HomeMy WebLinkAboutMemo - Mail Packet - 4/16/2019 - Memorandum From Eileen Dornfest And Carol Webb 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: April 8, 2018
TO: Mayor Troxell and Councilmembers
FROM: Eileen Dornfest, Special Projects Manager
Carol Webb, Deputy Director – Water Resources and Treatment Operations
THROUGH: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Tim McCollough, Utilities Acting Executive Director
RE: Halligan Water Supply Project Status Update, First Quarter 2019
Bottom Line
Please find attached a regularly-scheduled First Quarter 2019 Status Update on the Halligan Water
Supply Project, which provides updates on project progress, schedule, and costs.
CC: Water Board
DocuSign Envelope ID: D6DC9FBF-0654-43F5-86AC-7EBC22A7B8AD
HALLIGAN WATER
SUPPLY UPDATE PROJECT
April 2019
BACKGROUND
Halligan Reservoir, located 25 miles
northwest of Fort Collins, was built in 1909
on the North Fork of the Poudre River.
Expanding the reservoir will help provide a
reliable water supply for future generations
of Fort Collins Utilities’ water customers.
The additional water storage will provide
added protection from interruptions in
water availability and delivery due to future
emergencies like prolonged drought, fires,
floods, landslides and infrastructure
failures, as well as uncertainties related
to climate change.
The project would expand the reservoir
by about 8,100 acre-feet by increasing the
height of the existing 70-foot 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. Before issuing
permits, the Corps will produce draft and
final Environmental Impact Statements
(EIS), which will be published for public
review and comment. The EIS will describe
the environmental impacts of the project,
along with the environmental impacts of
alternatives to enlarging the reservoir.
PROGRESS UPDATE
City staff, consultants and the Corps continued to make progress on the
project during the first quarter of 2019. Developments include:
• Draft EIS release – The current schedule from the Corps indicates the
draft EIS will be released in late 2019.
• Development of mitigation and enhancement measures – Staff
continued developing project mitigation and enhancement measures
and will issue a Conceptual Mitigation Plan at the same time as the
draft EIS.
• EIS development – Staff is writing chapters 2 through 4 of the draft
EIS, which will present a summary of the technical work conducted
to date, including a description of environmental and cultural
resources that could potentially be affected by enlarging Halligan and
alternatives to the Halligan enlargement.
• Land acquisition and easements – Staff continue to pursue land
acquisition and easements needed for the project.
• Public Outreach – Public outreach and communications have been
ongoing, including articles in the Coloradoan, a project update
in utility bills, presentations, meetings with project stakeholders,
updates to environmental groups and federal and state elected
officials, and answering citizen questions.
• Finalize documents – Staff will finalize documents to be released
with the draft EIS, including the Conceptual Mitigation Plan and the
Operations Plan for the Halligan Water Supply Project.
• Preliminary design – Steps being taken to build a design team.
• State permits – Formal consultation will begin with Colorado Parks
& Wildlife and Colorado Department of Health and Environment on
PROJECT SCHEDULE
The project is approaching a key permitting milestone this year with release of the draft EIS. Construction could begin as
early as 2024. 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 $13.3 $7.7 $21.0
Construction - $31.3 $31.3
Debt Service3 $1.9 - $1.9
Risk Mitigation/Contingency - $16.3 $16.3
Total $18.5 $55.6 $74.1
ESTIMATED FINAL UTILITY COST ($M)
To Date2 Future Total
Project Costs $18.5 $56.0 $74.1
Less Reimbursements4 ($4.6) ($0.1) ($4.7)
Total5 $13.9 $55.5 $69.4
APPROPRIATIONS ($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 March 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
Company 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 at right. Most of the cost is related
to permitting, mitigation and construction.
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 later this year
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
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 $10,000 per acre-foot.
For comparison, the market rate for firm
yield from the Colorado-Big Thompson
(CBT) Project is approximately $80,000.
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 • halligan@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 ‘26
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.
DocuSign Envelope ID: D6DC9FBF-0654-43F5-86AC-7EBC22A7B8AD
required state permits after public review of the EIS is complete.
DocuSign Envelope ID: D6DC9FBF-0654-43F5-86AC-7EBC22A7B8AD