&EPA
United States
Environmental Protection
Agency
A Guide for New
CUPSS Trainers
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£EPA
United States
Environmental Protection
Agency
Office of Water (4606M)
EPA 816-R-12-007
May 2012
www.epa.gov/safewater
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Contents
I OVERVIEW I
I. I ABOUT THIS GUIDE I
1.2 WHAT IS CUPSS? I
1.3 HOW WILL THIS GUIDE HELP TRAINERS? I
2 Public Relations 3
2.1 PROMOTION STRATEGIES 3
What Are The Trainer's Goals And Objectives? 4
Who Is The Target Audience? 4
Sending the Right Message 6
Resources for CUPSS Training 7
How To Evaluate Success? 8
3 Training Preparation 10
3.1 PREPLANNING FOR THE COURSE: CHECKLIST 10
3.2 TRAINING LOGISTICS 10
Coordination 10
Location 10
Promotion Materials I I
Presentation Handouts I I
Evaluation I I
3.3 "GETTING READY FOR CUPSS" TRAINING I I
4 Training Activities 12
4.1 MY TRAINING 12
4.2 SET-UP MY CUPSS 13
4.3 MY INVENTORY 13
4.4 MYO&M 13
4.5 MY FINANCES 13
4.6 MY CHECK UP 14
4.7 MY CUPSS PLAN 14
Appendix A. Additional Resources 15
Appendix B. Glossary 16
Appendix C. Readiness Checklist 20
Appendix D. Evaluation 21
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IV
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OVERVIEW
1.1 ABOUT THIS GUIDE
This Guide for New CUPSS Trainers has been designed to educate trainers how to
successfully introduce the CUPSS tool; a tool that will help users manage small drinking
water and wastewater systems. This guide presents tips and techniques for successful
CUPSS training, marketing strategies, marketing materials and training preparation
assistance.
While this training guide primarily focuses on CUPSS, it can also complement many of
the activities that should be conducted to promote asset management locally and
around the country. EPA has developed a series of Simple Tools for Effective
Performance (STEP) Guides, referenced in Appendix B, which provides much of the
content that is used in CUPSS and could also be used to promote the development of
effective asset management plans for small utilities.
1.2 WHAT IS CUPSS?
EPA developed CUPSS as a user-friendly desktop application to promote the
integration of asset management activities into utility practices.
CUPSS leads users through a series of modules to collect information on the utility's
assets, operation and maintenance activities and financial status to produce a prioritized
asset inventory, financial reports and a customized asset management plan.
CUPSS will help water and wastewater utilities
I/ Support budget talks with solid facts
t/ Boost utility efficiency
Save staff time
t/ Prepare an asset management plan in five steps
I/ Keep utility customers happy by ensuring
continual service at competitive prices
Why Use Asset
Management?
"We now think of asset
management as nearly
analogous to utility
management."
1.3 HOW WILL THIS GUIDE HELP TRAINERS?
This trainer's guide and associated training materials have been developed for potential
CUPSS trainers. The goals of this guide are to
Educate future trainers on possible marketing strategies and techniques to
gain buy-in from decision makers and stakeholders on the adoption of asset
management and the use of CUPSS.
Provide examples and case studies of successful asset management
implementation.
I
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I/ Educate future trainers on the key features and benefits of asset management
and CUPSS to potential users.
I/ Walk future trainers through activities to include in training events.
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Public Relations
The marketing of CUPSS should be an iterative
process that first involves creating awareness
and understanding of CUPSS and its uses. The
final stage is motivating utility managers to use
the application to develop effective asset
management plans.
This Public Relations section presents strategies
and guided assistance in presenting information
successfully to various audiences. Many sections
of this guide have editable examples on the website
(www.epa.gov/cupss/resources.htm#trainers), which allow trainers to tailor examples to
their needs.
4-
4-
2.1 PROMOTION STRATEGIES
Successful promotion occurs when social
marketing strategies are specifically geared to
a target community. The decision makers,
whether political or financial, must have
information that clearly illustrates the
benefits of using CUPSS for asset
management.
Advertisements geared to general users and
other trainers should illustrate the ease of
the system, the financial benefits of an
effective asset management system and the
general benefits of incorporating CUPSS into
the utility's overall management strategy.
