GBRA UPDATE ON DAM AND SPILL GATE REPLACEMENT

Update from Charles Hickman (GBRA) reLake Placid Spillgate Replacement Last time we discussed status I had mentioned we feel the last remaining criteria remaining for USACE permit approval is related to cultural resources, and we had submitted a cultural resources report to USACE that would also need to be reviewed by the Texas Historical Commission (THC). As of this week we have received comments back on the report from both USACE and the THC that did not appear substantial. Given this status, below I’ve done my best to outline the remaining tasks and potential timelines to start of construction. Several of the potential timelines are assuming USACE follows the same procedure as the Dunlap project, but so far the permitting process has been very different than Dunlap. 1. Address the USACE/THC comments on the cultural resources report – 14 days 2. USACE/THC develop draft Memorandum of Agreement (MOA) – 30 days a. This is where the USACE and THC will determine what historical mitigation will be required and formalize it into a MOA. The historical mitigation placed in the Memorandum of Agreement (MOA) is determined solely by USACE/THC without input from GBRA or its consulting team. We don't have any documentation to suggest what procedures they will require in the MOA making the timing very uncertain, so this task has a significant risk of taking longer than the 30 days outlined. We are basing the 30 days on how long this took for Dunlap, where they ended up requiring GBRA to prepare a historical report concurrent with the construction project. 3. MOA signature by local/state/federal stakeholders – 30 days a. There is a good deal of uncertainty on the timing of this task as well. There are local, state, and federal entities that all have to sign the MOA and we will not be able to make contact with the federal entities. 4. USACE formal permit approval – 2 weeks 5. GBRA advertises Request for Proposals with final USACE requirements – 2 weeks 6. Bid Phase – 60 days We will be allowing the contractors 60 days to prepare bids. We have had discussions with contractors that declined to bid Dunlap because the 30 day bid period was too short for them. 7. Contractor Evaluation/Award – 30 days This is the time to review proposals, interview top ranked contractors, and sign contract documents.

8. TWDB Approval & Issue NTP – 30 days To meet the requirements of the loan, TWDB must review the fully executed contract documents and provide GBRA authorization to issue a notice to proceed to the contractor before work can begin. This took longer for Dunlap but we are targeting 30 days for this project. Assuming these timelines are met, this keeps the target of completing the permitting process and bidding the project in late summer. I know this is a lot to digest so feel free to call if you need clarification.