Flower Creek Dam funding in jeopardy

Behind the decaying concrete that is the Flower Creek Dam is the sole source for Libby’s water supply. For more than a year, a permitting snafu has delayed the project, and it now appears the city may miss a third release date of federal funding for the project that was originally estimated to cost $8.2 million.

The city seeks to replace the 68-year-old dam that was built by the Pacific Power & Light Co., in 1946. Because of its condition, the city has been denied a renewal on the structure, leaving the preferred option of a new dam. The city has elected to construct a new gravity-type dam 85 feet farther downstream on virtually the same footprint of the existing dam.

However, after initially getting an e-mail from a now-retired U.S. Fish & Wildlife Service official, the agency later rescinded that order and mandated the city to commit to a new permitting process and the lengthy biological assessment and opinions that come with the process. Achieving those studies have come slowly, as the city has missed the April and August 2013 federal disbursements from Rural Development, which is the funding arm of the U.S. Department of Agriculture.

Now, as construction on the dam has been mostly idle for more than a year, comes the April 2014 disbursement date, and while the biological opinion is imminent, the 30-day comment and subsequent 15-day response periods will push completion of the paperwork past the federal April fund release date once again.

Last week, Mayor Doug Roll put the process into perspective.

“The USFWS issued the draft (biological opinion),” Roll said. “We’ve responded to that, and they have accepted (it). They have to review it. Then it goes out for public comment for 30 days. Then, there’s a 15-day response period.”

That timeline will put the process past the disbursement release date, said Dan Johnson, the Rural Development funding agent working with the city.

“No, they will not,” Johnson said when asked whether Rural Development will release funding before the comment and response timetable is completed. Johnson said one federal agency will not step over guidelines established by another just to complete the permitting process. “I can tell you we are working on it. We’re doing our best to get this thing completed.”

Then Johnson offered an alternative that may allow Libby to achieve funding before the August disbursement date.

“The recently approved Farm Bill includes about $150 million for water and waste-water projects,” Johnson said. “That’s a possibility, but that’s $150 million for all 50 states.”

The potential option is something Roll has already considered.

“The quicker we can get this to bid, the quicker we can get going on this,” Roll said. “That’s about it, other than going to Washington to ask for the money to fund the project. It’s either the April 1 deadline or August. Also, we have a chance at the Farm Bill funding, but, yes, if that doesn’t happen, then we are missing a great deal of the construction period.”

Roll did not mince his words, saying the delay caused by the rescinding of an early approval U.S. Fish & Wildlife Service is costing the city time and money.

“They’ve been a stumbling block,” Roll said of the U.S. Fish & Wildlife Service. “There’s a point where you figure the federal government can do pretty much whatever they want. The issue we had there, and I’ll tell you right up front: I still believe this is all tied to Montanore. I believe they want access to our reservoir, the Flower Creek reservoir. (The U.S. Fish & Wildlife Service) wants access to our lower diversion dam. I think the whole issue is they want to put their bull trout in there. You know, you can’t blame the whole agency, but you can certainly blame the local Kalispell office for the things that have happened.  While we recognize there will be issues with this thing, it’s been there for so many years, let’s just leave it alone.”

Councilwoman Robin Benson, the water commissioner on the City Council, said another delay in funding would have an adverse effect.

“If this happens, this would be absolutely devastating,” Benson said. “These agencies need to consider the impact of their decisions. We’ve seen this with Montanore and now we’re seeing it with the dam. This federal government process is crippling these projects.”

Councilwoman Peggy Williams has been critical of this process where the city continues to pay the engineering firm Morrison-Maierle, Inc., of Kalispell for work while the construction phase has been stalled.

“I will say this is devastating,” Williams said. “We’re paying, but I feel like we’re not getting anything done. I know the (construction) costs are going to go up.”

During its last meeting, the City Council approved another payment to Morrison-Maierle for permitting work on the dam, bringing the total to $1.535 million.

Williams’ point was not wasted on Councilman Allen Olsen.

“I heard Ryan Jones say the biological opinion will be out any time,” Olsen said. “That’s great, but he knows about the comment period. That puts us past the release date. To me, a half-truth is like a lie. I want to know what we’re getting for this million-and-a-half. I want to know what we’re getting from Morrison-Maierle.”

A message left for Jones of Morrison-Maierle was not returned.

Roll said some of these agencies fail to see the broader picture.

“No, I don’t think it’s a lack of compassion,” Roll said. “I don’t think they understand because they’re 90 miles away. They don’t see this as a critical thing. If that dam breaks it will be critical. They don’t have to pay for this. Because of what has transpired over the last 1? years it’s going to cost us. I’d be willing to bet at least another 10-, 15- or 20-percent more.”