Paradise: Water District resolution seeks to recoup funds

Saddle up friends and foes, dudes and dudettes, there’s more riding to do and some potentially hazardous trails to head down.

And even though the battle for Paradise has been generally agreed to be over, the “Trail of the Money” may be on the verge of hosting pounding hooves.

With the prospect of building or installing the much-debated Paradise sewer project dead in the water or at least “tabled” for several years, attention has now turned to money, as in missing funds and who owes whom.

And it could get ugly as the word “attorneys” gets splashed around more and more, with sewer foes turning their attention to what they allege is highly irregular, if not illegal, activities involving high-ranking Sanders County officials, Great West Engineering, the designer of the now defunct $4.5 million-plus project, and members of the original Paradise Sewer Board.

During the sewer board’s monthly meeting last week, members of the Paradise Water District presented a resolution they intend to file with the county in the coming days. Water District members are demanding re-payment of approximately $50,000 they claim the sewer board spent using water district funds the sewer board had no right or authority to use.

The resolution accuses now retired Sanders County Commissioner Carol Brooker of several instances of pushing use of the funds when she allegedly had no authority to do so. It also alleges the Sanders County Clerk and Recorder proceeded with such transactions despite knowing the original sewer board was not provided any board training in regard to establishment of the Paradise Sewer Board, particularly as it pertains to minutes, contracts, bylaws and treasury activity.

And in response to questions from a small group still trying to fight the tabling of the project as to what the purpose of the sewer board is now that the project has been brought to a halt, Board Chairperson Jane McFadgen outlined plans to remain in place.

“We will remain as a means of checks and balances in this matter,” McFadgen said. “That doesn’t mean we won’t have a sewer at some time in the future, but for the next three to five years, we intend to monitor and act on any potential sewer matters”.

Those comments were supported by a statement from sewer board member Terry Caldwell.

“We’ve never had a lawyer overseeing what Great West was doing,” he said. “The previous Sewer Board (which has been replaced via recall and resignation) agreed to whatever Great West and Bridger (Bischoff, potential property developer) wanted. There were no checks and balances. We represent the people of this community and intend to watch out for their interests”.

Water District member Katy French, who has been a leading opponent of the proposed project said not even a recent 5% increase in water rates is enough to help the district cover expenses, which makes recovering assets spent by the previous board essential to water services for the unincorporated town six miles southeast of Plains.

The resolution, French said, is a first step in getting either the county and/or Great West to reimburse the district.

“The Water District wants its money back,” she told the PSB this past Thursday evening. “Central to this issue is Brooker’s role in bringing Great West into the mix. What they did again and again was illegal. She [Brooker] was there as a representative of the county, not Great West. A bill for these funds [$50,000 at last count] will be sent along with the resolution”.

French said the Water District has run up against a wall in its efforts to get receipts and copies of other documents it has asked for.

After extended debate, including questions raised by the smaller than normal public participation on a sweltering summer evening, the board voted 4-0 to adopt the resolution.

Earlier the sewer board voted to accept the application of Paradise resident Cody Lampman to become the fifth member of the board. Lampman had served a short term earlier this spring as a replacement for an elected Board member who had resigned.

Among issues raised in the resolution was a claim that Sanders County provided no funding for general start-up and/or operational expenses.

Original sewer board members, led by Sonny Chase, had assumed the new sewer board and the water district, while separate governmental entities, were one in the same as it pertained to use of public funds.

The resolution further alleges Brooker, “as a representative of the Sanders County Commissioners, knew that the neither the Paradise Sewer Board or the Water Board had notified the Montana Department of Administration of the creation, dissolution or consolidation of a special purpose district and were acting as one consolidated entity against the laws of the State of Montana (MCA 7-6-611).

The resolution further alleges the presence of Brooker at many of the meetings gave an aura of validity to these sewer and sewer/water board meetings even though the meetings were not publicly noticed as required by law, no minutes were kept, no minutes were reviewed or approved, no bills and warrants were reviewed or approved and the number of board members exceeded the number allowed by statue at origination.

Other allegations in the resolution specifically claim Brooker acted jointly with Great West in issues involving costs and that no notice of those meetings or public involvement was involved.

Brooker is named as being involved with Great West on several other sewer project related issues.

The resolution concludes "Now and therefore let it be resolved as follows: The Sanders County Sewer District at Paradise and the Paradise Water District assert that Sanders County representative(s) acted in a manner validating the behavior of the “consolidated Boards” and its contractual obligations with Great West Engineering: further, Sanders County’s regular presence during this time period acted as a guarantor of these financial commitments in the absence of funds for the Sewer District business. Sanders County should make the Paradise Water District financially whole from debts incurred by the Paradise Sewer Project.”

All four sewer board members present signed the resolution before adjourning for the evening.