, could give the power to appoint positions to the county commissioners instead of the remaining Board Directors. The Board voted to comment on the bill.

The next scheduled Board meeting is March 18 at 6 p.m. The agenda and information on how to participate will be posted on the District’s website, seeleysewer.org.