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Author: Subject: Kentucky Environmental and Public Protection Cabinet report on Lake Cumberland
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[*] posted on 2-1-2008 at 08:40 PM
Kentucky Environmental and Public Protection Cabinet report on Lake Cumberland


Source: http://www.eppc.ky.gov (issued Feb 1 2008)

The Governor’s Interagency Services Office for the Lake Cumberland Region 2007-2008 Report

EXECUTIVE SUMMARY:

In January 2007 the United States Army Corps of Engineers (Corps) informed Governor Ernie Fletcher of its intention to lower the elevation of Lake Cumberland to 680 feet immediately. The decision was based on the classification of Wolf Creek Dam into a "high risk of failure" category. One month later the Corps announced its intention to drop the elevation further by end of 2007 to a 650 foot elevation. The impact of this announcement was tremendous, not only to the residents below the dam, who feared its failure, but to the communities above the dam who depend on the lake for their water supply. The vast tourism industry around Lake Cumberland would also be devastated. A crisis loomed.
Kentucky State Government responded immediately with the creation of an Interagency Task Force, under the leadership of the Environment and Public Protection Cabinet and the establishment of a local office, the Governor's Office on Interagency Services for the Lake Cumberland Region located in Somerset, KY. The Lake Office was mandated to serve as the liaison between the Governor’s Office, the Interagency Task Force, the Corps, federal offices and agencies, local elected officials, residents and local businesses of the Lake Cumberland region. The office opened March 1, 2007 and closed on January 31, 2008 and this is the final report.

Three priority strategies were put in place immediately. Public Safety was of utmost importance, followed closely by Health and Services and Economic Impact strategies. The Interagency Task Force began to focus on the myriad of issues arising from the lower elevation of Lake Cumberland and set priorities for responding to the issues.

Immediately the Kentucky Office of Homeland Security deployed communication equipment (weather radios) to residents in the flood inundation areas. They began educating the public on emergency procedures, initiated installation of enhanced and reverse 911 systems and are currently installing an outdoor warning system in affected counties.

A barrage of media news reports characterized the lake as dry although in fact, even with the draw down, there remained over 36,000 acres of water. The Commerce Cabinet responded with paid advertising to correct these misconceptions immediately which was critical as the timing of the announcement of the lower elevation fell in the most aggressive winter marketing season for summer recreation. They have continued an aggressive marketing campaign in January lasting through March, 2008.

In April, 2007 Governor Fletcher issued an Executive Order to establish a funding pool of $25 million to assist local communities. The community projects focused primarily on the relocation of six community water intake systems to ensure clean potable water supplies, rebuilding or upgrading of 52 boat ramps to maintain access to the 36,000 acres of water, and protection of an electric power generating facility to ensure power supply to the region’s 250,000 residents. The Governor’s Office of Local Development (GOLD) worked with the Lake Office and the Lake Cumberland Area Development District Office to accelerate the project application, review and permitting process.

Throughout the summer tourist season, constant communication and collaboration occurred between all agencies at all levels, focused always on the top three strategies. It was truly a multi- government, public-private effort that intensely tracked the ever evolving issues arising daily from the Lake Cumberland region.

By late summer, much of the "fear factor" had subsided, the projects were underway and the tourist visitation numbers were better than expected. The Corps announced a stabilization of Lake Cumberland to 680 feet as opposed to the intended 650 foot elevation. This announcement was significant in calming both the fear of residents below the dam and tourist’s anxiety relative to visiting and maintaining their investment in Lake Cumberland.

To date $1,111,104 has been spent on communication and life protection equipment for residents living in the flood inundation area below the dam. To ensure safe water supply for over 203,000 residents $16,103,858 has been invested in seven community water intake systems. Three million dollars enabled the East Kentucky Power Cooperative (EKPC) to move their water intakes into deeper water thereby avoiding possible power outages. Fifty-two boat ramps were upgraded or constructed to allow access to the lake at a cost of over $2,748,123. Over $130,000 was used to help dispel negative and inaccurate press and to market the region, both in 2007 and continuing into the late winter of 2008. Including a variety of smaller projects (water line extensions, etc.), the Commonwealth has invested a grand total of $23,778,104 on health, safety and economic projects for the Lake Cumberland region.

Remaining issues are addressed at the end of this report, but ongoing communication between the Commonwealth and the Corps will be necessary as the Wolf Creek Dam repair project is estimated to last another 5 years.
This example of state government responding quickly, decisively and cooperatively to protect the lives and well-being of its citizens is a model for future crisis situations. As you read this report I hope you will feel proud of the way your government responded to the needs of your fellow Kentuckians.

The Governor’s Interagency Services Office for the Lake Cumberland Region 2007-2008 Report
January 31, 2008

OVERVIEW:

Wolf Creek Dam is located on the Cumberland River in South Central Kentucky. It provides flood control, hydropower, recreation, navigation, water supply, and water quality benefits for the Cumberland River system and surrounding region. Designed and constructed during the period 1938-1952, the 5,736 foot-long dam is a combination rolled earth-fill and concrete gravity. It has a maximum height of 258 feet above founding level. A six generator unit power plant, with a capacity of 270,000 kW, is located immediately downstream. Lake Cumberland, created by the dam, impounds 6,089,000 acre-feet at its maximum pool elevation 760 feet. It is the largest reservoir east of the Mississippi, the ninth largest in the United States, and it hosted more visits (4.98 million) in 2004 than Yellowstone National Park (2.87 million).

The impoundment and downstream water touch the counties of McCreary, Pulaski, Wayne, Russell, Clinton, Cumberland and Monroe, but the lake impacts at least a dozen more counties in the region. Water levels in seven western Kentucky counties, in the Land between the lakes region, can be impacted by the water level in Lake Cumberland after the Cumberland River meanders through Tennessee. Normal summer lake level surface area is 52,000 acres. The economic impact, primarily from seasonal tourism, in the immediate lake region, is estimated to be in excess of $150 million annually. Seven thousand (7,000) people reside in the immediate flood inundation area downstream of Wolf Creek Dam.

