Board votes to study and evaluate alternatives 

SEELEY LAKE – At their March 18 meeting, the Seeley Lake Sewer District Board passed a pair of resolutions that put the proposed sewer project on the shelf and resolved to find a solution to the groundwater pollution. They also worked on closing out the grants that were for the proposed project, worked on their fiscal year 2022 budget, discussed the process of appointing a director to the vacancy on the Board and got a legal update on the lawsuit against the District.

Resolutions

The Board passed a pair of resolutions dealing with the future of the District.

The first resolution laid out the history of how the District got to where it is now identifying there was not a legal way to fund the proposed sewer project.

There was much discussion centered on the final Whereas and the Resolved portions of the resolution. The draft version left a couple of the board members questioning if it would tie the District into constructing the planned sewer project and not any other possible projects.

The Board edited the final Whereas from reading, “devoted to the ultimate completion of the Project” to “devoted to the furtherance of the District’s purpose.”

The Resolved was edited to change the “sewer system project” to the “District’s purpose.”

The Resolved statement the Board unanimously approved reads, “The District hereby places plans for the Project on hold until the District’s then existing board of directors finds sources of adequate funding to proceed with undertakings in furtherance of the District’s purpose.”

The District’s purpose in its bylaws reads: “It is the purpose of the District to maintain and provide a healthful environment for present and future generations and to supervise wastewater treatment within the District.”

Director Beth Hutchinson drafted the second resolution to shape the District’s direction. District Manager Jean Curtiss, Director Pat Goodover and the District’s attorney questioned its intent. They felt using the wording “reprioritize and broaden the District efforts to address wastewater treatment” was too vague. They were concerned that “reprioritize” might mean excluding the proposed and only considering alternatives.

“If your purpose is to look at alternative treatment systems, why not verbalize it to be totally clear?” questioned Goodover.

The resolution was edited to make its intent less vague.

The Whereas states the failure of the bond election, the loss of funding for the proposed project, concerns remain regarding groundwater contamination, options in addition to the proposed sewer exist to remedy wastewater issues and that the core purpose of the District is to address wastewater.

The Resolved reads: “The Seeley Lake Sewer District Board of Directors shall move forward to study and evaluate options to address wastewater treatment within the District.”

The Board voted unanimously to pass the resolution.

Relinquishing Grants

Curtiss said all the various agencies and organizations that provided grants have been contacted and there was no money drawn from any of them that would need to be paid back. The unused portion of the grants would be lost.

The Board voted to not appeal the United States Department of Agriculture - Rural Development’s decision to deobligate the funding package after the failure of the bond election.

The Board voted to relinquish the remaining grants from various agencies including planning grants for Phase 3 of the collection system. They also voted to cancel the design work on Phase 3.

The LOR Foundation requested the District relinquish their unspent funds in a call with Curtiss. She provided them with a letter ahead of the meeting. Hutchinson questioned if she should have waited for Board approval, as they may have wanted to see if the money could be held for other District uses.

Curtiss replied that LOR wanted the letter right away. Curtiss said it sounded like the funds might be able to stay in the community for something else that would be administered through the Seeley Lake Community Foundation.

The District has approval from funding agencies to complete the design for Phase 2 of the collection system. Curtiss said once the design is complete it will be ready to be put on the shelf. That work will be completed by the end of March.

The Board voted to not keep the wastewater discharge permit for the proposed sewer treatment plant. Curtiss explained that permit is tied to the designed treatment plant and if any system were proposed a new permit would have to be applied for. Letting the permit go will save the District around $3,700 per year.

Budget

The Board hammered out a draft budget for the fiscal year 2022 of $126,352. This is about $90,000 less than their 2021 budget.

With the Board moving toward studying and evaluating solutions to the nitrate problem, Hutchinson suggested they put $25,000 in the budget for additional test wells.

Missoula City-County Health Department Sanitarian Jim Erven said the Health Department has been having internal discussions on how to handle Seeley’s groundwater contamination issue and that it may involve the need for more test wells and testing. Any money the District could put forward to assist in that would help.

Another line item that is a bit of an unknown is the District’s insurance. Last year it was budgeted for $2,000 but, after being sued two times in the last couple of years, Curtiss is concerned that their premium will climb significantly. They budgeted $10,000 in their draft.

The budget and methods of spreading the assessment across the landowners will be discussed at the next meeting.

Board Vacancy

The Board discussed how to fill the vacancy that was created when Director Walt Hill resigned his position last month. The appointed Director would finish Hill’s term, which ends in May of 2022.

House Bill 255, which is working its way through the Montana Legislature, may change how vacancies are filled. However, the Board moved forward with the process currently allowed by law.

They assigned a committee to work on interview questions and set April 12 as the deadline to apply.

To qualify for the position, the applicant must be at least 18 years old, a registered voter, a citizen of the United States and a resident or landowner in the District. To apply, send a letter with your interest in research/analysis/evaluation regarding wastewater treatment options and a resume or background and/or experience to the board secretary at slk2559@blackfoot.net or mail to Seeley Lake Sewer District, P.O. Box 403, Seeley Lake, MT 59868

Legal Update

The Board received an update from their attorney Jean Faure on the lawsuit against the District seeking to force the construction of the proposed sewer.

Faure said she has filed a motion for summary judgment to dismiss the case and award their legal costs. She also filed a brief supporting the District’s motion and in opposition to the plaintiffs’ motion for summary judgment.

In the brief, Faure argues that the District has followed all the resolutions it is being accused of not following. However, those resolutions are for financing the project, not mandating the installation of it without financing. The District also argues that the plaintiffs have no standing because they have not shown a specific, definite and direct harm or injury.

The brief states that the “Plaintiffs cannot force their neighbors to pay for a system which their neighbors (the qualified electors of the District) declined to support. Plaintiffs do not have a cognizable claim for relief.”

The brief goes on to argue, “In the absence of a lawful means to pay for costs of undertaking and completing the Project, it is impossible for the District to undertake or complete the Project.”

The next scheduled Board meeting is April 15 at 6 p.m. The agenda and information on how to participate will be posted on the District’s website, seeleysewer.org.