Four major components should be addressed
to establish a successful marketing campaign
for CUPSS
S What are the goals and objectives?
S Who is the target audience?
S What are the recommended resources for CUPSS Training?
S How is success evaluated?
4-
Benefits to the User Community
Assist with collaboration and knowledge
sharing
Improve small utilities' sustainable
management
Assist in making informed decisions rather
than crisis management
Improve financial management decisions
despite limited resources
Encourage utilities to establish and
maintain level of service
Facilitate more efficient and focused utility
performance
Help utilities in the asset management
process
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WHAT ARE THE TRAINER'S GOALS AND OBJECTIVES?
The goal is to show that CUPSS is easy to use and will help utility managers successfully
administer a utility's assets. The following objectives will help with promoting CUPSS:
I. Conduct training and give demonstrations of CUPSS
2. Distribute electronic and hard-copy marketing materials that can be used to educate
users on the availability of the tool
3. Publicize the availability of CUPSS through articles, e-mails,
electronic distribution lists, conferences and newsletters
4. Conduct train-the-trainer workshops with state and local staff, to
enable them to promote the tool
WHO IS THE TARGET AUDIENCE?
There are several audiences that should be targeted for successful
adoption of CUPSS. These include the following:
Users (small drinking water and wastewater utility owners and operators)
Local decision makers (utility districts, town council members, mayors and
other local government officials)
Promoters (regulatory agencies, funding agencies and public utility
commissions)
d/ Other trainers (state field staff, technical assistance providers and
consultants)
w TRAINERSN
DECISION
MAKERS
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Users
Utilities are targeted as both end-users for the tool and as potential resource partners
that can help promote the availability and use of CUPSS to their peers. Stakeholder
interviews conducted with representatives of utilities showed that some of the greatest
challenges to utilities are:
Lack of understanding of the benefits
of sound asset management through
the 5-step process.
Lack of technical expertise or time
to fully understand the asset
management process. Increasm§ our revenues'
Why Use Asset
Management?
Asset management "actually has
a direct financial impact by
Not knowing where to begin the
process.
CUPSS addresses each of these challenges and will be a useful tool for any small utility
willing to embrace the benefits of asset management.
Trainers
Trainers provide various skill sets needed for asset management, such as technical
expertise, training and marketing support for CUPSS. Trainers, including state staff and
technical assistance providers, are a key communication gateway and primary resource
for small utilities trying to adopt or learn about asset management. It is essential that
other trainers are aware of CUPSS and its uses for drinking and wastewater utilities.
The role of the trainer in the marketing of CUPSS is not only to train users, but also to
train future trainers to help broaden the use of CUPSS for communities around the
country.
Local Decision Makers
These stakeholders provide funding and support for the long-term sustainability of
CUPSS within their community. The decision makers see the direct benefit of CUPSS
through the financial savings to their community and improved quality of service from
the utilities. In addition, these groups also are a key communication gateway to states
and other local agencies on the success of CUPSS. They must understand the benefits of
CUPSS. Trainers should try to seek the support and influence of local decision makers
to help implement and sustain asset management and CUPSS.
Promoters
The support of CUPSS and asset management involves stakeholders at the state level.
These stakeholders often can reach a very broad audience at a high level within the
state and local governments to help strengthen the sustainability of CUPSS. When
marketing to this group, trainers will need to demonstrate the many benefits for the
utilities' adoption of CUPSS, such as addressing water security issues in small
communities within their state or district, improving water delivery to rural
communities or improved crisis management and response.
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SENDING THE RIGHT MESSAGE
*trt\ * The following are some sample messages that can be used to help promote
- the availability and implementation of CUPSS.
Users
^ Trainers can teach potential CUPSS users about the many features of
the free software. Additionally, trainers should emphasize that CUPSS
has the ability to give utility managers information to support more
effective communication with the individuals and groups that make important decisions
about the utility budget.
S EPA has developed a FREE, easy-to-use
asset management tool for small drinking
and wastewater utilities to support
effective asset management plans. This
user-friendly, desktop-based tool leads
users through a step-by-step process to
manage assets, operations and
maintenance activities, and finances.
