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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/24/2022 - HALLIGAN WATER SUPPLY PROJECT UPDATEDATE: STAFF: May 24, 2022 Donnie Dustin, Water Engineer II Linsey Chalfant, Civil Engineer III Jason Graham, Water Reclamation/Biosolids Manager Alice Conovitz, Sr. Project Manager Theresa Connor, Utilities Deputy Director Eric Potyondy, Legal WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Halligan Water Supply Project Update. EXECUTIVE SUMMARY The purpose of this item is to update Council on the status of the Halligan Water Supply Project (Project), including upcoming key milestones and activities in the near term. The Project is needed to meet treated water demands of future Fort Collins Utilities (Utilities) customers and will provide added reliability for all Utilities water customers, including during prolonged drought and other emergencies such as wildfires or infrastructure failures. The City has been in the federal permitting process for this Project since 2006. The U.S. Army Corps of Eng ineers (Corps) has been working on addressing comments received in early 2020 on the Draft Environmental Impact Statement (EIS), with a projected schedule to release the Final EIS in early 2023. The Corps’ final permitting decision would come one to two years later. At the same time, the City has been focusing on state permitting processes, developing a 30% design, and acquiring easements from adjacent landowners. Given these various steps in permitting and other activities, the Project is currently anticip ated to start construction around 2026. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council have any questions about the Halligan Water Supply Project? 2. How can we best inform Council in quarterly reports and other communications? BACKGROUND / DISCUSSION The Project is key to the Utilities’ water future. Developing water supplies in Northern Colorado is dynamic and full of uncertainty. Climate change, increased competition for water supplies, permitting processes and the associate d challenges, and changing growth make developing these supplies both essential and complex. Utilities’ Water Supply and Demand Management Policy provides guidance for addressing these uncertainties through multiple means, mainly through developing additio nal supplies (e.g., acquiring storage capacity) and continued water conservation efforts. Water Service Providers in Fort Collins Utilities’ water service area covers the central portion and majority of Fort Collins. Utilities supplies water to approximately 75% of residents and businesses within the Fort Collins city limits. Water service in the surrounding areas is provided by other water providers, mainly the East Larimer County (ELCO) and Fort Collins -Loveland (FCLWD) Water Districts (Attachment 1). Each water service provider has their own drivers (e.g., sources of supply, water portfolios, development patterns, etc.) that determine their water supply needs. The Project and its benefits only apply to the Utilities water service area. May 24, 2022 Page 2 Strategic Alignment The Project aligns with several of the City’s strategic objectives in the Safe Community and Environmental Health outcome areas, including: • SAFE 5.5 – Provide and maintain reliable utility services and infrastructure that directly preserve and impro ve public health and community safety. • ENV 4.4 – Provide a reliable, high-quality water supply; as well as other strategic objectives around climate resiliency and improving the health of the Poudre River. It also aligns with the Utilities’ Water Supply a nd Demand Management Policy, which the objectives are: “To provide a sustainable and integrated approach to: 1) ensuring an adequate, safe and reliable supply of water for the beneficial use by customers and the community; and 2) managing the level of dema nd and the efficient use of a scarce and valuable resources consistent with the preferences of Water Utility customers and in recognition of the region’s semi-arid climate.” Water Supplies and Demands Utilities’ main sources of water supply are the Cache la Poudre River (Poudre River) and the Colorado-Big Thompson Project (CBT). On average, Utilities uses approximately equal amounts of water from these two sources each year. The Poudre River supplies are delivered to the Utilities’ Water Treatment Facilit y through two pipelines that divert off the river near Gateway Natural Area. Joe Wright Reservoir, located near Cameron Pass on a tributary to the Poudre River, has an active capacity of about 7,100 acre -feet, and is the only storage reservoir fully owned and operated by Utilities that directly provides water to the Water Treatment Facility. Utilities owns contractual units in the CBT Project, which is administered by the Northern Colorado Water Conservancy District (Northern Water). These CBT units are delivered to Utilities out of Horsetooth Reservoir, which is not owned or operated by Utilities. Northern Water has policies that limit the Utilities’ ability to store excess water in Horsetooth Reservoir for use in later years. Utilities currently delivers about 24,000 acre-feet per year of treated water to its customers and around 3,000 acre-feet per year of untreated (raw) water for irrigation of City parks, golf courses, cemetery, and other green belt areas. Per capita treated water demands, which are measured in gallons per capita per day (gpcd) and exclude large contractual use, have declined significantly over the last couple of decades from about 200 gpcd to around 136 gpcd more recently. This is about a 30% reduction in per capita water use and shows the effectiveness of Utilities’ water conservation efforts. Most of this savings is considered in the Project via reduced capacity needed in the enlarged Halligan. Water conservation efforts are ongoing, but conservation alone is not enough to meet future water demand and will not add reliability to Utilities’ water supply system in the face of drought, fires, and other uncertainties if used to meet future demands. The current water supplies for Utilities are adequate for current demands in most years. Ho wever, these- snowpack driven water supplies can vary significantly throughout the year and from year to year. Per the Water Supply and Demand Management Policy (Attachment 2), Utilities maintains enough water supply to meet demands through at least a 1-in-50 year drought event in the Poudre River basin while maintaining 20% of the annual demand in storage (storage reserve factor) to provide extra protection against emergency situations . In addition, the Policy directs Utilities to plan for a demand level (150 gpcd) that is higher than the water conservation goal (currently 130 gpcd by 2030). These criteria provide a water supply planning approach that addresses uncertainties such as climate change, river administration changes, system outages, and competing water rights. The amount of future water supplies needed for the Utilities water service area depends on population and commercial growth. Utilities currently serves about 143,000 tr eated water customers. The water service area population is projected to grow to about 178,000 by the year 2065. In addition, large contractual water use is expected to increase in the future. Utilities’ total projected treated water demand is expected to be about 38,400 acre-feet per year by the year 2065. These projected values are the basis of the purpose and need for the Project. Recent projections from the City’s Planning Department indicate that future populations in our service area could go as high as 195,000 by 2070 under the newer City Plan scenarios. May 24, 2022 Page 3 A key concern for Utilities is that its water supplies are highly reliant on CBT Project storage. Utilities has very little storage for its Poudre River water supplies, which restricts its ability to effectively manage these supplies and meet demands if the CBT supplies were ever to be unavailable or if their yield were reduced due to challenges in the Colorado River basin. By approximately doubling our existing storage, the Project will allow Utiliti es to meet its projected demands, while also providing a storage reserve for emergency water shortage scenarios (e.g., drought, infrastructure failures, impacts of wildfires, etc.) and a place to store water for later use. Halligan Water Supply Project Background Halligan Reservoir is an existing reservoir on the North Fork of the Cache la Poudre River (North Fork). It is located about 24 miles up the North Fork from the confluence with the mainstem of the Poudre River at Gateway Park. The Project includes building a replacement dam approximately 200 feet downstream of the existing Halligan Dam to increase reservoir capacity by about 8,200 acre -feet for a total enlarged capacity of approximately 14,600 acre-feet. Water in the existing 6,400-acre foot Halligan Reservoir is currently used and operated by the North Poudre Irrigation Company (NPIC). After the enlargement of Halligan Reservoir, NPIC will continue to use and operate their capacity in the reservoir as it has historically. Permitting for the project officially began in 2006, but the City has been pursuing the Project since the late 1980s. Key milestones and Council approvals for the project are shown on the timeline provided. (Attachment 3) Project Benefits and Impacts The Project provides multiple benefits to Utilities’ water customers demonstrated by supplying a cost -effective and reliable water supply, while providing significant environmental benefits to the North Fork of the Poudre River downstream of Halligan Reservoir. The Project provides improvements to the existing North Fork habitat (Attachment 4), through year-round water releases that promote stream connectivity and riparian health. The most significant benefits are summarized below: • It enlarges an existing reservoir, creating fewer environmental impacts than building a new reservoir. • It is the most cost-effective option to meet Utilities’ water storage needs. According to current cost estimates, it is less than $19,0001 per acre-foot of firm yield, which is about six times less expensive than the current cost of firm yield for CBT water. • It will provide year-round flows on the North Fork, a river that is periodically segmented because it runs dry in some locations due to existing diversions and structures. These flows will reconnect the river and improve the fishery and aquatic habitat for 22 miles downstream of the Halligan Dam. • It will be gravity-fed, and no pumping (and resulting emissions) will be required to fill the reservoir or convey the water to the Poudre River to be exchanged to the Utilities’ Water Treatment Facility. This is consistent with the City’s climate action goals. • It replaces an aging dam that will need to be rehabilitated in the future regardless of whether the Project occurs or not. • It has been considered an “Acceptable Planned Project” by the Western Resource Advocates2 and other environmental groups such as The Nature Conservancy and Trout Unlimited have expressed support. As with any water supply project of this scale, and despite the many net benefits in ce rtain areas, there are some adverse environmental impacts associated with enlarging Halligan Reservoir. • Inundation of wetlands and riparian habitat will impact areas around the existing reservoir shoreline; however, it is anticipated that most shoreline wetlands and riparian habitat will reform at the enlarged reservoir’s new shoreline, resulting in a net loss of less than six acres of wetlands. 