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HomeMy WebLinkAboutMemo - Mail Packet - 11/7/2023 - Memorandum From Darren Parkin Re: Halligan Water Supply Project Final Environmental Impact Statement PublishedUtilities 700 Wood St., Fort Collins, CO 80521 PO Box 580, Fort Collins, CO 80522 970-212-2900 halligan@fcgov.com MEMORANDUM Date: Oct. 30, 2023 To: Mayor and City Councilmembers Through: Tyler Marr, Deputy City Manager Kendall Minor, Utilities Executive Director Jason Graham, Director of Water Utilities From: Darren Parkin, Halligan Project Manager Subject: Halligan Water Supply Project Final Environmental Impact Statement Published On Oct. 23, 2023, the U.S. Army Corps of Engineers (“Corps”) published the Halligan Water Supply Project final Environmental Impact Statement (“EIS”), which is a big step in the federal permitting process. The Halligan Water Supply Project will provide space to store Fort Collins Utilities’ (“Utilities”) water rights, enabling a more robust, resilient, and reliable water supply for current and future customers. The Final EIS and Permitting Update The Halligan Water Supply Project requires a permit under Section 404 of the Clean Water Act (“404 Permit”) and must comply with the National Environmental Policy Act. The final EIS describes potential impacts from enlarging Halligan Reservoir and other water supply alternatives that the Corps considered. The Corps previously conducted a draft EIS process, which included a public comment period. The final EIS addresses the comments the Corps received. The project’s EIS documents are online at: https://www.nwo.usace.army.mil/Missions/Regulatory-Program/Colorado/EIS-Halligan/. In 2025, the final EIS will be supplemented with a water quality certification under Section 401 of the Clean Water Act. Shortly thereafter, the Corps is expected to issue its 404 Permit and associated Record of Decision to conclude the federal permitting process. Utilities will begin the Larimer County 1041 permit process next year, as the project is a matter of state interest. Upon permit submission, Larimer County Board of County Commissioners will consider the application and take public testimony. Once all local, state, and federal permits and approvals are in place, and the dam design is complete, construction can begin at Halligan Reservoir. DocuSign Envelope ID: D76383E2-D05E-4B3E-8A93-330651EEB336 Project Background and Current Status Halligan Reservoir is located on the North Fork of the Cache la Poudre River (“North Fork”), about 25 miles northwest of Fort Collins. The project involves expanding Halligan Reservoir by building a new dam immediately downstream of the current, 114-year-old dam. This would provide about 8,200 acre-feet of additional water storage for Utilities in Halligan Reservoir. Because this project involves enlarging the existing Halligan Reservoir instead of building a new reservoir, there are fewer environmental impacts. Project benefits include restoring flows to historically dry stretches of the North Fork, improving aquatic habitat on the North Fork, and providing improved fish passage in several places on the Poudre River. Planned mitigation will help avoid, minimize, and compensate for impacts. The current cost estimate for the project is $308 million, which equates to $39,000 per acre-foot of firm yield (water the City can expect to receive). This is less than equivalent costs for other regional projects and alternatives for the City. Utilities continues to evaluate the cost and how it will be funded, including exploring external funding options, so the project is as cost-effective as possible. To date, Utilities has invested about $36 million in the project. Utilities contracted with AECOM as the engineering consultant for the new dam design. Utilities expects the completed 60% design in 2024. The 60% design will include a review of the 30% design and revision as needed for cost-savings and permitting requirements. Conservation has reduced demand, but it’s not enough to provide the reliability needed to meet projected municipal and industrial needs in Utilities’ service area by 2065. Currently, Utilities does not have the storage to effectively use all the City’s water rights into the future. More storage will provide added protection from uncertainties and emergencies that can impact water supply and help ensure sufficient water for future generations. In 2019, the Fort Collins Water Supply Vulnerability Study investigated the ability of Utilities’ water supply system to meet future demands taking existing policy criteria and level of service goals into account. When subjected to alternative hydrologies and various risks and uncertainties, including climate change and potential Colorado River impacts, the report found one of the most significant risks was not moving forward with the Halligan Water Supply Project. DocuSign Envelope ID: D76383E2-D05E-4B3E-8A93-330651EEB336