State and local agencies can conduct
trainings to teach utilities how to use
CUPSS to develop comprehensive asset
management plans. No experience with
the software is necessary.
Utilities using CUPSS will be more
efficient with managing their time and
money.
Why Use Asset
Management?
"Asset management is about
optimization; working smarter,
not harder."
Trainers
For informing other instructors, trainers should demonstrate how CUPSS-related
support material can aid in their overall training practice and how they can train
communities in creating sustainable water systems.
S EPA developed CUPSS in response to a clear need from communities and
trainers to consolidate and package asset management materials in an easy-to-
use, clear and updated fashion.
S Check out EPA's recently developed CUPSS Package to help utilities develop
effective asset management plans.
Promoters and Local Decision Makers
Trainers should target community leaders to demonstrate the benefits of CUPSS to the
community water systems. Trainers should discuss the concept of asset management
and potential savings that can arise from carefully managing the utility.
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S CUPSS helps small systems to efficiently manage their assets and finances to save
time and money.
S CUPSS helps improve community reactions to a crisis, while reducing response
time.
RESOURCES FOR CUPSS TRAINING
This section outlines the various distribution methods through which CUPSS can be
marketed. Three primary formats will be used to distribute the messages: (I) printed
materials, (2) electronic means, and (3) presentations, including training and
demonstrations. A combination of formats can be used for each of the target audiences
described above. The proposed materials developed to support CUPSS are tailored to
each audience group. To increase the exposure of CUPSS, a series of train-the-trainer
workshops are recommended to include decision makers, trainers not familiar with
CUPSS and users. Each of the trainees will receive presentation materials that they can
adapt to their needs.
"CUPSS and Us" Promotional PowerPoint Presentation
The "CUPSS and Us" presentation has been developed to assist in gaining the buy-in
from decision makers and users. This presentation provides detailed information
demonstrating the need for the tool and the benefits of using asset management for not
only the utility and utility's management, but also the community at large.
Recommended Distribution Mechanism
This presentation can be delivered in a traditional town hall meeting; the audience will
not need personal work stations. The presentation is included on the CUPSS CD.
"Asset Management 101" Training Presentation
The "Asset Management 101" presentation highlights the basics of asset management,
with a small systems focus. This training presentation provides information on the
resources to use for managing assets at small utilities and is consistent with the CUPSS
approach to asset management. This presentation is geared toward CUPSS trainers and
other stakeholders.
Recommended Distribution Mechanism
This presentation will be presented as an EPA-sponsored Webcast, and the presentation
can also be used in traditional training sessions. Participants will not need personal
work stations for this training. The presentation is available on the CUPSS training
website (www.epa.gov/cupss/resources.htm#trainers).
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CUPSS Training Presentations
The short version of the CUPSS Training presentation (approximately 2 hours) includes
an introduction to each CUPSS module and explains the key functions of each module
through a brief walk-through of the CUPSS tool.
The long version of the CUPSS Training presentation (approximately 6 hours) covers
information found in the CUPSS Users Guide. Future CUPSS trainers can use this
presentation for in-person training with CUPSS users. Exercises are included to train
participants how to use each module within CUPSS.
Recommended Distribution Mechanism
This presentation will be presented as an EPA-sponsored Webcast, and the presentation
can also be used in traditional training sessions.
Short version: Participants will not need personal work stations for this training.
Long version: Participants will need personal work stations for this training.
These presentations are included on the CUPSS training website
(www.epa.gov/cupss/resources.htm#trainers).
CUPSS EPA Web site
This Web site is designed for CUPSS users, trainers and all others involved with small
drinking water or wastewater utilities. Information is provided on downloading or
ordering the CUPSS software as well as guidance materials and training events related to
CUPSS and asset management.
Recommended Distribution Mechanism
This Web site is at: http://www.epa.gov/cupss
HOW TO EVALUATE SUCCESS?
An evaluation component should be incorporated into all
trainings to measure the effectiveness of the materials and
distribution approaches so that changes can be made throughout
the marketing effort to maximize its usefulness. The results of
these evaluations can be used by organizations to justify
additional internal resources to continue promoting CUPSS.
