volume 1 pr project summary report: august/september...

TheGrossReservoirExpansion(GRE)isprogressingasplannedandenvisioned.Notablemilestonesandactivitiesduringthisreportingperiodinclude:

Ø DenverWaterreceivedtheArmyCorpsofEngineers(Corps)RODand404PermitonJuly6,2017,andsignedandreturnedthe404permitonAugust23,2017.

Ø Inaddition,DenverWatercompletedallnecessarystepsandopportunitiesintheFederalEnergyRegulatoryCommission(FERC)licenseamendmentprocessandnowawaitstheFERCdecision,whichisexpectedin2018.

Ø InJanuary2017,theBoardofWaterCommissionersauthorizedtheexpendituresforprogrammanagementanddesignengineeringservicestosupportandachieveaconstructioncompletionbytheendof2025.

Ø InApril2107,DenverWatercontractedwithBlack&VeatchtojoinDenverWater’sProgramManagementTeam(PMT)asDenverWater’sOwnersRepresentative.

Ø ThePMTdevelopedandinitiatedtheDesignEngineerprocurementprocessandiscurrentlyreviewingthetechnicalproposalsreceivedonSeptember21,2017.

Ø InearlyAugust,thePMTadvertisedfortheBoardofConsultants.

MovingForward…ProgramProgressSummary

FinancialMetricsSnapshot

Volume1ProjectSummaryReport:August/September2017

INTERNALUSEONLY

RiskManagement

RiskSummary(notablerisksandriskregistersummarychart)

ContingencyManagement

TheGRERiskManagementPlan(RMP)definestheprocessforidentifying,assessing,monitoring,controlling,managementandreportingrisksacrossallphasesoftheprogram.Inshort,theRMPinvolvesfrequentandregularreview/updatingofrisksassociatedwiththeGRE.

ThePMThostedathreedayworkshop(July11– 13,2017)todiscussscheduleandrisk.TheriskportionoftheworkshopfocusedonsolicitationofinputfromallparticipantsonriskassociatedwiththeGRE.Thisinitialbrainstormingsessionwasusedtoidentifyandcategorizerisksastechnical,regulatory,

strategic,safetyorconstructionrelated.Subsequently,someofthecategorizedriskswereassessedforconsequenceandprobabilitymetrics.ThesemetricsweredevelopedbythePMTforspecificapplicationtotheGRE.

ThePMTiscontinuingthepopulatetheriskregisterbyfullydescribingeachriskwithconsequenceandprobabilitymetrics.Thecompletedriskregisterwillbereadyforliveupdatingbytheendof2017.

Conseq

3 B F E

1 2 3 4 5

Probability

ThePMTisdevelopinganapproachtoutilizetheriskregisterasatoolformeasuringmonetarymitigationofrisks,whereappropriate.Inturn,theprogram’sfinancialcontingencywillbeinformedbytheestimatedcostofriskmitigationactivities.

Volume1 ProjectSummaryReport:August/September2017

OverthenexttwomonthstheprogramwillfocusontheDesignEngineerprocurement,BoardofConsultantsprocurement(independenttechnicaloversight),developmentofthebaselinescheduleandbudget,communityandstakeholderengagement,andmitigationprojects.

Ø TheDesignEngineerproposalswerereceivedonSeptember21,2017,andBoardofConsultantproposalsaredueonOctober12,2017.NegotiationsandcontracttermsareexpectedtobecompleteinNovemberandpresentedascontractstotheBoardattheDecember6,2017,Boardmeeting.

Ø ThePhase1(ProgramStartup)baselinescheduleandbudgetwillbesetbytheendofOctoberandreassessedatthebeginningofPhase2(Design)andatmajorprogrammilestonepoints.

Ø Externally,thePMTwillbeengagingtheFERCandStateEngineer’sOfficeofDamSafety(SEO)ondevelopingaprojectspecifictechnicalreviewandapprovalprocessfordesign.TimelineandProgress

ContingencyManagementRiskMitigation

TheProgramriskregisterassignsanowner(e.g.anindividualaffiliatedtotheoverallprogram)toeachspecifiedrisk.Thatriskownerisresponsibletodevelopingamitigationstrategythatconsidersavoidance,transfer,accept,exploit,shareorenhance.

Mitigationplansarecurrentlyunderdevelopmentforvariousrisks.Astheriskregistermatures,specificmetricsforriskmitigationwillbeprovided.Astheprogramprogressessummaryoftheriskmitigationactivitieswillbeprovidedinthemonthlyreport.

Budget Category* InitialBudget

Coststo

RemainingBalance

%Spent

Construction $263.0 $0.0 $263.0 0.0

Engineering $22.0 $2.4 $19.6 10.7

ProjectManagement $42.0 $0.9 $41.1 2.2

Permitting $22.0 $20.4 $1.6 92.7

Mitigation/Compliance $31.0 $0.004 $31.0 0.0

Total $380.0 $23.7 $356.3 6.2

MWBEParticipation(valuesfromJan2014to present)

CurrentCost MWBECosts %Participation

$6.0 $0.4 6.7

ID RiskTrigger Consequence

A LawsuitagainstCorps(NEPAprocess) Incurredlegalcostsandscheduleimpacts

B FERClicenseamendmentdelayed Majordelayresultsinchangestoprojectdeliveryapproach

C AccidentonHWY72involvingGREpersonnelandpublic

Diminishedpublictrust;temporaryworkstoppage;extendedschedule;increasedscrutiny

D Emergencyresponsetimetositeslowedbypoorcommunications

Exacerbatinginjuryorfatalityleadingtodiminishedpublictrustandtemporaryworkstoppage

