HomeMy WebLinkAboutMemo - Mail Packet - 1/15/2019 - Memorandum From Eileen Dornfest Re: Halligan Water Supply Project Status Update - First Quarter 2019Utilities
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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: January 9, 2019
TO: Mayor Troxell and Councilmembers
FROM: Eileen Dornfest, Special Projects Manager
THROUGH: Darin Atteberry, City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Halligan Water Supply Project Status Update, First Quarter 2019
Bottom Line
The purpose of this memo is to inform City Council of progress related to the Halligan Water
Supply Project (Halligan Project) and to provide a summary of 2019 project activities and Council
communications.
The Draft Environmental Impact Statement (EIS) is currently planned to be released by the US
Army Corps of Engineers (The Corps) and available for public review in mid-2019. In anticipation
of release of the Draft EIS, Staff has developed a Community Engagement and Communications
Plan to summarize project key messages and outreach efforts to inform the public and other
stakeholders about the project. A design team will likely be procured in 2019 and staff expects to
request Council to extend the 5-year contract limit due to the scale and complexity of the project.
A Council work session is scheduled on March 26 to provide a project update. Frequent
communications are planned before the work session and the draft EIS release to inform City
Council of project status and to provide information about questions that may arise from the public.
In addition to the information summarized below, a first quarter 2019 status update is attached,
which provides information on project progress, schedule, and costs (Attachment 1), as well as
key messages (Attachment 2) that City Council may use when communicating about the project
with the community.
2019 Project Activities
Many activities related to community engagement, land acquisition and design will be
performed. An internal project team composed of staff from Real Estate Services, Water
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Systems Engineering, Water Resources, Customer Connections and the City Attorney’s Office
has been developed to manage the anticipated workload.
To inform the public and other stakeholders about the Halligan Project before release of the draft
EIS, staff has prepared a Community Engagement and Communications Plan which will be
shared with Council in late January. Key messages about the project are included in
Attachment 2.
In addition to the public outreach efforts planned before and during the draft EIS public
comment period, the project activities are highlighted in the first quarter update included in
Attachment 1.
2019 Communications with City Council
To keep Council informed about the project and prepare for topics planned for discussion at the
March 26 work session, staff will send information to Council via the Thursday packet once or
twice per month through March. The topics below will be addressed:
• Community Engagement & Communications Plan
• Conceptual mitigation
• Update on design team development
• Recreation concept planned for Halligan Reservoir
• Required land acquisition and easements
• Refined project cost estimate
Before release of the draft EIS, Council will be updated about the schedule and details of the
public comment period and any outreach activities planned by the Corps.
2019 Design Activities
The Halligan Project has been in permitting since 2006, and project work to date has been based
on a highly conceptualized design adequate for the permitting phase. Given the anticipated
release of the Draft EIS this year, and the subsequent permitting processes the City will undergo
if the Halligan Project is selected by The Corps, it is prudent to begin preliminary design
activities in 2019. These design activities will include collection of site-specific information
needed to verify assumptions that have been made about the feasibility and conceptual
enlargement of Halligan Dam. Preliminary design will provide information necessary to
negotiate and obtain state and county permits needed for construction, as well as identify project
risks and the probability and cost of those risks so the City can make better informed decisions
related to the project.
The first step in the preliminary design process is to hire an engineering team. The team will
design the enlargement of Halligan Reservoir and play a critical role during construction to
ensure work is performed in accordance with the design. Due to the size and scale of the project,
design and construction combined will last longer than 5 years. Therefore, Staff expects to
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request an exception to the 5-year contract term limit in City Code, to ensure we have team
continuity the project requires. The Ordinance is scheduled for the February 19th City Council
Agenda (on consent).
Halligan Water Supply Project Key Messages
Attachment 2 provides a Halligan Project reference sheet to assist Councilmembers in answering
common questions anticipated from the public once the website is updated and public outreach
efforts are initiated in January.
CC: Water Board
Jeff Mihelich, Deputy City Manager
Carol Webb, Utilities Deputy Director, Water Resources and Treatment Operations
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HALLIGAN WATER
SUPPLY UPDATE PROJECT
January 2019
BACKGROUND
If approved, the Halligan Water Supply
Project would enlarge Halligan Reservoir,
an existing reservoir on the North Fork of
the Poudre River, to provide Fort Collins
Utilities’ water customers with a reliable
future supply for emergency, drought and
climate-change related uncertainties.
The project would expand the reservoir
by about 8,100 acre-feet by increasing the
height of the existing dam by 25 feet. For
context, an average single-family home uses
almost a third of an acre-foot of water each
year (about 108,000 gallons).