1 The unit cost for the Project of $19,000 per acre-foot of firm yield uses $150 million, which is the upper end of the range for the most probable cost from the 2019 Halligan Cost Update (see Attachment 5). 2 Western Resource Advocates (2011). Filling the Gap, Commonsense Solutions for Meeting Front Range Water Needs. Available at: http://westernresourceadvocates.org/water/fillingthegap/FillingTheGap.pdf May 24, 2022 Page 4 • Impacts to 13 acres of Preble’s Meadow Jumping Mouse habitat, including critical habitat for this threatened species. Similar to wetlands, most of this habitat is expected to reestablish at the enlarged reservoir shoreline, yielding a total net impact of 4.3 acres. • Seasonal inundation of 0.75 miles of the North Fork upstream of Halligan Reservoir. • Minor reduction in stream flows on both the North Fork and mainstem of the Poudre River during runoff season, mainly from the town of Laporte upstream to Halligan Reservoir and the City’s pipelines near Gateway Natural Area. • Temporary construction impacts such as noise, light, dust, access road improvements, and ground disturbance around the dam. These impacts will be mitigated as part of the federal and state permitting processes. Conceptual Mitigation Plan Utilities staff has worked with the City’s Natural Areas Department, outside consultants and environmental groups, and other subject matter experts to develop concepts proposed to mitigate potential environmental impacts of the enlargement of Halligan Reservoir. These were summarized in the Conceptual Mitigation Plan , which was released for public review and comment with the Draft EIS in 2019. An updated Conceptual Mitigation Plan is being developed for inclusion with the Final EIS to describe the currently planned mitigation measures and incorporate public and agency input. The Conceptual Mitigation Plan includes alternatives to minimize, mitigate, or enhance resources that would be impacted by the reservoir enlargement. The overall objective of the mitigation effort is to provide overall benefit equivalent to, or g reater than, adverse impacts, with in the following general categories: 1. Design the Project to avoid and minimize impacts on natural systems and to preserve ecological integrity. Avoidance and minimization of impacts would be achieved through Project design and layout, construction techniques, and operational measures. 2. Avoid and minimize impacts on social and cultural resources. 3. Compensate for the remaining potential or unavoidable impacts to environmental and cultural resources. This is called “compensatory mitigation” and would be achieved by restoration, establishment, enhancement, or preservation of those resources impacted by the Project. Additionally, Fort Collins has developed voluntary enhancement measures that go above and beyond mitigation requirements and demonstrate Fort Collins’ commitment to improve existing environmental conditions. The guiding principles used to identify and develop mitigation concepts for the Project include: • Prioritize opportunities for mitigation near Halligan Reservoir, to enhance or replace function in the North Fork or nearby location. • Target local, degraded resources for mitigation, which have a greater impact and success than developing new resources. • Focus on concepts that benefit multiple resources or an entire e cosystem. For example, restoration along the North Fork improves not only the fishery, but also macroinvertebrates and vegetation. • Identify opportunities to work with local partners. There are over 50 concepts described in the Conceptual Mitigation Plan t hat have been developed to avoid, minimize, compensate, or enhance resources affected by the Project. The key mitigation concepts are described below: May 24, 2022 Page 5 • North Fork flows and habitat restoration: o Measures that establish minimum flows in the North Fork throughout the year and reconnect the currently disconnected stream, improve flows and habitat that have been adversely impacted since original dam construction in the early 1900s. ▪ This includes a retrofit of the existing North Poudre Canal diversion to allow fish passage and bypass of Project flows (including a completed agreement with NPIC to allow this). • Water quality: Outlet works will be designed and operated to optimize temperature and dissolved oxygen of releases from the enlarged Halligan Reservoir. Additionally, the outlet works will allow for dam maintenance and inspection without lowering reservoir levels, reducing risk of large sediment releases. • Wetlands and Riparian Resources: Alternatives being pursued include restoration or enhancement of land along the North Fork and tributaries. • Construction-related: Measures include dust mitigation, monitoring for cultural and paleontological resources and wildlife, revegetation and restoration of disturbed areas, restoration of a widened access road, control of noxious weeds, stormwater control, traffic control, etc. • Monitoring: Post-construction regulatory and voluntary monitoring to evaluate post-Project conditions. • Early Mitigation: In addition to these mitigation concepts, in 2003, as an act of early mit igation in anticipation of the Project, Fort Colins led the purchase and preservation of 4,960 -acre property known as Roberts Ranch. Fort Collins funded 60% of the conservation easement in partnership with Larimer County, Great Outdoors Colorado, The Nature Conservancy, and the Roberts Family. The protected property provides direct and indirect ecological benefit and includes suitable habitat for the Preble’s meadow jumping mouse and big game species. Final mitigation requirements, developed from these mitigation concepts, will be included in the requirements incorporated into federal and state permits. PERMITTING Federal Permitting Process Utilities officially entered the joint National Environmental Policy Act (NEPA) and Clean Water Act Section 404 permitting process in 2006. The lead permitting agency is the Corps. The NEPA process requires the Corps to consider and disclose the analysis of potential environmental impacts and reasonable alternatives to any major federal action, such as the issuance of a permit under Section 404 of the Clean Water Act. To comply with NEPA, the Corps is required to prepare an environmental analysis. Under the Clean Water Act and its regulations, the Corps must permit the least environmentally damaging practicable alternat ive (LEDPA), which may or may not be the City’s preferred alternative of the enlargement of Halligan Reservoir. The NEPA process has many steps which are shown in Figure 1. The process includes • Determining Utilities’ purpose and need for the proposed Project; • Considering alternatives to the proposed Project (described below); and • Providing detailed environmental analysis of all alternatives. The detailed environmental analysis is summarized in the Draft EIS, which was issued by the Corps in late 2019. The Draft EIS was the best opportunity for the public to review and comment on the Project. About 60 comment letters and statements were received during this process. The Corps is currently preparing the Final EIS, expected in early 2023, which will address those comments. A Record of Decision (ROD) will then be provided determining the LEDPA, which is the alternative that can be constructed. In addition to the federal permitting process, several state and county processes are also needed. These must be conducted before the Corps can issue the ROD. The state and county permitting processes are described in more detail below. May 24, 2022 Page 6 Figure 1. The NEPA Process Project Alternatives The federal permitting process requires an identification and evaluation of alter natives to the City’s preferred alternative of the enlargement of Halligan Reservoir that will meet the purpose and need (provide firm yield for Fort Collins Utilities in 2065). These alternatives are: • Expanded Glade Reservoir: Enlargement of the proposed Glade Reservoir, part of the Northern Integrated Supply Project (NISP), which is awaiting the Corps’ Record of Decision. This alternative is contingent on NISP being permitted. • Agricultural Reservoir Enlargement: Purchase of dedicated storage space in existing agricultural reservoirs located northeast of Fort Collins. • Gravel Pit Reservoir Enlargement: Involves using existing gravel pits located northwest of Fort Collins. • No Action: The NEPA process is required to include an evaluation of No Action as part of the EIS. However, for this Project, the No-Action Alternative does not meet the purpose and need because mandatory drought restrictions would be necessary to provide water through the 1-in-50-year drought. Each of the non-Halligan Reservoir Enlargement “action” alternatives would require pumping and associated greenhouse gas production, a larger area of disturbance, considerable pipeline infrastructure to connect to Utilities’ Water Treatment Facility, and pretreatment of the water before reaching the f acility. The additional requirements of these alternatives result in higher capital and operations and maintenance costs than those of the enlargement of Halligan Reservoir. Capital and annual operation and maintenance costs of the other “action” alternatives are up to five times greater than those required for the enlargement of Halligan Reservoir. If any of the alternatives to enlarging Halligan Reservoir were permitted and pursued, Halligan Reservoir would revert to the NPIC. Given the age and condition of the over 110-year-old reservoir, the existing dam would need to be replaced soon to address an eventual safety issue. Since Utilities owns about 36% of the NPIC shares, it would most likely pay for a proportion of the rehabilitation through increased share assessments. State and County Permits In addition to the federal permitting process, several state and county processes also need to be conducted. These will be conducted in parallel with preparation of the Final EIS and are described in more detai l below. May 24, 2022 Page 7 • Fish and Wildlife Mitigation and Enhancement Plan (FWMEP) o Requirements: A Colorado statute requires a FWMEP be prepared to ensure “that fish and wildlife resources that are affected by the construction, operation, or maintenance of water diversi on, delivery, or storage facilities should be mitigated to the extent, and in a manner, that is economically reasonable and maintains a balance between the development of the state's water resources and the protection of the state's fish and wildlife resources.” A FWMEP is the State of Colorado’s position on measures that will be employed to mitigate the impacts to fish and wildlife resources. The FWMEP is not a permit but rather a recommendation to the Corps. Typically, FWMEPs are integrated into federal p ermits or are enforced through separate agreements between the water project proponent (i.e., the City) and Colorado Department of Natural Resources. o Timeframe: Work on the FWMEP could not begin until after comments were received on the Draft EIS. Therefore, Utilities began work toward the FWMEP in May 2020 and is anticipated to be completed in 2023. • 401 Certification o Requirements: Section 401 of the Clean Water Act requires that anyone applying for a federal permit or license which may result in a discharge of pollutants into waters of the United States, obtain a certification that the activity complies with all applicable water quality standards, limitations, and restrictions. No license or permit may be issued by a federal agency (such as the Corps) until certification required by section 401 has been granted by Colorado Department of Public Health and