M E M O R A N D U M. RE: Halligan Water Supply Project Status Update, First Quarter 2019

Transcription

1 Utilities electric stormwater wastewater water 700 Wood Street PO Box 580 Fort Collins, CO V/TDD 711 fcgov.com/utilities M E M O R A N D U M DATE: January 9, 2019 TO: FROM: Mayor Troxell and Councilmembers 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 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 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

2 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 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 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 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

3 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 19 th 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

4 DocuSign HALLIGAN Envelope ID: 742F13AA-D17F FC640AA5EF5D WATER U P D A T E SUPPLY PROJECT 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. January 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 Outreach Staff reached out to environmental groups and federal and state elected officials 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 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 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.

5 PROJECT SCHEDULE DocuSign Envelope ID: 742F13AA-D17F FC640AA5EF5D Release of the draft EIS is currently anticipated in mid Construction could begin as early as Other project milestones are shown in the timeline below. Federal Permitting Other Federal & State Permitting Preliminary Design Final Design Construction Enlarged Halligan Operations 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 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 Notice of Intent Purpose & Need Baseline Environmental Studies Alternatives Project schedule is dependent on permitting schedule and subject to change. To Date 2 Future Total Acquisition $3.3 $0.3 $3.6 Permitting & Mitigation $12.9 $8.1 $21.0 Construction - $31.3 $31.3 Debt Service 3 $1.9 - $1.9 Risk Mitigation/Contingency - $16.3 $16.3 Total $18 $56 $74.1 ESTIMATED FINAL UTILITY COST ($M) To Date 2 Future Total Project Costs $18.1 $56.0 $74.1 Less Reimbursements 4 ($4.6) ($0.1) ($4.7) Total 5 $13.5 $55.9 $69.4 APPROPRIATIONS ($M) Environmental Impact Studies Purpose/Need WE ARE HERE Develop & Issue Draft EIS Draft EIS Comment Period EIS Comment Period Prepare & Release Final EIS Record of Decision To Date 2 Future Total Past Appropriations $ $37.4 Required Future Appropriations - $36.7 $36.7 Total $37.4 $36.7 $ 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 Debt service payments from 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 ; 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. For more information, visit fcgov.com/halligan Eileen Dornfest, Special Projects Manager edornfest@fcgov.com Auxiliary aids and services are available for persons with disabilities, V/TDD 711. Esta información puede ser traducida, sin costo para usted, Utilities

6 HALLIGAN WATER Q U I C K F A C T S SUPPLY PROJECT 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. 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 HALLIGAN RESERVOIR SURFACE AREA 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. 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. HALLIGAN RESERVOIR HWY 14 US 287 North Fork Cache la Poudre River Red Feather Lakes Rd. Cache la Poudre River N LIVERMORE SEAMAN RESERVOIR HORESETOOTH RESERVOIR FORT COLLINS Existing Surface Area (253 acres) Enlarged Surface Area (383 acres) US 287 US 287 WELLINGTON HWY 14 FORT COLLINS UTILITIES WATER SERVICE AREA Halligan Dam I-25 I-25

7 PROJECT BENEFITS The Halligan Water Supply Project: Will enlarge an existing reservoir instead of building a new one, creating fewer negative environmental impacts. Did You Know? The original dam was built in 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. Will enhance river flows downstream of the reservoir on the North Fork, leading to fishery and habitat improvements. Will help provide a safe, reliable water supply for future generations. 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. Anticipated Project Timeline WE ARE HERE 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 Final EIS and permit decision Did You Know? The water from Horsetooth Reservoir could fill up to 10 enlarged Halligan Reservoirs. PROJECT STATUS Design and construction 2025 Enlarged Halligan operations 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 The U.S. Army Corps of Engineers (Corps), the lead permitting agency, plans to release a draft Environmental Impact Statement (EIS) in Schedule subject to change depending on federal permitting process HALLIGAN WATER SUPPLY PROJECT Sign up online for periodic updates. fcgov.com/halligan Auxiliary aids and services are available for persons with disabilities. V/TDD 711. Esta información puede ser traducida, sin costo para usted Eileen Dornfest, Special Projects Manager edornfest@fcgov.com,