HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 04/09/2019 - COMPLETE AGENDACity of Fort Collins Page 1
Wade Troxell, Mayor Council Information Center (CIC)
Gerry Horak, District 6, Mayor Pro Tem City Hall West
Susan Gutowsky, District 1 300 LaPorte Avenue
Ray Martinez, District 2 Fort Collins, Colorado
Ken Summers, District 3
Kristin Stephens, District 4 Cablecast on FCTV Channel 14
Ross Cunniff, District 5 and Channel 881 on the Comcast cable system
Carrie Daggett Darin Atteberry Delynn Coldiron
City Attorney City Manager City Clerk
The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and
will make special communication arrangements for persons with disabilities. Please call 221-6515 (V/TDD: Dial 711
for Relay Colorado) for assistance.
City Council Work Session
April 9, 2019
6:00 PM
CALL TO ORDER.
1. Update on Regional Economic Collaboration. (staff: Josh Birks, 15 minute presentation: 30 minute
discussion)
The purpose of this item is to update City Council on the Economic Health Office's (EHO) increased
efforts to collaborate with regional economic partners. This update directly ties to the City's Strategic
Plan, specifically Economic Health 3.1 - Facilitate government and local partners to form an effective
regional economic health group. In addition, this effort ties directly to the Economic Health Strategic
Plan, specifically in the Think Regionally theme that envisions a region that partners to address
economic issues which extend beyond municipal boundaries. EHO staff will present material that was
developed collaboratively and was shared with the councils of the City of Greeley, City of Loveland,
and numerous others in the region. As a result, the presentation does not follow traditional City of Fort
Collins brand guidelines.
2. Halligan Water Supply Project Update. (staff: Eileen Dornfest, Carol Webb , Donnie Dustin; 15
minute presentation; 60 minute discussion)
The purpose of this item is to update City Council on the current status of the Halligan Water Supply
Project (Project), including key milestones and activities planned for 2019. The City has been in the
formal federal permitting process for this project since 2006.
The Project is needed to meet treated water demands of future Utilities customers and will provide
added reliability for all Utilities customers, in case of prolonged drought and uncertainties such as
wildfires or infrastructure failures.
City of Fort Collins Page 2
The U.S. Army Corps of Engineers (Corps) plans to release the Draft Environmental Impact
Statement (DEIS) this year as the Project reaches a key milestone in the federal permitting process.
At the same time the City will release a Conceptual Mitigation Plan for the Project and an Operations
Plan for the Enlarged Halligan Reservoir. Release of these documents marks a key milestone when
the public will be able to review and comment on the project.
x OTHER BUSINESS.
x ADJOURNMENT.
DATE:
STAFF:
April 9, 2019
Josh Birks, Economic Health Director
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
Update on Regional Economic Collaboration.
EXECUTIVE SUMMARY
The purpose of this item is to update City Council on the Economic Health Office's (EHO) increased efforts to
collaborate with regional economic partners. This update directly ties to the City's Strategic Plan, specifically
Economic Health 3.1 - Facilitate government and local partners to form an effective regional economic health
group. In addition, this effort ties directly to the Economic Health Strategic Plan, specifically in the Think
Regionally theme that envisions a region that partners to address economic issues which extend beyond
municipal boundaries. EHO staff will present material that was developed collaboratively and was shared with the
councils of the City of Greeley, City of Loveland, and numerous others in the region. As a result, the presentation
does not follow traditional City of Fort Collins brand guidelines.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Does the Council have any questions about the current regional economic collaboration?
2. Is Council comfortable with EHO staff continuing to engage with regional partners around this collaboration?
BACKGROUND / DISCUSSION
Starting in mid-2017, partners from a variety of regional economic development entities (Larimer County, Weld
County, Upstate Colorado, City of Greeley, City of Loveland, Town of Windsor, City of Fort Collins, and numerous
others) began to meet regularly to discuss current trends, issues, and concerns. Out of these discussions rose
several common themes. At the end of 2017, these same partners decided to work together to complete a current
state assessment. As a result, the regional partners identified a common objective that united all the varied
efforts: to increase the economic resilience of our region, our counties, and our communities.
The Economic Health Office engaged in these regional efforts based on clear guidance from the City’s 2016 and
2018 Strategic Plans:
2016 Economic Health 3.1 - Improve effectiveness of economic health initiatives through collaboration with
regional partners.
2018 Economic Health 3.1 - Facilitate government and local partners to form an effective regional
economic health group.
Furthermore, the 2015 Economic Health Strategic Plan recognized a need for regional collaboration by including
the theme, Think Regionally with a vision statement: “A region that partners to address issues which extend
beyond municipal boundaries.”
Regional Economic Development History and Context
Larimer and Weld Counties have each had a long history of regional economic development efforts. Historically,
the Northern Colorado Economic Development Corporation (“NCEDC”) served as a 501(c)(6) nonprofit
1
Packet Pg. 3
April 9, 2019 Page 2
corporation was formed in 2001 and dedicated to attracting and supporting primary employers in Larimer County.
NCEDC was dissolved in 2015. Over the course of its history, NCEDC was successful in attracting and serving a
broad range of primary employers in Larimer County with a mission to “advance economic vitality through
strategic job growth.” Currently, Upstate Colorado (“Upstate”), a public/private non-profit economic development
corporation, provides services to all of Weld County. Upstate focuses on supporting primary employers in the
retail, service and professional sectors, with a goal of helping to create and retain jobs in the County.
One NoCo, a 501(c)(6) corporation governed by prominent business executives in Northern Colorado, was
established in 2014 with the goal of attracting and stimulating relevant economic opportunity and job growth for
the region. Since formation, One NoCo has created a website to market the region and provide a landing page for
those interested in the region, conducted two site selector familiarization tours, and attended numerous
conferences. At the end of 2018, Andy Montgomery stepped down as Chief Executive Officer of the corporation.
With no staff, the Board has been meeting for the past several months to determine their next steps. In January,
the three area chambers (Fort Collins Area Chamber of Commerce, Loveland Chamber, and Greeley Chamber)
began partnering with One NoCo with an objective to “proactively brand and market the region” and “reinforce
why companies should stay and expand in Northern Colorado.” – Scott Ehrlich, current One NoCo Chair
Regional economic development professionals met with One NoCo on January 9, 2019 to brief them on the
current state of collaboration in the region. The One NoCo board had been previously unaware of the current level
of activity and expressed enthusiasm for the work of the regional economic development partners. The future role
of One NoCo remains unclear at this time; however, the system being developed through regional collaboration is
agnostic regarding the number and type of participants. Instead, the system will focus on expectations of partners
and ensuring coordination across the two counties.
Why Regional Economic Collaboration?
Leadership within the County has been unclear since the dissolution of NCEDC. Many of the functions performed
by NCEDC were absorbed by the area municipalities, specifically lead fulfillment. As One NoCo focused its efforts
outward, regional economic development professionals redoubled efforts on business retention and expansion,
coordination and alignment of data, and commitment to collaboration – as codified in a regional Code of Ethics
(Attachment 1). This has led to several new outcomes:
1. Emerging collaboration between the Larimer and Weld County Workforce Boards and Workforce Centers.
2. Key messaging about the region reviewed by all participating entities (over 30 individual municipalities, both
counties, and several public/private partnerships).
3. Coordination of data leading to a re-evaluation of regional industry clusters.
4. Collaboration on retention efforts related to existing businesses throughout the region, which has led to
reduced competition with incentives between communities to retain business in the region.
The regional economic development partners are now working to develop a networked system of partners that
can continue to work together to coordinate efforts, avoid duplication, and ensure role clarity. The system is
intended to create an environment where a business can engage with any member in the network and get the
support they need. This “no wrong door” approach represents a shift from the historic approach of “one front door”
to the region represented by NCEDC, Upstate Colorado, and One NoCo. This approach is better aligned with the
market and site selectors – who can now obtain a wealth of information on the internet about our region before
ever contacting a single person. The partners are working to update the Code of Ethics, develop a Regional
Economic Health Charter, and support with memorandum of understanding where appropriate to provide details
to the system.
The new approach addresses the reality of the current market and the evolution of economic development in the
country. Now more than even ten years ago, the economy of Northern Colorado does not follow municipal
boundaries:
x Labor Force - On any given day in Larimer/Weld Counties nearly 90,000 workers travel the region to their job
- this is almost equivalent to the population of Loveland.
1
Packet Pg. 4
April 9, 2019 Page 3
x Housing Affordability - Many communities in Northern Colorado have seen significant increases in their
average home prices. Finding affordable housing now requires workers to consider locations that are even
more dispersed around the region.
x Talent Development - The region contains two major universities and two community college systems. These
institutions create a significant amount of labor capacity.
x Transportation - All these conditions translate to increasing demand on the transportation and transit networks
of the region.
These conditions cannot be solved by a single entity, community, or county. They require collaboration and
cooperation. As a result, our strategy on Economic Health needs to recognize this fact and react accordingly.
How are Partners Collaborating?
Throughout 2018, the partners evaluated the current state of regional economic activities and develop an
objective of encouraging increased economic resilience. Economic resilience is characterized by conditions that
allow businesses: (a) to form; (b) to grow/sustain; and (c) to revive. The partners believe that economic resilience
in this form comes from the combination of:
x Strength - Focus on existing business and industries to enable them to sustain, grow, and revive in our
region; and
x Diversity - Focus on innovation, emerging industry sectors, and talent diversity to ensure a range of
employment opportunities and industries form, grow, and sustain in our region.
In the end, economic resilience is the foundation for business success which leads to income growth and
community wealth creation. These are the conditions of prosperity that support a strong community. Out of these
efforts came four key messages about the Northern Colorado regional economy:
1. Our economy is driven by smart talent and innovative business minds.
2. Our robust talent development pipeline is producing the workers we need today and tomorrow.
3. Our unique strengths include demonstrated regional cooperation and mobile talent.
4. Our population, jobs, and industries are growing fast.
To evaluate next steps, the partners completed a current state assessment focused on four key inputs to
economic strength and diversity:
x Target Industries - Focuses on existing sectors to ensure strength and identifies new sectors to encourage
diversity.
x Business Engagement - Gains understanding of business opportunities and constraints and provides industry
insight.
x Talent Development – Talent (or people) is the most essential input in the modern economy, therefore, must
understand employer needs, understand and enhance regional labor capacity, and partner with educational
institutions.
x Data Driven - Data can both provide value to existing business and provide focus and direction to regional
economic collaboration. Data drives the other three areas of focus.