Beginning as early as 1968, muddy flows in the tailrace and sinkholes began appearing downstream of the dam and on the earthen portion of the dam. Several attempts to repair the dam were made in the following years. Continuous monitoring of the dam, by the Corps, verified the problem still existed in 2005. After hurricane Katrina the Corps reassessed projects across the nation. Wolf Creek Dam was one of six designated in the highest risk for failure. If a breach of the dam did occur, loss of life could exceed one-hundred lives and the economic losses are estimated to be in the billions of dollars. The Corps determined that lowering the elevation would help reduce the risk of failure.

Following recommendations of the independent peer review panel, the Corps decided to maintain a constant pool level of 680 feet above sea level in January 2007. Elevation 680 feet was selected because it provided the maximum interim risk reduction without inducing health and safety risks to communities dependent on Lake Cumberland for public water supply.

On January 22, 2007, Lt. Col. Steven Roemhildt, Commander of the Corps Nashville District Office, announced plans to lower the lake level immediately to elevation 680 feet and classified the dam as being at “high risk” for structural failure. Governor Ernie Fletcher responded immediately by declaring a State of Emergency for the Lake Cumberland region. He held numerous public meetings to discuss the impact on communities throughout the region and formed a State Government Interagency Task Force. The Task Force was led by Secretary of Environment and Public Protection Cabinet (EPPC) Teresa Hill and began to coordinate all branches of state government in a strategy aimed at protecting the citizens of the region from the various threats to the health, safety and general well-being brought about by the lower elevation of Lake Cumberland.

On February 15, 2007, Lt. Col. Roemhildt wrote a letter to the surrounding communities stating that all water intake systems on Lake Cumberland must be lowered to an elevation of 650 feet by December 2007. An electric power generating plant and six communities draw all of their public water supply from the lake. In addition, hundreds of private homes on wells are supplied by the lake aquifer. All of these extensions and relocations would cost millions of dollars, with only a short time to comply.

The potential for a safety crisis was very apparent. Media reports enhanced fear, as well as gloom and doom, for the tourism industry, creating the need for both an immediate and long term solution strategy which included an outreach and communication component. At this point, Governor Fletcher announced the establishment of a local, on-site office to deal with the growing and varied issues arising from the lake situation. This office would work hand-in-hand with the Interagency Task Force under Secretary Hill’s oversight and leadership. The office was called the Governor’s Interagency Services Office for the Lake Cumberland Region.

Hilda Legg was hired to serve as the liaison between the Governor’s Office, the Interagency Committee, the Corps, federal offices and agencies, local elected officials, residents and local businesses of the Lake Cumberland region. The Office opened March 1, 2007 and Administrative Assistant Kathy Duncan was hired May 1, 2007. The administrative functions of the office were handled through the EPPC with various government agencies contributing to the operation cost. In June, the Commerce Cabinet funded a position to work in the office alongside Ms. Legg, with a focus on tourism and regional marketing. Van Back was hired to fill that position.

If the lake elevation was lowered to 650 feet it would be devastating for most all marinas and the entire Lake Cumberland area tourism economy. One of the first tasks for the Lake Office was to work with the Corps concerning the possibility of lowering the lake to elevation 650 feet. The Lake Office worked very hard and tirelessly to convince the Corps what a negative impact lowering to elevation 650 feet would have on not only the Lake Cumberland region, but on the Commonwealth as a whole.

After many meetings and much dialog and with the assistance of the local Congressional offices, in July 2007, the Corps announced they would “…continue to hold the level of Lake Cumberland at elevation 680 feet unless project conditions worsen.” This announcement allowed area businesses to make critical business and marketing decisions for the remainder of the season and into 2008.

Governor Fletcher outlined the goals for the Lake Cumberland Project, with safety being the preeminent priority. Public fear and concern became apparent during the town meetings held in communities which lie in the flood inundation area (primarily Cumberland, Clinton, Russell and Monroe Counties). The term “high risk,” when used to describe the stability of the dam, was very disturbing and evoked visuals right out of a Hollywood disaster movie. Thus, proper assessment of the real risk, communication of that risk, plans to respond to a possible breach of the dam structure and communication of the state of that “high risk” status were very important to thousands of Kentuckians.

In addition to the fear of disaster downstream of the dam, upstream the real threat of loss of water supply, not just for the communities’ drinking water needs, but for fighting fires and keeping the power plant operational. Ensuring the continued production of electricity to the residents, businesses and emergency services of the lake region was critical. Also, concern was expressed regarding the quality of water for future use when the lake level was dropped, given the convergence of waste water treatment plants into a smaller lake pool.

Thus, health issues followed closely on the heels of the safety issues. In fact, both areas were given the highest priority by the Kentucky Office of Homeland Security (KOHS), Kentucky Division of Emergency Management (KDEM) and the EPPC. All were immediately engaged and actively pursuing solutions to the most pressing problems and resident requests.

Above the Dam, the public debate centered on the tourism industry and the alarming impact that the lower lake level would have on the summer tourist season. The immediate reduction of the lake to 680 feet was critical, but when combined with the threat of further reduction to a 650 feet level, it was devastating. The media responded to the Corps news with terminology describing the lake as dry, with mud flats, no water, etc.

Over 800 negative articles about Lake Cumberland were circulated world-wide. This occurred in February and March, when families make their summer vacation plans and whether on purpose or not, the negative terminology caused an immediate halt to the summer reservation calls to the eleven (11) marinas and approximately sixty-seven (67) small to midsize businesses that directly cater to the lake customer.

