Lake Delhi dam owner plans to appeal FEMA denial

The owner of the Lake Delhi dam will appeal a FEMA decision that the dam is not eligible for recovery assistance.

“We feel the determination is not correct,” James Willey, president of the Lake Delhi Recreation Association, which operates the dam, said Aug. 25. An appeal through FEMA's administrative process is being pursued.

Gov. Chet Culver, who called FEMA's denial an example of a federal agency changing the rules in the middle of a game, said he would support an appeal by the Combined Lake Delhi Benefited Recreational Lake and Water Quality District, which owns the dam.

The decision by FEMA also jeopardizes $7 million in FEMA funding for projects either completed or underway, Willey said. Some of those projects involve silt removal following 2008 flooding.

FEMA said Aug. 24 Lake Delhi, which sustained damage in July 24 flooding, including the washout of a 200-foot earth-over-concrete dam, would not be eligible for assistance to rebuild public infrastructure. The concrete portion of the dam remains intact.

About half of the 1,000 homes around the lake southeast of Manchester were damaged by the flood that followed more than 15 inches of rain across the Maquoketa River watershed. The river reached 23.92 feet, which was more than 2 feet above the previous high water mark.

Adding to the urgency of the situation is the fact Delaware County Road X31 sat atop the dam. Delaware County supervisors consider it a “vital link” for residents of the southern half of the county.

FEMA had looked favorably on an application for assistance from the dam's owner, the Combined Lake Delhi Benefited Recreational Lake and Water Quality District. Willey explained the recreation association operated the dam under the taxing district's authority.

Property owners in the taxing district pay an additional $4 per $1,000 of assessed valuation to support the operation of the dam that maintains a water level conducive to recreational activities.

While reviewing the application, FEMA raised questions about the legal status of the taxing district and recreation association. After further review, it determined the taxing district “does not provide any essential governmental service to the general public.”

The nine-mile lake on the Maquoketa River is used only for recreation, not for electricity, irrigation or drinking water. FEMA said, and, therefore, is not eligible for FEMA dollars, according to Gary Glover, FEMA infrastructure branch adviser.

The association has been working with Modern Hydro, a Wisconsin firm that operates hydro electric projects in Iowa, on generating as much as 1.5-MW in electricity at the 88-year-old dam, Willey said. The dam was built to generate electricity, but the turbines were removed in the 1970s. The dam could generate enough electricity to power 750 to 1,000 homes, according to a utility spokesman.

FEMA's decision is in direct contradiction to the previous program determination by FEMA in 2008, Culver said.

“This is an example of a federal government agency changing rules and regulations, and its interpretation of them, in the middle of a great hardship, getting in the way of help for Iowans who have lost so much in the floods,” Culver said.

He is encouraging the people of Lake Delhi to appeal the FEMA decision. A spokeswoman for the governor said the Attorney General's Office is looking into the decision, but Culver believes the taxing district can make the strongest case for reversing the FEMA decision.

The Lake Delhi Task Force appointed by Culver is likely to consider the decision when it meets at 10 a.m. Friday at Kirkwood Community College in Cedar Rapids.

An appeal “is the right thing to do and I will support them in these efforts,” Culver said. “Let me say in the clearest possible terms – this is a matter of fairness. We will do everything we can to make things right.”