Environment. o Timeframe: The City began data collection to support the 401 Certification process before the Draft EIS was issued by the Corps. Given the extensive water quality and temperature modeling efforts required for the 401 Certification application, and the lengthy application review time by the Water Quality Control Division of CDPHE, the 401 Certification is not anticipated until approximately 20 24. The 401 Certification must be received prior to issuance of the ROD by the Corps. • 1041 Permit/Matters of State Interest o Requirements: In 1974, the Colorado Legislature enacted House Bill 74 -1041, which authorizes counties and other municipal governments to identify, designate, and regulate areas and activities of state interest through a local permitting process to allow counties to maintain their control over certain development projects. Larimer County’s 1041 regulations are in Chapter 14 of the County’s Land Use Code. Section 10.3.1(J) of the County’s Land Use Code requires a 1041 Permit for: Site selection and construction of a new water storage reservoir or expansion of an existing water storage reservoir resulting in a surface area at high water line in excess of 50 acres, natural or manmade, used for the storage, regulation and/or control of water for application to a beneficial use, including augmentation, commercial, domestic, industrial, municipal, and replacement uses, provided this designation excludes water storage reservoirs used exclusively for irrigation or stormwater detention facilities. A new water storage reservoir shall also include all appurtenant uses, structures and facilities (i.e., those necessary and integral to the proper functioning of the project), including internal roads, parks, parking, trails, recreational uses, and other uses. The Project thus needs a 1041 Permit from Larimer County. o Timeframe: Preliminary work toward the 1041 process has been ongoing since the public comments were received on the Draft EIS. Based on input from Larimer County staff, the City will begin work on the 1041 application in an official capacity after the 30% design for the Project and the FWMEP are complete. Based on the current schedule, work will begin on the 1041 in 2023. May 24, 2022 Page 8 o City of Fort Collins 1041: Although the City is considering adopting its own 1041 regulations, we understand that they would focus on projects that occur within the City limits. It is not anticipated that the Project would be subject to any City 1041 regulations since the Project facilities are outside of the City limits. PROJECT COST Project costs were last updated in 2019. That update was summarized for Council in a memo dated August 26, 2019. (Attachment 5) The table below provides a breakdown of Project costs, including the amount spent to date and the amount that has already been appropriated for the project. SPENT TO DATE1 (MILLIONS) Permitting $20 Real Estate Acquisition $3 Design And Construction $3.5 Mitigation - Total $26.5 APPROPRIATIONS TO DATE (MILLIONS) YEAR $37.3 Prior to 2015 $5 2022 TBD2 Future Notes: 1. Life to date costs through February 2022. 2. Future appropriations will be determined with the 2022 Halligan Project Cost Update. Permitting costs to date have exceeded $20 million thus far, and the cost of permitting and mitigation together are currently anticipated to be over 40% of the total project cost. The 2019 cost estimate was presented as a range to reflect uncertainties about the proje ct schedule, environmental mitigation requirements, access needs, and the conceptual nature of the design. In 2019, it was estimated the cost of the Project to be between $100 million and $150 million. Costs are predominately influenced by factors outside of the City’s control, including the permitting schedule and permitting and environmental mitigation requirements. Although current information indicates costs will likely exceed the upper end of the range of $150M, standard engineering practices indicate total costs can be expected to vary in the future as additional information is obtained and Project requirements are further defined. Costs will be updated again after 30% design is complete and more is known about environmental mitigation requirements and land acquisition needs. That detailed information will not be available until early 2023. As a part of each cost estimate update, an annual anticipated spend (i.e., burn rate) will be developed. Annual spend can be expected to fluctuate on the project as the schedule progresses and permitting and design phases are implemented and completed. This information will be shared with Council as it is developed. May 24, 2022 Page 9 The Project continues to be the most cost-effective alternative for meeting the Utilities’ water supply needs. Based on the 2019 cost estimate, the Project is anticipated to provide firm yield at about $19,000 per acre -foot. For comparison, the market rate for firm yield from the Colorado -Big Thompson (CBT) Project is approximately $120,000 per acre-foot. The graph below shows the cost of water supply projects in Northern Colorado (per acre - foot of firm yield). Figure 2. Estimated Unit Costs of the Halligan Water Supply Project through Time The Halligan Water Supply Project will be paid for by fees related to new development and through customer rates. It will be funded approximately 50% by Water Supply Requirements from new development and 50% by customer rates and surcharges (including residential, commercial, and industrial). These percentages ma y change depending on the final cost of Halligan and are based on the current cost estimate. SCHEDULE The Project is approaching the release of the Final EIS and FWMEP in 2023. The schedule for the Final EIS, ROD, associated state and local permitting, and construction are largely dictated by the federal and state permitting processes, over which the City has little control. Currently, best estimates place construction beginning in approximately 2026 and lasting approximately three years. The schedule in Figure 3 shows the remainder of the federal, state and county permitting processes, as well as the schedule for design and construction. May 24, 2022 Page 10 Figure 3. Halligan Project schedule 2022 ACTIVITIES The Project is progressing toward several milestones, wh ich are anticipated to be reached in 2022--2023, including: • 30% design of the enlarged Halligan Reservoir dam • Halligan program cost update • Release of the FWMEP • Release of the Final EIS by the Corps • Ongoing land and property acquisitions for construction and long-term operation of the enlarged Halligan Reservoir dam. The FWMEP and the Final EIS will both be made available for public review. The FWMEP and 30% design will provide new information that will be incorporated into an updated project cost estimate that will also be prepared in 2022. Utilities staff will provide key messages and other information on these milestones to Council and others when appropriate. RECREATION A concept was considered to open portions of the enlarged Halligan Reservoir and i ts north shore to limited public recreation, including fishing, human-propelled boating while fishing, and wildlife viewing. To make transparent and methodical decisions across various City -owned and managed lands, the Natural Areas Department (NAD) developed the Visitor Use Impact and Decision Framework (IDF). The IDF is adapted from the Interagency Visitor Use Management Council’s tool to help land conservation managers understand what recreation opportunities are appropriate for conserved lands. The results of the IDF are carefully researched and used to guide the Department’s recommendations on management issues. The department designed the IDF to ensure transparency around visitor use and to systematically explain complex decisions. The framework resulted in a NAD staff recommendation to not proceed with recreation at Halligan Reservoir, even in the limited nature originally proposed. This decision was based on high ecological impact in an area used by big game and other wildlife, input from Colorado Parks and Wildlife, lack of comments on the Draft EIS May 24, 2022 Page 11 regarding the need for recreation, required capital investment and significant operational costs, safety and liability concerns, and lack of equity for Fort Collins citizens and Utilities ratepayers. PUBLIC OUTREACH Given the longevity of this Project, staff has conducted public outreach in many ways over the years. There was significant emphasis on outreach leading up to the release of the Draft EIS in late 2019, since that provided the best opportunity for the public to review and comment on the Project. Staff meets periodically or when requested with Project stakeholders, interested parties, Boards and Commissions, etc. to keep them up to date on the Project. Staff will continue to update the City’s project-specific website at fcgov.com/halligan. Citizens can sign up at this website to be emailed updates on the project as they occur. Furthermore, an email address and internal process has been set up specifically for public communication related to this project: halligan@fcgov.com. Staff continues to provide periodic updates (usually quarterly and as needed) on the Project to City Council and the Water Commission, which are also posted on the Project website for public review and transparency. The most recent update was the 2021 Year in Review (fcgov.com/halligan/2021). ATTACHMENTS 1. Water Districts Map (PDF) 2. Water Supply Demand Management Policy (PDF) 3. Project Timeline (PDF) 4. Current and Proposed River Conditions (PDF) 5. Cost Update Memo, August 2019 (PDF) 6. Glossary of Terms (PDF) 7. Powerpoint Presentation (PDF) !!!!!! !!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!! !!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!! ! !!!!!!!!!!!!!! ! !!! !!!!!!!!!! !!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!! ! ! ! !!