As the news spread far and wide that Lake Cumberland was dry, persons who had made reservations believed the erroneous reports and began canceling existing reservations. The media failed to mention that the lake still had, even with the drop in elevation to 680 feet, over 36,000 acres of water. Some media reports implied that the economic impact would be devastating and that those brave believers who would come to a “dry” Lake Cumberland would have less than a dozen access ramps from which to launch their boats. The Corps would be extending the ramps only at the marinas, two recreation areas and one at Halcomb’s Landing near the dam construction site. Time could not have been more of the essence.

Interestingly, the public sentiment was running high, both below the dam where life safety was the song and less water meant a safer place to live, while above the dam, where the tune was one of despair because the life savings of the many businesses that depend on the tourist trade were being drained.

The Governor and the State agencies, committed to serving the residents of the Commonwealth, found themselves in a situation where the actions and solutions were polarized at opposite ends and where the Corps who produced this dilemma was protected by its legislative mandate to manage the facility in a safe and effective manner for the primary purposes of flood control. There was little obligation to the residents and businesses which resided on and around the banks of Lake Cumberland. The only appropriation authority they had was to repair the dam structure, with no money allocated to respond to the impact this announcement and the lowering of the lake level would have on the lives and livelihood of these Kentuckians.

It was up to the Commonwealth to protect the safety and health of her people and to minimize the economic ruin that this announcement could bring to bear.

THE PROCESS: HOW TO PROTECT AND HELP THE PEOPLE
It became apparent that money would be needed to address the three major areas of need: Safety, Health, and Economic Stability.

Governor Fletcher requested assistance from the General Assembly in March 2007. The General Assembly adjourned without making any appropriation to the Lake Cumberland/Wolf Creek Dam project. On April 13, 2007, Governor Ernie Fletcher, by Executive Order number 2007-298, set aside up to $25 million to provide funding for infrastructure projects for the health and safety needs of the five counties surrounding Lake Cumberland and two counties downstream of the dam, as well as minimizing the negative impact media reports had on the region’s tourism industry. The funds would be administered by the Governors’ Office of Local Development (GOLD).

The Lake Cumberland Area Development District (LCADD) began working immediately to assist local governments with their initial applications for water intake relocation projects. Also, the Lake Office began working with the Corps, the Kentucky Department of Fish and Wildlife Resources (KDFWR), GOLD and local governments to address the lack of access to the lake. Without ramps and access to the lake, there would be no need for an aggressive tourism marketing strategy.

SAFETY FIRST:

The highest concern was for the safety of the residents who live below the dam structure. While there was no imminent danger of a breach, the public was scared and worried. Immediately, KOHS developed a multi-layered plan to address the communication capability of the region. It was determined that in case of a breach of the dam, the first call made by the Corps would be to the National Oceanic Atmospheric Administration (NOAA) who would then send out an alert over the home weather radio alert system. Home weather radios would be the first line of defense for the residents in the flood inundation area. Radios were offered free to every business and home in the flood area and Governor Fletcher joined in the distribution of weather radios to homes in the flood inundation area. Radios were placed in over 1,700 homes at a cost of $58,080.

The next initiative was to work with local governments and put in place a networked 9-1-1 system. This entailed an overhaul of all existing equipment which would allow any center to relocate to a state police post in less than one hour. In addition, it brought the centers into “Phase II” compliance and gave each center on average an extra $70,000 per year. That revenue meant that the 9-1-1 centers were upgraded and became revenue neutral to the local residents.

The next step was Reverse 9-1-1. The Kentucky Intelligence Fusion Center is responsible for activating a system that will call each resident in the dam area should the dam fail. Cumberland County is 100% complete, Russell and Clinton system are installed and in the testing phase which should be complete in mid February. Wayne County is in the “data cleanup” phase and should the system should be operational in late March-early April. Monroe County had already installed the enhanced/reverse 9-1-1 prior the situation at Wolf Creek Dam.

The final step of the plan would be the installation of an outdoor siren alarm system to ensure that those residents away from an electronic device or who had no access to the modern communication systems could be notified as well. Immediately after the “high risk” designation was announced, the Kentucky Office of Emergency Management (KYEM) began gathering information of who and what would be affected should there be a breach in the dam. All responsible agencies were brought to the table to discuss options, develop a plan of action and to make preparation through training and exercises.

A request for information by the KOHS gave the Lake Office the technical information necessary to review the request for funds to implement an outdoor alarm system. The KYEM was very involved throughout the discussion of these issues and in tandem with the KOHS, assisted the Lake Office in pulling this project together and ensuring that the most cost effective solution would be developed.

An evacuation plan was started immediately. Both water elevations and road closure times were calculated to determine an approximate time-frame to evacuate the respective areas. The evacuation plan includes locations and capacities of shelters in both public facilities and faith-based facilities. Mutual aid counties were involved in the planning phase to prepare to receive large numbers of evacuees. Several local exercises and two regional exercises were held to familiarize the participants with the Emergency Action Plan and allow agencies to familiarize themselves with each other and their particular role within the plan.

Continuity of government, scene security, and recovery phases were also discussed. No definitive plans have been made due to the potential extent of damage. However, communication among and training of affected emergency personnel continues and the evacuation plan updated and fine tuned.

It was determined through discussions with local elected officials that one application would be submitted for a regional outdoor alarm system. A regional organization would administer the project. The sole applicant from a regional organization for a regional plan was the Lake Cumberland Community Action Agency. The Agency had been very involved in the distribution of the home weather alert radios and was familiar with the local counties and the concerns of the citizens. The selected vendor was the Federal Signal Corporation. To date, 16 sirens have been ordered for strategic placement in four counties. The cost of the project is $413,029. The siren project should be complete in the spring of 2008.

The safety communication concerns have been addressed and these remedies will serve the region in many types of emergencies. The total cost for these projects is $1,111,104.

HEALTH and SERVICES:

To address the Corps demand to relocate all water intake pipes to a 650 foot lake level, local community water systems had to develop an alternative solution to their present system. Through consultation with the EPPC’s Division of Water, GOLD, the LCADD assisted local governments in preparing grant request applications.