What are the Partners Doing Next?
The partners are working to formalizing the system with a revised Code of Ethics, Partnership Charter, and
Memorandums of Understanding (MOUs) where appropriate. In addition, the regional partners have identified
several areas of strategic and tactical focus for 2019 and beyond. These areas include:
x Target Industries - Revisit industries and use data to identify targets.
x Talent Development - Enhance sector partnerships by adding other key sectors and enhance regional
coordination.
1
Packet Pg. 5
April 9, 2019 Page 4
x Business Engagement - Combine regional findings and use to adjust, refine, deliver services based on key
insights.
x Data Driven - Enhance regional coordination and enhance availability to private sector.
Another major task of the partners has been sharing this update with others, including (unless otherwise noted
these presentations have already occurred):
x City of Greeley
x City of Loveland
x Larimer County
x Weld County
x South Weld County Partners
x Airport Commission
x Town of Windsor (end of April)
x One NoCo
ATTACHMENTS
1. Regional Code of Ethics (PDF)
2. PowerPoint (PDF)
1
Packet Pg. 6
The Partnership
CONFIDENTIALITY OF PROSPECTS
In all instances members of the Partnership shall honor the confidentiality of individual prospects. Whenever possible, specific
information on particular transactions shall be shared within the Northern Colorado partnership. In instances, where a prospect
wishes to remain completely confidential with an individual community, the remaining members of the Partnership shall honor that
confidentiality and shall in no way attempt to intervene in the relationship. The prospect will remain confidential until the prospect
chooses to announce.
MARKETING
Members are strongly discouraged from advertising in local media outside of their own market area.
CODE OF ETHICS
,1752'8&7,21
The Partnership is committed to the economic development and growth of the northern Colorado region. The Partnership brings
together the interests of a broad range of public, private, and not-for-profit groups to promote the northern Colorado area as a
single economic entity. The collaboration of such a variety of groups and interests requires that certain standards of conduct must
be developed and adhered to for the Partnership to meet its goal. This Code of Ethics represents the standards that each member
of the Partnership supports and practices in its daily conduct of business.
We, the members of the Partnership, set forth the following principles of behavior and standards of conduct to guide efforts in
promoting the long-term economic health of northern Colorado community. We fully realize that no Code of Ethics is of value
without an inherent level of trust in the integrity of one another and a commitment from each of us to conduct ourselves at the
highest levels of professional conduct. The Partnership is founded on the respect and trust of its members. In that spirit, we set
forth this Code of Ethics.
35($0%/(
We are committed to the promotion of Northern Colorado as a
desirable business location for new and expanding companies.
When representing the Partnership, we shall endeavor to sell
“Northern Colorado” first and our individual communities and
projects second.
We shall honor the confidentiality requested by both our
fellow members of the Partnership and our prospects.
Information shared with our fellow members in confidence
shall remain in confidence. Transactions are to be driven by
the client. In the event a company chooses to relocate from
one community to another, every effort will be made to
contact the affected community to let them know of the
potential move. Violation of this commitment shall be viewed
as the single most serious breach of our pledge to the
Partnership.
ATTACHMENT 2
DATE:
STAFF:
April 9, 2019
Eileen Dornfest, Special Projects Manager
Carol Webb, Deputy Director, Utilities
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
Halligan Water Supply Project Update.
EXECUTIVE SUMMARY
The purpose of this item is to update City Council on the current status of the Halligan Water Supply Project
(Project), including key milestones and activities planned for 2019. The City has been in the formal federal
permitting process for this project since 2006.
The Project is needed to meet treated water demands of future Utilities customers and will provide added
reliability for all Utilities customers, in case of prolonged drought and uncertainties such as wildfires or
infrastructure failures.
The U.S. Army Corps of Engineers (Corps) plans to release the Draft Environmental Impact Statement (DEIS) this
year as the Project reaches a key milestone in the federal permitting process. At the same time the City will
release a Conceptual Mitigation Plan for the Project and an Operations Plan for the Enlarged Halligan Reservoir.
Release of these documents marks a key milestone when the public will be able to review and comment on the
project.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does Council have any specific questions about the public process?
Does Council have any questions or concerns regarding the current plan for moving forward with the Halligan
Water Supply Project?
BACKGROUND / DISCUSSION
Water Supplies and Demands
The Fort Collins Utilities’ (Utilities) main sources of water supply are the Cache la Poudre River (Poudre River)
and the Colorado-Big Thompson Project (CBT) (Note: Attachment 5 provides a glossary of key terms and
acronyms used throughout this document.) On average, Utilities annually uses approximately an equal amount of
water from these two sources. The Poudre River supplies are delivered to the City’s Water Treatment Facility
through two pipelines that divert off the Poudre River near Gateway Natural Area. Joe Wright Reservoir is 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 City’s Water
Treatment Facility. Utilities owns 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
April 9, 2019 Page 2
145 gpcd more recently. This is about a 28 percent reduction in per capita water use and shows the effectiveness
of Utilities’ water conservation efforts. Water conservation efforts are ongoing, but conservation alone is not
enough to meet future water demand.
The current water supplies for Utilities are adequate in most years. However, these snowpack driven water
supplies can vary significantly throughout the year and from year to year. Per the Water Supply & Demand
Management Policy (Attachment 1), 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 percent 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 134,000 treated 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
Halligan Water Supply Project.
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 unavailable. The Halligan Water Supply Project will allow Utilities to
meet its projected demands, while also providing a storage reserve for emergency water shortage scenarios (e.g.,
infrastructure failures and impacts of wildfires) and a place to store water for later use. In addition, the Project
aligns with other City Strategic Objectives such as ENV 4.6: provide a reliable, high-quality water supply and ENV
3.6: Invest in utility infrastructure aligned with community development.
Halligan Water Supply Project
Halligan Reservoir is an existing reservoir on the North Fork of the Poudre River (North Fork). It is located 24
miles up the North Fork from the confluence with the mainstem of the Poudre River at Gateway Park. The Project
includes raising the existing Halligan Dam by approximately 25 feet to increase reservoir capacity by 8,125 acre-
feet, from the existing 6,400 acre-feet to a total of approximately 14,525 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 6,400-acre foot of capacity in the
reservoir.
The Project provides improvements to the existing North Fork habitat, as shown in Attachment 2. Triple bottom
line benefits of the Project are demonstrated by supplying a cost-effective, reliable water supply, while providing
significant environmental benefits to the North Fork of the Poudre River downstream of Halligan Reservoir.
The City has been involved in the Halligan Project since the late 1980s. Key milestones and City Council
approvals for the project are shown on the timeline provided as Attachment 3.
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 U.S. Army Corps of Engineers (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. The major
components of this analysis are summarized in this section.
The NEPA process has many steps which are shown in Figure 1. The process includes:
x Determining the Utilities’ purpose and need for the proposed Project,
2
Packet Pg. 10
April 9, 2019 Page 3
x Considering alternatives to the proposed Project (described below), and
x Providing detailed environmental analysis of all alternatives.
The detailed environmental analysis is summarized in the Draft Environmental Impact Statement (EIS), which is
provided for public review and comment. Following public comment on the Draft EIS, the Corps will evaluate
comments and address them for inclusion in the Final EIS. A Record of Decision will then be provided
determining the Least Environmentally Damaging Practicable Alternative (LEDPA). Under the Clean Water Act
and its regulations, the Corps must permit the LEDPA, which may or may not be the City’s preferred alternative of
the enlargement of Halligan Reservoir.
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 detail below.
Figure 1. The NEPA Process
EIS Alternatives
The federal permitting process requires an identification and evaluation of alternatives 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:
x Expanded Glade Reservoir: Enlargement of the proposed Glade Reservoir, part of the Northern Integrated
Supply Project (NISP), which is currently also in the federal permitting process and under review by the
Corps. This alternative is contingent on NISP being permitted.
x Agricultural Reservoir Enlargement: Purchase of dedicated storage space in existing agricultural reservoirs
located north of Fort Collins.
x Gravel Pit Reservoir Enlargement: Involves using existing gravel pits located northwest of Fort Collins.
x No Action: See below.
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 required to connect
to Utilities’ Water Treatment Facility, and pretreatment of the water before reaching the Water Treatment Facility.
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 Halligan enlargement.
The No Action alternative describes what actions would be taken should the Corps not issue a permit to construct
the Halligan Reservoir enlargement or one of its alternatives. The No Action Alternative includes:
1. Change in operation of Joe Wright Reservoir;
2. Acquisition of additional water rights (over what is currently projected to be obtained); and
2
Packet Pg. 11
April 9, 2019 Page 4
3. More frequent drought restrictions.
The NEPA process is required to include an evaluation of No Action as part of the EIS. However, 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 and even with water restrictions, the storage reserve is not met
during the 1-in-50 year drought.
Halligan Project Benefits and Impacts
The Draft EIS will summarize impacts related to the enlargement of Halligan Reservoir and the alternatives
summarized above. This section summarizes the impacts of only the enlargement of Halligan Reservoir.
In addition to meeting future demand and providing a reliable water supply, the enlargement of Halligan Reservoir
has many benefits. The most significant benefits are summarized below:
x It enlarges an existing reservoir, creating fewer environmental impacts than building a new reservoir.
x It is the most cost-effective option to meet Utilities’ water storage needs. According to current cost estimates,
it is less than $10,000 per acre-foot of firm yield, which is about eight times less expensive than the current
cost of firm yield for CBT water.
x It will provide year-round flows on the North Fork of the Poudre River, a river that is currently 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 downstream of the Halligan Dam. (Attachment 2)
x It will be gravity-fed, and no pumping will be required to fill the reservoir or convey the water to the Poudre
River to be exchanged to the Utilities’ Water Treatment Facility. Therefore, no greenhouse gas emissions will
be generated during reservoir operations. This is consistent with the City’s climate action goals.
x It rehabilitates and improves an existing dam that will need to be rehabilitated in the future.
x It has been considered an “Acceptable Planned Project” by the Western Resource Advocates1 and is
supported by other environmental groups such as The Nature Conservancy and Trout Unlimited.
x Portions of the reservoir area may be opened for limited public recreation, providing access to an area that
has previously been restricted.
