Funding and Whitefish’s relationship with Flathead County remain sticking points in the city’s efforts to address failing septic tanks near Whitefish Lake.

A year after first looking at the issue, Whitefish City Council last week directed city staff to work with the Whitefish Lake Institute to obtain preliminary engineering reports for residences around Lazy Bay and on East Lakeshore Drive — two noted areas of concern.

Council wants to explore partnering with other entities to apply for grants to fund the engineering.

Councilor John Anderson said the public works department and the institute need to work together to find grants and other partners for the project.

“We need to know what needs to be done to impact the quality of the lake,” he said. “We either stop here right now or we get the engineering reports and have more information.”

The Whitefish Lake Institute in March 2012 released a study confirming the presence of septic contamination in the lake likely the result of failing septic tanks. An ad hoc committee tasked with creating a management document presented its report to the city last year, but council delayed making a decision.

The institute recommend a combined approach of education and outreach, and considering an ordinance that would require septic tanks in the city to be inspected upon sale of the property.

In addition, the institute recommended preliminary engineering reports to outline mitigation and cost estimates for five neighborhoods — East Lakeshore, Lion Mountain, Lazy Bay, Viking Creek and Point of Pines. The reports are estimated to cost in the range of $25,000 to $80,000 each depending on the complexity of the report.

“The PER gives you options, it’s the basis of the design and cost estimates,” Lori Curtis with the institute explained. “It will suggest whether the area should be hooked up to city sewer, have a communal leach field or needs septic upgrades.”

Flathead County Commissioners indicated in 2013 that the county was not interested in participating in the wastewater committee.

In a letter to the institute, commissioners said the management plan overreaches, and that there was no legal authority for a new entity to regulate septic system activities outside the city or within city limits without the city adopting an ordinance.

Commissioners did say the quality of Whitefish Lake is important, but that the county hopes the city would refocus to conduct non-regulatory activities.

Councilor Andy Feury said he supports action, but was cautious because much of the area of concern is outside city limits.

“This is a risky investment,” he said. “Given our relationship with the county. We could take a look at it on our end, but then it never gets passed by the county.”

“If we sit around and don’t make a decision, the quality of Whitefish Lake continues to degrade,” he added.

Councilor Jen Frandsen also expressed concerns.

“We’re subsidizing a problem that’s happening outside city limits,” she said. “We need to try to find partners first to work with us, then the city can move forward.”

To pay for the engineering, the institute recommended that the city apply for various grants as well as partner with the county, the Whitefish County Water & Sewer District or the Flathead Conservation District to apply for further grants.

Public Works Director John Wilson said the city will likely have to apply for grants to fund anticipated upgrades to its wastewater treatment plant. Most grants allow for only one grant per government entity.

City Manager Chuck Stearns suggested if another entity such as the water district were to apply for grants then the city could come up with matching funds that are often required. He estimated that $50,000 could be used from the city wastewater fund for a grant match.

Denise Hanson, who served on the wastewater committee, urged the council to study the top three areas of concern — East Lakeshore, Lazy Bay and Lion Mountain.

“You’re jumping to a conclusion, you can’t assume that it will be expensive,” she said. “The PER will let you know where to start and you’ll never have an answer until you have those.”

After Lion Mountain was suggested as possibly being a more expensive area to study and for possible mitigation, Councilor Frank Sweeney questioned why the area wasn’t being considered.

“Why are we tiptoeing around Lion Mountain,” he said. “I don’t want to walk away from it. I know the Lion Mountain homeowners want to address the issue.”