Permits are required from the U.S. Army
Corps of Engineers (Corps) and other
federal and state agencies to enlarge
Halligan Reservoir. Before issuing permits,
the Corps will produce draft and final
Environmental Impact Statements (EIS),
that will be published for public review
and comment. The EIS will describe the
environmental impacts of the project, along
with the environmental impacts of projects
identified as alternatives to enlarging the
reservoir.
2018 YEAR IN REVIEW
• Draft EIS – Portions of the draft EIS were written and present a
summary of the technical work conducted to date, including:
a. the purpose and need for the Halligan Water Supply Project
b. a description and comparison of project alternatives
c. a description of environmental and cultural resources that could
be affected by each alternative
d. direct and indirect effects of constructing each alternative
• Development of mitigation and enhancement measures – The City
will issue a Conceptual Mitigation Plan with the draft EIS.
• Reintroduction of greenback cutthroat trout – Evaluation of the
feasibility and cost of reintroducing greenback cutthroat trout, a
“threatened” species, to the North Fork of the Poudre River as a
possible project enhancement is ongoing.
• Studies on wetlands and aquatic habitat – Staff completed
additional studies on wetlands and aquatic habitat along the North
Fork, as required by the Corps. To facilitate these studies, the water
level in Halligan Reservoir was drawn down about 6 feet in May.
• Land acquisition and easements – Staff began pursuing land
acquisition and easements needed for the project.
• Community Engagement and Communications Plan – A Community
Engagement and Communications Plan was created to guide public
outreach efforts on the project in 2019.
• Outreach – Staff reached out to environmental groups and federal
and state elected officials.
2019 PLANNED ACTIVITIES
2019 will be a busy year as the project reaches a permitting milestone.
• Draft EIS release – All indications are that the federal permitting
process is on track and a draft EIS is scheduled to be released in
mid-2019.
• Finalize documents – Staff will finalize documents to be released
PROJECT SCHEDULE
Release of the draft EIS is currently anticipated in mid-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 $12.9 $8.1 $21.0
Construction - $31.3 $31.3
Debt Service3 $1.9 - $1.9
Risk Mitigation/Contingency - $16.3 $16.3
Total $18 $56 $74.1
ESTIMATED FINAL UTILITY COST ($M)
To Date2 Future Total
Project Costs $18.1 $56.0 $74.1
Less Reimbursements4 ($4.6) ($0.1) ($4.7)
Total5 $13.5 $55.9 $69.4
APPROPRIATIONS ($M)
To Date2 Future Total
Past Appropriations $37.4 - $37.4
Required Future Appropriations - $36.7 $36.7
Total $37.4 $36.7 $74.1
1. Future expenses include escalation through 2023 in each line item. Future expenses are
expected to change as new project information is obtained. Line items may not sum to total
due to rounding.
2. Life-to-date project costs through December 2019.
3. Debt service payments from 2004-2014 were allocated as Halligan Water Supply Project
expenses. Future debt service payments will not be a project cost.
4. Reimbursements were received from former project partners (North Poudre Irrigation Co. and
the
Tri-Districts) between 2005-2014; miscellaneous reimbursements have been and will be
collected from the City of Greeley and future rents. Reimbursements for project expenses
require Council action to be reappropriated to the project budget.
5. Total cost includes debt service and deducts reimbursements.
ANTICIPATED COST
The current total estimated cost of the
project is $74.1 million, based on an
updated 2018 cost estimate. A breakout
of costs is provided in the table to the
right. Most of the cost is related to
permitting, mitigation and construction.
Although current cost estimates indicate
a total project cost of $74M, standard
practices indicate costs could vary
significantly due to the conceptual nature of
the project. Costs of the project will continue
to be refined as additional information is
obtained and project requirements are
further defined. The next cost estimate
update will be performed in 2019 after
refining land acquisition and mitigation
needs. Costs will again be updated in 2020
after preliminary design is complete.
Although costs of the Halligan Project
will continue to be updated as new
information is obtained, it continues to be
a cost-effective project for meeting the
City’s water supply needs.The project is
currently anticipated to provide firm yield
at a cost of about $9,000 per acre-foot.
For comparison, the market rate for firm
WHAT IS IT?
If approved, the Halligan Water Supply Project will
enlarge Halligan Reservoir, an existing reservoir
on the North Fork of the Poudre River, to help
protect Fort Collins Utilities water customers from
future service interruptions during emergencies.
The reservoir will expand from about 6,400
acre-feet to roughly 14,500 acre-feet by increasing
the height of the existing 70-foot dam by 25 feet,
providing approximately 8,100 acre-feet of
additional water storage for future use.
