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HomeMy WebLinkAboutMemo - Mail Packet - 2/16/2021 - Memorandum From Eileen Dornfest Re: Halligan Water Supply Project Update - 2020 Year In Review Utilities electric · stormwater · wastewater · water 700 Wood Street PO Box 580 Fort Collins, CO 80522 970.212.2900 V/TDD 711 utilities@fcgov.com fcgov.com/utilities M E M O R A N D U M DATE: February 1, 2021 TO: Mayor Troxell and Councilmembers FROM: Eileen Dornfest, Special Projects Manager THROUGH: Darin Atteberry, City Manager Theresa Connor, Interim Utilities Executive Director RE: Halligan Water Supply Project Update - 2020 Year in Review The purpose of this memo and attachment is to provide the following information about the Halligan Water Supply Project (Halligan Project): 1. A summary of 2020 accomplishments and upcoming activities 2. An update on the project schedule BOTTOM LINE 2020 was a successful year for the Halligan Project and included the public comment period for the draft Environmental Impact Statement (EIS), as well as the commencement of two state permitting processes required for the project: 1. The Fish & Wildlife Mitigation and Enhancement Plan 2. The 401 Water Quality Certification. A summary of 2020 accomplishments and upcoming activities is included as Attachment 1. The state permitting processes that began in 2020 will require additional analyses beyond those conducted by the U.S. Army Corps of Engineers (Corps) for the EIS. These will add two additional years to the permitting schedule but will result in a more comprehensive understanding of the Halligan P PROJECT SCHEDULE The current project schedule (shown below and in Attachment 1) has been updated in two respects since it was last shared with City Council as part of a quarterly project update on Aug. 3, 2020. The schedule has been modified to reflect: 1. Additional time needed to perform analyses required to obtain a 401 Water Quality Certification 2. Schedule uncertainty inherent in a long-term project like the Halligan Project Figure 1. Updated Halligan Water Supply Project schedule. Additions to the Project Schedule Water supply projects like the Halligan Project typically involve decades of environmental studies and permitting. Before construction of an enlarged reservoir can begin, the City of Fort Collins must first obtain local, state, county, and federal permits. The Halligan Project reached its first major permitting milestone in late 2019 with release of the draft EIS by the Corps. The Corps is the lead permitting agency for the project and guides the timing and extent of the other required permitting efforts. State permitting processes can begin after release of the draft EIS, and as such the two state processes required for the Halligan Project began in 2020: 1. Fish & Wildlife Mitigation and Enhancement Plan 2. 401 Water Quality Certification The State of Colorado performs a detailed analysis of the project related to impacts to fish, wildlife, and water quality. The federal EIS evaluates the impacts related to the Halligan Project and three other water supply alternatives. In addition to that effort, the state will look more closely at the Halligan Project by evaluating the impacts and benefits in more detail. This requires additional impacts and benefits and the opportunity to create a better overall project for the environment. The updated schedule shows two additional years of permitting prior to construction, due to these more detailed analyses. Schedule Variability The updated schedule format (shown in Figure 1) includes faded bars to indicate uncertainty in the schedule and capture a range of scenarios that could impact the overall schedule. The project schedule is driven predominantly by the permitting processes and Staff have limited control over those processes and schedules. Given the long-term nature of the project and the permitting steps remaining, the schedule will continue to be presented as a range of timeframes. Schedule Impacts to Projected Costs Additions to the schedule affect the overall project cost. Costs will increase due to time needed for additional analyses as well as construction cost escalation. Project costs were last updated in 2019 and communicated to City Council in a memo dated Aug. 26, 2019. Enlarging Halligan Reservoir remains the most cost-effective water supply customers. The project cost estimate will be updated again in 2022 after completion of 30% design. The updated estimate will be analyzed to verify that the Halligan Project remains the most reliable and cost-As noted in previous quarterly updates, costs are anticipated to change and likely grow as the project scope is refined and permitting requirements and design components are better understood through time. Next Steps Attachment 1 describes upcoming project activities. Quarterly updates will continue to be provided to City Council in 2021. If there are any questions about this update, contact Eileen Dornfest at 970-416-4296 or edornfest@fcgov.com. Attachments: Attachment 1: 2020 Year-in-Review CC: Water Board Lance Smith, Utilities Finance Director Donnie Dustin, Water Resources Manager Liesel Hans, Interim Deputy Director - Water Resources & Treatment Operations Mark Kempton Interim Deputy Director - Water Resources & Treatment Operations