Source: https://www.four-lakes-taskforce-mi.com/frequently-asked-questions.html
Timestamp: 2020-08-13 02:34:38
Document Index: 789205131

Matched Legal Cases: ['art 307', 'art 307', 'art 307', 'art 307', 'art 307', 'art 307']

FAQs - FOUR LAKES TASK FORCE
What is the assessment amount for the average property owner?
The assessment amount has not changed. It is still estimated that the average lakefront property owner will be assessed $350 and the average backlot will be $88. See the Special Assessment District page for more information.
What is the total amount the Special Assessment District will need to finance the acquisition and repairs of the dams?
We estimate the new cost for the SAD to not exceed $35 million. We are required to give the upper end for financing. We have not gone through all the engineering to determine what will be on the compliance requirements. Work needs to be done in the next three years.
How can the cost increase so much yet the amount for property owners stay the same?
There are two major factors that drive the assessment costs:
Bond payments for acquisition, improvements and repairs.
While the improvement estimates increased, the operating cost estimates decreased due to higher forecast-revenues from power generation.
Why does it cost so much to fix the dams?
These dams are 100 years old and power generation revenues in recent years have been insufficient to properly maintain them. We want them to last for another 100 years, and we are estimating costs to make sure that can happen.
Since the dams are 100 years old, they do not meet current state and federal safety criteria. We want to bring the dams up to current safety standards.
What is the current situation with the dams that create Smallwood, Secord, Wixom and Sandford Lakes?
Boyce Trusts and FLTF reached a tentative agreement on April 24, 2019 that transferred ownership of the Wixom, Sanford, Secord and Smallwood Dams and lake bottoms to FLTF.
Under the April 24 agreement, the title to the dam assets will transfer to FLTF in early 2022.
Repairs to the dams will be done primarily in the 2021-2023 period.
​Why are more upgrades required?
The dams require ongoing investments to properly maintain and protect lake levels into the future.
The dams must also meet FERC and State of Michigan safety criteria for spillway capacity and structural integrity.
Yes. The dams are considered safe and fit for operation in the short-term.
They will, however, require maintenance and certain improvements to ensure long-term safety. Our goal is to maintain the water levels and complete the needed maintenance and improvements within the next couple of years to ensure public safety.
What is Part 307 of Public Act 451?
Part 307 defines a way to repair, operate and maintain the dams and lakes into the future. This is the best way to improve the dams. While hydro can be run on the dams, the Part 307 order does not rely solely on generating revenue from hydroelectric power.
Establishing legal lake levels in accordance with state law will secure the lake levels into the future, whether or not the dams continue to be subject to FERC regulations by generating hydro power.
The Gladwin and Midland County Boards of Commissioners assigned the Four Lakes Task Force as the “Delegated Authority” of the counties to complete a legal lake level study in accordance with Part 307.
In January 2020, FLTF signed a purchase agreement to acquire Edenville, Sanford, Secord and Smallwood dams and lake bottoms.
The title for the dams will be held in escrow and transferred no later than 2024. FLTF will assign the ownership to Gladwin and Midland counties.
Was there an appraisal of the dams before they were purchased?
Yes. We worked with various consultants to understand the value of the dams. This included building value models to understand their worth. We are working through the final value after repairs.
Why did FLTF choose the path it did for purchasing the dams?
The dams were private property owned by Boyce Hydro. FLTF, operating as the delegated authority for Midland and Gladwin counties, chose the Part 307 path because it was the best option that would assure that community representatives could administer and oversee the maintenance and operations of the dams and lakes into the future.
Why didn't a power or energy company buy the dams from Boyce Hydro?
The repairs and improvements to the dams are a higher burden than revenue from electrical generation alone can support.
What is the Four Lakes expertise for managing the dam?
FLTF has contracts with several expert organizations that continually provide guidance and input on all matters. These include:
Spicer Group (professional engineering, land surveying, community planning and architectural services)
Essex Partnership (consultants specializing in hydropower, FERC licensing and compliance)
Clark Hill (commercial law firm)
GEI Consultants (a nationally-recognized consulting firm specializing in dam safety)
FERC LICENSE/HYDROELECTRIC POWER GENERATION
*For information about hydroelectric power generation please visit the Four Lakes Operations (FLO) website.*
What is the status of the FERC licenses for Sanford, Smallwood and Secord dams?
Boyce Hydro has FERC licenses for the remaining three dams that will expire in 2028. The current plan is that Boyce will transfer the licenses to FLTF in 2024.
Has FLTF always been interested in pursuing hydroelectric power on the dams?
Yes. Reveues from hydroelectric generation will support FLTF's primary mission to preserve the lakes for public enjoyment, now and for future generations.
How will power generation affect the amount of assessment per property owner?
The assessment amount is determined by two factors:
The cost to pay off the bond
The cost to operate and maintain the dams
Net proceeds from power generation will offset special assessment costs to current and future property owners.
What is Probable Maximum Flood (PMF)?
The Probable Maximum Flood (PMF) is the theoretical maximum flood that could occur at a particular point along a river.