The cities of Jamestown, Burnside, Somerset, Albany and Monticello, along with McCreary County Water District, submitted applications for intake pipe relocation. In addition, Cumberland County requested funds to move their water intake deeper into the river channel. Two communities, one in Pulaski County and one in Wayne County experienced dry wells due to the low aquifer levels. To remedy the situation, the Monticello and Bronston water systems extended water lines to the affected communities and increased pumping capacity. The lower lake level also required the extension of water lines in the West Pulaski Water District.

A total of eleven water projects were funded. Clean available water was imperative to protect the health of the residents living in the region. All projects have been funded. Six are operational with the remainder due to be complete soon with only one project that has a significant delay and is scheduled to be operational July 2008. At present, all water intake issues have been addressed and no impending problems have been reported. The clean water supply for the region has been maintained and an improved infrastructure for future growth is now in place. The total cost of the water projects is $19,962,858.

In August, the Corps publicly stated that they did not intend to lower the lake to elevation 650 feet due to improved and/or improving conditions at the dam. However, they did continue to require the communities to be prepared, as previously expressed for lowered levels, in case the repairs to the dam did not continue to progress as scheduled. Our communities have complied with the Corps’ requirements.

Another safety concern was the water intake system for the John Sherman Cooper Power Station, located on Lake Cumberland in the City of Burnside and owned by the East Kentucky Power Cooperative (EKPC) in Winchester Ky. The Cooper Station supplies electricity to over 250,000 residents living in nine south central counties, as well as supplying power for the electric grid when generating excess capacity. Complicating the electric supply issue, EKPC bought power produced by the turbines located at Wolf Creek Dam. Power generated from the dam facility was drastically reduced when the 680 foot elevation was reached. Therefore, contracted power supply of cheaper (hydro) power was not a reliable source for EKPC, only to be replaced by market power at a higher cost.

Additionally, the Cooper Station intakes could not function below a 673 feet lake level, so even the 680 foot elevation was perilously close to exposing the water intakes. The wake of large water craft could in fact take a water intake pipe off line thus producing rolling black outs. A no-wake zone was put in place by the Corps around the existing pipes, and EKPC appealed to the City of Burnside for assistance. EKPC, and their rate payers, were taking a double hit due to the lower lake level.

The continued full operation of the power plant was of high importance to the local community, the lake region and the entire state. Hospitals, water systems, emergency services, businesses and all entities in the region would be impacted if the turbines could not operate due to an inaccessible supply of water.

The City of Burnside requested $3 million to assist the Power Plant. The application was approved. The most immediate remedy was to build barges and float the intake pumps farther out into the main, deeper channel of the lake. The long term remedy is the construction of a water cooling tower on the Power Plant property. The cooling tower would help make the operation of the Power Plant more efficient and less expensive by providing cooling water to the turbine/generator condenser regardless of the lake elevation or temperature. The total projected cost is $24 million.

The Kentucky Public Service Commission was involved with EKPC, Corps and the Lake Office on this highly important issue. It is very apparent that the safety and health of those in the region could have been significantly and negatively impacted by the lower lake level. The $3 million City of Burnside/Cooper Station project is complete and funds requested from GOLD.

ECONOMIC STRATEGY:

The Corps estimates the economic impact of Lake Cumberland on the region is over $150 million in tourism revenue. Kentucky does not have a study that either denies or confirms these figures. We do know that the national publicity announcing the lower lake elevation did scare off visitors and sent an erroneous message that the lake was drained. The result was approximately a 90% decline in reservations for March 2007 as compared to March 2006.

The summer tourist season loomed as an economic disaster.
The Kentucky Commerce Cabinet reacted swiftly by holding meetings with the tourism industry to discuss possible actions for the lake situation. Marketing to correct the false image painted by the media quickly became a top priority for KY Tourism. Television and radio advertising time was purchased during the 2007 March NCAA Basketball Tournament (March Madness) broadcast timeframe and the theme “Got Water, You Betcha” was developed with the assistance of Southern and Eastern Kentucky Tourism Development Association (SEKTDA). These commercials (TV and radio) were placed in KY, OH and IN markets for the NCAA Basketball Tournament games. Print, radio and television ads were placed in the lake’s target market areas throughout the spring and summer. The cost to the Department of Commerce for the additional advertising and marketing was approximately $110,000.

During 2007, in addition to the advertising purchased, the Commerce Cabinet:

• produced and distributed a weekly (in season) e-newsletter that kept subscribers (over 5000) up to date on pertinent lake information.

• maintained a Lake Cumberland page on the http://www.kentuckytourism.com web site.

• partnered with local marinas, the Lake Office and others to sponsor two media days on a houseboat for print and electronic media (Memorial Day and Labor Day).
Simultaneously, it became apparent that access to the lake was at a critical stage. There was no need to recruit visitors if they could not get on the water.

The Corps had agreed to extend the ramps at seven marinas, three Corps-operated recreation areas and Halcomb’s Landing near the dam. This would only provide 11 access points to Lake Cumberland.

In addition to the Corps accepting responsibility for these 11 ramps, they worked closely with local government, the KDFWR and the Kentucky Transportation Cabinet (KYTC) to accomplish the goal of “easy access” to the lake. The Lake Office began to work with local county officials who surveyed their access ramp situations and established ramp priorities. We established a process through the GOLD office for these applications and to date we have requests for 52 ramps (details in appendices).

We have completed the extension or new construction of 50 of the ramp projects. The two remaining ramps are in the construction process and will be completed by early spring of 2008. This has to be one of the best examples of local governments working with state and federal officials in an expeditious manner. The Corps accelerated their permitting process, the county governments called special meetings to approve applications, bids and other processes, and contractors were consistently monitored to stay on deadline.

There should be no doubt that the tourist attendance numbers would have been considerably lower had it not been for the quick and aggressive action take by these government entities to give people access to the lake.
The ramp/access projects also provided many examples of extraordinary cooperation among federal, state and local governments.