As with any water supply project of this scale, and despite the many net benefits in certain areas, there are some
adverse impacts to enlarging Halligan Reservoir.
x Inundation of shoreline and riparian wetlands. (Shoreline wetlands will reform at the enlarged reservoir’s new
shoreline, resulting in loss of less than 6 acres (net) of wetlands.
x Inundation of 11 acres of Preble’s Meadow Jumping Mouse (non-critical) habitat.
x Seasonal inundation of 0.75 miles of the North Fork upstream of Halligan Reservoir.
x 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.
x Temporary construction impacts such as noise, light, dust, access road improvements, ground disturbance in
the area of the dam.
These impacts will be mitigated as part of the federal and state permitting processes.
Project Cost
Costs of the Halligan Project were estimated in 2018 and summarized for City Council in a memo dated April 6,
2018 (Attachment 4). The table below provides a breakdown of project costs, including the amount that has
already been appropriated for the project and the amount that still needs to be appropriated.
1 Western Resource Advocates (2011). Filling the Gap, Commonsense Solutions for Meeting Front Range Water Needs.
Available at: http://westernresourceadvocates.org/water/fillingthegap/FillingTheGap.pdf
2
Packet Pg. 12
April 9, 2019 Page 5
Notes:
1. Life to date costs through February 2019.
2. Debt service payments from 2004 to 2014 were allocated as Halligan project expenses. All future debt
service payments will not be accounted as a project cost.
3. Reimbursements were received from former project partners (North Poudre Irrigation Co. and the Tri-
Districts) between 2005 and 2014; miscellaneous reimbursements have been and will be collected from
the City of Greeley and from rents in the future.
4. Total Utility cost includes debt service and deducts reimbursements.
The current cost estimate, based on conceptual project information, indicates construction could be less than half
of the overall cost of the project. Permitting costs to date have exceeded $13 million thus far, and the cost of
permitting and mitigation together are anticipated to be over 25% of the total project cost.
Anticipated costs of the Project have changed through time, as the size and scope changed, partners withdrew, or
new information was identified. The graph below shows unit cost of the project on a per-acre foot basis. At each
major change in the project costs have been reevaluated. These milestones are shown on the graph below.
The Project will be mostly funded through development fees, specifically the water supply requirement cash-in-
lieu payment which is paid at the time of construction permitting. In addition, fees are collected via the Utilities’
excess water use surcharge assessed on current customers who exceed their annual water allotment. All funding
for this Project will come directly from the Water Enterprise Fund, therefore, like all other capital investments
made by the utilities, no tax dollars will be directed toward this Project.
2
Packet Pg. 13
April 9, 2019 Page 6
Figure 2. Estimated Unit Costs of the Halligan Water Supply Project through Time
Although current cost estimates indicate a total Project cost of approximately $74 million, 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. The next cost estimate update will be performed in 2019, as land
acquisition and mitigation needs continue to be refined. Costs will again be updated in 2020 after preliminary
design is complete. As a part of each of these cost estimate updates, 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.
The Project continues to be the most cost-effective alternative for meeting the City’s water supply needs. The
Project is currently anticipated to provide firm yield at less than $10,000 per acre-foot. For comparison, the current
market rate for firm yield from the Colorado-Big Thompson (CBT) Project is approximately $80,000. Unit costs of
the Northern Integrated Supply Project (NISP) and Windy Gap Firming Project are currently approximately
$27,500 and $19,000 per acre-foot, respectively.
Schedule
The Project is approaching a key milestone this year with release of the Draft EIS. Once released, the Draft EIS
will be available for public review and comment on the work that has been conducted over the past 13 years. The
Corps will address public comments received during the Draft EIS in the production of a Final EIS prior to the
Record of Decision (ROD). The schedule for the Final EIS, ROD and construction are largely dictated by the
federal permitting process, over which the City has little control. Currently, best estimates place construction
beginning in approximately 2024 and lasting approximately two 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.
2
Packet Pg. 14
April 9, 2019 Page 7
Figure 3. Halligan Project schedule
State and County Permitting
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 detail below.
x Fish and Wildlife Mitigation Plan (FWMP):
o Requirements: A Colorado statute requires a FWMP be prepared to ensure “that fish and wildlife
resources that are affected by the construction, operation, or maintenance of water diversion,
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 FWMP is the State of Colorado’s position on
measures that will be employed to mitigate the impacts to fish and wildlife resources. The FWMP is
not a permit but rather a recommendation to the Corps. Typically, FWMPs are integrated into federal
permits or are enforced through separate agreements between the water project proponent (i.e., the
City) and Colorado Department of Natural Resources.
o Timeframe: Preparation of FWMP concepts will begin in 2020, after the public comments are
received on the Draft EIS. The FWMP is anticipated to be complete before the Final EIS is released.
x 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 &
Environment.
o Timeframe: The City will enter the 401 Certification process after the public comments are received
on the Draft EIS and will be completed prior to the ROD such that the 401 Certification will be
recorded in the ROD.
2
Packet Pg. 15
April 9, 2019 Page 8
1041 Permit/Matters of State Interest:
o Requirements: In 1974, the Colorado Legislature enacted House Bill 74-1041, which authorizes
counties 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 14.4(k)
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 human consumption or domestic use and excluding a water
storage reservoir used exclusively for irrigation.
The Project thus needs a 1041 Permit from Larimer County. A 1041 Permit can be awarded through
an application and hearing process or through an intergovernmental agreement approved by the
Larimer County Board of County Commissioners.
o Timeframe: Preliminary work toward the 1041 process for the Project will begin after the public
comments are received on the Draft EIS. Once public comments have been received and reviewed,
the City and Larimer County will decide whether the Project should pursue an IGA, or instead go
through application and hearing process.
o Recent Developments: The Larimer County Commissioners have recently invested significant effort
in reviewing requests for 1041 permits. Due to this scrutiny, the City is focused on the following to
support a positive outcome for the City’s Project:
x An extensive environmental review and public review period provided through the NEPA process.
x Proactively engaging landowners affected by the enlargement of Halligan Reservoir
x The Project’s benefit to County residents.
Staff is continuing to evaluate opportunities to support a positive 1041 permit outcome for the Project.
2019 Activities
Public Process
2019 is a milestone year for the Halligan Project. All indications are that the Corps will release the Draft EIS this
year. At the same time, the City will release a Conceptual Mitigation Plan and a Draft Operations Plan.
These documents are briefly defined below.
x Draft Environmental Impact Statement – A document that describes the impacts on the environment as a
result of a proposed action of the enlargement of Halligan Reservoir. It also describes impacts of other water
supply alternatives, as well as plans to mitigate the impacts.
x Conceptual Mitigation Plan – A document that describes the City’s proposed approach to avoid, minimize,
mitigate, or enhance resources that would be impacted by the enlargement of Halligan Reservoir and other
alternatives. It is intended to provide agencies and the public with information that can be reviewed in parallel
with the Draft EIS. Further information about the Conceptual Mitigation Plan is provided below.
x Draft Operations Plan Report – A document that describes the proposed plan of operations for the Halligan
Project and alternatives included in the Draft EIS. The Operations Plan describes the reservoir operations,
exchanges, and deliveries to facilities. The report will provide a reasonable depiction of a proposed plan of
operations for the enlargement of Halligan Reservoir based on the best information currently available.
2
Packet Pg. 16
April 9, 2019 Page 9
Once these documents are released this year, they will be available for public review on the Corps’ website for
30-60 days. All public comments on any of these documents must be sent to the Corps to be included in the
Administrative Record for the Project. Staff anticipates many questions will be sent to Council, City leadership,
and Staff during this time period. However, the Corps leads the public review and comment effort and as the
applicant, the City plays a specific role in the project. During this time, City Staff and Councilmembers can
engage in the following ways:
x Answer clarifying questions about the Project.
x Provide the City’s opinion on the Project.
x Present at open houses or other public meetings hosted by the Corps.
However, City Staff and Councilmembers cannot:
x Accept official comments on any of the Project documents. If these comments are not sent to the Corps, they
are not considered “official” comments.
x Answer technical questions about contents of the Draft EIS.
x Host open houses to solicit input on the Draft EIS, Conceptual Mitigation Plan, or Operations Plan Report.
x Provide any opinions on behalf of the Corps.
Conceptual Mitigation Plan
Utilities Staff has worked with Natural Areas, 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 will be summarized in the Conceptual Mitigation Plan, which will be released for public
review and comment in 2019. The Conceptual Mitigation Plan includes alternatives to minimize, mitigate, or
enhance resources that would be impacted by the enlargement of Halligan Reservoir and alternatives. It is
intended to provide agencies and the public with information that can be reviewed in parallel with the Draft EIS. It
is not intended to be the final mitigation plan for the Project, but rather is designed to solicit input. The concepts
described will likely change after public and agency input, and the Conceptual Mitigation Plan will be finalized and
submitted to the Corps before the Record of Decision is issued.
The process used to identify when mitigation is needed is:
1. Design the Project to avoid impacts to the environment. Avoidance of impacts would be achieved through
project design and layout, construction techniques, and operational measures.
2. Minimize measures that remain. Minimization of impacts would also be achieved project design and layout,
construction techniques, and operational measures that focus on minimizing impacts that cannot be avoided.
3. Compensate for the remaining potential or unavoidable impacts to environmental and cultural resources
described in the Draft EIS. This is called “compensatory mitigation” and would be achieved by restoration,
establishment, enhancement, or preservation of those resources impacted by the project, such as wetlands.
In addition to mitigation measures, the Plan also summarizes voluntary measures of environmental enhancement
proposed by the City that go beyond mitigation required for the Project. These voluntary measures are intended
to improve environmental conditions in the Project area.
The guiding principles used to identify and develop mitigation concepts for the Project include:
x Prioritize opportunities for mitigation near Halligan Reservoir, to enhance or replace function in the North Fork
or nearby location.
x Target local, degraded resources for mitigation, which have a greater impact and success than developing
new resources.
2
Packet Pg. 17
April 9, 2019 Page 10
x Focus on concepts that benefit multiple resources or an entire ecosystem. For example, restoration along the
North Fork improves not only the fishery, but macroinvertebrates, vegetation, etc.
x Identify opportunities to work with local partners.