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!HORSETOOTH MULBERRY SHIELDSLAPORTEUS HIGHWAY287 STRAUSS CABINLAUREL MOUNTAIN DRAKE PROSPECT WILLOX TAFT HILLVINE COUNTRY C LU B SUNIGA VINE RICHARDS LAKE TURNBERRYTRILBY COUNTY ROAD 38 M ULBERRY DOUGLAS ELIZABETH LEMAYMULBERRY COUNTYROAD38 E MOUNTAIN VISTA LIN COLN HARMONY GREGO RYKECHTER CO U N T Y ROAD54G STATE HIGHWAY 392HARMONY VINE MASONMAINSUNIGA ZIEGLERLINCOLN COUNTY ROAD 3CARPENTERJOHNFKENNEDY COUNTY ROAD 30 HARMONY COUNTY ROAD 5COUNTY LINEINTERSTATE25COUNTY ROAD 5TAFT HILLCOUNTY ROAD 19GIDDINGSCOLLEGETIMBERLINELEMAYLEMAYLEMAYZIEGLERRIVERSIDE OVERLANDTERRYLAKEZI EGLERSHIELDSCOUNTYROAD5INTERSTATE 25TAFTHILL/ Fort Collins Area Water Districts 0 1 2 3 4 50.5 Miles Water Districts East Larimer County Water District Fort Collins Loveland Water District Fort Collins Utilities (Water) Sunset Water District West Fort Collins Water District GMA !!!!!!City Limits Major Streets Figure Updated: 10/23/2018 All boundaries are approximate ATTACHMENT 1 ATTACHMENT 2 WATER SUPPLY AND DEMAND MANAGEMENT POLICY i ATTACHMENT 2 ii 1 City of Fort Collins Water Supply and Demand Management Policy The City of Fort Collins’ Water Supply and Demand Management Policy provides a foundational framework for water supply and demand management decisions concerning the City’s water supply system. Operational and management actions and decisions by the Water Utility will be consistent with the provisions of this policy. Objective To provide a sustainable and integrated approach to 1) ensuring an adequate, safe and reliable supply of water for the beneficial use by customers and the community and 2) managing the level of demand and the efficient use of a scarce and valuable resource consistent with the preferences of Water Utility customers and in recognition of the region’s semi-arid climate. This objective aligns with the 2010 Plan Fort Collins that provides a comprehensive 25-year vision for the future development of Fort Collins. Policy ENV 21.2 of Plan Fort Collins states, “Abide by Water Supply and Demand Management Policy: Provide for an integrated approach to providing a reliable water supply to meet the beneficial needs of customers and the community while promoting the efficient and wise use of water.” This Water Supply and Demand Management Policy calls for a “sustainable and integrated approach” to water demand and water resources management. Sustainability is defined within the context of the triple-bottom-line decision making in Plan Fort Collins as, “To systematically, creatively, and thoughtfully utilize environmental, human, and economic resources to meet our present needs and those of future generations without compromising the ecosystems upon which we depend.” Aligning with Plan Fort Collins, the Water Utility will take a leadership role by incorporating the triple-bottom-line in its management of water supply and demand. When this core value is applied to the use and development of our valuable water resources, the Utility will strive to: ƒAvoid, minimize or offset impacts to our environment ƒConsider the social benefits and impacts of having a reliable and high quality water supply ƒAnalyze the economic cost to provide such supplies, while also considering the effects it has to our local and regional economies The Utility will continue to provide a culture of innovation that finds proactive and creative solutions in managing its water supplies and demands, which is a dynamic process that evolves along with changes in data management and technology, legal and political environments, economic development and water innovation, and as the State’s population continues to increase. Given these factors, it is important to maintain an up-to-date effective policy that is based on current data. The policy’s terms and conditions should be reviewed and updated by 2020, or sooner if desired by the City Council or the Utilities Executive Director. ATTACHMENT 2 2 1.0 WATER USE EFFICIENCY AND DEMAND MANAGEMENT The City views its water use efficiency program as an important proactive response to supply variability and climate change. Elements of the City’s conservation program include reducing indoor demand through improved technology, leak reduction and behavior change and reducing outdoor demand through improved irrigation efficiency and reasonable changes in landscaping. The City believes water use efficiency is of vital importance for many reasons, including to: ƒFoster a conservation ethic and eliminate waste ƒDemonstrate a commitment to sustainability ƒProvide water for multiple beneficial purposes ƒReduce the need for capital expansion projects and certain operational costs ƒEncourage and promote innovation in water demand management ƒPrepare for potential impacts of climate change 1.1 Water Use Efficiency Goals for Treated Water Use The City’s 2009 Water Conservation Plan1 established a goal of reducing the City’s treated water use to 140 gallons per capita per day (gpcd)2 by the year 20203. The City will utilize water use efficiency measures and programs with the aim of reducing its water use to an average of 140 gpcd, subject to 1) continuing study of the water requirements of the City’s urban landscaping, 2) impacts on water demand due to changes in land use policies, building codes and housing trends, 3) additional studies on climate change, and 4) changes in the water use goal as may be adjusted by any subsequent water conservation plans. This water use goal is subject to change as discussed above and is intended as a goal that can be met while sustaining reasonable indoor and outdoor values of the City. The per capita peak daily demand4 will be reduced or maintained to be no more than 350 gpcd by the year 2020, but may be adjusted by any subsequent water conservation plans. 1.2 Water Use Efficiency Program Policy ENV 21.2 of Plan Fort Collins states, “Conservation measures should be implemented in accordance with the Water Conservation Plan and periodically adjusted to reflect new and effective conservation measures.” The City will optimize water use efficiency through the programs and measures specified in its Water Conservation Plan. These programs and measures include educational programs, incentive programs, regulatory measures and operational 1 State guidelines are changing the terminology of Water Conservation Plans to Water Use Efficiency Plans, and likewise conservation is being changed to water use efficiency. For purposes of this policy, water use efficiency is referred to as water conservation; however, the terminology may be used interchangeably. 2 Gallon per capita per day (gpcd) calculations are based on the total treated water produced at the Water Treatment Facility for use by Water Utility customers (minus large contractual customers and other sales or exchange arrangements) divided by the estimated population of the Water Utility’s service area. 3 This goal represents an 8.5% reduction in water use compared to Fort Collins’ 2006-2010 average daily water use of 153 gpcd. It represents a 29% reduction in water use compared to Fort Collins’ pre-drought (1992-2001) average daily water use of 197 gpcd. 4 The peak daily demand is 2.5 times the average daily use water conservation goal and is based on historic ratios of average to peak daily use. ATTACHMENT 2 3 measures. Specific measures and programs are outlined in the Water Conservation Plan. The overall effectiveness of these measures and programs will be evaluated on a regular basis and if necessary, modifications will be made to increase effectiveness or to modify the City’s water use goal. An annual water conservation report will be prepared to describe the status and results of the various measures and programs. The Water Conservation Plan will be updated at a minimum of every seven years, as currently required by the State of Colorado. 1.3 Water Rate Structures The City will have stable water rate structures with transparent accountability for all classes of customers. The water rate structures will provide an economic incentive to use water efficiently while also providing sufficient revenue for operational and maintenance purposes. Examples of structures that may be utilized include 1) tiered rates with increasing prices as water use increases, 2) seasonal blocks with higher rates during the irrigation season, and 3) water budget approaches based on appropriate targets for individual customers. The City will annually review the effectiveness of its water rate structures as part of its financial analyses regarding Water Utility revenue, expenses and rates. Specific studies or changes to the rate structure may be made upon identification of the need to revise it. Any changes to the rate structure will require City Council approval. 1.4 Population Growth Population growth is an important factor in determining the City’s water supply needs, since increases in population generally increase the need for additional supplies. Population growth projections and associated water demand are mostly a function of land use planning, development densities, annexation and other growth related issues that can be affected by City Council decisions. The Water Utility will continue to work closely with the Current Planning Department, which provides population projections that may be effected by changes in City policies related to growth. 2.0 WATER SUPPLY RELIABILITY The City needs to meet future water demands in an efficient and reliable manner. Policy ENV 21.2 of Plan Fort Collins states, “Water supply reliability criteria will take into consideration potential effects of climate change and other vulnerabilities. Water supplies and related facilities shall be acquired or developed after careful consideration of social, economic and environmental factors.” One of the Water Utility’s primary objectives is to provide an adequate and reliable supply of water to its customers and other water users. Key principles that need to be considered when addressing water supply for municipal use include: ƒProviding water supply system reliability and flexibility ƒConsidering a broad portfolio of resources that do not overly depend on any one source ƒMaintaining a water storage reserve for unforeseen circumstances ƒMaintaining water supply infrastructure and system security ƒBeing a steward of the City’s water resources, which includes watershed management ƒCollaboration with the City’s regional water providers and users ATTACHMENT 2 4 ƒMaintaining awareness of state, national and worldwide trends and adapting as needed to meet our customer needs ƒPromoting education, awareness and a culture of innovation among the Water Utility and others to enable creative responses to future water supply uncertainties 2.1 Water Supply Planning Criteria An integral component of the City’s water supply planning efforts is to maintain computer models that estimate the yield of its existing and future water supplies. The following water supply planning criteria are key parameters used in these models that provide a foundation for planning future supplies. 2.1.1 Planning Demand Level The reliability of the City’s water supply should be maintained to meet an average per capita demand level of 150 gpcd5,6. This planning level provides a value that is higher than the water use goal to address uncertainties inherent in water supply planning. It is important to have a planning number that can be used for development of long-range water supply facilities. Because water supply system infrastructure may take many years to permit and construct, it is desirable to use conservative assumptions to size facilities that may be needed for the long-term. A planning demand level should be larger than the water use goal, primarily because of the uncertainties related to projected water demands, yields from specific water rights, climate change and other unanticipated effects. 2.1.2 Drought Criterion The reliability and capacity of the City’s water supply system should be maintained to meet the planning level demand during at least a l-in-50 year drought event in the Cache la Poudre River Basin. Water rights should be acquired and facilities (including storage capacity) should be planned and constructed sufficiently ahead of the time to maintain the 1-in-50 year drought criterion, considering the time required to obtain water court decrees and permit and construct diversion, conveyance and/or storage facilities. In using this criterion, the City seeks to provide a balance among water supply reliability, the financial investment necessary to secure such reliability and the environmental impacts associated with water storage and diversions. 2.1.3 Storage Reserve Factor The City’s water supply planning criteria will include a storage reserve factor that equates to 20% of annual demand in storage through a 1-in-50 year drought7,8. This factor provides an 5 The 150 gpcd value is based upon the normalized 2006-2011 average daily use. 6 The average per capita demand planning level is used for facility planning purposes. Gallons per capita per day (gpcd) calculations are based on the total treated water produced at the Water Treatment Facility for use by Water Utility customers (minus large contractual customers and other sales or exchange arrangements) divided by the estimated population of the Water Utility’s service area. This number is multiplied by population projections developed by the City’s Planning Department to calculate future water demands. 