They can also be used to promote CUPSS's usability and ease of
useas more utilities are using CUPSS, it should alleviate
intimidation that others might have with using the tool. Several
measures of success include:
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Number of people receiving/requesting the CD and associated information
about CUPSS
Number of requests for more information on CUPSS
Number of requests by organizations to make a presentation or conduct
training on CUPSS
Number of presentations made and number of people reached in the
presentations
Number of utilities that use CUPSS to develop their Asset Management Plans
Number of systems that change their management practices as a result of
CUPSS
Why Use Asset Management?
A Utility Success Story
"Some of the most compelling information we have regarding cost and rate
benefits of asset management is through comparison of the projections we had
prior to implementation of asset management in 2002 to the actual costs and rates
since then.
Utility rates have been reduced in comparison to earlier planned levels. In
2002 - before implementation of asset management - we projected 2004, 2007,
and 2010 rates in our four lines of business, then predicted them again in 2004. In
those years, we see a reduction of between $6 and $1 3 per household for
combined rates for each of the prediction years.
The actuals for the 2003/2004 operations and maintenance budget were
about 6% lower than the 2002 projection. There has also been an 18% reduction
in the capital budget - comparing the 2002 prediction for our combined (WF,
DWF, SWF) capital budget in 2005 and 2006, to the actuals for those years.
Staffing, as measured by regular, temporary, and contract employees was
reduced by about 8%.
We've also been able to increase our cash contribution to the capital
budget. For the water fund, our cash contribution was about 19% in 2003, and we
project it to be 22% in 2005. For the drainage and wastewater fund, the cash
contribution was 5% in 2003 and we project it to be 15% in 2005. For the solid
waste fund, it was 6% in 2003 and we project it to be 30% in 2005."
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3 Training Preparation
Effective training is very important when
attempting to introduce software to a
new user group. Because of the nature
of the application, it is important for all
training locations to have access to
desktop computers. Trainers will be
instructed on how to effectively discuss
the details of the system with a variety
of user and stakeholder communities.
Some groups need to be informed of
the benefits of incorporating this tool
into their daily routine, while other
groups need to understand how this will
help them better manage the utility.
Communicating that CUPSS will provide
maintenance strategies and aid in
financial reporting will help utilities
make the decision to use this tool for
their asset management needs.
3.1 PREPLANNING FOR THE COURSE: CHECKLIST
Before beginning the training preparation process, it is important for trainers to
complete the attached checklist (see Appendix D) highlighting important, required steps.
These steps will ensure that the training will accurately target the selected audience and
will provide the audience with enough educational information that they can then
present to their larger base communities.
3.2 TRAINING LOGISTICS
COORDINATION
Preparation requires all trainers to identify the target audience, their technical abilities
and possible training locations during the planning process. Effective coordination first
requires all trainers to identify a point of contact (POC) in the targeted utility or
locality. The identified POC can help secure an audience, manage training registration
and secure a training location.
LOCATION
Once the target audience is identified, an appropriate training location must be found.
The technology required at each training location is directly related to the audience
identified. Decision makers will not be walked through the application. Instead, they will
be presented with information to assist in their decision-making processes. Because of
this, decision makers need a lecture-style classroom for their presentation.
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Both future trainers and user groups will need a more interactive setting. These groups
will require a lecture presentation, computers and software. The CUPSS application is
compatible with Microsoft Windows 1995/98/2000 Professional/XP operating systems.
Basic Microsoft Office applications or readers will be helpful for report generation and
modification.
PROMOTION MATERIALS
The CUPSS trainers website (www.epa.gov/cupss/resources.htm#trainers) provides
several templates for various forms of advertising materials and several documents such
as the "CUPSS and US" presentation that can be used in marketing CUPSS to local
decision makers. All materials are available at EPA and, on request, will be shipped at no
cost to each CUPSS User. Trainers can order promotional post cards in bulk, but they
should use the CUPSS CD for all other materials.
PRESENTATION HANDOUTS
EPA has developed presentations that will assist any trainer in effectively communicating
the importance of CUPSS and the application's features to multiple audiences.
