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Halligan Water Supply Project Cost Update
Posted on: Sep-10-2019
Fort Collins Utilities has updated the cost estimate for the Halligan Water Supply Project (Halligan Project). Based on information known at this time, current estimates indicate a probable cost of $120 million. However, costs could vary between $100 million to $150 million as the project scope and schedule are more clearly defined.
The project will be paid for primarily by fees related to new development and redevelopment. The updated cost is not expected to significantly change Utilities’ water rate forecast. Future rate increases are not expected to change from the current rate adjustment strategy.
To date, $19 million have been spent, mainly on environmental studies for both the Halligan Project and several other water storage alternatives that have been considered as part of the federal permitting process and on real estate acquisition.
While the cost of water continues to rise in Northern Colorado, the Halligan Project remains the most cost-effective alternative to provide a safe and reliable water supply for Utilities’ existing and future customers. Other water supply options available to the City of Fort Collins cost seven times or more per acre-foot (approximately 326,000 gallons) of firm yield.
Without the Halligan Reservoir expansion, customers could be vulnerable to future service interruptions during prolonged drought and emergency situations.
Since entering the federal permitting process in 2006, project costs have been updated periodically. The last estimate was developed in 2017 and indicated a total cost of $75 million. Since then, Utilities has learned more about the future schedule and cost of federal, state and county permitting processes; real estate acquisition needs; evolving best practices in dam design and construction; and opportunities for environmental enhancements. Additionally, the cost increases $4 million for every year that construction is delayed due to permitting or other circumstances.
In the past, the estimate was presented as one value – a best approximation of total project costs. In the future, the cost will be presented as a range of costs to reflect the evolving nature of a project of this size and complexity.
Expected to be completed around 2026, the project will raise the height of the existing Halligan dam by 25 feet and increase the reservoir’s water storage by approximately 8,100 acre-feet. In addition to providing a safe, reliable water supply, the project will rehabilitate a 110-year-old dam that will need repairs in the future and enhance stream flows downstream of the reservoir, improving habitat and the ecosystem.
A draft Environmental Impact Statement is anticipated to be released by the U.S. Army Corps of Engineers later this year, followed by a public comment period.