The KDFWR took responsibility for four ramps and moved their crews from other locations to respond to the lake access issue. They were invaluable to this process. KYTC took responsibility for the extension/construction work on six ramps where there was a state road leading directly to the ramp, including Lake Cumberland State Resort Park and Burnside Island State Park ramps. These two entities collaborated throughout the season to monitor progress, communicate and assist each other and the counties.

One example of such collaboration that stands out is the ramp at Alligator I Marina. Alligator I was the most negatively impacted marina on the lake with only two to three feet of water under the main dock, fuel pier and several slips. A significant number of tourist related businesses operate along the road leading to Alligator I Marina and rely on the traffic that passes by them to use the marina’s ramp. When Alligator I realized that they must relocate the marina, these business owners were alarmed that they would not have a launch area to draw enough traffic to remain in business.

The Corps had no intention of replacing a ramp where there would be no marina. The area is a good site with an excellent access road, plenty of parking and high usage. The Lake Office held a community meeting at Alligator I Marina which was attended by 65 local residents. After much discussion, they concluded that their top two concerns were “ramp access” and “financial assistance” for the businesses.
An agreement was negotiated between Russell County Fiscal Court, KDFWR and Corps to jointly remedy the situation.

This meant construction of an entirely new ramp which was no small project. The three entities pooled resources and partnered on the new ramp which will help the many area businesses.

Another example of such cooperation was evidenced when the state-owned Burnside Island State Park expanded and extended the existing ramp at the park to accommodate park traffic and serve Burnside Marina which would have no access at this lake elevation. The marina’s close proximity to the park made it reasonable to expand the ramp to serve both entities.

The KYTC took the lead on the Burnside Ramp Project. The ramp was extended and expanded to four lanes. This ramp is also the primary ramp for the region’s houseboat manufacturing industry. At least five local houseboat manufactures use this ramp as their primary launching ramp and/or taking out large houseboats for testing. Without this ramp these businesses could lose substantial business. The ramp was completed in time for Memorial Day which was of major importance in the marketing aspect of the Economic Strategy.

It was also noted that the parking lot at the Burnside Island ramp was not adequate for both the park and marina traffic. Obtaining permits, funding, creating additional parking on park property and completing construction on very short order were daunting tasks. The KYTC stepped up to the plate and the overflow parking area was ready for Memorial Day. The significance of this collaboration and speedy reaction cannot be over-emphasized. It was a challenge for government agencies to respond so decisively and quickly, but they did! And, it paid off! The “Access” portion of the Economic Strategy was successful and has been completed.

The Economic Strategy included an immediate marketing response (the television/radio and print advertising) and a more long term plan as well. With the “lake access” process in place, the focus was on the first official holiday of the summer tourism season - Memorial Day.

Reservations at all marinas, resort, cottages, etc. were down significantly. The Corps had estimated that the visitor count for Memorial Day could be down as much as 50%. The strategy included seeking out media venues to report that approximately 37,000 acres of water existed in Lake Cumberland for recreational purposes. The Kentucky Commerce Cabinet took the lead.

A dedicated Lake Cumberland page was posted on Kentucky Department of Tourism’s (KY Tourism) website, a weekly electronic newsletter was produced, distribution lists were gathered for expanded distribution of the newsletter (5000 subscribers) and media outlets were contacted for interviews/photos ops. The Lake Office and KDFWR worked together on a weekly basis to keep the map of usable ramps and directions up to date. A very successful media tour on a houseboat was held in May, prior to Memorial Day weekend with great coverage by both print and electronic media. The result was that Memorial Day visitation numbers exceeded the expected 121,500 by about 54%.

The economic strategy implemented by KY Tourism included the hiring of a full time person, Van Back, to work with the Lake Office focusing on the tourism industry. His duties included continuing immediate, aggressive marketing, maintaining media contacts (local and regional) correcting false stories in the media and maintaining a dialog between the lake area businesses (primarily marinas), tourists, local tourism organizations, Corps and KY Tourism. He is working with local tourism entities and KY Tourism to create and implement a successful marketing campaign for 2008. He also worked closely with Ms. Legg to monitor the Lake Office projects and helped keep local and state personnel informed and up to date.

Another excellent example of partnering was related to the marketing efforts for the three summer holidays. We knew that tourists were concerned about where and if they could launch a boat and if their old launch sites were unusable. How could we reach the travelers and tell them where they could launch? SEKTDA operates a 5-1-1 KY Tourism Information Call Center, with a toll free call number – 5-1-1 for in state calls and 877-TOURSEKY for out of state calls.

SEKTDA made their call center available to serve as a lake information call center and included a prominent Lake Cumberland icon on the http://www.tourseky.com website linking to a lake map with up-to-date lake information, open ramps and directions to those ramps. The Corps, KDFWR and the Lake Office kept and continue to keep the 5-1-1 call center operators up-to-date on lake and ramp conditions.

KYTC has variable message signs used to warn travelers of construction ahead, traffic hazards, etc. The Lake Office worked with KYTC to put a “call 5-1-1” message on six strategically located variable message signs on major transportation arteries and at the juncture points to secondary roads leading to the lake immediately prior to Memorial Day. The efforts resulted in over a 120% increase in 5-1-1 calls from travelers over the holiday weekend. This was another success that helped to alleviate a disastrous Memorial Day weekend which was so important for, not only the revenue it would generate for businesses in the region, but the message “there is plenty of water in Lake Cumberland.”

Word of mouth, resulting from a good Memorial Day, could help to encourage tourists to continue visiting throughout the summer. Memorial Day served as a bell-weather for the rest of the tourist season on Lake Cumberland. Its success was crucial. The fact that the number of tourists was down less than 10 % was an amazing victory for the efforts of many toward the goal.