Presentations are specifically geared toward community and financial decision makers,
future trainers and potential users. All presentations are editable so that trainers have
the ability to modify materials to better reach a specific community.
EVALUATION
Evaluation form templates are used at the conclusion of the training course. A template
has been provided on the CUPSS training website and can be edited and geared toward
the training location and community. See Appendix E for the evaluation form.
3.3 "GETTING READY FOR CUPSS" TRAINING
"Getting Ready for CUPSS" will provide education on how to
help future trainers when setting the stage for successful
implementation of the CUPSS tool. This presentation
discusses how the tool should be used, when it should be
used and who should use it. Explanatory information is
provided on how to train new trainers and future CUPSS
users. Trainers will go through the "Getting Ready"
workbook and help potential users in the information-
gathering stage of the CUPSS process. Trainers must be well
versed in the system before seeking community support and
approval. The "Getting Ready for CUPSS" presentation is on
the CUPSS CD.
I I
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4 Training Activities
Comprehensive training activities are essential when educating users on new concepts
and technical tools. This section provides training tips and
assistance on each of the main modules within the CUPSS desktop
application. Instructions have been provided for the trainers to
ensure an effective system walk through. These exercises follow
and complement the CUPSS User's Guide. The User's Guide
contains all the essential information for the user to make full use
of CUPSS. It includes a description of the functions and
capabilities of CUPSS and step-by-step instructions for using the
application to develop and implement an asset management plan.
An electronic version of the User's Guide is on the CUPSS CD.
CUPSS Flow Chart
Schematic of
My Inventory
My Finances
My Strategic
My CUPSS Plan
4.1 MY TRAINING
Overview: This module has been developed to help the user understand CUPSS and the
asset management process through clear, concise instructional materials. In this section,
the user finds an introductory training video and a tutorial for each CUPSS module. The
help section is keyword searchable and has a glossary section in addition to example
forms and reports.
Training Activity: The activity information is found in the CUPSS training presentation
and will follow Chapter I and 10 of the User's Guide.
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4.2 SET-UP MY CUPSS
Overview: The first step in the CUPSS process is to identify the CUPSS team. CUPSS
contains a team assembly wizard that will allow users to create lists of team members,
define their roles and gather contact information. The default CUPSS user (from Set-Up
My CUPSS) is carried over into the team roster. The users can then establish or modify
their team at any time but should be encouraged to set up a team during the initial run
of CUPSS. CUPSS allows users to export the team roster and associated data into a
Microsoft Excel spreadsheet file.
Training Activity: The activity information is found in the CUPSS training presentation
and will follow Chapter 3 and 4 of the User's Guide.
4.3 MY INVENTORY
Overview: This module allows users to identify and characterize their water system's
assets. The program prioritizes the user's assets and helps the utility better manage its
revenue for repair and replacement of assets. Users will enter their assets and all
related information. If an asset has already been entered, the user can review and
update the assets' information. The My Inventory module already contains information
about the utility's assets from the user's self-created diagram. The user can also enter
additional assets. All assets are displayed in a table format with both mandatory and
optional data fields.
Training Activity: The activity information is found in the CUPSS training presentation
and will follow Chapter 5 of the User's Guide.
4.4 MY O&M
Overview: This module allows users to create and track past, current and future
operations and maintenance (O&M) activities. The user can add tasks to the schedule
and mark scheduled items as completed. These items will then be moved to the log. The
log incorporates all routine tasks and logged activities into the task list. This module
then records the status and history of each task, alerts users if the task status is past due
or critically past due and alerts the user when to reassess the asset condition if
maintenance is not performed as scheduled.
Training Activity: The activity information is found in the CUPSS training presentation
and will follow Chapter 6 of the User's Guide.
4.5 MY FINANCES
Overview: This module allows users to determine the full costs of doing business and to
calculate how much money is needed for full recovery. This allows staff members to
discuss their needs within the context of the community budget.
The user provides the current year's budget (at a minimum) and actual expenses from
previous years' financial statements. From this, the user can calculate their total cost of
doing business and project budget needs for up to ten years.
Training Activity: The activity information is found in the CUPSS training presentation
and will follow Chapter 7 of the User's Guide.