7 For the Water Utility, 20% of annual demand is equivalent to around 3.7 months of average winter demand and about 1.5 months of average July demand. ATTACHMENT 2 5 additional layer of protection intended to address dimensions of risk outside of the other reliability criteria, including emergency situations (i.e. pipeline failure) and droughts that exceed a 1-in-50 year drought. 2.2 Climate Change Climate change could significantly impact the reliability of the City’s supplies and/or the amount of water required to maintain existing landscapes9; however, there is a great deal of uncertainty related to current climate change projections along the Colorado Front Range and its impact on municipal demands and water supply systems. The City’s planning criteria and assumptions are conservative in part to account for climate change based on the information to date. The City will continue to monitor climate change information and, if necessary, will revise its water supply planning criteria and assumptions to ensure future water supply reliability. 2.3 Water Supply Shortage Response Plan The City will maintain a plan for responding to situations where there are projected water supply shortages, either because of severe drought conditions (i.e., greater than a 1-in-50 year drought) or because of disruptions in the raw water delivery system. When needed, the Water Supply Shortage Response Plan will be activated based on the projected water supply shortage. This plan will include measures to temporarily reduce water use through media campaigns, regulations, restrictions, rate adjustments and other measures. The plan may also include provisions to temporarily supplement the supply through interruptible water supply contracts, leases, exchanges and operational measures. Reducing the City’s water use during supply short situations may lessen adverse impacts to irrigated agriculture and flows in the Poudre River. The plan will be reviewed periodically and, if necessary, updated to reflect changes in the City’s water use and its water supply system. 2.4 Additional Supplies and Facilities In order to meet projected growth within the Water Utility’s service area, as well as maintain system reliability and operational flexibility, the City will need to increase the firm yield of its current water supply system. The following policy elements address ways of meeting these needs. 8 In meeting this factor, it is assumed that the City cannot rely on the existing Colorado-Big Thompson Project (CBT) carryover program. This program currently allows each CBT unit holder to carry over up to 20% of its CBT unit ownership in CBT reservoirs for use in the following year. However, this program has varied over the years and there is no guarantee that it will be continued in the future. 9 Current research indicates that changes in precipitation in this area are uncertain but that temperatures will increase and therefore it is likely that runoff will come earlier and in a shorter amount of time, precipitation may more often come as rain, and higher temperatures will increase outdoor demands and change growing seasons for existing landscapes. ATTACHMENT 2 6 2.4.1 Raw Water Requirements for New Development The City shall require developers to turn over water rights as approved by the City, or cash in- lieu-of water rights, such that supplies can be made available to meet or exceed the demands of the Water Utility’s treated water customers during a l-in-50 year drought. Cash collected shall be used to increase the firm yield and long-term reliability of the City’s supply system. Potential uses of cash include acquiring additional water rights, entering into water sharing arrangements with agricultural entities, purchasing or developing storage facilities and pursuing other actions toward developing a reliable water supply system. Consideration will be given to providing a diversified system that can withstand the annual variability inherent in both water demands and supplies. The balance between water rights being turned over and cash received by developers should be monitored and adjusted as needed to develop a reliable and effective system. 2.4.2 Acquisition and/or Sharing of Agricultural Water Supplies The City currently owns and will acquire additional water rights that are decreed only for agricultural use. The City will periodically need to change these water rights from agricultural use to municipal use to meet its water supply needs. The City will change those rights that come from areas upon which the City is growing, or from areas where the irrigation has ceased, when needed. For water rights that were derived from irrigated agricultural lands that remain in viable agricultural areas, the City will refrain from converting agricultural decrees to municipal use as long as other water supply options are available or other factors make it prudent to do so. The City will also work towards water sharing arrangements that provide water for municipal uses when critically needed and that allow for continued agricultural use of water at other times, in a manner that preserves irrigated agricultural lands over the long-term. 2.4.3 Facilities The City will pursue the acquisition or development of facilities that are needed to manage the City’s water rights in an efficient and effective manner and enhance the City’s ability to meet demands through at least a 1-in-50 year drought. These facilities may include storage capacity, diversion structures, pipelines or other conveyances, pumping equipment, or other facilities that increase the firm yield of the City’s supply system. Additional storage will be acquired or constructed considering 1) the City’s return flow obligations incurred from changes of water rights, 2) the City’s need to carryover water from wet years to dry years in order to meet its drought criteria, 3) operational flexibility, redundancy and reliability of the City’s water supply system, and 4) potential multiple-use benefits (i.e., environmental flows, recreational uses, etc.). The City will analyze the potential environmental impacts of developing storage along with other associated costs and benefits, and will develop that storage in a manner that avoids, minimizes or offsets the effects to the environment. Storage capacity options include the enlargement of Halligan Reservoir, the development of local gravel pits into storage ponds, the acquisition of storage capacity in new or existing reservoirs, the development of aquifer storage, or some combination of the above. ATTACHMENT 2 7 3.0 TREATED AND RAW WATER QUALITY Policy ENV 21.1 of Plan Fort Collins states, “Develop and adhere to drinking water quality standards, treatment practices, and procedures that provide the highest level of health protection that can be realistically achieved.” In addition, the City will take an active role in protecting the quality of water in the various watersheds from which the City’s raw water is derived and maintaining the taste and quality of the City’s treated water. This may include mixing of the City’s source waters to maintain high water quality and require collaboration with private, county, state and federal land owners and managers. The acquisition, development, and management of the City’s raw and treated water will be consistent with the City’s Drinking Water Quality Policy and other applicable policies related to watershed protection and water treatment. 4.0 USE OF SURPLUS RAW WATER The City will use its existing supplies to meet municipal obligations with the following priorities: 1) to meet water demands by the City’s treated water customers, and 2) to meet the City’s raw water needs as well as other City raw water obligations. Raw water needs include use for such purposes as irrigation of City parks, golf courses, cemeteries and other greenbelt areas. Additional raw water obligations include primarily water transfers to other entities because of agreements or exchanges made to manage the water supply system more effectively. Water not needed for the above purposes is referred to as surplus water and may be made available to others in accordance with decrees and other applicable policies. Since the City plans its water supply system using a 1-in-50 year drought criterion, it typically has significant quantities of surplus raw water in many years. This surplus water may be available on a year-to- year basis or through multi-year arrangements that do not significantly impair the City’s ability to meet municipal demands. The City will continue to rent its surplus supplies at a fair market price that helps offset the cost of owning such supplies and benefits the Water Utility ratepayers. 4.1 Commitment to Other Beneficial Purposes Acknowledging that the City’s use of its valuable water resources has impacts to the environment and the region, the City will commit to using its surplus supplies for other beneficial purposes such as supporting irrigated agriculture, supplementing flows in the Poudre River or providing other regional benefits. The City’s surplus supplies come from a variety of sources, each of which has unique characteristics. These sources include CBT water and shares in several irrigation companies. Some sources are more suitable and available than others to meet beneficial purposes. Whether the surplus raw water can be used for these other purposes is dependent upon a number of factors, including the type of water, place of use and other decree limitations. Any potential use of these supplies should consider, and will likely require coordination with, other water users, state agencies and other groups. Some uses of the surplus supplies, such as maintaining an instream flow according to the State’s Instream Flow Program, may require a change of water rights through the water court process. The City will engage in a thorough evaluation of these issues as part of assessing the use of its surplus supplies for these beneficial purposes. ATTACHMENT 2 8 Utilities will evaluate implementing a program to allow voluntary contributions from its ratepayers (i.e., Utility bill “check-off box”) for programs that are designed to support the following purposes: preserving local agriculture, supplementing flows in the Poudre River, or meeting other beneficial purposes that our community may desire. 4.1.1 Agriculture and Open Space Policy SW 3.2 of Plan Fort Collins states, “Participate in and follow the Northern Colorado Regional Food System Assessment project and other Larimer County agricultural efforts, and implement their recommendations at a local level, if appropriate.” In addition, Policy LIV 44.1 of Plan Fort Collins states, “Maintain a system of publicly-owned open lands to protect the integrity of wildlife habitat and conservation sites, protect corridors between natural areas, conserve outstanding examples of Fort Collins' diverse natural heritage, and provide a broad range of opportunities for educational, interpretive, and recreational programs to meet community needs.” To the extent that surplus water is available, the City will continue to support the local agricultural economy and help preserve the associated open spaces by renting surplus agricultural water back to irrigators under the respective irrigation companies. The City will explore long-term rental and sharing arrangements with irrigators10 in order to support the regional food system, encourage agricultural open space and other benefits provided by irrigated agriculture, as well as benefit the Water Utility ratepayers. 