There are over 50 concepts described in the Conceptual Mitigation Plan that have been developed to avoid,
minimize, mitigate or enhance resources affected by the Halligan Project. These will be described in detail in the
Plan. The key mitigation concepts are described below:
x 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, as well as other measures to improve flows and habitat.
o Two options have been developed for fish habitat restoration: 1) Retrofit of the existing North Poudre
Canal diversion to allow fish bypass (subject to an agreement with North Poudre Irrigation Company) and
2) reintroduction of a pure-strain greenback cutthroat trout in the approximate 6-mile stretch of North Fork
between the Halligan dam and the North Poudre Canal diversion (subject to a future evaluation of fatal
flaws and agreements with pertinent agencies).
x Public recreation: Provide limited public access to a portion of the enlarged Halligan Reservoir and its north
shoreline. The recreation concept is described further below.
x Water quality: Design of the raised dam would include a multi-level intake tower to allow selective
withdrawals of water from specific locations in the reservoir water column to optimize temperature and
dissolved oxygen of releases from the enlarged Halligan Reservoir.
x Wetlands & Riparian Resources: Alternatives being considered include restoration or enhancement of land
along the North Fork or on Robert’s Ranch, where the City owns a conservation easement on approximately
400 acres.
x 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.
x Monitoring: Post-construction regulatory and non-regulatory monitoring and ecological management
measures to ensure that the expected benefits of the mitigation and enhancement efforts are achieved.
x
Recreation
Staff has developed a concept that would open portions of the enlarged Halligan Reservoir and its north shore to
limited public recreation, including fishing, human-propelled boating while fishing, and wildlife viewing. Recreation
would be provided at the enlarged Halligan Reservoir in order to mitigate the loss of fishing recreation on the
North Fork of the Poudre River upstream of Halligan Reservoir, where a 0.75-mile stretch of the river will be
inundated with the enlargement. This portion of the North Fork is currently publicly accessible through Cherokee
State Wildlife Area. Opening Halligan to recreation also aligns with the City’s Strategic Plan, including providing a
wide variety of high-quality recreation services and cultural opportunities.
The following goals of recreation at the enlarged Halligan Reservoir guided the development of the recreation
concept:
x Provide safe public access.
x Maintain the primitive spirit of the Halligan Reservoir area.
x Avoid and minimize overuse impacts to the landscape, fish, wildlife, and vegetation.
x Minimize issues related to trespassing on surrounding private property.
x Maintain security of Halligan Dam and water quality of Halligan Reservoir.
2
Packet Pg. 18
April 9, 2019 Page 11
Recreation access would be provided through the road owned and maintained by Colorado Parks and Wildlife
from County Road 80C/Cherokee Park Road. This road is open to high-clearance 4x4 vehicles from May 2nd
through August 31st.
x Drive-in access from during the summer (May 2 through August 31).
x Walk-in access (2 miles) on the CPW Road outside of summer (September 1 through May 1).
CPW has indicated that they would be willing to grant the City an easement across State Wildlife Area lands to
provide public access to an enlarged Halligan Reservoir, if recreation at the enlarged reservoir is managed in a
manner that is consistent with regulations for State wildlife areas (SWAs). SWAs are state or privately-owned
lands that offer wildlife-related recreation to the public, mostly focused on hunting and fishing. These parcels of
SWA land are paid for by sportsmen and women and managed under state law by Colorado Parks and Wildlife for
hunting, fishing, observation, management, and preservation of wildlife. Due to the goals outlined above and the
nature of the adjoining SWA property, recreation at the enlarged Halligan Reservoir would need to be carefully
managed to be consistent with SWA regulations that limit recreational uses to those related to wildlife. As such,
paddle boarding or use of other water craft without the purpose of fishing would be prohibited.
Limitations of Recreation Concept Development:
Based on conversations with local landowners, Colorado Parks and Wildlife staff, and Natural Areas staff, several
significant limitations must be considered when developing a concept that opens Halligan Reservoir to public
recreation. The area has unique challenges that accompany the remote, pristine, high-elevation nature of the
area. These challenges are summarized below:
x Safety: Safety of those who recreate at Halligan Reservoir is a key concern. Strong winds combined with the
fact that the dam spills on a yearly basis will require development of a robust safety and security plan. Safety
measures may include a buoy system that can withstand the forces of ice and fluctuating water levels and
preclude access to the east half of the reservoir, a dedicated staff to patrol and control access to the site, and
safety mechanisms to address those who underestimate the strength of the wind and cannot paddle back to
the western shore. These concepts have not yet been developed.
x Environmental protection: Based on discussions with City Natural Areas staff and Colorado Parks and Wildlife
staff, a recreation area that includes a body of water will be a highly attractive place for recreators.
Engineering controls will need to be implemented to limit the number of visitors to the site, such as a limited
parking lot occupancy, dedicated staff to patrol the parking lot and turn away excess cars, and a monitoring
plan to monitor impacts to the environment on a predetermined basis and implement environmental controls
as necessary.
x Landowner concerns: The Landowners Association of Phantom Canyon Ranches is a preservation-minded
group of landowners who greatly value land conservation and the pristine nature of the land around Halligan
Reservoir. They have had exclusive access to the reservoir since 1987 and currently have an exclusive lease
from the City of Fort Collins which is in effect until the Project begins construction. They are very concerned
about public trespass onto their property and the potential environmental degradation associated with opening
the area to public access. Staff is working closely with landowners to identify their concerns, which would
ultimately be addressed in a Safety and Security Plan for the Halligan site.
Board/Commission Review
This item was presented to Water Board most recently on January 17, 2019. Feedback from Water Board
included consideration of how overflow parking would be addressed, installation of buoys to prevent recreators
from approaching the dam, and interest in fishing and kayaking downstream of dam. In addition, a memo about
the Project was sent to all City boards on March 13, 2019 providing an opportunity to present the Project to each
board.
2
Packet Pg. 19
April 9, 2019 Page 12
Staff is scheduled to present an update on the project to the following boards in the next two months:
x Natural Resources Advisory Board
x Zoning Board of Appeals
x Transportation Board
x Energy Board
x Senior Advisory Board
x Cultural Resources Board
Public Outreach
In order to prepare for release of the Draft EIS, Conceptual Mitigation Plan, and Operations Plan, Staff has
developed plans for public engagement and communication that focus on communications with project
stakeholders and the public in order to:
x Develop public awareness about the Project and the opportunity to review and comment.
x Provide education about the Project, including purpose and need, the permitting process, timeline, impacts,
and benefits.
x Provide education about the Project compared to other regional water supply projects such as NISP (includes
Glade Reservoir), Windy Gap Firming Project (includes Chimney Hollow Reservoir), and Moffat (includes
Gross Reservoir).
Public outreach to date has included articles in the Coloradoan, Utilities bill insert, presentations at CSU and the
Chamber of Commerce, meetings with project stakeholders, updates to City and County Boards, updates to
legislators and answering email questions and SARs.
Staff will continue to update the City’s project-specific website at https://www.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. This email address is being used to answer general questions about the project and guide
citizens to the Corps’ website, where they can later find the documents.
ATTACHMENTS
1. Water Supply Demand Management Policy (PDF)
2. Current and Proposed River Conditions (PDF)
3. Project Timeline (PDF)
4. Halligan Cost Update Memo April 6, 2018 (PDF)
5. Glossary of Key Terms (PDF)
6. PowerPoint (PDF)
2
Packet Pg. 20
ATTACHMENT 1
2.1
Packet Pg. 21
Attachment: Water Supply Demand Management Policy (7852 : Halligan Water Supply Project Update)
WATER SUPPLY AND DEMAND MANAGEMENT POLICY
i
2.1
Packet Pg. 22
Attachment: Water Supply Demand Management Policy (7852 : Halligan Water Supply Project Update)
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:
Avoid, minimize or offset impacts to our environment
Consider the social benefits and impacts of having a reliable and high quality water supply
Analyze 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.
2.1
Packet Pg. 23
Attachment: Water Supply Demand Management Policy (7852 : Halligan Water Supply Project Update)
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:
Foster a conservation ethic and eliminate waste
Demonstrate a commitment to sustainability
Provide water for multiple beneficial purposes
Reduce the need for capital expansion projects and certain operational costs
Encourage and promote innovation in water demand management
Prepare 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.
2.1
Packet Pg. 24
Attachment: Water Supply Demand Management Policy (7852 : Halligan Water Supply Project Update)
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:
Providing water supply system reliability and flexibility
Considering a broad portfolio of resources that do not overly depend on any one source
Maintaining a water storage reserve for unforeseen circumstances
Maintaining water supply infrastructure and system security
Being a steward of the City’s water resources, which includes watershed management
Collaboration with the City’s regional water providers and users
2.1
Packet Pg. 25
Attachment: Water Supply Demand Management Policy (7852 : Halligan Water Supply Project Update)
4
Maintaining awareness of state, national and worldwide trends and adapting as needed to
meet our customer needs
Promoting 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.
2.1
Packet Pg. 26
Attachment: Water Supply Demand Management Policy (7852 : Halligan Water Supply Project Update)
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.
2.1
Packet Pg. 27
Attachment: Water Supply Demand Management Policy (7852 : Halligan Water Supply Project Update)
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.
2.1
Packet Pg. 28
Attachment: Water Supply Demand Management Policy (7852 : Halligan Water Supply Project Update)
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.
2.1
Packet Pg. 29
Attachment: Water Supply Demand Management Policy (7852 : Halligan Water Supply Project Update)
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.
2.1
Packet Pg. 30
Attachment: Water Supply Demand Management Policy (7852 : Halligan Water Supply Project Update)
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.
2.1
Packet Pg. 31
Attachment: Water Supply Demand Management Policy (7852 : Halligan Water Supply Project Update)
Calloway
Diversion
Structure
Rabbit Creek
LIVERMORE
US 287
North Fork Cache la Poudre River
HALLIGAN
RESERVOIR
Red Feather Lakes Rd
North Poudre Ditch
Lone Pine Creek
Currently, 22 miles of the
North Fork between Halligan
and Seaman reservoirs run
dry in reaches due to
existing diversion structures
and reservoir operations.
ach
HALLIG HALLIGAN N
RESERVOIR RESERVOIRR R ESERVO
orth th F ach
he
Lon
at ther L ak
Poud udr eRi ver
way
Rabbit Creek C
Diversion
North Poudre Ditch
version
Nth Pd Ditch
y
Di
LIVERMORE
US
LIVERMO
kes Rd
87 7
Lone Creek
d Feath
Lone Pine
e
Currently, u rrently, ntly 22 m miles of t the he
d eaman rese
or
d Seaman reservoirs run
hes due to
un
dry d in reaches due to
existing existin g diversion on struct structure structures
and n d reservoir r servoir op operat operati
Calloway
Diversion
Structure
LIVERMORE
US 287
North Fork Cache la Poudre River
HALLIGAN
RESERVOIR
Halligan Project Timeline – Significant Events and City Council Approvals
Attachment 3. Project Timeline showing key milestones and City Council approvals.