Subsequently, the 4th of July holiday was not as successful. The holiday fell in the middle of the week, on Wednesday, thus there was no clear holiday weekend. In assessing the number of tourists coming over this holiday we used June 29-July 4, 2007. Visitation for those dates was down about 30% compared to 2006 (not an accurate comparison since 2006 had a 3-day weekend).

The results were not what we had hoped for, but the marketing continued. A major concern to all was the looming threat of another 30 foot drop in the lake level to elevation 650 feet. Everyone understood the dire, catastrophic conditions this would create. The Lake Office began to focus on a priority of lake stabilization. Communicating constantly and consistently, along with Congressional Offices, business operators, boat owners, tourist and visitor bureaus, the Corp received a barrage of messages expressing this concern. Hosting a visit with the top Corps officials from Washington was a part of the strategy to communicate the significance of this unknown and how detrimental the threat of a 650 foot lake elevation was to the entire region and the Commonwealth.

Finally, toward summers end, the Corps announced they would"…continue to hold the level of Lake Cumberland at elevation 680 unless project conditions worsen." This announcement allowed area businesses to make critical business and marketing decisions for the remainder of the season and into 2008. This may well have been the single most significant action that would calm fears and stabilize the economic situation. Marketing efforts could now focus on a lake level which provided a beautiful area for recreation.

The Lake Office worked with marinas to offer vacation packages for incentives, took them to “talk television shows” as give away packages and spoke to any media person who would listen. We hosted another successful media houseboat outing for Labor Day, placed 5-1-1 and lake brochures in restaurants, gas stations etc. along the travel routes, and continued updating the 5-1-1 operators on the latest lake information.

Labor Day proved another success with visitation down just 6% compared to 2006 with 205,000 visiting the lake over the holiday. The result of these actions was that, by the end of 2007 season, visitation to the lake was 3,958,719 visitors. This compares to 4,412,139 for the 2006 year, a drop of only 453,420 visitors. We had expected visitation to be down around 50%. The combined, collaborative efforts of all the various entities resulted in visitation numbers for 2007 down only 11% compared to 2006.

The tourists we did not recapture were the ones making their plans to spend a week on a houseboat or in a cottage on Lake Cumberland. Those decisions are generally made for the families’ summer vacation in February, March and April. This was the height of the media’s frenzy and the widespread rumor of a lake with no water. The largest financial impact, across the board, was marina houseboat rentals. Revenues, which not only include boat rentals, but gas and ship store sales, averaged a decrease of 30%.
Still, it is widely accepted that the aggressive marketing effort made by all parties, and led by KY Tourism, kept this number from being one of devastation. We exceeded the Corps prediction by 20%.

The cost of the additional marketing and the lake ramp access dollars from the Commonwealth totaled $2,910,000. Local tourism organizations, SEKTDA and private businesses also contributed to the most aggressive marketing campaign.
The Economic Strategy included a plan for the 2008 tourist season. The strategy for marketing the lake included the design and production of an eight foot portable display for use at boat/travel shows, and the design and printing of 100,000 Lake Cumberland brochure/maps for distribution at travel shows, state welcome centers, KY Tourism and local marinas, tourism organizations and businesses.

An important fact to note, the display and brochure were both designed using 2007 photos of the lake. The photos show there is plenty of water for all types of water sports and new and interesting geologic features and shoreline to explore.

KY Tourism leased space in Tri-County Mall in Cincinnati, OH and Lafayette Square Mall in Indianapolis, IN during early/mid December. The marketing of a tourism destination in a mall encouraged shoppers to think of a lake vacation as a gift for family/friends. This was a new venture for KY Tourism and the display and brochures were both well received.
Four additional sports shows will be attended through March 2008. In addition to the booth and brochure featuring Lake Cumberland, the Official Kentucky Travel Guide and other state literature will be distributed. KY Tourism is investing about $40,000 in this marketing campaign to help Lake Cumberland recapture lost customers and gain new ones.
One of the most devastating aspects of the lower lake level was the unexpected impact on the small to midsize businesses surrounding the lake.

Many family-owned businesses were not prepared for this unexpected drop in reservations, not to mention cancellations requesting return of deposits. The anxiety level was high.

The Alligator I Community Meeting had as its second priority, behind an access ramp, financial assistance. The Economic Strategy needed to address this business concern. The Commonwealth of Kentucky Cabinet for Economic Development, Small Business Services Division joined the Lake Office in the effort to assist small to midsize businesses.
As a result, in June 2007, Governor Ernie Fletcher asked the U.S. Small Business Administration (SBA) for an emergency declaration that made disaster loans possible for affected businesses on and around Lake Cumberland.

“I appreciate the Small Business Administration’s quick approval of my request for emergency assistance for businesses harmed by the Corps of Engineers’ decision to lower the level of Lake Cumberland,” Governor Fletcher said. “The staunch support of our Kentucky congressional delegation also was critical and is to be commended. SBA loan assistance is one way small-business owners are being helped through a difficult period.”

In July 2007, the SBA announced that small and midsize businesses in Kentucky impacted by low water levels on Lake Cumberland (Clinton, Laurel, McCreary, Pulaski, Russell and Wayne Counties and the neighboring counties of Adair, Casey, Clay, Cumberland, Jackson, Knox, Lincoln, Rockcastle), would be eligible to apply for an Economic Injury Disaster Loan (EIDL).

Eligible small and midsize businesses could qualify for loans up to $1.5 million. The interest rate could be 4% with loan terms up to 30 years. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. These loans are not intended to replace lost sales or profits. SBA determines eligibility for the loans based on the size and type of the business and its financial resources. Loan amounts and terms are set by SBA and based upon applicant's financial condition.

SBA sent representatives to the area to meet with affected businesses and assist in completing the loan applications. The Lake Office worked directly with the SBA representatives during the three weeks they were in the lake region. We helped secure office space in Somerset at the Center for Rural Development and shared office equipment. The Lake Office, along with staff of the Economic Development Cabinet also worked with local officials in the affected counties to set up meetings with the SBA field representatives in each county, accompanied the field representatives to some local businesses for meeting and ensured that media releases, meeting locations and schedules were sent to and carried by local media outlets. Our office has maintained contact with SBA to monitor the progress of applications.