4.1.2 Instream Flows Policy ENV 24.5 of Plan Fort Collins states, “Work to quantify and provide adequate instream flows to maintain the ecological functionality, and recreational and scenic values of the Cache la Poudre River through Fort Collins.” Recognizing that its water use depletes natural streamflows, the City will seek innovative opportunities to improve, beyond any associated minimum regulatory requirements, the ecological function of the streams and rivers affected by its diversions. The Water Utility will take a leadership role in working with other City departments, local and regional groups and agencies towards the following objectives in accordance with Colorado water law and the administration of water rights in Colorado: 1) encourage flows in local streams to protect the ecosystem, 2) pursue the operation of its water supplies and facilities in a manner that avoids, minimizes or offsets the effects to the environment while meeting customer demands, and 3) explore projects or measures that would provide flows in streams and water in reservoirs for recreational and aesthetic purposes. 4.1.3 Other Arrangements The City will consider and participate in other surplus water supply arrangements with other entities that provide mutual benefits and support the region. These may include other rental agreements, augmentation plans and other cooperative arrangements with regional partners. These types of arrangements should be limited to unique opportunities that are mutually 10 The City’s largest irrigation company ownership interest is in the North Poudre Irrigation Company, which still has substantial lands in irrigated agricultural production and has a unique mix of native water and CBT water that lends itself to these types of partnership arrangements. ATTACHMENT 2 9 beneficial to the parties and provide significant social, economic or environmental benefits to the region. 5.0 REGIONAL COOPERATION The City recognizes the importance in maintaining good relationships with regional entities and coordinating efforts to achieve mutual goals. The City also recognizes that growing Colorado municipalities are currently struggling to define a way to meet future water supply needs in a manner that minimizes negative impacts to agricultural economies and river ecosystems. The Water Utility will endeavor to be a leader in demonstrating how water supply can be provided in a manner that respects other interests and provides a culture of innovation. 5.1 Working with Other Municipal Providers The City will continue to work with the water suppliers throughout the northern Colorado Front Range to assure that adequate supplies are maintained in the region. When benefits are identified, the City will cooperate with area entities in studying, building, sharing capacity and operating water transmission lines, distribution systems and storage reservoirs for greater mutual benefit. The City has common interests and the potential to cooperate with regional entities including the water districts around Fort Collins, the City of Greeley and the Northern Colorado Water Conservancy District, as well as other Colorado water providers. In particular, the City should work closely with water districts that serve Fort Collins residents to encourage similar policies regarding drought protection, conservation and to provide mutual assistance during emergencies. 5.2 Working with Local Irrigation Companies The City will continue to cooperate with local irrigation companies regarding the use, exchange and transfer of water in the Cache la Poudre River Basin. As a major shareholder in many of the local irrigation companies, it is necessary and desirable that the City work closely with these companies. Much of the water supply available to the City is through the ownership of shares in local irrigation companies. 5.3 Working with Others City Departments will work together and also cooperate with local, state and federal agencies, civic organizations, environmental groups and other non-governmental organizations when common goals would benefit City residents and the surrounding community. Examples of goals that may involve City water supplies and be worthy of collaborative efforts include support for existing and development of new local food sources, promoting open space, improving river flows and supporting the local economy. Such efforts should identify appropriate entities and sources of revenue for specific goals or projects. ATTACHMENT 2 Halligan Project Timeline: Significant Events and City Council Approvals Acquired interest in enlargement of Halligan Reservoir (Res. 87- 161) Agreement: with Phantom Canyon Ranch Company Agreement: Professional Studies for Enlargement Feasibility Study Purchase option Entered option agreement with NPIC to purchase & enlarge Halligan Reservoir (Res. 93-164) Resolution 2003-01 NPIC Option. Start Permitting Process WS&DM Policy (Res. 2003-104) City Begins Purchase of Roberts Ranch Conservation Easement as Early Project Mitigation (completed in 2004) Purchase option executed Permitting agreement (City, Tri-Districts & NPIC) Project Cost Approval Federal permitting begins Common Tech. Platform Instituted Tri-Districts withdraw Authorized Evaluation of Environmental Impacts Water Efficiency Plan Updated WS&DM Policy Update (Res. 2012- 099) NPIC withdraws Water Efficiency Plan Updated Approval: Exception to Use of Completive Process for Professional Services Purpose & Need finalized. Mitigation development Authorization to Execute Project Agreements (City Mgr.) Approval: Exception to the use of Competitive Process Western EcoSystems Agreement: with Northern - Water Quality Model Sharing Approval: Recreation Use Lease Agreement with Landowners Approval: Contract Extension for Design & Construction Contracts Draft EIS Released with Conceptual Mitigation Plan City Council Authorized Eminent Domain for Phase I Resolution 2021-027 to fund USFWS position -80 -60 -40 -20 0 20 40 60 80 1985 1990 1995 2000 2005 2010 2015 2020 We are here Seaman Permitting Process separated from Halligan ATTACHMENT 3 PROPOSED RIVER CONDITIONS Calloway Diversion StructureRabbit CreekLIVERMOREUS 287North Fork Cache la Poudre RiverHALLIGAN RESERVOIRRed Feather Lakes RdNorth Poudre CanalLone Pine CreekCurrently, portions of the North Fork between Halligan and Seaman reservoirs run dry in reaches due to existing diversion structures and reservoir operations.Calloway Diversion StructureLIVERMOREUS 287North Fork Cache la Poudre RiverHALLIGAN RESERVOIRRed Feather Lakes RdNorth Poudre CanalLone Pine CreekRabbit CreekCURRENT RIVER CONDITIONS NNDry stream reach in winter resulting from current reservoir operations. Outlet gates are closed after irrigation season, and the North Fork is mostly dry until the dam spills in late winter. Minor seepage through closed gates and groundwater provide the only water to this section of river during the winter.Dry stream reach in summer resulting from operation of the North Poudre Canal during the irrigation season. Often, the river's entire flow is diverted into the canal leaving a dry river below.19-20574Enlarged Halligan Reservoir operations would provide flows to the river year-round, which will improve the entire aquatic ecosystem. Stonew all C r e e k Stonew all C r e e k North Poudre Canal DiversionStructureNorth Poudre Canal DiversionStructureSEAMAN RESERVOIRSEAMAN RESERVOIRIMPROVED RIVER CONDITIONS BELOW HALLIGAN RESERVOIROutlet works design and operation would improve water quality and temperatures in the North Fork.A Winter Release Plan and Summer Low Flow Plan would ensure year-round flows on the river below Halligan. Flows could be augmented with a temporary environmental pool.Ramping rate limitations would minimize large unnatural fluctuations in flows resulting from reservoir operations.A peak flow bypass would provide critical flushing flows, emulating natural run off conditions. Large, unnatural variations in river flows and temperatures due to dam operations.If the reservoir is enlarged, diversions will be reconstructed to ensure flows can bypass the diversions, eliminating dry summer reaches.Auxiliary aids and services are available for persons with disabilities. V/TDD: 711Esta información puede ser traducida, sin costo para usted. 970-212-2900US DiverIfthereservoirisenlarged diversionsStructuonsdiersionDivrudrysumummerreachemmdry summer reaches.U will be reconstructed to ensure th di i li i tiwill ypassonstructed to ensurconillbflowructedtoensuecoRERS2S 8728787Lakes LakesnePineCreonFeatheLonePineCreektherLherrLRReEnlargeH lliReservodrgedHalliganReservoir878728erationswouldprpenswouldprovideepopeopews to the river year round, iver year rounundear-roeryrivndywhich will improve the enimprove thechwillimwhichwmprovetheelleayqcoaquatic ecosANSEAMANNMRESERVVOIRSEAMASEARESERVOIRNN9-20574120from operatiohld ition of ifromfromoperDry stream reach in sun suDrystreamreachiheamreatiMOREUSIVERMORRMOREUSUEUS wayStructurersion Ssionnummer resultingtingg LIVummerresultingheirrigaCanalduringthienypurrentlyently, poOften, the rler'sentirenal during entireiOften, the river's entireleLonePnePineCreekLCreekCurrently portionsonsotiCtisonasS 2ationseason8787e flow is diverted eflowisdertedeflivkesRdsRdddFeateatheReRedoftheNororthForkbetwbetweenNororkbetwhForkbeeneNorth Fork betand Seaeses due tochyy in reaches due toexisting diversion stng diversiexrsion stxistingdingdivesnd reservoir ooperatandroeratraand reservoir operatda, sinpare available fió dEtceaidiEstainformaciónpuedesertraduganigH llig HalligHalligHaooructuucturesSEAMANSEANRRESERVOVOtions.RESERVOIRtionstioncoston costo parafor persons with disa212 2900ed 970bilities. V/TDD: 711for pswithdisabilirsonswithdes. V/TDD:711ab7sIGAANPONSNDITIOPROPOSEDRIVERCONDITIONSPROPOOSEDRIVPOSPROPERCEDRRIVVEORPHALHALLIGANutletworksdesignandoperatiANeronmenre ntal pool.erre tureove water quality andks dwouldimpand operatiOIRsignandopRESERVANrpre RESERVOIgwouldimprovewaterqualityandtemperatures in the North Formperatures in thOIRteSEREe RSldelimitationRampingnspRampingratelimitationswouldApNoNoNortominimize large unnatural ttipnatural nflowminimize largproimitatiorgetlminimizeegvoiroperationsrunons in f om eseresultingowsresultiFog rvoForkinterReleasePlanandn flows resultifromreservoiroperationsrunPlldachFlowldensureyear-roundCacPlan Camentedwithatcouldmporarygan Fgan.FlowsRiehRivall Structuregan. Flows cmentedwithatemporarywal versioStwa onversioon h PoudreNhPon orth Poudre s on the river below s on the river bebw year rounya Poswouldeakflowbypasswoldkvide ti tringlde critical flushing lti t loffconditionseuaonsws, muliepee owayCallowareekeek CayoHALLVEPEDIMPROVEDIIMPROVEDREOMRANALLIGHAGHALLIGANRHALLIGAN RLLIGAHAANRALLILLIGHALNVVTRIVURRECNUNVCURRENTRIVLIGANWOONOEERCONDRIRIVERCONDITIONSBELOWTIONSCONDITSBELITIOOWIONERCNDOOCOTNSRESERVOIRRESERVOIVRRESERVOIRERSRESERVOIRVERVERCONDITIONSVERCONDDITIONSVENDRCONITIONSSNORHALLLLHo dam operatiodutions.duetodamodamopereESERESERNNNohFthFForiver flows and temperaturesuresowsandtemperatons inrivedtempeunnarflttiLtlitiLIGNNLIGANe rreenviCCr ERVOIRmreachinwLIGGANGgreservoiroperations.Outletgatesareclosedafteret gates are closed roperations Outleafterter resultingsulting fromreservachOm reafeaorseepageuntilthedamspillsinlatewinter.Minorseepageunrigation season, anth dirrigte inttion season airsogttththrough closed gates and groundwater provide the ywatertothissectionofriverduringthewinterwater provide the end grounprovidetaterdAWnter.noAWachchewoue Ris drenStructurellveSRidreRll C St taugmsaugmHalliiHawflowlaone North Poudre flowlaa PoNorthelalaoudreNthPoRabbit Ceeee CallowayCallATTACHMENT 4 Utilities electric · stormwater · wastewater · water 700 Wood Street PO Box 580 Fort Collins, CO 80522 970.212.2900 V/TDD 711 utilities@fcgov.com fcgov.com/utilities M E M O R A N D U M DATE: August 26, 2019 TO: Mayor Troxell and Councilmembers FROM: Eileen Dornfest, Special Projects Manager Carol Webb, Utilities, Deputy Director-Water Resources & Treatment Operations Lance Smith, Utilities Finance Director THROUGH: Darin Atteberry, City Manager Jeff Mihelich, Deputy City Manager Kevin R. Gertig, Utilities Executive Director RE: Halligan Water Supply Project Quarterly Update The purpose of this memo is to 1) inform City Council about the status of the federal permitting process for the Halligan Water Supply Project (“Halligan Project” or “Project”); 2) provide information related to a recently updated Halligan Project cost estimate, and 3) provide information related to Halligan Project funding. BOTTOM LINE 1.Status of Draft Environmental Impact Statement (“EIS”) The EIS is anticipated to be released by the US Army Corp of Engineers (“The Corps”) and available for public review before the end of 2019. The EIS public comment period is expected to last several months and will include an open house in Fort Collins, hosted by The Corps. 