The Gross Reservoir Expansion (GRE) Project progressed as planned over the reporting period. Notable milestones and activities during this reporting period include:

The first Project Review Board (PRB) meeting including the Board of Consultants, the Federal Energy Regulatory Commission (FERC), and the Colorado State Engineer’s Office (SEO) was convened between March 13 and 15, 2018.

In April, Denver Water submitted the Drilling Program Plan to FERC and SEO for approval for the approval of activities in the summer of 2018.

Denver Water submitted responses to FERC Supplemental Environmental Assessment (EA) and public comments on April 8, 2018.

The Program Management Team (PMT) continued to support public outreach actions, and environmental compliance activities.

Program Progress Summary

Financial Metrics Snapshot*

INTERNAL USE ONLY

Risk Management

Risk Summary (notable risks and risk register summary chart)

The GRE Risk Management Plan (RMP) defines the process for identifying, assessing, monitoring, controlling, managing and reporting risks across all phases of the program. In short, the RMP involves frequent and regular review / updating of risks associated with the GRE.

Major updates to the risk register include: • Recognition of the recent lawsuit associated with the

Windy Gap Firming Project (Risk ID A),

• Appreciation for the effects of escalation on long duration civil projects (Risk ID E) and,

• Boulder County 1041 Review (permit) probability and consequence increased to account for chances to legal approach and extension of construction schedule (Risk ID G).

Co

nse

qu

en

ce

5 A C, F D

4 G

3 E B

2

1

1 2 3 4 5

Probability

High

Low

4

Volume 5 Project Summary Report: March/April 2018

Over the next reporting period the Integrated Project Team (IPT) will focus on numerous activities as the design process continues, including the following:

Preparation for the start of the geotechnical investigation program on the site, planned for June 3, 2018.

Design activities will continue with analysis of the raised dam geometry, spillway configuration, and quarry layout.

Preparation for a Technical Working Session with the PRB on June 21, 2018 to discuss the dam and spillway configurations.

Continued stakeholder outreach through event participation, project information meetings, site tours, Yurt Grand Opening (May 19), and website updates.

Timeline and Progress

Budget Category Initial

Budget

Costs to

Date

Remaining Balance

% Spent

Construction $341.4 $0.0 $341.4 0.0

Engineering $23.6 $4.0 $19.6 16.9

Project/Construction Management

$54.0 $2.3 $51.7 4.3

Permitting $20.4 $20.4 $0.0 100.0

Mitigation/Compliance $24.1 $1.0 $23.1 4.3

Total $464.0 $27.8 $435.8 6.0

MWBE Participation (values from Jan 2014 to Feb 2018)

Current Cost MWBE Costs % Participation

$10.14 $0.63 6.2

ID Risk Consequence Current Strategy and Investments

A Lawsuit against Corps (NEPA &

CWA) Legal challenge is successful; project enjoined resulting in major delay

Monitoring/evaluating current lawsuit against the Windy Gap Firming project.

B FERC license amendment

(Order) delayed Major delay results in changes to project delivery approach

Regular contact with FERC staff on progress. Consultation with attorneys specializing in FERC proceedings.

C Accident on HWY 72 involving

GRE personnel and public Diminished public trust; temporary work stoppage; extended schedule; increased scrutiny

Rail delivery options, bussing field staff, GPS based truck monitoring, safety culture development.

D Emergency response time to site slowed by poor communications

Exacerbating injury or fatality leading to diminished public trust and temporary work stoppage

Evaluating communication improvement options (cellular and radio).

E Overall project cost escalation

exceeds expectations Construction costs increase beyond budget (commodities or labor)

Coordinating with NWTP in evaluating market trends and local projects over $20M.

F Social mitigation or local permit

requires reliance on existing roads

Increased cost to incorporate rail transport for materials

Exploit opportunity if cost or initial investment (infrastructure at rail siding) is acceptable.

G Boulder County 1041 Review 12-18 month delay results in changes in delivery approach and loss of project float.