To date 42 applications have been received, 11 were withdrawn, 17 either denied or are still in process and 14 were approved. The 14 loans approved total $2,873,400. This is yet another example where federal, state and local government agencies partnered in a successful endeavor to help the people they serve.

SUMMARY of STRATEGIES:

The safety, health and economic priorities were successfully addressed on many fronts with the cooperation, collaboration and shared cost from many entities. It reflected a commitment from the top, Governor Ernie Fletcher and Cabinet secretaries, via the workings of the Interagency Task Force led by the EPPC Chief of Staff Mark York, as well as the Lake Office. Across the board, private businesses, individuals, federal, state and local governments and not for profit organizations came together to address the priority goals for this effort.

We were successful in addressing these priorities and limiting the foreboding disaster that loomed early in 2007. One year later, Wolf Creek Dam is still under repair and Lake Cumberland is still lower than desired but the fear of imminent failure has been abated, with emergency communication systems installed and utility services stabilized. The immediate economic peril has been reduced and a plan is in place to improve the future economic outlook.

Wolf Creek Dam Construction Project:

In 1968, muddy flows in the tailrace and two sinkholes near the downstream toe of the embankment signaled serious reservoir seepage problems. Review of foundation construction data indicated the problems were due to the karst geology of the site characterized by an extensive interconnected network of solution channels in the limestone foundation.

During the same time period, the Corps completed the Screening Portfolio Risk Assessment, a nationwide evaluation of all Corps dams. Wolf Creek Dam was one of six designated Class I for Dam Safety Action, the highest risk for failure category. This classification was confirmed by an independent peer review panel in March 2007. Failure would be catastrophic. Loss of life is expected to exceed one-hundred lives. Economic losses are estimated in the billions with damages as distant as Nashville, Tennessee expected to exceed $3 billion.

The MRER recommended a new concrete barrier wall supplemented with grouting from the right most concrete monoliths to the right abutment. It will be constructed to a depth as much as 75 feet deeper than the majority of the original wall. Construction of the recommended plan is currently underway.

After studying numerous alternatives, the Corps chose to construct a concrete diaphragm wall. Since completion of the wall in 1979, District personnel have continually monitored the project. Key instrumentation readings, persistent and increasing wet areas, and investigative borings that encountered very soft, wet material at depth in the embankment all confirm solution features still exist that have not been cut off. According to the findings of the Wolf Creek Dam Seepage Control Major Rehabilitation Evaluation Report (MRER) in July 2005, the dam has been in the progression stage for some time since the completion of the wall and without timely intervention will result in a breach of the embankment.

A $51 million contract to complete the foundation grouting was awarded in September 2006 and construction began in January 2007. The grouting program consists of drilling two parallel lines of small diameter holes on either side of the barrier wall alignment and injecting grout to the point of refusal. To date 479 holes have been drilled and grouted with over 360,000 gallons of grout pumped into the foundation. Primary and secondary holes on the upstream grout line were completed ahead of schedule in December 2007. However, grouting and testing results indicate the need to drill approximately 216 tertiary and quaternary holes to effectively close the line. The entire grouting program is scheduled to be completed in September 2008.

A request for proposals to construct the concrete barrier wall was issued on December 10, 2007. Proposals are due on March 11, 2008, with anticipated award date of May 10, 2008. Performance period for the contract is four years with anticipated completion in 2012. Approximately 50 people representing 17 different contractors attended the recent pre-bid conference. All of the major international firms capable of constructing the project were present. This attendance indicates high interest in the project within the contracting community and enhances the probability of receiving quality proposals.

Total project cost is expected to be $309 million. Expenditures through fiscal year 2007 total approximately $56 million (including the cost of preparing the MRER). Anticipated funding for the remainder of the project is shown in the table--

Fiscal Year Projected Funding ($ millions)
2008 53.2
2009 57.0
2010 90.0
2011 66.0
2012 7.0

Initial reservoir operating restrictions were implemented in March 2005 as results of the MRER investigation became evident. At that time, the Corps began to aggressively draw down the pool level to the operating guide curve following major runoff events. Following recommendations of the independent peer review panel, the Corps decided to maintain a constant pool level of 680 feet above sea level in January 2007. Elevation 680 was selected because it provided the maximum interim risk reduction without inducing health and safety risks to communities dependent on Lake Cumberland for public water supply.

The elevation 680 feet lake level implemented in January 2007 reduced hydrostatic pressure on the dam and decreased seepage, therefore lowering the risks to people and property. At elevation 680 feet, the Corps determined Wolf Creek Dam was stable and improving. The project had responded to this lake level with improved project conditions that included improved critical indicators, slightly reduced piezometers readings, and fewer wet spots downstream.

Expedited grouting continued in the critical areas. As a result of the improvements, the Corps announced in July 2007 that they would not drop below elevation 680 feet unless stress indicator such as the sudden appearance of a sinkhole, sudden unexplained changes in piezometer readings, or muddy flows in the tailrace indicated a failure was in progress or if drought made it impossible to hold the pool at elevation 680 feet. The Corps moved up this decision from the late Fall 2007 timeframe, in order to provide stakeholders more time to make decisions about next year's recreation season and other business interests.

REMAINING ISSUES:

As the Lake Office closes on January 31, 2008, what remains to be done?

PROJECT STATUS:

• The 911 project is considered complete, the outdoor alarm sirens have been ordered and the contractor will install immediately upon receipt. Sirens should be in place for the spring severe weather season.

• Only two ramp projects are not closed out, but construction is moving expeditiously.

• Six of the eleven water projects are operational with some paperwork processing to be completed. The remaining five are in various phases of construction. No problems are anticipated.