2.Updated Project Cost Estimate Staff has updated the cost estimate for the Halligan Project. The application of the estimation methodology indicate that Halligan Project costs could range from $100 million to $150 million, with a probable cost of $120 million. A cost estimate range is being provided because project risks have been identified that may or may not impact project costs. Details associated with the updated cost estimate and the estimation methodology are included in the discussion below. Evaluation of the updated cost estimate (relative to other regional water projects and other water supply options for Fort Collins Utilities) indicates that the enlargement of Halligan Reservoir remains the most cost-effective water storage alternative for Utilities’ customers. ATTACHMENT 5 2 3. Halligan Project Funding The Halligan Project will be funded primarily by Utilities Water Supply Requirements (WSR). The WSR is a dedication of water rights or cash-in-lieu (CIL) of water rights by new and redevelopment to ensure that adequate water supply and associated infrastructure are available to serve the development’s water needs. Based on the probable Halligan Project cost. Staff anticipates that the cost to develop a single-family home in Utilities’ water service area will increase $4,000-$5,000 beyond the proposed 2020 WSR CIL rate. The future WSR CIL rate remains competitive with water supply costs in the region. Because the Halligan Project will be funded primarily by the WSR CIL rate, the updated cost is not expected to significantly change the monthly rate forecast. Future rate increases are not expected to deviate from the existing rate adjustment strategy. DRAFT ENVIRONMENTAL IMPACT STATEMENT (EIS) A major Project milestone is pending as The Corps nears completion of the Draft EIS for the Halligan Project. The Draft EIS will describe the environmental impacts of enlarging the existing Halligan Reservoir, as well as environmental impacts of several alternatives to enlarging Halligan Reservoir. The Corps plans to release the Draft EIS for public review and comment before the end of 2019. Staff developed an outreach campaign for the EIS release and has been engaging with the public, City Boards and Commissions, and project stakeholders since early 2019. The public comment period of the Draft EIS is expected to last several months and will include an open house in Fort Collins, hosted by The Corps. Staff believes that environmental impacts and benefits of the City’s preferred alternative of enlarging Halligan Reservoir will be presented accurately and fairly in the Draft EIS. This strengthens staff’s confidence in a positive outcome for the City. UPDATED PROJECT COST ESTIMATE Costs of enlarging Halligan Reservoir were last updated in late 2017. A memo describing the change in cost was provided to City Council in April 2018. (Attachment 1). At that time, the Halligan Project was facing considerable uncertainty in the federal permitting process. Those uncertainties caused project delays and prompted staff to initiate a cost study in June 2017. The 2017 estimate was developed with input from a third-party independent construction cost estimator and focused predominantly on construction costs. Since 2017, as the Draft EIS has been developed and environmental impacts and benefits of the Halligan Project have become more understood, staff’s confidence in the City’s preferred alternative of enlarging Halligan Reservoir has significantly increased. Consequently, staff was compelled to invest in a more detailed cost estimate for the Halligan Project. ATTACHMENT 5 3 The application of the estimation methodology indicates that Halligan Project costs could range from $100 million to $150 million, with a probable cost of $120 million. (shown in Figure 1 below). Figure 1. Possible and probable range of costs of Halligan Project. All costs shown are in 2019 dollars. This is an increase of $46 million over the 2017 estimate of $74 million. Key drivers of this cost increase (shown in Figure 2 below) include: • Additional knowledge of permitting and design requirements. • Additional knowledge related to real estate acquisition needs and costs. • Assignment of costs related to permitting delays. • Updated environmental mitigation costs. • Evolving best practices in dam design and construction. • Identification of project environmental enhancements. • Development of a risk register that assigns costs to both known and unknown risks given the conceptual nature of the project at this time. • More robust estimation of costs associated with project consultants, engineers, and City staff. Given the long-term nature of the Halligan Project, the conceptual nature of the Project design, and the Project’s scope and cost uncertainty, the cost estimate for the Halligan Project will be presented as a range of probable costs in the future. Also, as noted in previous quarterly updates, costs are anticipated to change and likely grow as the project scope is refined and permitting requirements and design are better understood. However, the “probable cost” range presented in Figure 1 is intended to capture future cost changes. Costs Related to Risk Approximately twenty percent of the total cost of the project is related to identified risks; uncertainties that exist today such as: • Unknown site conditions • The condition of the existing dam • Possible permitting and schedule delays • Mitigation requirements and enhancement opportunities • Other similar items that will affect the total cost of the project but cannot be completely quantified at this point. ATTACHMENT 5 4 Furthermore, approximately eleven percent of the total cost of the project is related to yet unidentified risks; unforeseen events or developments that the project will likely encounter but are not yet known. Best practices in project management include reserving funds to cover both identified and unidentified risks throughout a project and reducing the total amount of funds allocated for risk through time, as more information is obtained, and less uncertainty exists in the project. The increased cost does not reflect further progression of the dam design. The cost is still based on an AACE Class 5 estimate, with a range of accuracy of -30% to +100%, which is standard engineering practice for the conceptual nature of the Halligan Project design. This concept is portrayed in Figure 1. Figure 2. Difference between 2017 and 2019 cost estimate for Halligan Project HALLIGAN PROJECT FUNDING The Halligan Project will be funded primarily by the future development that is driving the need for the Project. Funding will be primarily from the Utilities’ Water Supply Requirements (WSR) with a small amount (less than 15%) funded by the Excess Water Use Surcharge (EWUS) and customer usage rates. The WSR is a dedication of water rights or cash-in-lieu (CIL) of water rights by new and redevelopment to ensure that adequate water supply and associated infrastructure are available to serve the development’s water needs. The EWUS is tied to the WSR CIL rate and is charged for use of surplus water supplies by existing customers beyond Notes: • $19M has been spend to date on permitting and real estate acquisition. • The 2019 cost estimate assumes construction begins in 2024. • If construction is delayed beyond 2024, increased costs due to escalation alone are approx. $4M. ATTACHMENT 5 5 what was provided at the time of development. Both fees are adjusted biennially and are generally based on the total cost of water supply needs identified in Utilities’ Capital Improvement Plan. Staff anticipates the WSR CIL rate will likely increase up to 35% over the planned 2020 rate, which was presented to Council Finance Committee on August 19. The 35% increase will not become effective until 2022. Impact of Rising Project Costs Based on the projected WSR CIL rate, the cost of water for a new development is also expected to increase approximately 35% over costs anticipated in 2020. Figure 3 below shows the current and future cost of water for a new single-family home in Utilities’ water service area, as compared to other water providers in the region. Other water providers will likely also see increases in water supply rates as costs for water increase overall in the region. Figure 3. Current and projected cost of water for a typical single-family home in Utilities’ water service area, as compared to other water providers. The previous Halligan Project estimate of $74M was included in the last update to the Capital Improvement Plan and Strategic Financial Plan, presented to the Council Finance Committee ATTACHMENT 5 6 (CFC) in 2017. The updated Project cost will be included in the 2019 Capital Improvement and Strategic Financial Plans presented to the CFC ahead of the 2021-22 Budgeting For Outcomes cycle. The 10-year rate and debt issuance forecast will be updated as part of the Strategic Financial Plan. Because the majority of the cost of Halligan will be paid through the WSR CIL rate, this updated cost estimate is not expected to significantly change the monthly rate forecast. Future rate increases are not expected to deviate from the current rate adjustment strategy that includes limiting annual rate increases to 5% or less. The cost of water supply projects is increasing across Northern Colorado and elsewhere. Figure 4 shows the cost trends for the Halligan Project as compared to other regional water projects. Increasing costs are driven by rising permitting and mitigation requirements, increased project definition through time, more rigorous cost estimating practices, and escalation of costs due to permitting delays. As shown in Figure 4, the unit cost of water from Halligan Project remains low relative to other regional water supply projects. Figure 4. Evolution of the cost of regional water supply projects. Cost is shown as a unit cost of water per acre-foot of volume. ATTACHMENT 5 7 Cost Management and Future Decisions Staff have limited control over the permitting process or permitting schedule, both of which are significant cost drivers and dictated by the permitting agencies. Therefore, staff will continue to focus on cost factors within our control to effectively manage costs and inform future decisions. The cost management cycle for the Halligan Project includes (Figure 5): • Using best practices in cost management and calculating updated cost estimates at project