Leverage FERC process and procedural opportunities. Develop 1041 submittal in anticipation of risk occurrence. And evaluating delivery approach

1 Attorney-Client Communication - Privileged Attorney-Client Communication - Privileged

Moving Forward …

*All Costs in $Millions

Volume 5 Project Summary Report: March/April 2018

INTERNAL USE ONLY

Program Costs (Actuals vs. Budget 2018)

3 2

Program Spotlight

The forecast will be re-evaluated upon approval of the final baseline schedule from the Design Engineer which is expected to reflect a more accurate spend for 2018-2020.

Program Budget

The GRE program budget was formally updated in November of 2017 to account for inflation and escalation of key commodities such as cement, fly ash, and labor. The above budget reflects the estimate at completion in 2026 of $464 million.

The Program maintains an active minority, woman owned and small business enterprise (MWBE and SBE) outreach platform. At present, 6.5% program wide participation has been achieved since 2014.

For 2018 expenditures, GRE costs thru April are on track with the forecast presented above. The forecast (depicted as the orange curve in above chart) is higher than the Baseline budget due to the Design Engineer contract (and 2018 Spend Curve) execution after the 2018 budget lockdown (September 2017).

The Design Engineer’s Work Breakdown Structure (WBS) indicated over 50% spend in the first year of a three year design schedule to support the early, significant analyses required. The Design Engineer’s total 3-year contract budget remains within the approved Long Term Forecast.

*In $Thousands

Attorney-Client Communication - Privileged Attorney-Client Communication - Privileged

Public opinion research in the form of a statistically significant survey was completed in April. A local independent research firm, Corona Insights, conducted the mailed survey to more than 2,000 neighbors in the Coal Creek Canyon Community and received more than 550 completed surveys. The primary goals were to: • Identify specific areas of greatest local

concern; • Seek input on some early options we’ve

identified that could help minimize public impacts.

These goals were achieved, as information was gathered that will inform the program’s future plans on a variety of topics and issues. Information gathered about top community concerns will guide communications and messaging, including one-on-one outreach at the Public Information Yurt, which opened for the season in late-April and is currently hosting regular office hours each week.

Public Outreach

Survey Results on Public Perception of Project

Survey Results on Communities Top Concerns Advertisement for Yurt Opening. Published on Website and Local Newspapers

Program Costs (Actuals vs. Budget 2018)

3 2

Program Spotlight

The forecast will be re-evaluated upon approval of the final baseline schedule from the Design Engineer which is expected to reflect a more accurate spend for 2018-2020.

Program Budget

The GRE program budget was formally updated in November of 2017 to account for inflation and escalation of key commodities such as cement, fly ash, and labor. The above budget reflects the estimate at completion in 2026 of $464 million.

The Program maintains an active minority, woman owned and small business enterprise (MWBE and SBE) outreach platform. At present, 6.5% program wide participation has been achieved since 2014.

For 2018 expenditures, GRE costs thru April are on track with the forecast presented above. The forecast (depicted as the orange curve in above chart) is higher than the Baseline budget due to the Design Engineer contract (and 2018 Spend Curve) execution after the 2018 budget lockdown (September 2017).

The Design Engineer’s Work Breakdown Structure (WBS) indicated over 50% spend in the first year of a three year design schedule to support the early, significant analyses required. The Design Engineer’s total 3-year contract budget remains within the approved Long Term Forecast.

*In $Thousands

Attorney-Client Communication - Privileged Attorney-Client Communication - Privileged

Public opinion research in the form of a statistically significant survey was completed in April. A local independent research firm, Corona Insights, conducted the mailed survey to more than 2,000 neighbors in the Coal Creek Canyon Community and received more than 550 completed surveys. The primary goals were to: • Identify specific areas of greatest local

concern; • Seek input on some early options we’ve

identified that could help minimize public impacts.

These goals were achieved, as information was gathered that will inform the program’s future plans on a variety of topics and issues. Information gathered about top community concerns will guide communications and messaging, including one-on-one outreach at the Public Information Yurt, which opened for the season in late-April and is currently hosting regular office hours each week.

Public Outreach

Survey Results on Public Perception of Project

Survey Results on Communities Top Concerns Advertisement for Yurt Opening. Published on Website and Local Newspapers