Acquired interest in enlargement of Halligan Reservoir (Res. 87-
161)
Agreement: with Phanton Canyon Ranch Company
Agreement: Professional Studies for Enlargement
Feasibility Study
Purchase option
Entered option agr. with NPIC to purchase & enlarge Halligan
Reservoir (Res. 93-164)
Resolution 2003-121 NPIC Option. Start Permitting Process
WS&DM Policy (Res. 2003-104)
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
WS&DM Policy Update (Res. 2012-099)
NPIC withdraws
Greeley separation
Approval: Exception to Use of Competive Process for
Professional Services
Purpose & Need finalized. Mitigation
development
Authorization to Execute Project
Agreements (City Mgr)
Approval: Contract Extension for
Design & Construction Contracts
1985 1990 1995 2000 2005 2010 2015 2020
Halligan Project
We are here
Entered optio
Reservoir (Re
Significant Events and City Council Approvals
ATTACHMENT 3 2.3
Packet Pg. 33
Attachment: Project Timeline (7852 : Halligan Water Supply Project Update)
Utilities
electric · stormwater · wastewater · water
PO Box 580
Fort Collins, CO 80522
970.221-6700
970.221.6619 fax x V/TDD: 711
utilities@fcgov.com
fcgov.com/utilities
MEMORANDUM
DATE: April 6, 2018
TO: Mayor Troxell and Councilmembers
FROM: Adam Jokerst, Water Resources Project Engineer
Eileen Dornfest, Special Projects Manager
THROUGH: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Halligan Water Supply Project (“Halligan Project”) – Updated Costs and Timeline
_______________________________________________________________________________________________________________
Staff recently completed a comprehensive cost update for the Halligan Project to address costs related
uncertainties in the federal permitting process, changes to the project timeline, and refinements to
project requirements. This memo provides updated costs and a timeline for the project, rationale for
changes from previous estimates, comparisons with other water supply alternatives, and
opportunities for improvement.
BOTTOM LINE:
The recent cost update is the most thorough evaluation of Halligan Project costs to date, and includes
an independent (i.e., third-party) contractor estimate of construction costs. The total estimated cost
for the project has increased to $74.1 million, indicating a need of $56.9 million in future
expenditures and $36.7 million in future appropriations. The revised cost estimate is $27.3 million
(58%) greater than the last reported project cost of $46.8 million.
The majority of the cost increases ($21.4 million of the $27.3 million) are attributable to the
following two items:
1) Escalation of costs attributable to increasing material and labor prices, which are
compounded by delays in the federal permitting process; and
2) A revised estimate of costs required to address project uncertainties, developed using
industry best practices for project risk management.
The timeline for completing federal permitting for the Halligan Project has been delayed again.
Staff now estimates the project’s draft environmental impact statement (“EIS”) will be released in
late-2018 or early-2019 and that construction will commence in 2023.
DocuSign Envelope ID: B93F8561-02BF-4CC2-83F5-D26717983D31
ATTACHMENT 4 2.4
Packet Pg. 34
Attachment: Halligan Cost Update Memo April 6, 2018 (7852 : Halligan Water Supply Project Update)
1
2
Despite the increased costs, the Halligan Project remains the most economical project for Utilities to
secure additional water supplies. The project will provide firm yield at a price of $8,800 per acre-
foot, far less than other regional water supply projects. It also provides many other advantages over
other alternatives, such as delivering high quality water supplies and requiring no pumping.
1. REVISED PROJECT TIMELINE
A revised schedule from the U.S. Army Corps of Engineers (“Corps”) indicates that release of the
draft EIS is now projected for late-2018 or early-2019. This delay was caused, in part, by the City’s
development of a “Showing Document.” The Showing Document provides critical information not
currently addressed in the Corps draft EIS, such as flow improvements and wetland formation.
Staff also reassessed future permitting requirements based on recent observations of obstacles and
associated schedule delays encountered by other Front Range permitting projects. Staff believes it
prudent to allot an additional year than previously specified to secure all required permits. These
changes extend the overall project timeline by two years, with dam construction now estimated to
commence in 2023. A revised timeline is shown below.
This timeline differs from that provided in the Corps’ quarterly Front Range Water Supply Updates;
however, Corps’ schedules have consistently underestimated permitting timelines and milestones.
2. REVISED COST ESTIMATE
Over the past year, the Halligan Project has faced considerable uncertainty within the federal
permitting process, which has in turn delayed the project. Unanticipated permitting and mitigation
requirements have also been encountered within the past year. In response, staff initiated a revised
cost study in June 2017.
The revised cost estimate is the most comprehensive cost estimate to date and includes an
independent (third-party) contractor’s construction cost estimate and an in-depth review of
permitting, mitigation, and construction uncertainties and risks. Cost estimates of this detail have
not been performed in the past because project requirements were largely unknown or were likely to
change. For example, the size of the Halligan Reservoir enlargement has changed four times
throughout the 12-year history of the permitting process, a result of withdrawal of project partners
and reevaluation of the City’s water needs1
.
1 It took until August 2016 for the Corps to finalize the size of the Halligan Reservoir enlargement carried forward in the
permitting process.
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
404 Permitting - Draft EIS
404 Permitting - Final EIS
404 Permitting - Permit Decision
Other federal & state permitting
Preliminary Design
Final Design
Construction
Enlarged Halligan Operations
3
Staff presented revised cost updates to the Water Board at a February 1, 2018 work session, and
incorporated Water Board’s feedback into the present cost estimate.
2.1 Past Cost Estimates
Staff hires engineering contractors to provide project cost estimates when there are major dam design
alterations or when project requirements significantly change. Since 2002, five engineer’s cost
estimates have been prepared. The last engineer’s cost update was completed in July 2015 following
the withdrawal of the North Poudre Irrigation Company from the project, which reduced the size of
the dam enlargement. Engineer’s cost estimates form the basis for quarterly cost updates to City
Council. Staff last apprised Council of project costs and schedule in November 2017, at which time
costs were based on the engineer’s estimate prepared in 2015.
2.2 Cost Refinements
In addition to incorporating an independent construction cost estimate, the revised cost update
reflects several changes to the scope of the Halligan Project, changes in market conditions, and other
cost refinements, including:
x An extension to the project timeline resulting in higher escalation costs and more ongoing
consultant costs;
x Escalation of construction material and labor using local market rates;
x Incorporation of numerous mitigation and enhancement measures identified within the last
year by the Corps and the City;
x Addition of public recreation facilities at the enlarged Halligan Reservoir;
x Reflection of more rigorous permitting requirements;
x Refinements to construction sequencing, scheduling, and staffing based on input from the
third-party contractor; and,
x Use of an industry best practice to identify project risks and to quantify the costs of
contingency required to address project risks and uncertainty.
The table below provides updated costs by category, comparisons with previously reported values,
and rationale for cost changes. All costs are provided in 4th
quarter 2017 dollars and assume
construction commencement in the spring of 2023. Staff estimates that each year of construction delay
past the spring of 2023 will increase project costs by $3.4 million due to escalation and assumed
permitting costs.
DocuSign Envelope ID: B93F8561-02BF-4CC2-83F5-D26717983D31
2.4
Packet Pg. 36
Attachment: Halligan Cost Update Memo April 6, 2018 (7852 : Halligan Water Supply Project Update)
4
Item
Last
Reported
Cost ($M)1
Revised
Cost
($M)
Difference
($M) Reason for Difference
Acquisition $3.8 $3.5 -$0.3 City owns more property around Halligan
Reservoir than initially claimed.
Construction
Construction $15.6 $17.5 $1.9 Independent cost estimate refinement.
Engineering,
Admin & Mgmt $5.1 $7.0 $1.9
Independent cost estimate revised admin. and
management needs, including City personnel.
Identified
Mitigation $2.4 $3.0 $0.6
Includes costs for recently developed mitigation,
enhancement, and recreation projects
Permitting $14.9 $16.8 $1.9
Recent delays increased permitting costs.
Additional costs added for non-Corps permits
based on other Front Range projects.
Debt Service $1.9 $1.9 $0.0
Escalation $0.0 $8.2 $8.2 Schedule delays. Independent cost estimate
revised escalation rates.
Risk Mitigation/
Contingency $3.1 $16.3 $13.2
Additional funds required to address design,
construction, mitigation, and permitting risks and
uncertainties.
Total2
$46.8 $74.1 $27.3
1) Project costs last reported November 1, 2017.
2) Line items may not sum to total due to rounding.
Most cost increases are attributable to two items, which warrant further discussion:
1) $13.2 million in risk mitigation/contingency to address project uncertainties; and
2) $8.2 million for escalation of material and labor costs.
2.3 Risk Mitigation and Contingency
At this stage in the project there remains considerable uncertainty in the dam’s design and permitting
and mitigation requirements. A project contingency of 40 percent of the total project cost is
currently allocated to address risks related to current project uncertainties, as described below.
Using best practices in project risk management, Staff compiled a register of identified risks in the
project’s permitting, mitigation, design, and construction phases. For each item in the risk register,
we estimated a cost of consequence and assigned a probability of occurrence. The cost of each risk
was then reduced to account for the unique probability of occurrence. The risk register identified
over 20 risks and $14.6 million in potential consequences. Based on the current level of design of
DocuSign Envelope ID: B93F8561-02BF-4CC2-83F5-D26717983D31
2.4
Packet Pg. 37
Attachment: Halligan Cost Update Memo April 6, 2018 (7852 : Halligan Water Supply Project Update)
5
the project, as well as input from independent construction contractors and Water Board, staff
increased this amount approximately 10% to $16.3 million. This equates to 40% of the total
anticipated project cost being held to address project risks associated with uncertainty. Retaining
40% of project costs to address risks and uncertainties is standard industry practice for project
budgeting purposes at this phase of conceptual design.
The risk register indicates that past engineer’s cost estimates generally underestimated project risks
and contingency requirements. Past engineer’s cost estimates could not contemplate certain risks
that are much better understood today, e.g., that permitting would take 15+ years to complete.
