Hot dam: City to consider $10 million US Army Corps grant

Posted 10/3/22

RIVER FALLS – The River Falls City Council will soon decide whether it wants to enter into an agreement with the U.S. Army Corps of Engineers to perform a feasibility study to remove both the …

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Hot dam: City to consider $10 million US Army Corps grant

Posted

RIVER FALLS – The River Falls City Council will soon decide whether it wants to enter into an agreement with the U.S. Army Corps of Engineers to perform a feasibility study to remove both the Junction and Powell Falls dams using $10 million of federal grant money.

Utilities Director Kevin Westhuis provided the council with an update Tuesday, Sept. 27 on the talks the city has had with the U.S. Army Corps of Engineers (USACE), Wisconsin Department of Natural Resources (DNR) and Federal Energy Regulatory Commission (FERC).

Currently, the city is in the process of relicensing Junction Falls dam with FERC, which should be done by this summer. FERC is an independent federal agency that is responsible for regulating all aspects of hydroelectric generation, including dams.

Last winter, USACE contacted the city and said it had received $10 million in federal grant money which could be applied toward a project such as the dams’ removal. The city approved a Federal Interest Determination in January 2022; the question on the table now is whether or not the city wants to move forward with the feasibility study, which would put the Powell Falls dam removal on hold until the study is com plete.

USACE said the $10 mil – lion could go to remove both dams and do potential river restoration, Westhuis said.

The cost share would be 65% federal funds (with a maximum contribution of $10 million) and 35% local funds. "Well maybe this $10 mil – lion will allow us to move this whole thing up a de – cade," Westhuis said. The feasibility study, which could cost up to $750,000, of which the city would pay half, could allow the city to move toward a grander vision that would in – clude stormwater mitigation, more amenities and river restoration. The study would take about 18 to 24 months to complete. "We're not talking about dams in, dams out any – more, you already decided that," Westhuis said. "We're talking really about having a project that we can realize in our lifetimes potentially." Background

The planning process to remove the two dams and restore the Kinnickinnic to a free-flowing river began in 2016. In February 2018, the city council passed a resolution to relicense Junc – tion Falls and decommission Powell Falls with removal by 2026. The plan was to re –

move Junction Falls dam be – tween 2035 and 2040. "A pretty bold move," said City Administrator Scot Simpson. However in June 2020, River Falls received sever- al inches of rain causing a flash flood, which damaged the Powell Falls dam. On October 2020, the city drew it down in order to study the extent of the damage. More than 20,000 cubic yards of sediment was found in Lake Louise; another 16,500 cubic yards was lost in the flood, another 8,000 during the drawdown, and 1,500 over winter.

In early 2021, city sta presented the council with five options for Powell Falls dam:

• Repair dam, refill lake, operate powerhouse until 2023, then remove dam

• Keep everything as is, then remove dam in 2023

• Keep drawdown, but fix gate so it opens more and more easily, and pull tur – bine. Remove dam under

DNR grant/permit

• Keep drawdown, but pull turbine/trash rack and add new flow opening

• Keep drawdown, proceed with dam removal as fast as permits and approvals allow The city chose the third option, which involved go – ing through the process to remove the dam from FERC jurisdiction over to DNR oversight. The FERC re – quired the city to repair the dam's wing wall, remove the turbine, clean the trash rack and remove the sluice gate. So far, the project costs can be broken down like this:

• FERC submittal and pre-studies work: $165,000

• Studies and costs (minus $210,000 USACE grant): $542,000

• Application for license (draft, final and support work): $218,000

• Decommissioning and removal of Powell dam (piece is on hold): $1,428,00 The grand total of the project thus far would be $2,353,000, minus a $1 mil – lion DNR grant. The city qualified for the $1 million Municipal Dam Removal grant once Powell Falls was removed from FERC juris – diction. The move allowed the city to move forward on a more aggressive dam remov – al schedule. Moving forward with USACE would put the Powell Falls dam removal on hold, although $10 million in grant money might be worth the delay, Westhuis said. Alderperson Alyssa Muel –

ler, who wasn't on the coun – cil when the dam removal plan was approved, asked how common it is to remove a working hydroelectric dam. "Because the Junction Falls is a renewable energy source, how will we replace that with another renewable energy source?" Mueller asked.

Simpson admitted remov – ing a working hydroelectric dam probably isn't a com – mon practice, but the city is in a unique position as it owns 90% of property ad – jacent to the impoundments and the dams. No investors are wanting to hang on, he said. Westhuis said he's not sure yet how the renewable energy would be replaced, but he's hoping to work with partners to do so. Junc – tion Falls produces about $80,000 in energy a year, but that doesn't include the costs to keep the hydro in working order.

In answer to another ques –

tion, Simpson said he be lieves USACE has no inter- est in the project if one dam

is kept (Junction Falls). “I think they need to have enough of an ecologi – cal impact to justify the $10 million," he said. "I don't discount the fact that the community could choose a dierent path. I don't want anybody in the community and especially not the coun –

cil who I advise to underesti – mate the complexity and cost of changing from the adopt ed vision, and the fact that all of this funding, even the $1 million we got from the DNR, has substantial strings attached.

"It's pretty clear that they have uniforms and they use them. We don't have rank once we agree to the proj ect.”

