DEPARTMENT OF THE ARMY

U.S. ARMY ENGINEER DISTRICT, LOUISVILLE

CORPS OF ENGINEERS
PO BOX 59
LOUISVILLE, KY 40201-0059

June 28, 2016

Engineering Division

Honorable Jerry Peluso

Mayor, City of Newport
998 Monmouth Street
Newport, Kentucky 41071
Dear Mayor Peluso:
I am contacting you regarding the conceptual design documents originally submitted by
Mr. Matthew Stack of Koch Development (the requester) on January 8, 2016 and last revised
on April 4, 2016 associated with a proposed development of constructing a sky wheel which will
directly impact the Newport Levee System. The Louisville District is processing this alteration
request in accordance with Engineering Circular 1165-2-216 (EC 216), Policy and Procedural
Guidance for Processing Requests to Alter US Army Corps of Engineers Civil Works Projects
Pursuant to 33 USC 408. Our internal reference number for this alteration request is CELRL2015042.NPT.
Proposed alterations to federally authorized civil works projects (in this case, the existing
levee system) must not be injurious to the public interest or affect the systems ability to meet its
authorized purpose, pursuant to 33 USC 408 (Section 408). Based on our initial review of the
subject alteration request provided to this office, the current configuration and construction
methods of the proposed sky wheel project would present an unacceptable risk to the structural
integrity of the existing levee embankment. The documentation submitted for our review also
does not meet the minimum level of detail commensurate to the approval level required for a
project of this complexity and potential risk to public safety.
As previously communicated to the requester, it is strongly recommended that alternate
locations be considered for the proposed sky wheel project that would not be physically located
within the right-of-way of the existing federally authorized levee system and would not impact
the systems ability to meet its authorized purpose. Other viable options that may ensure the
existing levee system will maintain its authorized purpose include incorporating a new flood wall
section into the design or designing the sky wheel foundation fully independent of the levee
embankment. Any scenario associated with this request will require an Alteration-Specific
Review Plan to be prepared through joint efforts of the requester, your office, and the Louisville
District to be approved by the US Army Corps of Engineers, Great Lakes & Ohio River Division

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Commander per EC 216. Supplemental guidance for proposed alterations to levee, floodwall or
flood risk management projects are provided in Appendix D of that document.
Any proposed alteration to the existing levee system will require the following, pursuant
to Section 408:
1. Written Request. The requester shall submit a written request in the form of a letter
addressed to the Louisville District Commander (Colonel Christopher Beck) in accordance with
Step 2 of EC 216 (reference Paragraph 7.c.(2)). Some of the information required for the written
request has previously been submitted, and should be documented as such in the written request
using a transmittal table that includes the transmittal date, and names or descriptions of
documents / drawings / files already transmitted including total pages as well as the date
originally published or finalized for each document / set of plans / file, etc. The list below
outlines items that Louisville District believes have not yet been transmitted and should be
included in the formal written request (reference Paragraph 7.c.(2).(b)):
a. A more thorough description of the requested alteration including a design narrative
outlining design decisions made and other pertinent background information, as well as an
anticipated construction schedule;
b. A written statement regarding whether the requester is also pursuing authorization
pursuant to Sections 10/404/103 and, if so, the date or anticipated date of application /
preconstruction notification submittal;
c. Information regarding whether credit under Section 221 of the Flood Control Act of
1970, as amended, or other law or whether approval under Section 204(f) of WRDA 1986 is
being or will be sought;
d. A written statement of whether the requester will require the use of federally-owned real
property or property owned by the non-federal sponsor; and,
e. A written statement from your office (the levee systems non-federal local sponsor)
endorsing the proposed alteration.
2. Design and Construction Standards. The alteration must meet current USACE design and
construction standards. A list of applicable references containing evaluation processes, design
standards, and operations and maintenance procedures that may be relevant to consider for levee
and floodwall alterations is provided in paragraph D-2 of EC 216, Appendix D.
3. Required Documentation. The general requirements for documentation necessary for the
District to determine whether the proposed alteration would impair the usefulness of the levee

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system or be injurious to the public interest is provided in paragraph 7.c. of EC 216. More
specific requirements are provided in paragraph D-4 of EC 216, Appendix D.
4. Type II IEPR. In accordance with EC 1165-2-214 (EC 214), Civil Works Review, a Type II
Independent External Peer Review (IEPR), Safety Assurance Review (SAR) shall be conducted
on design and construction activities for any proposed alteration where potential hazards pose a
significant threat to public safety. This applies to new projects and to the major repair,
rehabilitation, replacement, or modification of existing Federal projects. When a non-Federal
interest requests permission to alter a Federal project, the non-Federal interest is required to
undertake, at its own expense, any IEPR that the Government determines would have been
required if the Government were doing the work. Any IEPR undertaken by a non-Federal interest
shall be submitted as part of the decision package for review by USACE and ultimate action by
USACE. Due to the complexity of the proposed sky wheel alteration and the associated flood
risk, the District will require a Type II IEPR for the current design concept. If another option is
selected that presents an acceptable level of risk to the existing levee system, this requirement
may potentially be waived.
5. Requester Review Plan Requirement. Whenever a Type II IEPR is required, the requester
must prepare and submit an IEPR review plan as a subset of the alteration-specific review plan,
in accordance with EC 214. The IEPR review plan would be reviewed by the District, but would
require approval by the Division Commander.
The Louisville District will answer any questions that you may have as your office and
the requester work with us to develop the alteration-specific review plan for this request. A
template for this plan has been enclosed. The first step requires submission of a complete written
request as outlined above in Item 1. Please consider designating a project manager to act on
behalf of your office while preparing the written statement endorsing the proposed alteration.
The Louisville District could provide a template for a requester-submitted IEPR Plan in
accordance with policy and will continue to update all parties upon completion of each step in
this complex process. We anticipate the need to schedule multiple meetings to discuss decisions
that may be made during the review process, including EC 216 requirements for Environmental
Compliance (reference Paragraph 7.c.(3).(c)), Real Estate (reference Paragraph 7.c.(3).(d)),
Special Conditions (reference Paragraph 7.c.(8).(c)), Construction Quality Control/Quality
Assurance (reference Paragraph 7.c.(9).(a)), and funding sources that may be available for the
costs associated with this review (reference Paragraph 8 and Appendix G).
The point-of-contact for this request is the Louisville District Section 408 Coordinator,
Ms. Christina Neutz, at (502) 315-6305 or Christina.M.Neutz@usace.army.mil. Please contact
her regarding further efforts associated with this alteration request.

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I am sure you share our commitment to public safety and the proper operation and
maintenance of the Newport, KY Levee System. I am also furnishing an electronic copy of this
letter to other City of Newport officials involved with this proposal; Mr. Matthew Stack of Koch
Development; and Mr. Michael Timko of Wool pert.
Sincerely,

R~

John R. Bock, P .E.

District Levee Safety Officer
Chief, Engineering Division
Enclosures