Asset Management (5) Core Questions 1. Current State of your assets? 2. Required Level of Service (LOS)? 3. Which Assets are Critical to performance? http:// water.epa.gov/infrastructure/drinkingwater/pws/cupss/upload/2008_06_05_cupss_presentation_cupss_training_session1_2008june5webinar.pdf
Asset Management (5) Core Questions 4. What are (CIP) and (O&M) Strategies? 5. What is the Long-Term Financing Strategy? http:// water.epa.gov/infrastructure/drinkingwater/pws/cupss/upload/2008_06_05_cupss_presentation_cupss_training_session1_2008june5webinar.pdf
Five Cores of Asset Management Asset Management Current State of Asset Critical Assets Minimum Life Cycle Cost Level of Service Long-Term Funding Plan http://water.epa.gov/type/watersheds/wastewater/index.cfm
Asset Management Benefits Protect public health Properly maintained equipment supplies fresh drinking water to consumers.
Asset Management Benefits Save money $$$. With better planning you can fund upgrades and replacements, have better maintenance, and increase the life of your equipment
Asset Management - Overview Best Practices Guide (http://water.epa.gov/type/drink/pws/smallsystems/managementhelp.cfm)
Sanitary Survey Question #1 1. Does the system actively perform Asset Management which includes the minimum information noted below: an inventory of their infrastructure the estimated useful life of their assets a schedule and a yearly cost estimate for maintaining their assets and a long-term replacement plan (sometimes called Capital Improvement Plan) for their assets with a schedule and estimated costs?
Sanitary Survey Question #1 If yes, does the Capital Improvement Plan or other acceptable capital planning document including items such as: a long-term replacement plan for large equipment purchases or construction projects that will be needed over the next 20 years If yes, Is it followed? Yes No analysis and planning for the future operations, development, improvement, and long-term sustainability of the water system If yes, Is it followed? Yes No
Sanitary Survey Question #2 Does the system produce a yearly Annual Budget or other document that includes the minimum information noted below? personnel training (time & resources) testing supplies operating expenses contract services repairs a reserve fund to cover capital improvements debt service payments an emergency fund
Sanitary Survey Question #3 Does the system have a written regular Preventive Maintenance Program plan that includes (as necessary): valve maintenance, hydrant testing, water main flushing, pump repair, storage tank inspection and cleaning, regular master meter calibration, and checking the condition of the source well? If yes, Is it followed? Yes No
Sanitary Survey - Optional Optional: Other useful questions Does the system have an enterprise fund? Yes No NA What are the water rates? Are the rates sufficient to cover the true cost of producing and delivering water? Yes No Are rates adjusted periodically in order to adequately fund the budget? Yes No Is PWS spending more money than they generate? Yes No Annual Revenue Annual Expenses Reserve Account Balance Rate of Saving every year
(6) Asset Management – Tools 1. EPA Simple Asset Inventory for Very Small Systems (VSS) 2. Asset Management Worksheet (MassDEP) 3. EPA –Asset Management: Handbook for Small Water Systems 4. EPA Check Up Program for Small Systems (CUPSS) 5. EPA Infrastructure Needs Survey (DWINSA) - Worksheets 6. Capital Improvement Planning Guidance (MassDEP)
Asset Management – Tools 1. EPA Simple Asset Inventory for Very Small Systems (VSS)
EPA Simple Asset Inventory for Very Small Systems (VSS) http://www.epa.gov/ogwdw/smallsystems/pdfs/final_asset_inventory_for_small_systems.pdf
Asset Inventory for VSS The Asset Inventory includes a section that guides PWS: Lists water system assets Captures the characteristics of the assets; Quantity, size, location, age, manufacturer Attach “Typical Life Expectancies” (from table) Estimate adjusted useful life & remaining useful lives. http://www.epa.gov/ogwdw/smallsystems/pdfs/final_asset_inventory_for_small_systems.pdf
Asset Inventory for VSS Provides basis for asset management plan (CUPSS) Includes Strategy to involve key decision makers Forms available at: http://www.epa.gov/ogwdw/smallsystems/pdfs/final_asset_inventory_for_small_systems.pdf
Asset Management Worksheet Worksheet allows for a simplified approach for small systems, labeling assets, replacement costs, useful life, annual reserve, cost per user. http://www.mass.gov/dep/water/drinking/assetmgt.pdf
Asset Management Worksheet - Application Establishing a reserve account (Example) Calculating the replacement cost of PWS assets Calculating the cost per user For a blank worksheet, you may find one at: http://www.mass.gov/dep/water/drinking/assetmgt.pdf
Asset Management – Tools 3. EPA Asset Management: Handbook for Small Water Systems
EPA –Asset Management: Handbook for Small Water Systems
Review the basic concepts of asset management and be provided with tools to develop an asset management plan. http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf
Benefits of the Asset Management Handbook Prioritize rehab & replacement Reducing system “down-time” and the number of emergency repairs Demonstrates to public that you are using money effectively http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_ass et_mgmnt.pdf
Handbook Five-Step Approach: The handbook will provide a five-step asset management process: 1. Conducting a thorough asset inventory. 2. Prioritizing the rehabilitation and replacement of assets. 3. Developing an annual estimate of needed reserves and an annual budget. 4. Implementing the asset management plan. 5. Reviewing and revising the asset management plan. http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf
How to Obtain the Asset Management Handbook: You can view the handbook online at: http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf
Asset Management – Tools 4. Check Up Program for Small Systems (CUPSS)
Designed for PWS that have 500-3,300 individuals Free comprehensive asset management tool Water & Waste Water http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/
What CUPSS brings to you? Make more informed decisions about your assets & WTP. Save time by planning & scheduling ahead. Back up budget talks with solid facts & provide reports. Improve your customer service. Prepare an Asset Management Plan in seven steps. http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/basicinformation.cfm
CUPSS Sections Set Up CUPSS Training My Inventory My O & M (Operations and Maintenance) My Finances My Check Up My CUPSS Plan
What do you bring to CUPSS? An understanding for a desired "sustainable" level of service for you WTP. Information about your current assets. Financial information for your utility Information about which assets are critical to sustained performance. http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/basicinformation.cfm
CUPSS Section: My O&M Create and track current, past and future operations and maintenance activities using this module. Scheduling tasks, as well as a history of each task, alerts Past due tasks will be documented in your O&M.
