Hallmark is the project manager, under contract with the San Luis & Delta-Mendota Water Authority (Authority), for the Authority’s effort to expand the storage capacity of San Luis Reservoir by 130,000 acre-feet at an estimated cost of $987 million. The project presents numerous complexities that Hallmark is well equipped to navigate. The B.F. Sisk Dam, which creates San Luis Reservoir, is an existing joint use facility of the Central Valley Project (CVP) and the California State Water Project (SWP). The facility is owned by the federal Bureau of Reclamation and is operated by the California Department of Water Resources, and it is used to store both CVP and SWP water. The proposed storage expansion project is being undertaken in conjunction with a federal safety of dams project, and as a result, the expansion project must adhere to a schedule that is compatible with ongoing safety of dams work. In addition, the storage expansion project will include relocating portions of State Highway 152, requiring collaboration with the California Department of Transportation.
Results: In close coordination with Reclamation and the project investors Hallmark developed a financial model based on allocation of capacity. Additionally, Hallmark provided a projection of cash contributions linked to various stage gates, effectively de-risking the project concurrent with increasing capital contributions. These efforts allowed the investors to make a business case for participating in the project while limiting financial risk.
