HomeMy WebLinkAboutMemo - Mail Packet - 7/26/2016 - Memorandum From Adam Jokerst Re: Halligan Water Supply Project Update, Second Quarter 2016Utilities
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700 Wood Street
PO Box 580
Fort Collins, CO 80522
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utilities@fcgov.com
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M E M O R A N D U M
DATE: July 15, 2016
TO: Mayor Troxell and Councilmembers
FROM: Adam Jokerst, P.E., Water Resources Engineer
THROUGH: Darin Atteberry, City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Halligan Water Supply Project Status Update, Second Quarter 2016
Bottom Line
The purpose of this Second Quarter 2016 Status Update is to inform City Council on progress
related to the Halligan Water Supply Project (HWSP) and to provide an update on project
schedule and costs. Substantial progress is being made towards publication of a draft
Environmental Impact Statement for the project in 2017.
Background
The HWSP proposes to enlarge Halligan Reservoir from its existing capacity of 6,400 acre-feet
to an enlarged capacity of 14,525 acre-feet, providing Utilities with 8,125 acre-feet of additional
storage capacity. The purpose of the
HWSP is to:
Meet future water demands of the
Fort Collin Utilities service area;
Provide a storage reserve for
emergency water supply
disruptions;
Increase drought security; and
Improve water system reliability
and flexibility.
In order to enlarge Halligan
Reservoir, the City requires permits
Halligan Dam from Downstream
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from the U.S. Army Corps of Engineers (Corps) and other federal and state agencies. Before
issuing permits, the Corps will produce an EIS, which will be published for public review and
comment. The EIS will provide detailed analyses of the environmental impacts of the project,
along with impacts of other alternatives to enlarging Halligan.
Progress Update
City Staff, the Corps and its third-party consultants continued to make progress during the
second quarter of 2016 in the federal permitting process. 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 six draft technical reports, for a total of 15
completed draft reports of the approximately 27 technical
reports that form the basis of the draft EIS.
Continued writing the main body of the draft EIS, a
major milestone in the permitting process.
Completed construction of a mass-balance water quality
model for the North Fork of the Poudre River.
Prepared an agreement between the City and
Northern Water to allow sharing of water quality
models used for both the HWSP and the Northern
Integrated Supply Project. The agreement will be brought
for City Council consideration in August 2016.
Quantified wetland areas in the Halligan project area
that will be impacted by the enlargement. Areas where
wetlands could be re-established following construction
are presently being inventoried.
Prepared an agreement and license between the City
and 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.
Addressed numerous issues related to the City’s landownership at Halligan Reservoir:
researched land titles and landownership boundaries, issued a revocable recreational
license to the Landowners Association for Phantom Canyon Ranches, and developed a
draft easement for certain roads to the reservoir.
North Fork Elevation and
Cross Section Data
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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. No
changes to the project’s schedule have been made since the last Status Update to Council.
Project Costs
The following table provides a summary of the costs for the Halligan project through June 2016.
The acquisition costs are primarily for the purchase of the Halligan Reservoir property from the
North Poudre Irrigation Company (NPIC). The permitting costs include consulting services,
legal, project management and other related project costs. Given the evolving scope of federal
permitting and fluctuations in construction cost indices, and in order to ensure consistent
information, cost projections will be updated annually and provided to City Council. Cost
projections for the project were last updated in a February 23, 2016 memorandum to City
Council.
Expenses ($M)
Previous
Period Cost1
Cost Through
March 2016
Acquisition $3.3 $3.3
Permitting $9.8 $10.2
Debt Service2 $1.9 $1.9
Total $15.0 $15.4
Estimated Final Ratepayers Cost ($M)
To Date1 Total
Project Costs $15.0 $15.4
Less Reimbursements3 ($4.5) ($4.5)
Total4 $10.5 $10.9
1) Costs through March 2016.
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.
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
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3) Reimbursements were received from former project partners (NPIC and the Tri-Districts) between 2005
and 2014.
4) Net project cost includes debt service and deducts reimbursements.
CC: Water Board
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