NON-ROUTINE MAINTENANCE FACILITY UPGRADES EQUIPMENT CHRIS STARR LSRCP

LSRCP PROPERTY Real Property valued at $350 - $400M Personal Property valued at nearly $5M Vehicles and Tankers valued at nearly $5M

PROJECTS Existing Facilities and Infrastructure Existing Equipment Facilities, Infrastructure and Equipment to meet Regulatory / ESA Compliance Facilities, Infrastructure and Equipment for Improved or Additional Fish Production

FUNDS Industry standard for maintenance, upgrades, and equipment replacement is approximately 2% - 3% of value annually LSRCP Receives around 1% annually As facilities continue to age, it will take more $$$ to maintain fish rearing infrastructure This Will Lead to Choices???

GUESS WHAT In most years a significant amount of $$$ is spent on maintenance projects or equipment upgrades that were NOT on the LIST at the beginning of the fiscal year. In FY2012, over 50% of LSRCP non-routine maintenance and equipment expenditures were unexpected, which in turn bumps known needs further down the priority food chain. The current LIST includes over $12M worth of non-routine maintenance projects and equipment upgrades (asphalt)

AREAS OF PRIORITY Human Safety Fish Safety Regulatory Compliance Further Facility Degradation HRT Recommendation Employee Efficiency Energy Efficiency Improve Fish Rearing Increase Fish Rearing

PROJECT CONSIDERATIONS Is the project or asset “Mission Critical” Is there a “Work Around” to the fix or upgrade Example = Asphalt repair Track how the project was identified Example = Manager Review, Safety or Compliance Audit, Condition Assessment Deferred vs Preventative

EQUIPMENT Mission Critical Work Around Replace Existing Equipment New Equipment Vehicles, Trucks, Tankers

TIME FLIES Most LSRCP facilities are approaching their 30 th birthday. More maintenance and upkeep will be needed to maintain the high quality fish production folks associate with LSRCP facilities.

THOUGHTS ON MOVING FORWARD