Dam cost increases $172K

A project as involved as the Flower Creek Dam often has cost overruns, however, City Council members on Thursday learned the cost of the project has increased $172,300 before actual construction begins.

So far, more than a year after a permit was expected, there have been new biological studies, core rock samples, engineering calculations and even design-change recommendations from a Pennsylvania firm that specializes in dam construction.

Last week, Libby City Council members met with Morrison-Maierle, Inc., engineers Paul Burnham and Ryan Jones who said the project, that once was estimated to cost $8.2 million, has incurred the additional expense largely having to revisit the Section 7 consultations that required a new biological opinion.

“When they reopened that, it was a totally new scope,” Burnhan said. “This covers that Section 7 consultation. So, those were costs that were incurred. Our initial costs were based on preliminary consultations with some of these agencies, indicating these were the directions they would go. That budget was set, and we received that indication from the U.S. Fish & Wildlife Service that they were done.”

Jones boiled it down.

“The initial (estimate) was going through the Section 7 process once, not twice,” Jones said. “In short, we did not count on the Section 7 consultation to be reopened.”

According to the fee amendment, $23,516 was attributed to the reopened Section 7 study. Another  $4,578 was for the U.S. Army Corps of Engineers’ individual permit; another $1,488 went to the state preservation office; $15,710 went into Department of Environmental Quality coffers for a compliance plan; $1,984 went to American with Disabilities for the Community Development Block Grant and another $1,686 for the redesign of the spillway for the U.S. Army Corps permit.

However, two pieces stood out, which included $25,990 for a fish study for the diversion area and $58,500, which was the cost for the grant administration, adding to a $133,452 subtotal. Added to that were mileage for $3,450. Another  was figured $35,200 for the sub-contractor Rizzo and Associates of Pittsburgh, Pa., which made slight modifications to the gravity-type dam design.

“That’s an awful lot of money before we even begin construction,” Councilman Allen Olsen, who inquired about city wells, said. “I feel bad for our water ratepayers. This thing is going to cost us a lot more than we were told.”

Councilwoman Robin Benson asked rhetorically whether the city might forward the bill.

“Can we forward the bill to U.S. Fish?” Benson queried.

The biological opinion is expected this week, Roll said. And with that paperwork, the clock can actually begin.

“Haven’t talked to (City Administrator Hammons) Jim yet today,” Roll said. “It may come today or tomorrow.

During the meeting, City Clerk Glena Hook asked about the process for a water-rate increase, saying she wanted to coordinate an increase with the bonding efforts.

Jones said despite the year-plus delay, Morrison-Maierle hopes are to begin foundation preparation this fall.

“The plan last year would have been the same as we’re doing this year,” Jones said. “It would have been to draw down the reservoir, demo the existing structure and then do whatever foundation prep we could do this year. When that didn’t happen last fall, we said, OK, if we can still get this funding to go, we could potentially get all that work done this spring, before the high flows of spring run-off. Obviously, that didn’t happen, so it would be correct to say, from that perspective, we’re a year behind.”

Upon receiving the biological opinion there is a combined response and comment period of 45 days. After that, the city can begin offering a bid process that will take about six weeks that the city is hoping can run concurrent with the bonding process.

“If all goes well, we could be looking at a mid-August (construction) start date,” Jones said.

Roll cautioned the cost of the once $8.2 million dam is inching upward.

“As this has gone on, you have to realize construction costs are going to increase because it’s an extra year into the project,” Roll said.

Cost estimates have the dam approaching $9 million.

“I think it might even go higher than that,” Olsen said.