HomeMy WebLinkAboutMemo - Mail Packet - 10/16/2018 - Memorandum From Eileen Dornfest Re: Halligan Water Supply Project Status Update, Third QuarterUtilities
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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: October 9, 2018
TO: Mayor Troxell and Councilmembers
FROM: Eileen Dornfest, Special Projects Manager
THROUGH: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Halligan Water Supply Project Status Update, Third Quarter 2018
Bottom Line
Please find attached a Third Quarter 2018 Status Update on the Halligan Water Supply Project,
which provides updates on project progress, schedule, and costs.
CC: Water Board
DocuSign Envelope ID: C883E89E-4985-4AE1-9950-507E26CF9AD8
HALLIGAN WATER
SUPPLY UPDATE PROJECT
October 2018
BACKGROUND
The Halligan Water Supply Project will
enlarge Halligan Reservoir, an existing
reservoir on the North Fork of the Poudre
River, to help meet future water supply
needs. The population for Fort Collins
Utilities’ Service Area is projected to
increase by 45,000 by 2065, and the
current water supply is not enough to
support that growth under City policy,
especially during a drought.
The project would expand the reservoir by
about 8,100 acre-feet (AF) by increasing
the height of the existing dam by 25 feet.
For context, an average single-family home
served by Utilities uses almost a third of an
AF of water each year.
To enlarge Halligan Reservoir, permits
are required 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 describe the environmental impacts
of the project, along with impacts of other
alternatives to enlarging Halligan.
HALLIGAN RESERVOIR SURFACE AREA
Halligan Dam
Existing Surface Area
Enlarged Surface Area
PROGRESS UPDATE
City staff, consultants and the Corps made significant progress during the
first three quarters of 2018. Developments include:
• All indications are that the federal permitting process for the
enlargement of Halligan Reservoir is on track and a Draft EIS is
scheduled for mid-2019.
• Continued developing mitigation and enhancement measures for
the project. The City will issue a Conceptual Mitigation Plan at the
same time as the Draft EIS.
• Writing Chapters 1 through 4 of the Draft EIS, which will present
a summary of the technical work conducted to date, including
1) definition of purpose and need for the project, 2) identification
and comparison of alternatives to the Halligan Water Supply Project,
3) a description of environmental and cultural resources that could
potentially be affected by each alternative, and 4) direct and indirect
effects of constructing each alternative.
• Staff initiated an evaluation of the feasibility and cost of
reintroduction of greenback cutthroat trout, a “threatened”
species, to the North Fork of the Cache la Poudre River as a possible
enhancement measure to the Halligan project.
• Completed additional studies on wetlands and aquatic habitat
along the North Fork of the Poudre River, as required by the Corps. To
facilitate these studies the water level in Halligan Reservoir was drawn
down approximately 6 feet in May.
• Investigated land acquisition needed for the project.
• Developed plans for completing the design of dam enlargement.
An April 6, 2018 memo to City Council provided revised cost estimates for the Halligan Reservoir enlargement. The total
estimated cost for the project has increased to $74.1 million, indicating a need for $36.7 million in future appropriations. A
breakout of costs is provided in the table
to the right. Most of the cost increases are
attributable to construction cost escalation,
which is compounded by delays in the
federal permitting process, and revised
estimates of costs required to address
project uncertainties.
Considering the revised cost of the project,
the unit cost of the Halligan Water Supply
Project remains significantly lower than
that of other water supply options. The
Halligan Project will provide firm yield at
a cost of $8,800 per AF. For comparison,
the market rate for firm yield from the
Colorado-Big Thompson, Northern
Integrated Supply Project (NISP) and
Windy Gap projects is $60,000, $25,000
and $14,000 per AF, respectively.
Year-to-date expenditures through
September are $550,000.
PROJECT SCHEDULE
BUDGET
Release of the draft EIS is currently anticipated in April 2019. Construction could begin as early as 2023. Other project
milestones are shown in the timeline below.
EXPENSES ($M)1
To Date2 Future Total
Acquisition $3.3 $0.3 $3.6
Permitting & Mitigation $12.7 $8.4 $21.1
Construction - $31.3 $31.3
Debt Service3 $1.9 - $1.9
Risk Mitigation/Contingency - $16.3 $16.3
Total $17.9 $56.1 $74.1
ESTIMATED FINAL UTILITY COST ($M)
To Date2 Future Total
Project Costs $17.9 $56.1 $74.1
Less Reimbursements4 ($4.6) ($0.1) ($4.7)
Total5 $13.3 $56.0 $69.4
APPROPRIATIONS ($M)
To Date2 Future Total
Past Appropriations $37.4 - $37.4
Required Future Appropriation - $36.7 $36.7
Total $37.4 $36.7 $74.1
1. Expenses include escalation through 2023 in each line item. Line items may not add up to the total
due to rounding.
2. Through September 2018.
3. Debt service payments from 2004 to 2014 were allocated as Halligan Project expenses. All future debt
service payments will not be counted as a project cost.
4. Reimbursements were received from former project partners (North Poudre Irrigation Co. and the
Tri-Districts) between 2005 and 2014; miscellaneous reimbursements have been and will be collected
from the City of Greeley and from rents in the future. Reimbursements for project expenses require
Council action to be re-appropriated to the project budget.
5. Total Utility cost includes debt service and deducts reimbursements.
For more information, visit fcgov.com/halligan
Eileen Dornfest, Special Projects Manager • 970-416-4296 • edornfest@fcgov.com
Auxiliary aids and services are available for persons with disabilities, V/TDD 711.
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Federal Permitting - Draft EIS
Federal Permitting - Final EIS
Federal Permitting - Final Decision
Other Federal & State Permitting
Preliminary Design
Final Design
Construction
Enlarged Halligan Operations
DocuSign Envelope ID: C883E89E-4985-4AE1-9950-507E26CF9AD8
• Provided outreach on the project to environmental groups and federal
and state elected officials.
N
DocuSign Envelope ID: C883E89E-4985-4AE1-9950-507E26CF9AD8