Should the city accept the $10 million, they would be required to provide a $3.5 million match. This could come from private public partnerships, the sewer fund, the stormwater fund, but not tax levied funds. "No general property tax – es is the direction we've been given as sta," Simpson said. He also said he has a "good understanding from the DNR" that another $1 million Municipal Dam Re –

moval grant would be avail – able because there are two dams. Simpson said the US – ACE's best estimate is that the dam removal and river restoration would cost about $10 to $12 million, but the city must be cognizant that the project could come in higher. "This is some heavy lift – ing. This is a legacy project, right? I mean, we have to be thoughtful, deliberate, ask all the right questions," West – huis said. "Like Scot said, we are bending a lot of rules with FERC and DNR. We've heard 'I haven't seen that before' quite a few times, but we manage our way through it and we're trying to do what's best for our rate payers and the City of River Falls.”

Public comment

Kinni Corridor Collabo – rative board member John Welter said the USACE has the experience and resources to get the project done right.

"The $10 million that the Corps would bring can solve a lot of the funding challeng – es our community and our utility rate payers face," he said.

So far, the KCC has raised about $300,000, he said. They're waiting to see if the city goes forward with the feasibility study, which can cost up to $750,000 if started from scratch (which the city must pay half.) But many topics have already been studied as part of the FERC relicensing and de – commissioning process, such as hydrology, sediment man – agement, eects on St. Croix mussel beds, and invasive species, which should make the process “cheaper and quicker," Welter added. KCC will pay up to half of the city's share up to $175,000, as long as they have “a place at the table and a voice,” Welter said.

Plan Commission and Parks Board member Pa – tricial LaRue is concerned about sediment and its ef fects on the river.

"Two years ago, the util ities convinced the DNR and FERC to allow the util – ities to drain Lake Louise," LaRue said. "Once drained, we learned approximately 5,000 to 8,000 cubic yards of sediment moved from the lake bed into the lower Kin – ni. As the Kinni cut its new path through Lake Louise, we also found that the banks of the Kinni were approxi – mately 12 feet deep into the sediment. “We were told two years ago that now that the river was free-flowing, the city needed to remove and man – age the sediment moving downstream. We were also told to remove approximate –

ly 22,000 cubic yards of sed – iment from the riverbanks to avoid the banks from col –

lapsing and sending more ad – ditional sediment downriver. "Those recommendations were primary to removing Powell Falls Dam. They're all dangers to the lower Kin ni if any of that happens and we've done nothing to miti – gate that.

"The private partners of the private-public partner –

ship have shown little finan cial will to help the River Falls utility rate payers fi –

nance the dam removal proj – ect, and although that they're talking right now that they have money here, as of the last Utility Advisory Board meeting, of the $60,000 to $70,000 they committed to our dam removal decommis – sioning plan, we've received $20,000." LaRue proposed using the $1 million DNR grant to manage the accumulated sediment downstream and to grade back the riverbanks to avoid further damage during the next flood. "The money is there and the work can be done while we wait for the USACE to do their feasibil- ity study," she said. She proposed using the $10 million to remove Pow – ell Falls dam, complete the lower river restoration and reclaim the Lake Louise area into a park or a nice regional ecological center (per KCC). As Simpson said, the US – ACE might not consider the project if only one dam is re – moved. Above Junction Falls Dam, she proposed remov – ing the approximate 100,000 cubic yards of sediment from Lake George and carefully removing the old rock crib and timber dam for historic preservation.

"I would hate to see that go into a landfill," LaRue said. "It's been there for 120 years and I'm sure it has some historical value." She also suggested using the money to upgrade the stormwater system and to install aerator bubblers and a fountain in Lake George to better oxygenate the water to mitigate algae growth. "This would be a muc- improved habitat for fish and we would all benefit from the biodiver – sity one has from having a lake and a river in your com – munity," LaRue said. "The utilities will continue to be able to generate renewable energy and the revenues from that generation will help pay down the debt we've already incurred toward removal of Powell Falls dam." She's not the only one who's been shocked by her electric bill recently, she added. The PC/AC charge is what each household pays when there is a shortage of energy. It went from 34 cents in March to $22.72 in Sep –

tember, she said. "It seems counter-intui –

tive to discuss spending mil – lions of dollars to take out a 1.5 million kW power source of electrical generation when we are paying a premium right now due to a shortage," LaRue said.

Gary Horvath, represent – ing the Kiap-Tu-Wish Trout Unlimited chapter, spoke in favor of the city entering into an agreement with USACE and said the organization is working to redirect donor funds to the feasibility study costs.

"The chapter has worked with the Corps and are con- fident," Horvath said. "We recognize the sediment is – sue is real and of concern, but the river is resilient and if we can get both dams out, we already saw just last year from the drawdown that the river has dropped almost 3 degrees. It's the coldest ever recorded in 25 years, so we think with the upper dam out and stormwater addressed, we think it's for the best and we're willing to, we think the river will recover.”

The council will vote on the feasibility study agree –

ment at its Oct. 25 meeting.


In late June 2020, a storm dumped several inches of rain on the area, causing the Kinnickinnic River to become a raging, destructive force. The Powell Falls dam received significant damage in the flood. Photo courtesy of City of River Falls

Kevin Westhuis