Further design of the dam enlargement will refine many of the costs included in the $16.3 million
contingency. However, given the high cost of such design work, combined with the project history
of changes in dam size and concept, staff has elected not to undertake these next project design steps
until the City is relatively assured the project will be permitted and until design requirements are
better developed through the permitting process. Waiting to complete preliminary and final design
until the permitting process is further resolved is not only prudent, but is common practice among
other Corps-permitted water supply projects. Staff intends to commence preliminary design
following public comment on the draft EIS.
The $16.3 million contingency also accounts for uncertainties of federal permitting and mitigation
requirements. Permitting processes and mitigation requirements are dictated by federal and state
agencies and are thus largely outside the City’s control. Although future permitting and mitigation
requirements have become much clearer in recent months, staff believes it prudent to include
contingency to address further permitting delays or more costly mitigation measures.
The City “owns” the entire contingency budget. The cost of risks that fail to materialize will not be
incurred.
2.4 Cost Escalation
Staff updates construction costs for the Halligan Project quarterly using national construction cost
indices2
. While this rate has escalated 1.2% annually since 2015, local rates in the heavy
construction maket have seen escalation of 5% annually per input from local contractors. Staff
applied the 5% local escalation rate to all future project costs. Compounded annually and extended
by delays in the permitting process, even small adjustments to escalation rates lead to large increases
in project costs.
2.5 Cost Assumptions
The updated cost estimate is based on several assumptions that, if proven otherwise, could increase
the cost of the project. Such assumptions include:
x Construction will commence in the spring of 2023;
x Construction will be completed within two years (weather delays will increase costs);
x Local material and labor costs escalate at or less than 5% annually;
x Preliminary and final designs will not deviate substantially from the feasibility design;
x The existing dam is structurally competent for enlargement and outlet works tunneling;
2 Indices taken from the U.S. Bureau of Reclamation’s quarterly construction cost trend for concrete dams.
DocuSign Envelope ID: B93F8561-02BF-4CC2-83F5-D26717983D31
2.4
Packet Pg. 38
Attachment: Halligan Cost Update Memo April 6, 2018 (7852 : Halligan Water Supply Project Update)
6
x All mitigation will be accomplished by onsite measures; and,
x The draft EIS will provide a significant majority of all resource studies needed for other
federal and state permits.
x Costs do account for potential legal challenges to permit issuance.
3. FUTURE COSTS and APPROPRIATIONS
A summary of past and future expenses for the Halligan Project is provided in the table below. The
table indicates $56.9 million in future expenditures and a need for an additional $36.7 million in new
appropriations for the project. The project has received reimbursements for shared project expenses
of $4.6 million to date. These reimbursements have not been re-appropriated to the project budget but
are shown in the table below for completeness.
Future appropriations for the Halligan Project, if approved, will be sourced from Water Enterprise
Fund reserves. Revenue for the Water Enterprise Fund is provided from water rates and development
fees. In particular, revenue collected from cash-in-lieu payments for water supply requirements and
commercial water surcharges are accrued to the Water Rights Reserve Fund. The Water Rights
Reserve Fund is a component of the Water Enterprise Fund, and funds water supply development
projects such as the Halligan Project.
The current balance of Water Rights Reserve Fund is approximately $25 million. The updated project
cost estimate would increase the Utilities’ cash-in-lieu rate for Water Supply Requirements from
$17,300 per acre-foot to approximately $21,200 per acre-foot, an increase of 23%. The Utilities’ cash-
in-lieu rate is updated every two years, with the next update planned in 2020. Revised costs for the
Halligan Project, along with other water supply factors, will be evaluated prior to updating the cash-
in-lieu rate.
DocuSign Envelope ID: B93F8561-02BF-4CC2-83F5-D26717983D31
2.4
Packet Pg. 39
Attachment: Halligan Cost Update Memo April 6, 2018 (7852 : Halligan Water Supply Project Update)
7
Expenses ($M)1 To Date2 Future Total
Acquisition $3.3 $0.3 $3.6
Permitting & Mitigation $12.0 $9.1 $21.1
Construction - $31.3 $31.3
Debt Service3 $1.9 - $1.9
Risk Mitigation/Contingency - $16.3 $16.3
Total $17.2 $56.9 $74.1
Final Utility Cost ($M) To Date2 Future Total
Project Costs $17.2 $56.9 $74.1
Less Reimbursements4 ($4.6) ($0.1) ($4.7)
Total5 $12.6 $56.8 $69.4
Appropriations ($M) To Date2 Future Total
Past Appropriations $37.4 - $37.4
Required Future Appropriation - $36.7 $36.7
Total $37.4 $36.7 $74.1
1) Expenses include escalation in each line item. Line items may not sum to total due to rounding.
2) Past costs through December 2017.
3) Debt service payments from 2004 to 2014 were allocated as Halligan project expenses. All future debt service payments will not
be accounted as a project cost.
4) Reimbursements were received from former project partners (North Poudre Irrigation Co. and the Tri-Districts) between 2005 and
2014; miscellaneous reimbursements have been and will be collected from the City of Greeley and from rents in the future.
5) Total Utility cost includes debt service and deducts reimbursements.
4. ALTERNATIVE COMPARISON
Despite the increased costs, the Halligan Project remains, by a wide margin, the most economical
project for Utilities to secure additional water supplies. The Halligan Project will provide firm yield
(i.e., the amount of water supply that can be reliably provided in a drought) at a cost of $8,800 per
acre-foot3
, which is far below the cost of other water supply options. For comparison, the market
rate for firm yield from the Colorado-Big Thompson project is $60,000 per acre-foot. Firm yield
from the Northern Integrated Supply Project (“NISP”) will cost approximately $25,000 per acre-foot
and from the Windy Gap Firming Project, firm yield will cost more than $14,000 per acre-foot. All
other alternatives analyzed in the federal permitting process have larger capital costs than the
Halligan Project.
3 Based on net cost of the project to Utilities of $69.4 million.
DocuSign Envelope ID: B93F8561-02BF-4CC2-83F5-D26717983D31
2.4
Packet Pg. 40
Attachment: Halligan Cost Update Memo April 6, 2018 (7852 : Halligan Water Supply Project Update)
8
Costs for other Front Range water supply projects have seen similar cost increases over time as the
project scope and requirements were refined. For example, the cost of NISP was reported in 2008 to
be $426 million4
. Recently, the cost of was reported to exceed $1 billion.
Staff has evaluated numerous other water supply options, both within and outside the federal
permitting process, in recent years. In addition to cost savings, the Halligan Project provides many
advantages over these other alternatives, including:
x Operates by gravity, thereby requiring no pumping or generating associated greenhouse gas
emissions;
x Low operating costs;
x Addresses deteriorating conditions and safety concerns of the nearly 110-year old Halligan
Dam;
x Delivers high quality water supplies that require no pre-treatment;
x Provides significant flow and habitat improvements to the North Fork of the Poudre River;
and,
x Provides new reservoir recreation opportunities.
5. PROCESS IMPROVEMENTS
Staff has reflected on the events and past assumptions that led to the large increase in project costs to
identify opportunities for future improvement. Procedures used in the revised Halligan Project cost
study fit within the ongoing Utilities-wide effort to better quantify project risks and include funds for
project uncertainty and risk mitigation in preliminary project budgets. As noted above, nearly half
of the cost increase documented in this memo is attributable to additional budget to address project
risks.
The Halligan Project is unique among Utilities capital projects in that major costs (e.g., permitting,
mitigation, and certain dam requirements) will be mandated by federal and state agencies and are
thus outside the City’s control. Further complicating cost estimating is that permitting and
mitigation requirements frequently change. Nevertheless, staff has identified the following actions
to lessen future cost uncertainties:
x Establish a project design team prior to release of the draft EIS.
x Initiate site characterization and preliminary design following the public comment period on
the draft EIS.
x Increase dialogue with other applicants for federally permitted water supply projects to
gather lessons learned (to this point, staff recently met with Denver Water and Colorado
Spring Utilities).
x Increase the frequency of cost estimate updates.
x Assess local labor and material market conditions more regularly.
CC: Water Board
Lance Smith, Utilities Strategic Finance Director
Owen Randall, Chief Engineer
Donnie Dustin, Water Resources Manager
4 Value from NISP Draft EIS
DocuSign Envelope ID: B93F8561-02BF-4CC2-83F5-D26717983D31
2.4
Packet Pg. 41
Attachment: Halligan Cost Update Memo April 6, 2018 (7852 : Halligan Water Supply Project Update)
1
Halligan Water Supply Project
City Council Work Session
April 9, 2019
Glossary of Key Terms
1-in-50 Year Drought Criterion - Criterion adopted in the current Water Supply and
Demand Management Policy that defines the level of risk for the City’s water supply
system. A drought is a period of below average runoff that can last one or more years and
is often measured by its duration, average annual shortage and cumulative deficit below
the average. A 1-in-50 drought corresponds to a dry period that is likely to occur, on
average, once every 50 years. Although the Poudre River Basin has several drought
periods in its recorded history, it is difficult to assess whether any of these droughts were
equal in magnitude to a 1-in-50 drought. A statistical drought study developed the 1-in-50
drought used in assessing the Utilities water supply system. This drought period is six
years long and has a cumulative deficit of 550,000 acre-feet, which represents annual
river volumes that are about 70% of the long-term average for the Poudre River.
1041 Permit – A permit by which the County can regulate areas and activities of state
interest through a local permitting process. The 1041 Permit process allows counties to
identify, designate, and regulate areas and activities of state interest to maintain their
control over certain development projects. A 1041 Permit can be awarded through an
application and hearing process or through an intergovernmental agreement approved by
the Larimer County Board of County Commissioners.
401 Certification – 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 & Environment.
Acre-Foot or Acre-Feet (AF) - Volume of water equal to about 326,000 gallons or the
volume of water that can cover an area of one acre to a depth of one foot. One acre-foot
can supply around three to four single family homes in Fort Collins per year. For storage
comparison the maximum volume of Horsetooth Reservoir is about 157,000 acre-feet.
Active Capacity - The usable capacity of a reservoir for storage and regulation of inflows
and releases that does not include any capacity below the reservoir’s lowest outlet (which
is known as dead capacity).
