Libby council reviews disaster-recovery paths as reservoir work and sewer study advance
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Summary
City staff told the council they are pursuing three funding tracks — a pending presidential disaster declaration, Montana DES emergency funds, and a USDA Rural Development package (described as a $600,000 grant and a $2,000,000 loan option) — while moving ahead with a sewer-system preliminary engineering report and rental flow-meter testing.
City staff told the Libby City Council on Monday that the city is advancing both technical work on its sewer system and contingency plans for financing repairs after flood-related damage revealed sedimentation and structural gaps in a lower reservoir.
The city administrator said engineers have begun a preliminary engineering report and that the city will rent flow meters for about three months to gather baseline data on pipe flows so projects can be broken into grant-sized packages. Staff plan to use the data to prioritize repairs and prepare bids in stages to match available grant funding.
The administrator said the Natural Resource Damage Program (NRDP) previously awarded $275,000 for engineering and construction of a parking-lot-related scope; the city is awaiting an NRDP grant extension before bidding the remaining work. He said Phase 2 of Spruce Street is complete pending contractor corrections and that the city will pursue contract remedies and fines as needed to ensure the project is made whole.
On the reservoir, staff described ongoing dewatering and core-sample work to evaluate bank gaps and sediment removal. The administrator said constructing a cofferdam to restore head pressure is part of the engineered plan. He said Montana Department of Emergency Services (DES) and federal partners, including the Army Corps of Engineers, have been involved in assessments.
To cover costs, the administrator outlined three possible funding paths: (1) a federal disaster declaration that would enable widespread reimbursement; (2) Montana DES emergency funds; and (3) a U.S. Department of Agriculture Rural Development option that staff said could include a $600,000 grant plus a $2,000,000 loan, with terms described by staff as allowing a large upfront grant-equivalent portion and flexible repayment terms. The administrator said the city will pursue DES funds and USDA options as contingencies if a full federal declaration is not approved.
Mayor Taylor said the council will meet Thursday at 6:30 p.m. with staff to review options and ensure transparency about next steps. The administrator said the city will prepare RFQs and continue sampling work and that the council may be asked to approve short-term financial actions depending on available aid.
The council did not take a formal vote on a financing commitment at the meeting; staff described the session as preparatory and said they will return with specific requests for council action once funding terms and bids are clearer.
