I will let the experts chime in on this but is seems to me you may be dealing with two issues at once:
That is if your pond is tied into ground water then as the ground water goes down your pond will go down. It's probably no coincidence this is occurring during a drought.
Secondly, the wetness below the dam signals a problem but it may not be as serious as you think being that far away from the dam. IMHO the contractors second option of draining, installing a core trench and widening the dike with less slope is spot on, but like I said I am no expert on pond building, just have some experience in the installation of four ponds on my property.
If you go the secondary core trench route be sure the soil is damp and packed in layers preferably with a sheepsfoot roller.
I wouldn't cut into the actual dam if I didn't have to.
Last edited by Cecil Baird1; 10/23/10 10:02 AM.