milestones. • Evaluating the impact of updated costs on development fees and rates for Utilities’ customers. Updated cost estimates and other decision factors will be evaluated at project milestones to verify that the Halligan Project remains the most cost-effective water supply alternative for Utilities’ customers. If there are any questions about the information provided in this update, please contact Eileen Dornfest at 970/416-4296 or edornfest@fcgov.com. Attachments: Attachment 1: Memo re: Halligan Water Supply Project, Updated Costs and Timeline CC: Water Board Donnie Dustin, Water Resources Manager Linsey Chalfant, Special Projects Manager ATTACHMENT 5 8 Figure 5. Cost management cycle used for the Halligan Project ATTACHMENT 5 GLOSSARY OF TERMS 401 Water Quality Certification – The Colorado Department of Public Health and Environment reviews and issues water quality certifications under Section 401 of the federal Clean Water Act for projects or actions applicable to the provisions of the Colorado 401 Certification Regulation. Acre-Foot or Acre-Feet (AF) – The volume of water equal to about 326,000 gallons; one acre–foot can supply water to three to four single-family homes in Fort Collins per year. The maximum volume of Horsetooth Reservoir is about 157,000 acre-feet and the proposed volume of Halligan would go from about 6,400 acre-feet to approximately 14,500 acre-feet. Colorado-Big Thompson (CBT) Project – A Bureau of Reclamation project operated by Northern Water that brings water from the Colorado River basin to the east side of the continental divide via a tunnel and the Big Thompson River to several locations including Horsetooth Reservoir. Fort Collins Utilities currently owns 6% of shares in the CBT project. The Halligan Water Supply Project is not designed to store any CBT water. Corps – Short for U.S. Army Corps of Engineers, the lead permitting agency for the Halligan Water Supply Project. Cubic-Feet per Second (cfs) – The volumetric flow rate equal to one cubic-foot flowing every second. EIS (DEIS, FEIS) – Short for Environmental Impact Statement (draft or final), a report detailing the findings of the NEPA permitting process. An EIS can be reviewed by the public and comments are typically addressed in a final EIS. See also “NEPA.” Excess Water Use Surcharge – Fees assessed on commercial customers, including some HOAs, who exceed their annual water allotment. Firm Yield – A measure of the ability of a water supply system or reservoir to meet water demands through a series of drought years. Fish and Wildlife Mitigation Plan – Required by Colorado Parks and Wildlife. It is designed to address the impacts to fish and wildlife due to the development and water diversion associated with a project. GMA – Short for Growth Management Area, which is the planned boundary of the City of Fort Collins’ future City limits. GPCD – Short for gallons per capita per day, a measurement of municipal water use. LEDPA – Short for Least Environmentally Damaging Practicable Alternative, which is what the Corps permits through the NEPA permitting process. See also “NEPA.” Larimer County 1041 Permit – State Statutes allow local governments to designate certain areas and activities of state interest and require permits for development involving those areas and activities. A 1041 Permit is required prior to conducting any activity that has been designated as a Matter of State Interest (dams, power plants, solar energy power plants, transmission lines, pipelines, etc.). ATTACHMENT 6 Mitigation – The process or result of making something less severe or damaging. Mitigation includes avoiding impacts, minimizing impacts and compensating for unavoidable impacts. NEPA – Short for National Environmental Policy Act. The act was signed into law in 1970 and requires federal agencies to assess the environmental effects of proposed or permitted actions prior to making decisions. NISP – Short for Northern Integrated Supply Project, a water project sponsored by Northern Water. The proposed Glade Reservoir is part of NISP. Northern Water or NCWCD – Short for Northern Colorado Water Conservancy District. Northern Water operates the Colorado–Big Thompson (CBT) Project and is involved in several other regional water projects on behalf of their participants, including NISP. See also “Colorado–Big Thompson (CBT) Project” and “NISP.” NPIC – Short for North Poudre Irrigation Company, an irrigation company that supplies water to farmers north of Fort Collins and is the owner of all water currently stored in Halligan Reservoir. The City of Fort Collins currently owns about 36% of the shares in the company. Planning Demand Level – Water use (demand) in gpcd used for water supply planning purposes. The planning demand level factors into determining the amount of water supplies and/or facilities needed. See also “gpcd.” Storage Reserve Factor – Refers to a commonly used engineering principle in designing water supply systems to address short-term supply interruptions. As defined in the WSDMP the storage reserve factor incorporates having 20% of annual demands in storage through the 1-in-50 drought equating to about 3.5 months of winter (indoor) demands or 1.5 months of summer demands. See also “WSDMP.” Tri–Districts – The combination of three regional water districts that also serve areas within Fort Collin’s GMA: East Larimer County (ELCO), Fort Collins–Loveland (FCLWD) and North Weld County Water Districts (NWCWD). These districts share the same water treatment plant, Soldier Canyon Filter Plant, located adjacent to Fort Collins Utilities’ Water Treatment Facility. The Tri-Districts were originally partners in the Halligan Project but withdrew in 2009. See also “GMA.” Water Supply Requirement (WSR) – Previously known as Raw Water Requirements, require new or existing development to turn in water rights or cash-in-lieu of water rights to support the water needs of that development or increase existing water allotments. Cash is used to increase the firm yield and long-term reliability of the City’s supply system (e.g., purchase additional storage capacity). See also “Excess Water Use Surcharge.” Water Supply & Demand Management Policy (WSDMP) – This document provides Fort Collins Utilities guidance in ensuring adequate, safe and reliable water supply while managing water demand. Yield or Water Rights Yield – Refers to the amount of water that is produced from a water right. The yield of water rights vary from year to year depending on the amount of water available (i.e., low or high river runoff) and the priority of the water right. See also “Firm Yield.” 19-21887Auxiliary aids and services are available for persons with disabilities. V/TDD: 711 Esta información puede ser traducida, sin costo para usted. 970-212-2900 ATTACHMENT 6 Presented by:Halligan Water Supply Project UpdateDonnie DustinWater Resources EngineerLinsey ChalfantProject Manager1May 24, 2022ATTACHMENT 7 Purpose• Update on Halligan Water Supply Project• Water Supply and Demand Background• Project Impacts and Benefits• Status of Permitting and Design• Input from Council2ATTACHMENT 7 Direction Sought• Does Council have any questions about the Halligan Water Supply Project?• How can we best inform Council in quarterly reports and other communications?3ATTACHMENT 7 4LegendHalligan is for Utilities’ water service areaFort Collins Water DistrictsATTACHMENT 7 Utilities Water Supply Sources5Cache la Poudre RiverColorado-Big Thompson Project (CBT) via Horsetooth Reservoir~50/50 split between sourcesATTACHMENT 7 6Strategic AlignmentWater Supply & Demand Management PolicySafe Community Environmental HealthCity Strategic PlanPoliciesATTACHMENT 7 Water Supply Planning CriteriaPlanning Demand Level150 gallons per capita per dayDrought Criterion1-in-50-year droughtStorage Reserve Factor20% of annual demandsWater Supply & Demand Management Policy7ATTACHMENT 7 8Water Future StrategiesSustainable and integrated approachConservationPortfolio of ResourcesInfrastructure SecurityCollaborationOngoing Data EvaluationInnovation, Water Quality & EducationPlan for Emergencies Avoid, minimize or offset impactsATTACHMENT 7 Portfolio of Resources9City-owned water rights and converted agricultural sharesCBT ownership Storage (including 20% reserve)ATTACHMENT 7 Storage Available to Provider10With HalliganATTACHMENT 7 11Future Water DemandsAnnual Firm Yield~31,000 acre-feetProjected Demand~38,400 acre-feet2020~143,000 people2065~178,000peopleIncludes large contractual use increases (e.g., breweries, manufacturing)ATTACHMENT 7 12Decision PointsImage source: Denver WaterThe Cone of UncertaintyNear-Term StrategyATTACHMENT 7 13Halligan Reservoir EnlargementATTACHMENT 7 14What differentiates Halligan?Proposed Halligan Reservoir~14,600 acre-feetHorsetooth Reservoir~157,000 acre-feet01000200030004000500060007000800090001950195519601964196919731978198219871992199620012005201020152019202420282033Storage Contents (acre-feet)Modeled YearHalligan Reservoir Enlargement Storage Levels (Utilities Portion)Releases that improve flowsReleases during drought periodsATTACHMENT 7 15Why Halligan?Provides a safe, reliable water supply.Most cost-effective option to meet needs. Year-round flows on the North Fork leading to fishery and habitat improvements. Replaces an aging dam.Gravity-fed –no energy or greenhouse gas emissions. Uses existing reservoir instead of building a new one.ATTACHMENT 7 Impacts• Inundation of wetlands• Seasonal inundation of ¾-mile stream channel• Preble’s meadowjumping mouse habitat• Construction16ATTACHMENT 7 17River ImpactsSlight decrease in flows during spring runoff. Slight decrease in flows during spring runoff.Most months, operations would increase flows.ATTACHMENT 7 Benefits• Ensures year-round flows on North Fork• Reconnects 22 miles of river• Enables fish passage• Improves water temperatures18ATTACHMENT 7 19Mitigation ApproachAreas Near HalliganDegraded ResourcesLocal PartnershipHolistic ApproachMitigation GuidingPrinciplesATTACHMENT 7 North Fork Habitat Improvement20• Winter release plan• Summer low-flow plan• Ramping rate limitations• Peak flow bypass program• Temporary environmental pool• Protection of releases• Modify existing diversions• Reestablishment of wetlands and habitat• Mitigation of temporary construction impacts• Post-construction monitoringMitigation ElementsCurrent periodic river conditionsProposed river conditionsATTACHMENT 7 Design/Construction• Completed 30% design• Third season of field investigation this summer• Progress to 60% design in 2024• Potential construction in 202621ATTACHMENT 7 22Adjacent AlignmentSimilar environmental impactsSame comparative construction costImproved long-term functionality, operations, and maintenancePlan view – looking from topRaise on Existing DamAdjacent AlignmentATTACHMENT 7 23Project Costs• Lasted update in 2019• Updating construction and mitigation costs in 2022• Formal 30% estimate in Q1 of 2023• ~$19,000/acre-foot (@ $150M)Probable CostPossible Cost$100M$150MATTACHMENT 7 24Path ForwardDevelop and Issue Draft EISPublicCommentPeriodPrepare andPublishFinal EISRecord ofDecisionNov. 20192019-20202022-2023(estimated)2025-2026(estimated)Other Permitting (e.g., 401 Cert., Fish & Wildlife Mitigation Plan, County 1041, construction permits)ConstructionPreliminary and Final Design2026-2029(estimated)Scoping, Purpose & Need, Alternatives, Studies, Scoping, Purpose and Need, Alternatives, Studies 2006-2018ATTACHMENT 7 Direction Sought• Does Council have any questions about the Halligan Water Supply Project?• How can we best inform Council in quarterly reports and other communications?25ATTACHMENT 7 QUESTIONS?fcgov.com/halliganATTACHMENT 7