Feb 4, 2013 Meeting w/ Notes

I ALPOM &R Association
January 7, 2013 Board Meeting Minutes
(01/25/13 — Draft)
7. Staff Report
Russ gave a power point presentation to the group covering the required maintenance which will be utilized to
maintain the capabilities of the project. He informed the group that over the last several years we are much closer
to developing a maintenance program and have a much better idea of the core skills which will be needed. He
explained the four categories; routine and non - routine, critical and non - critical, to the group and the types of core
skills which will be needed. He informed the group of the items which are critical such as, pumping plant
equipment maintenance, Ridges Basin Dam Inspection and PM's, POF Equipment PM's, Security Fence Repair,
Right of Way Fence Repair, Plant Operations, Dam Operations, RBIC Conduit Maintenance and Repair, Electrical
and Mechanical Repairs, Tribute Garden maintenance, Basin Creek maintenance, asset modifications (small scale)
and Snow Removal. He indicated in the Power Point presentation which tasks could be contracted -out, as well as
the tasks which are contracted out presently.
Russ gave the group an overview of the MMS system and how it was developed. He gave examples of how the
system was set up and how it works as well as how costs are assigned and tracked for each system. Russ gave
examples of tracking costs using this system and gave examples of how a business decision could be made to
determine the best and most economical way to resolve re- occurring problems. Russ covered the three basic
approaches to maintenance, which are: Predictive Maintenance (tools such as thermography, oil samples,
vibrations monitoring, etc.), Preventative Maintenance (time based) and Run to Fail (replace item). Russ stated
we would use all three methods depending upon the criticality of the piece of equipment being serviced.
Russ informed the Board we have developed a MMS program of all the equipment (assets) on the project and
reviewed the hours required to accomplish the maintenance of electrical and mechanical equipment. He
reviewed the man hour figures and informed the group we will need additional manpower to accomplish the PM
program to keep a well maintained and functional water delivery system to the Association's member entities.
Russ reviewed the Labor Distribution Chart with the members. Russ pointed out currently there is a man hour
shortage to complete the PM program for the equipment. Russ reviewed the manpower figures and percentages
and explained how they will change as time goes on. He recommended hiring an additional electrician and
mechanic. Russ stated when Tom retires he will hire an additional Maintenance Technician to replace him. The
Technician will also have a CDL driver's license so they can operate the project dump truck.
Russ reviewed the budget for Water Year 2013 thru 2016. He reviewed the categories and the line items and
explained each one. The categories listed were: Staff, Reserve Funds, Materials and Supplies, Other Expenses,
Commercial Services, Professional Services, Utilities, WAPA Power, and Insurance. He reviewed each one and the
total costs for each member entity. Russ reminded the group these were accurate numbers and also pointed out
the original budget was very close to being accurate since we did not have any real numbers when that was
generated. Russ also reviewed "Additional Items to Add ". He explained some of the current systems such as the
phone system are extremely complicated and there are no local representatives that have the technical expertise
to repair this system. He said we will reduce some of these expenses as time goes along by using simpler systems
which have local representatives available when needed. Russ said we will continue to track all costs so he can
give the Board a more accurate financial picture in the future. Randy asked when Russ would get the additional
personnel he wanted. Russ said as soon as possible.
Mike asked Russ if it were alright if he shared this budget information with his future clients. Russ agreed it was
OK. There was some discussion concerning the timing of the budget start date and the start dates of the various
members. It is contingent on when USBR will transfer the Project from construction to O &M and to whom it will
be transferred to at that time.
Carly gave an update on filing the Association's taxes for this year. The requirements have changed and a Form
990 must be filed (12 pages). This will be filed on February 15, 2013. The completed form will be in the February 4
meeting packet for the Board members review.
Page 2