CUPSS Section: My Check Up Two customizable reports are produced by CUPSS: My Asset Check Up My Financial Check Up You can create targeted reports to manage current and plan for future scenarios.
How to Obtain CUPSS: You can download the latest version of CUPSS online at: http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/software.cfm You may also request a CUPSS Kit at: 1-800-490-9198 (bulk orders are available) and request either: User’s Kit EPA 816-K-08-002 Trainer’s Kit EPA 816-K-08-001
EPA Infrastructure Needs Survey Developed for PWS that serve over 3,300. Developed to identify infrastructure needs EPA conducts a needs survey every four years. http://water.epa.gov/infrastructure/drinkingwater/dwns/index.cfm http://water.epa.gov/infrastructure/drinkingwater/dwns/upload/2009_03_ 26_needssurvey_2007_fs_needssurvey_2007.pdf
EPA Infrastructure Needs Survey: (4) Sections 1. Overview, instructions, and contact information. 2. Transmission and Distribution section. 3. Storage, Treatment, Storage, Pumping, and Other Projects. 4. Backflow Prevention Devices/Assemblies, Flushing Hydrants, Service Lines, Valves, and Water Meter
EPA Infrastructure Needs Survey: Sections Four lists assist in completing report : List 1: Type of Need List 2: Reason for Need List 3: Regulation or Requirement List 4: Documentation
How to Obtain the DWINSA: More information about the Needs Survey can be found at http://water.epa.gov/infrastru cture/drinkingwater/dwns/ind ex.cfm, along with factsheets and reports from previous years. http://water.epa.gov/infrastru cture/drinkingwater/dwns/ind ex.cfm MassDEP web site:
MassDEP Capital Improvement Planning Guidance Document This CIP Guidance Document can be utilized to identify and document capital projects for a PWS. The CIP is divided into 6 categories, which gathers existing engineering and planning information. http://www.mass.gov/dep/water/laws/cipform.pdf
CIP Guidance Document The six categories: Source Treatment Storage Pumping Projects Transmission and Distribution Mains- Inventory Other- Project Tables http://www.mass.gov/dep/water/laws/cipform.pdf
How to Obtain the CIP Guidance Document: More information about the MassDEP CIP Guidance Document can be found at: http://www.mass.gov/dep/water/laws/cipform.pdf http://www.mass.gov/dep/water/laws/cipform.pdf
CIP Grants: MassDEP In December 2010, MASSDEP awarded 53 PWS (medium to large) a total of $400,500 to prepare short-term capital improvement plans.
Chapter 11 Capacity Development (Standard Operating Procedures) Chapter 11 is guidance to provide PWS with tools to establish and maintain: Technical Managerial Financial
Capacity Development Asset Management focuses on the Managerial and Financial components of Capacity. http://water.epa.gov/type/drink/pws/smallsystems/basicinformation.cfm
Capacity Development Chapter 11 Guidelines 11. 3.17 - Health and Safety Policy (new) 11.3.18 - Risk Management Policy (new) 11.4 – Water System Planning (modified) to include: Strategic Planning Asset Management Planning
When MassDEP currently requires PWS to demonstrate Capacity: New Systems Existing Systems Water Supply Business Plan (WSBP) Complete an Asset Management Plan Transfer Assets into CUPSS or equivalent Asset Management tool State Revolving Fund (SRF) Grant Funding Significant non- complier (SNC) or a potential SNC Major violation Major infrastructure requirement/ submitted plans for a major infrastructure improvement Substantial modification to the system (E.g. transfer of ownership) Approved for Adequate Capacity Review Your Asset Management Plan
When to engage in Asset Management? A new system develops Capacity and Asset Management through the new system/new source approval process. An existing system develops Capacity and Asset Management through using the available tools and programs.
Asset Management Tools: Asset Management Worksheet http://www.mass.gov/dep/water/drinking/assetmgt.pdf http://www.mass.gov/dep/water/drinking/assetmgt.pdf EPA Simple Asset Inventory for Very Small Systems (VSS) http://www.epa.gov/ogwdw/smallsystems/pdfs/final_asset_inventory_for_small_systems.pdf EPA –Asset Management: Handbook for Small Water Systems http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf Check Up Program for Small Systems (CUPSS) http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/index.cfm http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/index.cfm Massachusetts Coalition for Small System Assistance (Assistance for systems serving less than 10,000 persons) http://www.masmallwatersystem.org/ http://www.masmallwatersystem.org/ EPA Drinking Water Infrastructure Needs Survey (DWINSA) http://water.epa.gov/infrastructure/drinkingwater/dwns/index.cfm http://water.epa.gov/infrastructure/drinkingwater/dwns/index.cfm
Technical Assistance Contacts for Asset Management: Michael Maynard: Michael.Maynard@state.ma.us Office: (508) 767-2735 Yvette DePeiza: Yvette.Depeiza@state.ma.us Office: (617) 292-5857