Contractor pays for dam damage

Source: http://www.record-eagle.com, October 6, 2014
By: Brian McGillivary

The contractor hired to remove the Brown Bridge Dam will pay $300,000 to resolve environmental claims from homeowners and help restore the Boardman River from damage caused when the dam breached.
Molon Excavating Inc. will pay $120,000 to downstream property owners to cover the cost of removing sediments heavily laden with arsenic that washed up on their properties when the dam breached on Oct. 6, 2012. The contractor will also contribute $180,000 into a River Settlement Fund to help restore about 10 miles of river affected by the flood.
City commissioners approved the settlement agreement on Monday.
“It has been resolved to our satisfaction and the city is off the hook,” Mayor Michael Estes said.
A dewatering structure constructed by Molon that was designed to slowly lower the 170-acre Brown Bridge pond over 18 days failed, then drained the pond in a matter of hours and flooded more than 50 downstream properties.
The breach resulted in multiple lawsuits from property owners against dam-owner Traverse City, the Boardman River Dams Settlement Agreement Implementation Team and engineering and construction firms involved in the dam’s removal.
Traverse City will not make any payments to the plaintiffs in the settlement but will benefit from the creation of the River Settlement Fund. City officials intend to substitute the environmental projects paid for by the fund in lieu of fines sought by the Michigan Department of Environmental Quality.
City officials are also in negotiations to reach a consent agreement with the DEQ to resolve their violation of environmental laws caused by the breach. An Aug. 26 enforcement letter from the DEQ warns the city to expect fines and requires it remediate the damages caused by the breach.
The DEQ enforcement action addresses about the first four miles immediately downstream of the former dam where the river is undercutting the banks. City Manager Jered Ottenwess said remediation of that area required by the DEQ is not part of the settlement and will be addressed separately.
Karen Ferguson, one of the attorneys representing 12 families in the lawsuit, said the $120,000 will go to six or seven property owners to remove the arsenic contaminated soils from their properties.
The River Settlement Fund will help restore about 10 miles of river below the area covered by the DEQ action. Ferguson said one of the more important aspects of the settlement is it gives the property owners a seat at the table in determining what restoration work will be done.
“We are very pleased that we will be able to assist them and finally get some work on the river and restore the health of the river,” Ferguson said. “We know this will take a long, long time but we are hoping this will help speed up the process.”
The settlement also doesn’t address claims for property damage, personal injury and emotional distress. Ferguson said nine of the 12 families she represents have already settled those claims while three, the hardest hit by the flood, remain.

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