Paradise Sewer Board claims funds mismanaged

Call it, “Sewer Wars” 2.0: the Board strikes back.

Long ago (okay several months), in a place far, far away (six miles from Plains?) rebel forces were gathering again to seek truth, justice and the Montana way.

While many sequels just aren’t as good as the original, the prospect of a battle over funds, in this case allegedly not well-looked after funds, may re-ignite the contentious war over the Paradise sewer system, which now exists only on paper, depending on who you talk to.

One thing is currently for certain: nary a spoonful of dirt has been turned over what for all intents and purposes is a sewer system to nowhere, a likely relic of a proposed public project that ran afoul of improper planning, confusion over funding and now, repayment of several hundred thousands of dollars that were paid out for planning a now idled project.

“Money was awarded and paid, where the Hell is it?’ asked Paradise Sewer Board newcomer Randy Arnold during a recent meeting of the Board in a Water Board building across the Burlington Northern railroad tracks in this tiny community six miles southeast of Plains.

That was the question of the day as the four-member Sewer Board considered, then unanimously approved letters that have now been sent in response to letters the Board received concerning liability of repayment of as much as $325,900 in funds that were apparently made to Great West Engineering, the sewer projects engineering firm, Glacier Pre-Cast Concrete, as well as state and county officials involved with the project.

Opponents of the projects long contended the proposed $4.5 million cost of the system, was greatly over-priced and not needed in a town where water quality tests have indicated no current ground water contaminants. The system would have created an affluent holding tank, along with sewer lines and hookups to the town’s approximately 90 residences and a new housing subdivision that would be built by local landowner Bridger Bischoff.

Local residents, by a two to one margin, opposed adding sewer fees and a yearly loan payment that would have placed financial strains on many of Paradise’s already budget burdened residents.

They also balked at what they say is the thought of Bischoff getting a sewer system for free in exchange for land he owns on which the sewage treatment facility, which was akin to a large septic tank, would be constructed.

Opponents also accused the Sewer Board’s original members, led by local resident Sunny Chase, of holding meetings in private, signing construction and design deals without public involvement and keeping townsfolk in the dark about the status of the proposed systems.

Several engineers from around the state, who spoke on condition of anonymity, said Great West’s $4.5 million price tag, which was approved without a vote and with the backing of former Sanders County Commissioner Carol Booker, was significantly higher than it should be.

One of the letters the Sewer Board received, dated March 22 of this year from the Montana Department of Commerce, identified $325, 962 in funds spent from a $750,000 Treasure State Endowment Program grant. The Department of Commerce was asking in the letter for repayment of those funds.

Sewer Board Chairperson Janie McFadgen, responded that in addition to the likelihood of “further expenses that may come due”, almost the entirety of these funds were paid to Great West Engineering, which in turn began hiring subcontractors, including Glacier Pre-Cast.

McFadgen further pointed out that Glacier was given a Notice of Award and Notice to Proceed by the Sanders County Sewer District at the “direction of” Great West Engineering. McFadgen said Glacier told the Board that $160,750 of the amount in question was used for Special Design and Engineering Services, which was completed and sent to Great West, which did not issue any invoices for the work.

“It seems strange to us that the level of work made by Glacier Pre-Cast Concrete, and the level of revenue being dismissed by Glacier at this juncture, was not sought from GWE as the grant administrator. This is a concern of our (Sewer Board) since GWE presented this information to the state.”

Another letter from former Board president Terry Caldwell said Pre-Cast was asking that an insurance bond it was responsible in the amount of $17,009, which it has requested be paid for by the Sewer Board.

There-in lies a significant part of the fuel that stokes sewer opponents’ often-passionate objections to the project and the mishandling of its planning throughout the process dating back to 2016.

For years notice of meetings open to the public, as required by Montana law, were not posted, deals were made in what opponents claim were “backroom” deals and other important aspects of proper procedure concerning planning, designing, approving and implementing such a project.

Many opponents say the lack of public involvement in key decisions makes any decision made before the election of the current Board, which has been advised in proper procedures, are illegal.

In affect, they are moot points, sewer foes have contended. A similar letter was sent to Sanders County Commissioner Johnny Holland concerning repayment of the TSEP funds.

“As we have state previously, we believe Great West holds the bulk of the responsibility for the failure of this project,” McFadgen told Holland. “the original land proposed for the treatment facility had to be dismissed as an easement for effluent could not be obtained from the adjacent property owner. It is the Board’s strong belief that the project should not have advanced to the level that it had, in the absence of an easement in hand.”

A letter sent by Department of Commerce Infrastructure Manager, Becky Aneth last month, to all three key parties involved, Great West, Sanders County and the Sewer Board President, asking for copies of the draft plans and specifications, completed to date, mostly from Great West.

That is yet another bone of contention: no work has been done to actually build the project and Board members say they have not been in the mix of any such activities nor have they been presented with or approved any final plans. The Commerce letter continues that Commerce “will not recommend or award grant funding for the Paradise Water Project until the $325,962 is paid back to the state”.

With the Sewer District having no funds and no income because it has no sewer from which repayment funds could be made, that would apparently leave Great West and/or Sanders County on the hook.

Local anti-sewer activist Lee Ann Overman, who is also now an elected member of the Paradise Water Board, submitted letters she had showing that the funds in question were “dispersed before permitting was done or easements in place”. Yet another reason, opponents say, that the project had to be stopped.

Katie French, a local landowner and member of the Water Board, said “If you look at the various resolutions involved, the County was a party to all of this. There are a whole bunch of issues behind this not working. There was illegal activity by the previous Board (most of whom resigned or as was the case with Chase, recalled by ballot). We need to target those responsible for the funds so it can’t be used against Paradise in the future”.