Firm knew of USFWS denial

The engineering firm under contract to oversee the permitting process for the Flower Creek Dam project was notified in February that an environmental study would be needed to secure a permit, although another three months passed before the city publicly acknowledged that the project was in jeopardy.

Paul Burnham, an engineer with Morrison-Maierle Inc., wrote a technical memorandum last month indicating the U.S. Fish and Wildlife Service had determined on Feb. 27 of this year that it would be necessary to study the effects that the new dam would have on endangered or threatened species such as bull trout and grizzly bears before construction could begin.

That seems to be a reversal of the federal agency’s response a year prior that indicated the new dam, which would replace the existing dam about 85 feet upstream, would have no “significant adverse effects to threatened or endangered species.”

“The USFWS rescinded (its) initial response on Feb. 27, 2013, a full year after the initial response and direction was provided,” Burnham noted in the memo, which has been posted to Morrison-Maierle’s website.  

Asked Tuesday to provide more details on the situation, Burnham said his firm is proceeding with the permitting process.

“We are working to put a package together that will bring funding for the dam,” he said. “Beyond that, all questions need to be referred to the city.”

At this point, it’s unclear exactly how the communication breakdown occurred. The various government agencies involved with the $8.4 million dam project, including the city, have so far pointed fingers at one another.

City Administrator Jim Hammons reiterated on Wednesday that the city was first notified about the permitting problem on May 22, after a flurry of emails between the U.S. Environmental Protection Agency, the U.S. Army Corps of Engineers and the Fish & Wildlife Service were passed along to Mayor Doug Roll.

When told that Burnham had referred all questions about the permitting problem to the city, Hammons replied, “You need to ask Paul (Burnham).”

Tim Bodurtha, of the Fish & Wildlife Service, did not return phone calls for comment prior to press deadline.

The 84 days between the Fish & Wildlife Service’s decision and the city’s first response to the decision were crucial for several reasons: First, it would have allowed the city to apply for the required permit earlier, moving along the 90-120 day process for this type of permit; and it would have allowed the city to apply for an emergency declaration that may have sped up the permitting process and allowed the city to receive the necessary grant money this year.

As it stands now, the Flower Creek Dam project will be stalled for at least one more year. The grant program for the dam project had an application deadline in April. The deadline for the next round of funding is later this month.

“Yes, it could have made a difference,” City Councilman Allen Olsen said. “We don’t know whether it may have arrived in time to meet the funding deadline, but it would have put us 84 days closer.”

“However, it may have helped with the emergency declaration that failed because time was running out,” added Olsen, who is running against Roll for mayor.

Roll and other city officials have criticized the Fish & Wildlife Service for reversing its decision, which cost the city time and money. Some local officials have gone so far as to say the delay will put public safety at risk, referring to the poor condition of the existing dam that provides Libby’s drinking water and holds back a reservoir that contains enough water to submerge a large portion of the city.

About three years ago, the Montana Department of Natural Resources notified Libby that it would have five years to replace the existing Flower Creek Dam due to its deteriorating condition. That means the city has only two more years to repair or replace the 67-year-old structure.

Council President Bill Bischoff pulled no punches  weeks ago when he said residents could die if the dam failed.

Olsen said Morrison-Maierle should have been monitoring the permitting process because that’s one of the things the city hired the engineering firm to do.

“We’re paying them,” Olsen said. “Actually, the city is paying two engineers. Mike Fraser is on the city payroll and is supposed to be watching (Morrison-Maierle).You’d think he would have offered some insight on the whole process.”

A message left Wednesday at the Fraser home in Kalispell was not returned.

Two weeks ago, Roll said he was notified about the possibility of applying for an emergency declaration to speed up the permitting process. However, at that point, the declaration would have been too late because the Department of Rural Development had already eliminated Libby as a prospective clinet for 2013 because of delays.

Dan Johnson, who represents the Department of Rural Development, said the clock has expired for the federal money that was available for infrastructure projects this summer.

“There are two pools of funds,” Johnson said. “One in April and another on Aug. 9. Libby’s looking at 2014.”.

On Wednesday, Gov. Steve Bullock announced that Libby would receive a federal Community Block Grant of $450,000 for the Flower Creek Dam project. Hammons said the money was just one piece of the funding puzzle, and it will not help the city get to work on the project any sooner.