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MEMORANDUM
DATE: January 30, 2013
TO: Mayor and City Councilmembers
THRU: Darin Atteberry, City Manager ,>---'C_
FROM: Brian Janonis, P.E., Utilities Executive Director \
Kevin Gertig, Water Resources and Treatment lions Manager`1-r c6
Donnie Dustin, P.E., Water Resources Manager
CC: Water Board
RE: Council Policy Goal: Protect our water supply by continuing to pursue expansion
of Halligan Reservoir
Purpose
The purpose of this Fourth Quarter 2012 Report is to review and update City Council on progress
related to the Halligan Reservoir Enlargement Project as directed by Resolution 2003-121 and
the 2005-2007 Council Policy Agenda Work Plan.
Significant Events in Fourth Quarter 2012
The U.S. Army Corps of Engineers (Corps) and its third -party consultants have completed all of
the baseline hydrologic models associated with the "Common Technical Platform" (CTP), which
will be used to analyze the impacts of the various Poudre Basin projects. The permitting process
has now entered the alternatives analysis phase. In an effort to save time and money, the Corps
has allowed the project partners to develop and model the alternatives themselves rather than
using third -party consultants. The Corps provided a preliminary list of potential alternatives to
the applicants in October 2012. Since that time, the Halligan -Seaman partners have worked to
better define and model these alternatives, includingorgtmizirtg their own 'consultauts'to provide
engineering analyses of the many structural elements developed by the Corps for the alteratives.
Work will continue on cumulative impacts and project reports, with all technical reports
expected to be complete by early-2014. Preparation of the preliminary Draft Environmental
C�
Impact Statement (DEIS) will occur through most of 2014, with the DEIS being available for
public review in early 2015 and the food EIS scheduled to be complete in late 2015.
Chandler Peter, the Corps project manager for the Halligan -Seeman project and the Northern
Integrated Supply Project (NISP), gave notice in late January that he will be moving to a
different Corps district in March. The Corp is currently finding a replacement. The Halligan -
Seaman project partners will work closely with the new Corps project manager to assist in a
smooth transition and avoid potential delays to the project
Utilities staff have prepared updated cost estimates for the project. The total cost of the Halligan
Reservoir enlargement, including acquisition, permitting, design and construction is estimated to
be approximately $49 million. This amount is $6 million more than the last cost estimate
provided to City Council in January 2012. Of this amount, $4 million is due to increased
construction costs, which were updated in October 2012. In addition, the lengthened permitting
process is projected to incur another $2 million in costs. Although project costs have increased,
the size of Halligan required by Utilities has been reduced from when the project started. The
Utilities portion of project ca§ttrrgmmeins nearly level with previous estimates at $30 million.
However, the portion of costs tc be paid by the North Poudre Irrigation Company (NPIC) has
increased by $6 million. Cost information was provided to NPIC staff, and will be discussed at
the next NPIC Board Meeting. Additional information on the cost impacts to NPIC will provided
as it becomes available.
Estimated Project Cost through December 2012
The following table provides a summary of the project costs for the Halligan project through
December 2012. The acquisition costs are primarily for the purchase of the NPIC property and
the right to enlarge Halligan Reservoir. Payments have been made annually to NPiC since 1993.
The permitting costs include consulting services, legal, project management and other related
project costs. Reimbursements for costs are from NPIC, and previously the Tri-Districts, made
annually according to an agreement among the parties. Reimbursement amounts have been
adjusted from previous quarterly reports to resolve an accounting error.
Acquisition Cost
Permitting Cost
Total Project Cost
Reimbursementq by Tri-Districts & NPIC
Net Fort Collins Cost
Previous
Current
Cost
Project
Period
Through
Cost
cost
Dec 2012
$2.9M
$O.OM
$2.9M
$ 6.2 M
$0.2
A M
$9.1M
$0.2M
$9.3M
$4.3M
$0.0M
4.3M
$4.8M
$0.2M
a,5.0M
L�
Anticipated Schedule
Period 1"s
2005-2015
EIS and permitting decision
2015-2016
Preliminary and final design
2016-2017
Construction
2019
Enlarged Halligan Operations