• Two marinas continue to seek assistance from the SBA and their status is being monitored. Congressional offices are now involved with these applications

• According to the marinas, reservations for the 2008 season are down by about 30% for January 2007 compared to numbers for January 2006.

• Constituent complaints have been handled as they were received in the office.

• Four boat shows are scheduled for the 2008 season. The shows are located in KY, OH, IN and MI (Lake Cumberland’s market area) and will be attended by Van Back.

LAKE LEVEL:
The major issues ahead deal primarily with the Corps. In November 2007, the Corps established criteria for incrementally raising the pool based on structural improvements to the dam and monitoring results from instrumentation and observation. The criteria for the first 5-10 foot increment include closure of the upstream grout line, continued downtrend of piezometric data, and continued reduction in size and number of the wet areas observed downstream of the dam. The initial decision is expected in late winter 2008 coincident with the anticipated closure of the upstream line. Should construction continue to progress and instrumentation data and observations continue to improve, another incremental raise will be considered in the fall of 2008. That will be helpful, but needs to become a reality, not just a promise.

The amount of rainfall we receive during the winter and spring will impact the Corps’ ability to carry forth on its intentions. An increased lake level may take some new ramps out of commission, but we have already raised this issue with local elected officials and the KDFWR. We have even identified those with potential negative ramifications of a higher water level and shared this information with officials. The KDFWR will monitor this situation and work with local officials to ensure proper response.

SHORELINE CLEAN-UP:

Lake Cumberland has always been noted for a lot of drift, especially in the spring and more so in the northeast portion. It flows from the Cumberland River through our heavily wooded Daniel Boone Forrest into the reservoir. Lake Cumberland is used for flood control and requires a normal 35-foot fluctuation in the level of the lake. The combination of dead wood and trash flowing down the Cumberland River and this fluctuation contribute to a lake and shoreline littered with drift wood, tires and trash. With a lower lake level expected to be maintained for a minimum of five years, it is of general opinion and great consensus that this is the time to clean up the shoreline and rid the lake of this drift accumulation. The Corps must take the lead in this endeavor but I suspect they will seek, and need, assistance both in funds and resources from various entities, both public and private. This should be a high priority of the Corps, marinas, county governments and lake area businesses in the coming months and a plan should be developed to ensure that this time of lower lake elevation is used constructively.

CONCESSION FEES:

Due to the negative impact of the lake on marina business, the Corps renegotiated the marina’s rental fees (payments to States-Leasing on Civil Works Projects, Section 7), beginning July 2007. While this was good for the marina operators, it should be noted that county governments made a sacrifice. Seventy five percent of this fee is returned to the local county government as funds to be used to help improve roads and other services affecting Lake Cumberland in that county. As an example, Russell County’s payment for 2006 totaled $116,728 or 10.5% of their Total General Fund. This adjustment, because of the timing of payments to counties, will impact county government budgets for fiscal year 2008 as well. This issue will continue to be of interest to the marinas and county governments in future months.

ALLIGATOR I MARINA:

Alligator I Marina suffered extensive damage as a result of the lower lake level was and was the most negatively impacted of the seven marinas on the lake. The owners decided to relocate across the lake to the Jabez community of Russell County at Cave Springs. Relocation of a marina normally requires a minimum of two years, according to the Corps. The 2007 tourist season was devastating to Alligator I. Many meetings and communications were held between the marina owners, the Corps, the Lake Office, Congressional offices and state and local entities to assist in expediting the relocation process.

Today, the Cave Spring area has a new ramp, electric power, water access, slips and dock. The owner is moving houseboats to the Cave Spring location as weather permits. For the 2008/2009 tourist season, the owner anticipates operating minimally out of the current location until relocation is complete.

The Environmental Assessment, as required by the National Environmental Policy Act (NEPA), is under review. Urgency is required due to necessary tree removal and the impact of such removal on the mating of the protected Indiana bats. The Commerce Cabinet will continue to be involved in this relocation process.

CONCLUSION:

This report is not all inclusive. There were many day-to-day situations that required the attention of the Lake Office staff and the many agencies, local governments and businesses involved. However, we have attempted to bring together, in a readable format, the major issues along with a description of the Lake Cumberland region’s reaction to this unexpected, potentially devastating announcement. Ironically it was one year ago this month that this situation began.

As the Corps’ construction project moves forward, it will be imperative that good communication continue between the Commonwealth and the U S Army Corps of Engineers.
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[*] posted on 2-2-2008 at 09:59 AM


Can anyone condense that into language / length that I can understand?
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[*] posted on 2-2-2008 at 10:53 AM


Quote:
Originally posted by cumberline
As the Corps’ construction project moves forward, it will be imperative that good communication continue between the Commonwealth and the U S Army Corps of Engineers.


With the closure of the Interagency Services, Lake Cumberland Region office in Somerset, KY, I guess the COE will have to resort to the following method of communicating with the Governor like the rest of us.

http://governor.ky.gov/contact.htm

I sure hope the Governor or somebody reads their emails.

I wonder if he likes to hunt, fish, or go boating?

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Governor (Custom).jpg - 9.79kb
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[*] posted on 2-2-2008 at 11:10 AM


I wonder if we could ad as many gallons of water to the lake as there are words in that report.
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[*] posted on 2-2-2008 at 04:03 PM


I guess if it had seaHORSES we might get his attention and $$'s
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[*] posted on 2-2-2008 at 04:11 PM


Seriously now,

Surely some Lake Cumberland Houseboater must be a personal friend of the new Guv.
Get him down on the lake this summer and make sure he enjoys himself.

I remember getting Earnie down here early in his term. He was amazed with how beautiful the lake was and amazed about the water patrol drink enforcement - Made a difference.

Surely someone on here knows him or knows someone that can get him down here for a weekend. It might do a world of help.

Just tell him that the Submarine Races are a code name for Horse Races.
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