Adaptive Management - A management strategy that anticipates likely challenges
associated with compensatory mitigation projects and provides for the implementation of
actions to address those challenges, as well as unforeseen changes to those projects. (40
C.F.R. § 230.92)
ATTACHMENT 5 2.5
Packet Pg. 42
Attachment: Glossary of Key Terms (7852 : Halligan Water Supply Project Update)
2
Carryover - Used in reference to storage, it is the ability to save water in storage for later
use, most notably in following years.
Colorado-Big Thompson (CBT) Project - A Bureau of Reclamation project 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. It is
operated by Northern Water. Fort Collins Utilities currently owns 18,855 units of the
310,000 total units in the CBT project.
Cubic Feet per Second (cfs) - Volumetric flow rate equal to one cubic foot flowing every
second. For comparison, an average peak flow rate on the Poudre River at the Lincoln
Street gage (downtown) is around 1,900 cfs and a median winter-time low flow rate in
December at the same location is around 7 cfs.
Direct Flow Rights - Water rights that can be taken for direct use, as opposed to storage
rights that can be taken for later use. See also “Senior Water Rights.”
DEIS or EIS - Draft Environmental Impact Statement. A report detailing the findings of
the NEPA environmental review process. The report can be reviewed by the public and
those comments are typically addressed in a Final Environment Impact Statement. See
also “NEPA.”
ELCO - East Larimer County Water District; see also “Tri-Districts.”
FCLWD - Fort Collins-Loveland Water District; see also “Tri-Districts.”
Firm Yield - A measure of the ability of a water supply system to meet water demands
through a series of drought years. For the Fort Collins Utilities, this means being able to
meet the planning demand level and storage reserve factor through the 1-in-50-year
drought criterion. See also “1-in-50 Year Drought Criterion,” “planning demand level”
and “storage reserve factor.”
Fish and Wildlife Mitigation Plan – A FWMP is the State of Colorado’s position on
measures that will be employed to mitigate the impacts to fish and wildlife resources.
The FWMP is not a permit but rather a recommendation to the US Army Corps of
Engineers. Typically, FWMPs are integrated into federal permits or are enforced through
separate agreements between the water project proponent (i.e., the City) and Colorado
Department of Natural Resources.
GMA - Growth Management Area, the planned boundary of the City of Fort Collins’
future City limits.
gpcd - Gallons per capita per day. A measurement of municipal water use. For the Fort
Collins Utilities, gpcd is calculated based on the total annual treated water produced at
the Water Treatment Facility for use by all Water Utility customers (minus large
2.5
Packet Pg. 43
Attachment: Glossary of Key Terms (7852 : Halligan Water Supply Project Update)
3
contractual customers and other sales or exchange agreements) divided by the estimated
population of the Water Utility’s service area and 365 days.
LEDPA - Least Environmentally Damaging Practicable Alternative, which is the only
alternative that can be permitted by the U.S. Army Corps of Engineers under Section 404
of the Clean Water Act.
NEPA - National Environmental Policy Act. Federal legislation that established
environmental policy for the nation. NEPA requires consideration of potential
environmental effects of, and reasonable alternatives to, any major federal action. To
comply with NEPA, the Corps is required to prepare an environmental analysis.
This environmental analysis must assess the direct, indirect and cumulative
environmental impacts of the proposed action and a range of reasonable alternatives that
would meet the purpose and need identified by the lead agency as well as proposed
mitigation to address the impacts.
NISP - Northern Integrated Supply Project, which is being developed in the Poudre River
Basin by Northern Water for fifteen participants in the northern Colorado region.
Northern Water - Operates the Colorado-Big Thompson (CBT) Project and is involved in
several other regional water projects on behalf of their participants. See also “Colorado-
Big Thompson (CBT) Project” and “NISP.”
NPIC - 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 currently owns about 36% of the shares in NPIC.
NWCWD - North Weld County Water District; see also “Tri-Districts.”
Planning Demand Level - Level of water use (demand) in gpcd used for water supply
planning purposes that is a factor in determining the amount of water supplies and/or
facilities needed. The current Planning Demand Level used by Utilities to determine
future water supply needs is 150 gpcd. 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 Water
Supply and Demand Management Policy, the storage reserve factor incorporates having
20 percent of annual demands in storage through the 1-in-50 drought, which equates to
about 3.5 months of winter (indoor) demands or 1.5 month of summer demands.
Senior Water Rights - Refers to Colorado water law’s use of the “prior appropriation” or
priority system, which dictates that in times of short supply, earlier water rights decrees
(senior rights) will get their water before others (junior rights) can begin to use water.
Often described as “first in time, first in right.”
2.5
Packet Pg. 44
Attachment: Glossary of Key Terms (7852 : Halligan Water Supply Project Update)
4
Southside Ditches - Refers to the irrigation ditches that run through the City of Fort
Collins, including the Arthur Ditch, New Mercer Ditch, Larimer County Canal No. 2 and
Warren Lake Reservoir. The Pleasant Valley and Lake Canal is another ditch that runs
through Fort Collins and is sometimes considered a Southside Ditch.
Tri-Districts - The combination of the three regional water districts: East Larimer County
(ELCO), Fort Collins-Loveland (FCLWD) and North Weld County (NWCWD) Water
Districts. These districts share the same water treatment plant called Soldier Canyon
Filter Plant, which is located adjacent to Fort Collins Utilities’ Water Treatment Facility.
Water Rights Portfolio - The mix of water rights owned by a water supplier. Typically
includes water for direct use, as well as for storage for later use. Fort Collins Utilities’
water rights portfolio includes City-owned water rights, owned and/or converted shares in
agricultural rights, storage rights at Joe Wright Reservoir, and ownership in the CBT
project.
WSDMP - Water Supply & Demand Management Policy. The Policy provides Fort
Collins Utilities guidance in balancing water supplies and demands.
WSR - Water Supply Requirements (previously known as Raw Water Requirements),
which require new development to turn in water rights or cash-in-lieu of water rights to
support the water needs of that development. Cash is used to increase the firm yield and
long-term reliability of the City’s supply system (e.g., purchase additional storage
capacity).
Yield or Water Rights Yield - Refers to the amount of water that is produced from a
water right. The yield of water rights varies 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” and “Senior Water Rights.”
2.5
Packet Pg. 45
Attachment: Glossary of Key Terms (7852 : Halligan Water Supply Project Update)
+DOOLJDQ:DWHU6XSSO\3URMHFW8SGDWH
'RQQLH'XVWLQ:DWHU5HVRXUFHV0DQDJHU
(LOHHQ'RUQIHVW3URMHFW0DQDJHU
$SULO
ATTACHMENT 6
2.6
Packet Pg. 46
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
3XUSRVH
8SGDWHRQ+DOOLJDQ:DWHU6XSSO\3URMHFW
:DWHU6XSSO\ 'HPDQG%DFNJURXQG
3XEOLF3URFHVV 'UDIW(QYLURQPHQWDO
,PSDFW6WDWHPHQW (,6
,QSXWIURP&RXQFLO
2.6
Packet Pg. 47
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
'LUHFWLRQ6RXJKW
'RHV&RXQFLOKDYHDQ\VSHFLILF
TXHVWLRQVDERXWWKHSXEOLFSURFHVV"
'RHV&RXQFLOKDYHDQ\TXHVWLRQVRU
FRQFHUQVUHJDUGLQJWKHFXUUHQWSODQIRU
PRYLQJIRUZDUGZLWKWKH+DOOLJDQ:DWHU
6XSSO\3URMHFW"
2.6
Packet Pg. 48
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
/HJHQG
+DOOLJDQLVIRU8WLOLWLHV¶
ZDWHUVHUYLFHDUHD
)RUW&ROOLQV:DWHU'LVWULFWV
2.6
Packet Pg. 49
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
8WLOLWLHV:DWHU6XSSO\6RXUFHV
$YHUDJLQJFORVH
WRDVSOLW
EHWZHHQVRXUFHV
&DFKHOD
3RXGUH5LYHU
&RORUDGR%LJ7KRPSVRQ
3URMHFW &%7
2.6
Packet Pg. 50
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
6WUDWHJLF$OLJQPHQW
(QYLURQPHQWDO
+HDOWK
:DWHU6XSSO\
'HPDQG0JW3ROLF\
+DOOLJDQ:DWHU6XSSO\3URMHFW&RQVLVWHQWZLWK6WUDWHJLF2EMHFWLYHV
2.6
Packet Pg. 51
