Council hears dam costs

Panel ponders $8.1 million construction cost, funding

As Libby City Council members continue discussion of replacing the dam at the city’s Flower Creek Reservoir, there was obvious concern Monday when an engineer presented an estimated cost of $8.1 million to replace the aging structure.

Plans are to begin the actual dam construction in mid-2013.

Ryan Jones, an engineer with Morrison Maierle, Inc., in Kalispell, told Council members the city has two options to construct a road to the site about 85 feet below the current dam, which state officials have said they will not permit beyond its current term.

One option included requesting an easement of U.S. Forest land at a construction cost of $290,000. A second option did not require an easement — on city land — but that cost would be $390,000 and move nearly twice as much (23,000 cubic yards) soil.

However, Mayor Doug Roll, indicating those costs were too high, is favoring a third option that would have city and county Road and Street department workers doing the excavation and construction work.

“No, I don’t know how much we’d save, but I’m confident our people can, do the work,” Roll said Wednesday.

Roll indicated the dam was costly enough, and that if city and county workers could lessen the construction cost by doing some of the work he was “all for it.”

The City Council met at 5:30 p.m. Thursday to discuss its options so it might move forward with a decision on the road, which must be completed this year if the actual dam construction is to begin next year.

The aging arc-shaped dam is crumbling within, and the city is faced with few options other than replacing the structure.

The new structure would be 85 feet downstream and it would be a gravity-type dam, that rather gaining its strength from its bowed wall, will be strengthened by its concrete mass, much like the Libby Dam.

Jones also told city leaders there are funding options for the dam, one of which is from the Rural Development arm of the U.S. Department of Agriculture.

Jones mentioned grant possibilites as well as low-interest loans. However, Jones said the federal agency is aware of the city’s water distribution problems.

A recent water-survey indicted the city is losing as much as 75 percent of its treated water because of leaks.

“It’s unlikely RD is likely to approve funding as long as there is this kind of problem with your water-distribution system,” Jones said.

Daniel Johnson, an area specialist with Rural Development, confirmed scenario, going so far as to saying the city may get funding but it would be at a higher interest rate.

It is at least one City Council’s opinion if the city is going to spend the money on a higher interest rate, it should just fund the repairs.

“I’m leaning toward just fixing the distribution system,” said Councilwoman Robin Benson. “However, I am concerned about what it could mean to our rate payers.”

Jones, the engineer, had an answer for that, too.

He estimated the cost per residential customer would be an additional $12 a month.

Jones provide a PowerPoint presentation of the dam, water distribution, and funding possibilites.

Jones indicated the best-case scenario for the city was a 45 percent grant possibility with the city financing 55 percent or about $4.45 million.

“It’s a lot of money, any way you look at it,” Roll said.