E ExtendedtechnicalreviewperiodsforFERCorSEO

Scheduledelayduringdesignleadingtounpredictablechangesincriticalpath

F Commodityescalationexceedsexpectations

Constructioncostsincreasebeyondbudget

G RCCliftplacementslowerthanexpected

RCCcompletionextendsbeyond2constructionseasonscausingcostincrease&publictrustissues

*AllCostsin$Millionsand2015Dollars

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ProgramCosts(Actualsvs.Budget2017)

Distributionof2017ActualCosts

Engineering

EnvironmentalComplianceandMitigation

ReceiptoftheCorps'RODand404Permitsignifiesaturningpointbetweenpermittingandcompliance.Atpresentthereareover140compliancerelatedtaskstrackedandmonitoredbytheprogram.

Ø DenverWatercontinuestoworkwiththeGrandCountyLearningbyDoingCooperativeEffort(LBD)andisco-fundingtheFraserFlatsprojectwhichprovideimprovedaquatichabitat;theprojectwascompletedonSeptember15,2017.

Ø Additionally,DenverWaterispartneringwiththeCityofBouldertofinancetheSouthBoulderCreekRestorationProject,whichisscheduledtostartintheFallof2017,andispartoftheFinalMitigationPlan.

StakeholderOutreach

ProgramSpotlight

DenverWatercontinuestoadvancethedesignofthenewdamandstartedorcompletedseveralevaluationswhichwillshapethefinalconfigurationofthedam.

Ø ProbableMaximumPrecipitation(PMP)andInflowDesignFlood(IDF)StudyevaluatedthemaximumrainfalltheGrossReservoirwatershedcouldexperienceandthendevelopedafloodflowwhichwouldoccurasaresultoftherainfall.ThestudywasapprovedbytheSEOandisunderreviewtheFERC.Thestudywillbeusedtodeterminethespillwaysizeofthenewdam.

Ø SeismicHazardAssessmentwhichevaluatednearbyfaultsandbackgroundseismicity.TheassessmentdevelopedaMaximumCredibleEarthquake(MCE)whichcouldshakethenewdamandwillbethebasisforthedam’sstructuraldesign.TheassessmentwassubmittedtotheFERCforformalapprovalandwillbeprovidedasdesigncriteriatotheSEOafterFERC’sacceptance.

Ø Phase2RollerCompactedConcreteMixDesignwasbatchedandwillbetestedoverthenexttwoyears. Thedatawillbeusedtodevelopthefinalconcretemixproportionsforthedam.

DenverWaterisassemblingahighlyfunctioningprogramteamtoimplementtheGRE.ThisIntegratedProjectTeamincorporatesnumerousinternalresourcesaswellasmanyspecializedexternalbusinesses.

Ø Owner’sRepresentative:Consultantteam(B&Vandsubconsultants)selectedandundercontractinMay2017.

Ø DamDesignEngineer:RequestforQualificationsadvertisedandshortlistdeveloped.RequestforTechnicalProposalsprovidedtoshortlistedteamswithresponsesreceivedonSeptember21,2017.

Ø BoardofConsultants:RequestforProposalsadvertisedwithresponsesdueonOctober12,2017.

Ø DesignAssistContractor:Requestforproposalswillbeadvertisedlate2018.

Allcurrentandfuturesolicitationrequestscanbefoundatwww.grossreservoir.org andwww.denverwater.org.

IntegratedProjectTeam

TheGREcostscontinuetoaccrueasplanned.Programexpendituresareindicativeofthescheduledactivitiesandadvancementsforthistimeperiod.ThroughtheendofAugust,wehavespent47percentoftheplanned2017forecast.ExpenditureswillincreasethroughtheendoftheyearastheDesignEngineerandBoardofConsultantsareselectedandmitigationpaymentsarebooked.

TheProgrammaintainsanactiveminority,womanownedandsmallbusinessenterprise(MWBEandSBE)outreachplatform.Atpresent,6.7percentprogramwideparticipationhasbeenachievedsince2014.

ProgramBudget

TheGREprogrambudgetisformallyupdatedeverytwoyears.Thebaseconstructionestimatewasdevelopedin2013andwasrevisedin2015toaccountforinflationandescalationcostofkeycommoditiessuchascement,flyash,andlabor.Theabovebudgetisthe2015*revisionandisintheprocessofbeingupdatedto2017marketconditions.

*Theprogrambudgetisnotinflatedforfutureyears.TheDWenterprisesystemsaccountsforinflationintheDWLongTermBudget.

Outreachactivitiescontinuetogainmomentumasresourcescomeon-lineandpermittingeffortsachievefavorableoutcomes.Asamplingofkeyactivitiesincludes:

Ø Installingsemi-permanentsignsatstrategicpointsalongthereservoirtoprovideinformationtothepublic.

Ø DrivingtheefforttoprovideDenverWatervolunteerstojoinapproximately40othersontheFraserFlatsHabitatRestorationProject.

Ø Proactiveinteractionswithlocalmediaoutletstoincreaseawarenessoftheproject.

Ø Continueddistributionofourquarterlyprojecte-newslettertogroupsandindividuals.

Informationyurttobeopenedforpublicaccessin2017

FraserFlatsLearning-By-Doingprojectwillcreatedeeperchannelsandpoolstoreducestream

temperatureincreases.

*IN$MILLIONS *IN$THOUSANDS

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