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4.6 MY CHECK UP
Overview: CUPSS generates two customizable reports: "My Asset Check Up" and "My
Financial Check Up." These reports allow the user to pick the level of complexity they
wish to use to manage their assets. Trainers should walk the user through each of the
two reports paying special focus on how the financial report should be set up and run.
Training Activity: The activity information is found in the CUPSS training presentation
and will follow Chapter 8 of the User's Guide.
4.7 MY CUPSS PLAN
Overview: This module assembles, using an existing template, an asset management plan
that is already pre-filled with the information the user enters throughout the previous
CUPSS modules. CUPSS allows the user to make edits within the template and export
the management plan as a Word document.
Training Activity: The activity information is found in the CUPSS training presentation
and will follow Chapter 9 of the User's Guide.
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Appendix A. Additional Resources
Several additional resources are available to provide valuable information to the trainers,
the users and the decision makers. EPA-approved guidance documents, references and
other associated information are on the associated CUPSS CD.
RESOURCES ON THE CUPSS CD
Getting Started with CUPSS Workbook. EPA 816-R-08-005
CUPSS User's Guide. EPA 816-R-08-003
CUPSS and Us presentation.
Asset Management: A Best Practices Guide. EPA 816-F-07-01 I
Asset Management for Local Officials Factsheet. EPA 816-F-07-012
Building an Asset Management Team Factsheet. EPA 816-F-07-013
RESOURCES AVAILABLE ON THE CUPSS TRAINER'S WEB SITE
(www.epa.gov/cupss/resources.htmStrainers)
A Guide for New CUPSS Trainer's (this guide). EPA 816-R-08-004
Getting Ready for CUPSS: Information for Trainers presentation.
Short format CUPSS Training presentation.
Long format CUPSS Training presentation.
Postcards. EPA 816-E-08-001 and EPA 816-E-08-002
RESOURCES ON THE EPA WEB SITE (epa.gov/safewater)
Asset Management: A Handbook for Small Water Systems. EPA 816-R-03-016
Taking Stock of Your Water System: A Simple Asset Inventory for Very Small
Drinking Water Systems. EPA 816-K03-002
Setting Small Drinking Water System Rates for a Sustainable Future. EPA 816-R-
05-006
Preventive Maintenance Card File for Small Public Water Systems Using Ground
Water. EPA 8I6-B-04-002
CUPSS WEB SITE
www. epa.gov/cupss
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Appendix B. Glossary
Term
Annual Debt Payment
Annual Operating Expenses
Asset
Asset Category
Asset Inventory
Asset Management
Asset Name
Asset Status
Asset Type
Associated Asset
Associated Location
Capital Improvement
(Expense)
Capital Improvement
Program (CIP) Plan
Capital Reserve Contribution
Cash on Hand
Definition
The dollar amount that must be paid each year toward
retiring existing debt.
Total annual cost of operating and maintaining the water or
wastewater utility service. This does not include savings or
future draws from capital savings accounts.
A component of a facility with an independent physical and
functional identity and age (e.g. pump, motor, sedimentation
tank, main).
Where the asset best fits within your system (e.g., source
water, distribution or collection), for organizational purposes.
A list of assets with details about each one (installation date,
original cost, condition, and such). Also known as an asset
register.
A process for maintaining a desired level of customer service
at the best appropriate cost.
The name of the technology or equipment that is used for
your system to properly function (for example, "5th Street
Pumping Station"). See Asset.
This is how your utilities view an asset. Assets can be active
(most assets), not in use or a future investment. You would
designate an asset a "future investment" if you would like it
added to your capital improvement plan.
The asset's functional purpose for a specific asset category
(for example, intake structure, pumping station, transmission
main, storage tank, and the like).
Assets that are directly related to a primary asset's function.
A location that complements an associated asset.
Funds required for the future purchase, repair and/or
alteration to or for an asset, structure, or major pieces of
equipment.
A plan that projects and assesses which projects (including
asset improvements, repairs, replacements, and such) need to
be completed in the future.
Funds set aside to fund capital improvements (i.e. future
purchase, repair and/or alteration to or for an asset,
structure, or major pieces of equipment).
The amount of cash that is available to the system within a 24
hour period.
