BNY Project Review

Please find the following Action Items for the Tech Services team stemming from today's DASH review meeting with L. Kitchen. Bob V. can you take point on this with D. Williams. Mike Coleman attended the meeting in Dan's absence and can provide feedback on some of the technical discussion.

1. Please develop a project schedule showing the inter-relationship between permitting, engineering, procurement, fabrication, construction and start-up activities. Key issues include:
a) ability to get equipment ordered and delivered given vendor availability
b) inter-play between equipment purchasing and off balance sheet financing requirements.
c) delay in construction caused by a delay in the air permit
d) securing a construction permit - given that site remediation has not been signed off on by the state/city
e) construction activities in the winter
f) other permits required

2. Provide a review of the O&M budget and long term performance factors to ensure we are comfortable with cost and plant performance used in the pro forma.

3. Provide an assessment of the cost/ability to put in place an EPC contract to meet the pro forma assumptions (labor rates in NYC, unions, RAC requirements, etc).

As we have discussed, we need to be proactive in the DASH process and conduct a technical review meeting before the DASH is written and circulated. This will ensure that we have identified and have addressed/modeled/mitigated/reserved for technical issues before the DASH is submitted to EWS management for signature. Our Thursday meetings are a perfect platform for getting these issues out on the table. This did not occur in the case of Brooklyn Navy Yard, and we were left scrambling trying to answer technical questions in respect of the DASH. Much of the analysis was done, however, we need to present a clear review of technical risks and mitigation impacts of the project. Failing to do so puts the project at risk and creates doubt that Tech Services has a firm grasp of the Technical Risk in ENA. If there are issues getting access to information or you are being left out of the technical analysis in compiling the DASH please let me help.

Regards,
Brian