The four lakes four years after edenville failureThis month marks four years since the failures of Edenville and Sanford dams and the FERC orders to lower Secord and Smallwood lakes. Construction is underway on every dam utilizing funds from a State of Michigan grant. In addition, Four Lakes Task Force (FLTF) and the Gladwin and Midland County Boards of Commissioners approved the computation of costs and assessment rolls to finance the final phases of construction. These were substantial milestones this year. However, an administrative appeal brought uncertainty to the timing of completion. FLTF has responded and last week communicated revised plans on how construction will continue but would be suspended at a point where each dam is stable and safe unless and until we are able to secure municipal (bond) financing by September. FLTF has followed the law, been transparent, and respected that property owners have the right to appeal. This report provides a status of the project four years after the failures. While we are working towards a positive resolution to the special assessment appeal, we remain engaged with the Michigan Department of Environment, Great Lakes, and Energy (EGLE) to obtain the final Edenville dam construction permit, and a permit related to the endangered Snuffbox mussel from the U.S. Fish and Wildlife Service based on the Habitat Control Plan. Walking away is not an option and we do not plan to. The lakes cannot exist without restoration of the dams, and we cannot proceed without the support of the Four Lakes Special Assessment District. Likewise, the dams cannot remain in the watershed without a commitment to restore them. The path to remove the dams would result in a significant new effort to stabilize and restore a different environment, with uncertainties of investment, and no current knowledge of any private or government entity that could or would desire to administer, finance or maintain this option. Restoration of the lakes is the best environmental and economical path forward, preserving and protecting property values, and improving the quality of life in our communities. We extend our thanks to the hundreds of talented individuals who work on this project, all our volunteers, and the thousands of people over the last four years who have supported the restoration of the Four Lakes. President, Four Lakes Task Force Dave Kepler On behalf of the Four Lakes Board of Directors Construction StatusSome wonder if we are "over-building the dams.” All the dams suffered from inadequate capacity (which required auxiliary spillways to pass larger flood flows), deteriorating concrete, gates beyond their design life, and unstable embankments. The auxiliary spillways are designed to protect the dams from failure, not control flooding. The dams are designed to manage court-ordered lake levels, and be safe in those operations, including withstanding water flow in storms much larger than the 2020 storm. Since work began on the dams, crews have logged a total of 231,556.55 hours of work* on the sites. Please take time to read our May Construction Newsletter, issued last week, for more information. *As of April 25, 2024 Cost and ScheduleThe Four Lakes restoration project is operated and financed as one project undertaken in phases. Adjustments in the construction schedule were made to accommodate the uncertainty of municipal financing required to complete the project. If the administrative appeal and litigation in connection with the lake level special assessment rolls is not resolved by September and we are unable to sell municipal bonds, there will be an approximately $3 to 5 million impact to project costs. Meaning, delays will increase project costs considerably. Any savings realized by issuing tax-exempt municipal bonds, will be lost. If we are delayed anytime between October 2024 - April 2025, and are not able to issue municipal bonds, the project cost would be impacted by increases of $10.6 - $19.7 million. The project can be restarted for the summer construction season in April 2025, but the estimated substantial completion dates will have to be re-estimated. The project computation of cost would not change, as this increase could be managed within the project contingency. However, it makes it more challenging to reduce the total amount to be assessed. At this time, there is too much uncertainty to estimate completion dates if the project starts beyond April, but there would be significant project cost increases and delays in restoration if the 2025 summer construction season is lost. We are working hard to find certainty by September 2024. The estimated schedules are listed below. Suspension Schedule if Financing is Not Resolved by September 2024 The tables below show the timing and construction status for each dam when construction is suspended if we are not able to have our financing in place by September 2024. Each dam will be left in a stable state that can be managed by FLTF Operations.
Current Estimate of Substantial Completion Dates Below are the estimated dates of when each dam will be substantially complete if we are able to secure municipal financing by September. Otherwise, the projects will remain suspended until we can secure financing.
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