HomeMy WebLinkAboutMemo - Mail Packet - 5/10/2016 - Memorandum From Adam Jokerst Re: Halligan Water Supply Project Status Update, First Quarter 20162
In order to enlarge Halligan Reservoir, the City requires permits from the U.S. Army Corps of
Engineers (Corps) and other federal and state agencies. Before issuing permits, the Corps will
produce an Environmental Impact Statement (EIS), which will be published for public review
and comment. The EIS will provide detailed analyses of the environmental impacts of the
proposed enlargement of Halligan Reservoir, as well as the impacts of other alternatives to
enlarging Halligan.
Permitting Schedule
Fort Collins entered the federal permitting process in 2006, and expects that a draft of the EIS
will be released in mid-2017. Other project milestones are shown in the timeline below, and
discussed in the most recent Front Range Water Supply Report from the Corps (attached). No
changes to the project’s overall schedule have been made since the last Status Update to Council.
Progress Update
City Staff, the Corps and its third-party consultants continued to make progress throughout the
first quarter of 2016 towards producing a draft EIS. In summary, key progress achieved during
the period includes:
• Continued analyses of the social, economic, and environmental impacts of the Halligan
enlargement and alternatives, which will be evaluated and compared in the EIS;
• Finalized seven technical reports on various environmental resources for inclusion in the
draft EIS;
• Began construction of water quality models for the North Fork of the Poudre River;
• Held discussions with the Corps and Northern Water on options to coordinate and
potentially share the methods and models being developed to evaluate water quality
for both the HWSP and the Northern Integrated Supply Project;
• Resurveyed wetlands in the Halligan project area to determine impacts from enlargement
and to delineate areas where wetlands could be re-established following construction
(results will be available in June 2016);
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Federal Permitting - Draft EIS
Federal Permitting - Final EIS
Federal Permitting - Permit Decision
Preliminary and Final Design
Construction
Enlarged Halligan Operations
3
• Began negotiations with mining claimants on an 80-acre tract of federally owned land lying
under and adjacent to the existing Halligan Reservoir to allow right-of-way authorization
from the Bureau of Land Management; and,
• Provided outreach to federal permitting agencies, including the Environmental Protection
Agency, Bureau of Land Management, and Corps.
Project Costs
An update to the overall project cost was provided to City Council in a February 23, 2016
memorandum from A. Jokerst. As stated in that report, the total cost of the project, including
acquisition, debt service, permitting, construction, and mitigation, is projected to be
approximately $45 million. Future expenses are expected to be about $30 million. No changes
to these costs have occurred since the February 23, 2016 memorandum. Cost projections will be
updated annually and provided to City Council.
The following table provides a summary of the costs for the Halligan project through March
2016. The acquisition costs are primarily for the purchase of the Halligan Reservoir property
from NPIC and the right to enlarge the reservoir. The permitting costs include consulting
services, legal, project management and other related project costs.
Expenses ($M)
Previous
Period Cost
1
Cost Through
March 2016
Acquisition $3.3 $3.3
Permitting $9.5 $9.8
Debt Service
2
$1.9 $1.9
Total $14.7 $15.0
Estimated Final Ratepayers Cost ($M)
To Date
1
Total
Project Costs $14.7 $15.0
Less Reimbursements
3
($4.5) ($4.5)
Total
4
$10.2 $10.5
1) Costs through December 2015. Some 2016 costs accrued to 2015.
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 (NPIC and the Tri-Districts) between 2005
and 2014. See March 1, 2016 L. Smith memorandum to City Council for additional information.
4) Net project cost includes debt service and deducts reimbursements. Previous Status Updates to City
Council generally excluded debt service in net cost figures.
CC: Water Board