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Term
Condition
Consequence of Failure
Criticality
Debt Payment
Debt Service Coverage Ratio
Emergency Reserve
Contribution
Expected Useful Life
Expense
Expense Ratio
Financial Assets
Growth
Inflation
Interest Rate
Definition
The current condition, in your opinion, of an asset based on
age and physical functionality (ranging from poor to
excellent).
The real or hypothetical results associated with the failure of
an asset.
The importance of the asset to your system's operation. A
value, that in your opinion, best represents the consequence
of asset failure.
The dollar amount that must be paid each year toward paying
down or retiring existing debt.
DSCR = Debt Service Coverage Ratio = Net Income / Total
Debt
The debt ratio measures the amount of debt being used by
the organization. A ratio of 0.6 means that 60% of operations
have been financed with debt and the remaining 40% has been
financed by equity.
Funds set aside for unexpected repairs and replacements.
CUPSS recommends that utilities work towards an
emergency reserve balance of 25% of its annual operating
expenses.
The average amount of time, in years, that a system or
component is estimated to function when installed new.
Money spent by the utility to continue its ongoing operations.
Expense Ratio = Operating Expense / Total Expense
The expense ratio measures the amount of operating
expenses compared to total expenses. A high ratio indicates
that most expenditures are for operations - leaving the
remaining balance for non-operating costs (such as debt
service, capital improvements, etc.). If the non-operating
balance is small, then the utility is not likely to meet all of its
capital-related expenses, which may cause the system to
deteriorate more rapidly.
Intangible assets such as cash and bank balances.
The amount, as a percent, a community's demand for water
or wastewater treatment has increased or decreased. This
value will be used to adjust future revenues and expenses.
The anticipated rate of increase in the price level of goods
and services.
A rate which is charged or paid for the use of money. Note:
Do not include a percentage sign.
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Term
Level of Service
Liabilities
Maintained According to
Factory Recommendation
Operating Expenses
Operating Ratio
Original Cost
Probability of Failure
Redundancy
Replacement Cost
Revenue
Revenue Surplus/Deficit
Risk
Routine Maintenance Cost
Definition
The characteristics of system performance such as how much,
of what nature, and how frequently, with regard to the system's
service.
The financial obligations for which the utility is responsible.
The frequency of routine maintenance as recommended by
the manufacturer.
Total annual cost of operating and maintaining the water or
wastewater utility service. This does not include savings or
future funds withdrawal from capital savings accounts.
Operating expenses include maintenance, equipment, salaries,
wages, benefits, supplies, chemicals, contracts, utilities,
monitoring, testing, emergency, rent, mortgage, insurance,
services, training costs, billing costs, fees, and security costs.
Operating Ratio = Operating Revenue / Operating Expense
The operating ratio demonstrates the relationship between
operating revenues and operating expenses. A high ratio
indicates that the organization has operating efficiency by
keeping expenses low relative to revenue.
The amount paid for the initial purchase of an asset.
The chance an asset will fail based on the percent of effective
life consumed and redundancy.
Spare assets that have the ability to do the same job, if a
failure of the primary asset were to occur.
How much will it cost to replace the asset, if required today?
Funds earned by the system through the sale of water or by
other means.
The difference between the total cost of doing business and
the funds received from fees, loans and grants, and interest
earned from any accounts. If the result is zero or greater, the
utility is taking in enough money to fully recover its costs and
have a surplus. If the result is less than zero, the utility will
not cover all costs and therefore will have a deficit.
The potential for realization of unwanted adverse
consequences or events.
How much does it cost for a single routine maintenance
activity to be performed on the asset?
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Term
Sales Ratio
Savings Withdrawal
Total Annual Cost of Doing
Business
Total Debt
Definition
Sales Ratio = Sales / Total Revenue
The sales ratio measures the percentage of total revenue that
is made up of sales from operations. A low ratio indicates that
the organization is overly reliant on outside funding.
A fixed amount of money removed from the savings account
of the utility to help pay for capital improvement items or
other planned or unplanned maintenance.
The total annual operating expenses plus the required total
annual reserve contributions to reserve funds.