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
:DWHU
6XSSO\
3ODQQLQJ
&ULWHULD
3ODQQLQJ'HPDQG/HYHO
JSFG
'URXJKW&ULWHULRQ
LQ\HDUGURXJKW
6WRUDJH5HVHUYH)DFWRU
SHUFHQWRIDQQXDOGHPDQGV
:DWHU6XSSO\ 'HPDQG0DQDJHPHQW3ROLF\
2.6
Packet Pg. 52
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
:DWHU)XWXUH6WUDWHJLHV
6XVWDLQDEOHDQGLQWHJUDWHGDSSURDFK_$YRLGPLQLPL]HRURIIVHWLPSDFWV
&RQVHUYDWLRQ 3RUWIROLRRI
5HVRXUFHV
,QIUDVWUXFWXUH
6HFXULW\
&ROODERUDWLRQ
2QJRLQJ'DWD
(YDOXDWLRQ
,QQRYDWLRQ
:DWHU4XDOLW\
(GXFDWLRQ
3ODQIRU
(PHUJHQFLHV
2.6
Packet Pg. 53
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
3RUWIROLRRI5HVRXUFHV
&LW\RZQHGZDWHUULJKWVDQG
FRQYHUWHGDJULFXOWXUDOVKDUHV
&%7RZQHUVKLS
6WRUDJH LQFOXGLQJ
SHUFHQWUHVHUYH
2.6
Packet Pg. 54
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
6WRUDJH$YDLODEOHWR3URYLGHU
2.6
Packet Pg. 55
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
)XWXUH:DWHU'HPDQGV
$QQXDO
)LUP<LHOG
a
DFUHIHHW
3URMHFWHG
'HPDQG
a
DFUHIHHW
SRSXODWLRQ
VHUYHG
a
SHRSOH
SRSXODWLRQ
VHUYHG
a
SHRSOH
,QFOXGHVODUJHFRQWUDFWXDO
XVHLQFUHDVHV HJ
EUHZHULHVPDQXIDFWXULQJ
2.6
Packet Pg. 56
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
'HFLVLRQ3RLQWV
,PDJHVRXUFH 'HQYHU:DWHU
7KH&RQHRI8QFHUWDLQW\
1HDU7HUP6WUDWHJ\
2.6
Packet Pg. 57
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
+DOOLJDQ5HVHUYRLU(QODUJHPHQW
2.6
Packet Pg. 58
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
:KDW'LIIHUHQWLDWHV+DOOLJDQ"
3URSRVHG+DOOLJDQ5HVHUYRLU
aDFUHIHHW
+RUVHWRRWK 5HVHUYRLU
aDFUHIHHW
6WRUDJH&RQWHQWV DFUHIHHW
0RGHOHG<HDU
+DOOLJDQ5HVHUYRLU(QODUJHPHQW6WRUDJH
/HYHOV 8WLOLWLHV3RUWLRQ
5HOHDVHVWKDW
LPSURYHIORZV
5HOHDVHVGXULQJ
GURXJKWSHULRGV
2.6
Packet Pg. 59
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
:K\+DOOLJDQ"
)XWXUH
'HPDQG
5HOLDELOLW\
&RVW
(IIHFWLYH
7ULSOH%RWWRP
/LQH%HQHILWV
2.6
Packet Pg. 60
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
+DOOLJDQ(QODUJHPHQW
*UDYHO3LWV
$JULFXOWXUDO5HVHUYRLUV
([SDQGHG*ODGH
1R$FWLRQ
(,6$OWHUQDWLYHV
2.6
Packet Pg. 61
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
,QXQGDWLRQRIZHWODQGV
6HDVRQDOLQXQGDWLRQRI
ôPLOHVWUHDPFKDQQHO
3UHEOH¶V0HDGRZ
MXPSLQJPRXVH
&RQVWUXFWLRQ
,PSDFWV
2.6
Packet Pg. 62
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
5LYHU,PSDFWV
6OLJKWGHFUHDVHLQIORZVGXULQJ
UXQRII
6OLJKWGHFUHDVHLQIORZVGXULQJUXQRII
0RVWPRQWKVRSHUDWLRQVRQ
ZRXOGLQFUHDVHIORZV
2.6
Packet Pg. 63
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
(QVXUHV\HDUURXQGIORZVRQ1RUWK)RUN
5HFRQQHFWVPLOHVRIULYHU
,PSURYHVZDWHUWHPSHUDWXUHV
5HKDELOLWDWHVDJLQJGDP
%HQHILWV
2.6
Packet Pg. 64
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
$QWLFLSDWHG&RVW
0
DFUHIRRW
2018 estimate (conceptual)
ŽŶƐƚƌƵĐƚŝŽŶ
Ψϯϭ͘ϯ
ϰϮй
WĞƌŵŝƚƚŝŶŐΘ
DŝƚŝŐĂƚŝŽŶ
ΨϮϭ͘ϬD
Ϯϴй
<ŶŽǁŶн
hŶŬŶŽǁŶZŝƐŬ
;ŽŶƚŝŶŐĞŶĐLJͿ
Ψϭϲ͘ϯD
ϮϮй
>ĂŶĚ
ĐƋƵŝƐŝƚŝŽŶ
Ψϯ͘ϲD
ϱй
Ğďƚ^ĞƌǀŝĐĞ
Ψϭ͘ϵD
ϯй
2.6
Packet Pg. 65
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
3DWK)RUZDUG
'HYHORSDQG
,VVXH'UDIW(,6
3XEOLF
&RPPHQW
3HULRG
3UHSDUHDQG
3XEOLVK
)LQDO(,6
5HFRUGRI
'HFLVLRQ
2WKHU3HUPLWWLQJ HJFHUW)LVK :LOGOLIH0LWLJDWLRQ
UHJFRQVWUXFWLRQSHUPLWVHWF
6FKHGXOH
0DU $SU 0D\ -XQ -XO $XJ 6HS 2FW 1RY 'HF
3XEOLF(QJDJHPHQW &RPPXQLFDWLRQV
/DQG$FTXLVLWLRQ
3URFXUH'HVLJQ7HDP
'UDIW(,6
&RQFHSWXDO0LWLJDWLRQ3ODQ
2SHUDWLRQV3ODQ
3XEOLF&RPPHQW3HULRG
3UHOLPLQDU\'HVLJQ
8SGDWHG&RVW(VWLPDWH
:HEVLWHXSGDWHV
2.6
Packet Pg. 67
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
3XEOLF&RPPHQW3HULRG &LW\5ROHV
9 'LUHFWFRPPHQWVWRWKH&RUSV
9 3URYLGH&LW\¶VRSLQLRQ
9 $QVZHUJHQHUDOTXHVWLRQVHGXFDWH
9 6XSSRUW&RUSV¶RSHQKRXVHV
[ $FFHSWRIILFLDOSXEOLFFRPPHQWV
[ $QVZHUWHFKQLFDOTXHVWLRQV
[ +RVWRSHQKRXVHV
[ 3URYLGHWKH&RUSV¶RSLQLRQ
'2 '21¶7
2.6
Packet Pg. 68
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
$YRLG,PSDFWV 0LQLPL]H,PSDFWV
3URYLGH
&RPSHQVDWRU\
0LWLJDWLRQ
&RQFHSWXDO0LWLJDWLRQ
3URFHVV
2.6
Packet Pg. 69
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
0LWLJDWLRQ$SSURDFK
$UHDV1HDU+DOOLJDQ
'HJUDGHG5HVRXUFHV
+ROLVWLF$SSURDFK
/RFDO3DUWQHUVKLS
*XLGLQJ
3ULQFLSOHV
2.6
Packet Pg. 70
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
1RUWK)RUN+DELWDW,PSURYHPHQW
0LQLPXPIORZV
5HFRQQHFWLRQ
7HPSHUDWXUH
:DWHUTXDOLW\
2.6
Packet Pg. 71
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
&RQFHSWXDO0LWLJDWLRQDQG(QKDQFHPHQW
:HWODQGV KDELWDW
7HPSRUDU\FRQVWUXFWLRQLPSDFWV
0RQLWRULQJDQG$GDSWLYH0DQDJHPHQW3ODQ
2.6
Packet Pg. 72
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
3XEOLF5HFUHDWLRQ
*RDOV
6DIHSXEOLFDFFHVV
0DLQWDLQSULPLWLYHVSLULW
0LQLPL]HLPSDFWV
3URWHFWSXEOLFDVVHW
2.6
Packet Pg. 73
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
3XEOLF$FFHVV/LPLWDWLRQV
6DIHW\ 6HFXULW\
(QYLURQPHQWDOFRQVHUYDWLRQ
/DQGRZQHUFRQFHUQV
2.6
Packet Pg. 74
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
'LUHFWLRQ6RXJKW
'RHV&RXQFLOKDYHDQ\VSHFLILF
TXHVWLRQVDERXWWKHSXEOLFSURFHVV"
'RHV&RXQFLOKDYHDQ\TXHVWLRQVRU
FRQFHUQVUHJDUGLQJWKHFXUUHQWSODQIRU
PRYLQJIRUZDUGZLWKWKH+DOOLJDQ:DWHU
6XSSO\3URMHFW"
2.6
Packet Pg. 75
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
fcgov.com/halligan
2.6
Packet Pg. 76
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
&RQVWUXFWLRQ
3UHOLPLQDU\ )LQDO'HVLJQ
6FRSLQJ3XUSRVH 6FRSLQJ3XUSRVH 1HHG$1HHG$OWHUQDWLYHV6WXGLHV OWHUQDWLYHV6WXGLHV
2.6
Packet Pg. 66
Attachment: PowerPoint (7852 : Halligan Water Supply Project Update)
DocuSign Envelope ID: B93F8561-02BF-4CC2-83F5-D26717983D31
2.4
Packet Pg. 35
Attachment: Halligan Cost Update Memo April 6, 2018 (7852 : Halligan Water Supply Project Update)
Red Feather Lakes Rd
North Poudre Ditch
Lone Pine Creek
Rabbit Creek
DISCONNECTED RIVER CURRENT CONNECTED RIVER PROPOSED
N N
The dry stream reach in winter results from current reservoir
operations. Outlet gates are closed after irrigation season
and water does not reach the North Fork until the dam spills
in late winter. Minor seepage through closed gates and
some groundwater seepage provide the only water to this
section of river during the winter.
The dry stream reach in the summer results
from operation of the North Poudre Canal
diversion structure, which is in operation
during the irrigation season. Often, the river's
entire flow is diverted into the canal.
Aids and services are available for persons with disabilities. 19-20574
The Halligan Water Supply
Project will provide flows
to the river year-round,
which will create healthier
conditions for the entire
aquatic ecosystem.
Stonewall Creek
Stonewall Creek
North Poudre
Canal Diversion
Structure
North Poudre
Canal Diversion
Structure
SEAMAN
RESERVOIR
SEAMAN
RESERVOIR
CURRENT AND PROPOSED RIVER CONDITIONS
BELOW HALLIGAN RESERVOIR
ATTACHMENT 2 2.2
Packet Pg. 32
Attachment: Current and Proposed River Conditions (7852 : Halligan Water Supply Project Update)
1
We are committed to the concept of competition for locations
and expansions among our individual communities and
projects, provided that the prospect has asked for specific
proposals or has settled on a northern Colorado location.
At no time shall any member of the Partnership solicit a fellow
member’s prospects.
We are committed to working together with the real estate
community and are in no way in direct competition with them.
Economic developers are a resource and facilitator in the site
selection process.
We are committed to sharing among our membership as
much information as is necessary and prudent on any
activity undertaken by or in the name of the Partnership.
Our guiding principle shall be that “more information is
better than less.”
At no time shall any economic development organization
member of the Partnership advertise or promote its
respective area to companies within another member’s
geographic area in a manner that is derogatory or
insulting to the other geographic area. “Selling against
another member of the Partnership or another Colorado
community, or direct solicitation of intrastate relocations,
is strongly discouraged.
We are committed to locating prospects in the Northern
Colorado region. In the event that our local jurisdictions
cannot meet the needs of a particular prospect we shall
communicate with our fellow members in an effort to
meet the company’s needs elsewhere in the northern
Colorado area.
Economic development organizations shall hold all site
and building information provided by member real estate
brokerage firms in the strictest confidence. Said
information shall not be printed, copied, and shown in any
manner to any entity other than prospects or their direct
representatives.
ATTACHMENT 1 1.1
Packet Pg. 7
Attachment: Regional Code of Ethics (7848 : Update on Regional Economic Collaboration)