HALLIGAN WATER
SUPPLY QUICK PROJECT FACTS
PROJECTED COST
$75 million Total
The project is primarily funded by water
fees assessed on new developments
and fees acquired from commercial
customers who use more than
their annual water allotment. Costs
are based on one design concept
and will continue to be refined.
WHY?
• Without additional storage, future generations of Fort Collins Utilities’ water customers
are vulnerable to interruptions in water availability and delivery, particularly during
emergencies and drought and uncertainties associated with climate change.
• Utilities currently owns very little raw water storage, only Joe Wright Reservoir, which holds roughly
7,100 acre-feet. We own less water storage set aside
per person than other Front Range communities.
• Current water supply is not
enough without water restrictions
in the event of a prolonged
drought for the projected
population and commercial
growth within the set Fort Collins
Utilities set service area.
• Conservation has reduced
water demands, but it’s not
enough to provide the resiliency
needed to meet our growing
service area’s needs.
FORT COLLINS
LIVERMORE
WELLINGTON
I-25
I-25
US 287
HWY 14
Red Feather Lakes Rd.
Cache la Poudre River
HWY 14
FORT COLLINS
UTILITIES WATER
SERVICE AREA
North Fork Cache la Poudre River
HALLIGAN
RESERVOIR
HORESETOOTH
RESERVOIR
SEAMAN
FEWER ENVIRONMENTAL
IMPACTS
Currently, there are multiple reservoir projects
located in the Poudre River watershed, including
Glade Reservoir (NISP) and Seaman
Reservoir enlargement. The Halligan Project
is substantially smaller in scale than these
projects and will result in relatively
fewer environmental impacts.
PROJECT BENEFITS
The Halligan Water Supply Project:
Eileen Dornfest, Special Projects Manager
edornfest@fcgov.com, 970-416-4296
Sign up online for periodic updates.
fcgov.com/halligan
HALLIGAN WATER
SUPPLY PROJECT
Will help provide a safe, reliable
water supply for future generations.
Will enhance river flows downstream of
the reservoir on the North Fork, leading
to fishery and habitat improvements.
Anticipated Project Timeline
2006 City of Fort Collins entered
permitting process
2019 Draft EIS expected from the
U.S Army Corps of Engineers,
followed by public review
and comment period
2020-2022 Final EIS and permit decision
2023-2025 Design and construction
2025 Enlarged Halligan operations
Schedule subject to change depending
on federal permitting process
WE ARE HERE
Did You Know?
The original dam was built in 1909.
Will enlarge an existing reservoir
instead of building a new one, creating
fewer negative environmental impacts.
Will rehabilitate an aging dam that
will require repairs in a few years.
Is the most cost-effective option to
meet our water storage needs.
Is a gravity-fed project—no pumping
needed—which requires no energy
or greenhouse gas emissions.
Did You Know?
The water from Horsetooth Reservoir could
fill up to 10 enlarged Halligan Reservoirs.
PROJECT STATUS
Before Halligan Reservoir can be enlarged, the project must receive federal, state
and local permits. The Halligan Water Supply Project has been in permitting since
2006. The U.S. Army Corps of Engineers (Corps), the lead permitting agency,
plans to release a draft Environmental Impact Statement (EIS) in 2019.
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Esta información puede ser traducida, sin costo para usted. 970-212-2900
18-20574
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RESERVOIR
US 287
US 287
HALLIGAN RESERVOIR SURFACE AREA
Halligan Dam
Existing Surface Area (253 acres)
Enlarged Surface Area (383 acres)
N
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yield from the Colorado-Big Thompson
(CBT) Project is approximately $60,000.
Unit costs of the Northern Integrated
Supply Project (NISP) and Windy Gap
Firming Project are currently $27,500 and
$19,000 per acre-foot, respectively.
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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‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25
Federal Permitting
Other Federal & State Permitting
Preliminary Design
Final Design
Construction
Enlarged Halligan Operations
— Record of Decision
Purpose & Need
— Notice of Intent
Baseline Environmental Studies
Alternatives
Environmental Impact Studies
— Develop & Issue Draft EIS
— Draft EIS Comment Period
— Prepare & Release Final EIS
— EIS Comment Period
WE ARE HERE
— Purpose/Need
Project schedule is dependent on permitting schedule and subject to change.
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with the draft EIS, including the Conceptual Mitigation Plan and the
Operations Plan for the Halligan Water Supply Project.
• Preliminary design – Preliminary design activities will begin,
including procuring the design team and initiating data collection
and design activities needed to refine cost estimates.
• Additional outreach – Staff will provide public outreach through a
website update in January and other targeted efforts.
• State permits – Consultation will begin with Colorado Parks &
Wildlife and Colorado Department of Health and Environment on
required state permits.
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