Total Debt = Debt from Loans + Lease and Mortgage
GLOSSARY REFERENCES:
Boise State. "Capacity Tracker: User Manual." Accessed February I 1, 2008.
http://sspa.boisestate.edu/efc/Tools Services/Capacity%20Tracker/Capacity%20Tracker
%20User%20Manual.pdf.
Department of Natural Resources and Water, Queensland. "Guidelines for Implementing Total
Management Planning." Accessed December 28, 2007.
http://www.nrw.qld.gov.au/compliance/wic/pdf/guidelines/tmp/2001 _guidelines/implemen
tation/asset glossary.pdf.
EPA. 2003. "Asset Management: A Handbook for Small Water Systems:' One of the Simple
Tools for Effective Performance (STEP) Guide Series." Accessed December 27, 2007.
http://www.epa.gov/safewater/smallsystems/pdfs/guide smallsystems asset mgmnt.pdf.
EPA. 2007. "Drinking Water Glossary: A Dictionary of Technical and Legal Terms Related to
Drinking Water." Accessed December 27, 2007.
http://www.epa.gov/safewater/pubs/gloss2.html.
EPA. 2006. "Setting Small Drinking Water System Rates for a Sustainable Future: One of the
Simple Tools for Effective Performance (STEP) Guide Series." Accessed December 27,
2007.
http://www.epa.gov/safewater/smallsystems/pdfs/guide_smallsystems_final_ratesetting_
guide.pdf.
EPA Office of Water, California State University. "Glossary." Accessed February 10, 2008.
http://www.mcet.org/Resources/LOH%20images/Glossary.pdf.
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Appendix C. Readiness Checklist
Are you sure that the facility meets your needs? Does the room have electrical
outlets?
Are there tables and chairs? Are you going to have the space to yourself during the
session?
Do any of the participants have special needs (e.g., wheelchair access, hearing
impaired)?
Have you arranged for refreshments?
Have you identified all the restroom locations?
Have you sent reminders/flyers to potential participants?
Have you reviewed the session?
Have you prepared all needed presentations and visual aids for the sessions?
Have you prepared specific examples that your participants will be able to relate to?
Have you practiced your presentation?
Do you have a participant sign-in sheet?
Are the discussion questions pre-written on a flipchart?
Have you brought your Trainer's Guide and some extra participant workbooks?
Have you prepared and printed the evaluation form?
Do you have all of your teaching materials?
Q Computers?
Q Markers?
Q Flipchart?
Q Flipchart stand?
Q Tape?
Q Overhead projector?
Q Extra pencils?
Q Extra calculators?
Q Have you set the date, time and place for the next session?
Q Other
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Appendix D. Evaluation
CUPSS APPLICATION FOR SMALL SYSTEMS
TRAINING COURSE EVALUATION
Parti
Please rate the following aspects of the training course.
I. Trainer Evaluation
Excellent Good Not Good Poor
A. Knowledge of subject
B. Organization of sessions
C. Style and delivery
D. Responsiveness to group
E. Producing a good learning climate
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
2. Course Evaluation
Excellent
Good Not Good Poor
A. Organization
E.g., Were you informed as to what the subjects would be and when they
would be covered?
B. Relevance
E.g., Were the subjects relevant to your job and your future needs?
C. User's Guide booklet
E.g., Were the notes clear, professionally presented and supplied on time?
D. Supporting materials
E.g., Were appropriate materials provided or a source referenced?
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
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E Informative
a a a
E.g., Did this course provide additional information not previously known
regarding asset management plans for small systems?
Part II
Please complete questions about the training course.
I. How would you rate the program overall?
(Please circle the score number that most closely represents your view)
I Very useful 54321 Little use
Very interesting 54321 Of little interest
2. To what extent do you feel you have learned from the program?
(Please circle the score number that most closely represents your view)
Learned a lot 54321 Learned nothing
3. What module did you most learn from? Please explain.
4. What module did you least enjoy? Please explain
5. What subjects were not covered fully enough? Please explain.
6. What subjects were not covered that you would have liked addressed?
7. Do you find that this tool fits your needs and expectations?
8. What barriers might impede your implementation?
9. What benefits do you hope will result from using this software?
10. Any other comments?
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