The PMF is a calculated value that accounts for the most severe combination of meteorological and hydrologic conditions for a specific drainage basin. It is much larger than the floods of record for Midland and Gladwin counties.
Federal dam safety regulations require hydroelectric dams to have enough spillway capacity to safely pass floods up to the PMF. The Edenville Dam currently has approximately half the spillway capacity required by federal regulations.
If a dam does not produce hydroelectricity, and is not under FERC jurisdiction, dam safety is regulated by the State of Michigan. State of Michigan dam safety regulations require dams to have slightly less than half the spillway capacity required under Federal dam safety regulations. The Sanford, Edenville, Smallwood and Secord dams have safely passed the largest Michigan floods since the dams were built 90 years ago, including the major floods of 1947, 1948, 1986 (the "Flood of the Century"), 2014 and 2017, with spillway capacity to spare.
Other than the differences in spillway capacity requirements, Michigan dam safety standards are not materially different than federal dam safety standards.
Do the dams currently make money?
Yes, but hydropower revenues alone are not sufficient to address all the accumulated maintenance work and safety improvements that are necessary.
What is the status of the Edenville Dam hydroelectric power license?
In June 2019 FERC denied a motion by Boyce Hydro to reconsider the revocation of the Edenville dam hydroelectric power license.
FLTF filed for a Preliminary Permit to obtain a hydroelectric power license for the Edenville Dam. This will be a three- to five-year resulting in FLTF filing a license application with FERC.
What are the goals of the Four Lakes Task Force?
Ensure lake levels are sustainable to the community for future generations.
Repair dams to ensure safe operations and maintain compliance with state and federal requirements.
What will the Task Force do differently than the current owner/operator?
The community has relied on a private operator to own and manage the system, under FERC oversight, with little community involvement. This is not sustainable.
Our interest is in maintaining and operating the dams safely, and at consistent lake levels so the community can enjoy the lakes. Net revenue generated by the hydro facilities will be directed to that goal.
We will share updates and financials with the community on a regular basis and invite input on the path forward. You can do this most directly by joining your lake association if you are not already a member.
Where can I find more information on what Four Lakes Task Force is doing?
We encourage anyone with questions to contact us at four.lakes.MI@gmail.com.
We also post updates on our website and Facebook page.
Weed control is outside the scope of FLTF. Weed control programs prevent the spread of invasive aquatic plants while preserving beneficial plant species. Most weed control programs are financed through a special assessment of lake residents in accordance with Michigan's Natural Resources and Environmental Protection Act. Each lake has specific weed control districts. These districts are in place in accordance with different state of Michigan ordinances.
How is the weed assessment different than the Special Assessment District for Four Lakes?
The Four Lakes Special Assessment District ensures that the four lakes’ dams are safe and operational, and that water levels are sustainable for future generations. The Special Assessment is being established to share the financial responsibility to acquire the dams and keep them operating safely.
Impact to Four Lakes: Governance for Weed Control and Lake Levels ​
Lake Level Assets
This law states that lake improvement projects shall be assessed to the property owners in the assessment district.
​Act 188 Public Improvements
This act grants townships permission to make improvements and to pay for the improvements through bonds, taxes and special assessments.
​Part 307 Inland Lake Level Act
This act establishes legal lake levels and the boundaries for the Special Assessment District.
How do I find out more about the weed assessment?
FLTF is not responsible for weed control and does not manage weed or plant control on any lake. Click on the links below to learn more about plant control in your lake community.
Sanford Lake has two weed control districts – one encompasses the northern end of the lake and the other covers the south. The Sanford Lake Improvement Board and PLM Lake & Land Management Corp. coordinate plant control activities.
PLM Lake & Land Management Corp. also takes care of plant control on Secord Lake. View the latest Secord Township newsletter to learn more.
PLM Lake & Land Management Corp. is the sole organization responsible for plant control on Smallwood Lake.
Wixom Lake has two weed control districts. Savin Lake Services coordinates plant control west of M30 and the Wixom Lake Improvement Board coordinates plant control activities east of M30.
Why does the water level of the lakes vary?
The FERC (Federal Energy Regulatory Commission) license is to operate the reservoirs/lakes between two sets of water levels (see below table). Fluctuation is permitted and varies for each lake. In high runoff and/or flood situations, the water level can be higher. ​​
"Normal" Elevation (feet)
Summer Elevation Range
Winter Elevation*
Reference Page in Four Lakes Lake Level Study
630.4 - 631.1
675.4 - 676.1
704.4 - 705.1
​701.8
​Secord Lake
​750.4 - 751.1
​747.8
​​*Winter drawdown may begin December 15 and must be completed by January 15. As spring approaches the lakes must be refilled, and at the normal summer level by the time the surface water temperature reaches 39 degrees Fahrenheit.
What is the status of the Wixom Lake level?
A permit was issued by EGLE to Boyce Hydro on April 9 to conduct refill activities at the Edenville Dam to raise the Wixom Lake water level to normal summer pool elevation. Boyce Hydro is currently in the process of raising the lake. A permit will not be required every year.​