&EPA

United States
Environmental Protection
Agency

Taking Stock of Your
Water System

A Simple Asset Inventory for
Very Small Drinking Water

Systems


-------
Office of Water (4606 M)
EPA-816-B-21-003
April 2022


-------
Contents

Why Take Stock of Your Water System? An Overview of this Document	2

How to Use this Document	3

Elements of a Simple Asset Inventory	4

How Long Will It Last? Using the Typical Life Expectancies Table	5

Asset Inventory Tables	6

Drinking Water Source: Completed Example	6

Drinking Water Source: Blank Table	7

Intake Structures: Completed Example	8

Intake Structures: Blank Table	9

Treatment System: Completed Example	10

Treatment System: Blank Table	11

Tanks: Completed Example	12

Tanks: Blank Table	13

Distribution System: Completed Example	14

Distribution System: Blank Table	15

Valves: Completed Example	16

Valves: Blank Table	17

Electrical Systems: Completed Example	18

Electrical System: Blank Table	19

Buildings: Completed Example	20

Buildings: Blank Table	21

Service Lines: Completed Example	22

Service Lines: Blank Table	23

Hydrants: Completed Example	24

Hydrants: Blank Table	25

Next Steps: Asset Management Plan	26

Prioritization Table	27

Prioritizing Your Assets: Completed Example	28

Prioritizing Your Assets: Blank Table	29

Budgeting for Rehabilitations and Replacements	30

Budgeting Table	31

Budgeting for Rehabilitation and Replacement of Assets: Completed Example	32

Budgeting for Rehabilitation and Replacement of Assets	33

How to Carry out the Plan	34

Building Community Support	35

Appendix A: Sources of Financial Assistance to Drinking Water Systems	36

Appendix B: Complete List of Links	37

1


-------
Why Take Stock of Your Water System? An Overview of this

Document

This document is a guide to help very small water systems, such as manufactured home communities and
homeowners' associations, assess the condition of their water system by preparing a simple asset inventory.
Additional guides can be found on EPA's website at Simple Tools for Effective Performance (STEP) Guide Series.

Physical components of a water system are referred to as assets. Some are visible assets such as tanks, wells,
pumps, hydrants, and treatment facilities. Other assets are invisible, or buried, such as pipe and valves.
Knowing what assets your system has and what condition they are in will help you maintain the safety,
security, and reliability of the water that your system provides. Creating a simple asset inventory can help you
in the following ways:

>	Ensure Compliance is Met. Keeping a precise inventory of your water system's assets can assist you
in complying with the federal Safe Drinking Water Act and with your state's drinking water regulations
by; helping you prepare accurate budgets, document your assets' condition, and preparing for future
needs (whether financial, growth-related, or regulatory).

>	Build Resiliency for the Unexpected. Understanding your water system's strengths and weaknesses
will help you be better prepared and positioned to respond to sudden or unexpected problems with
the system's operation or the quality of water it provides.

>	Identify and Solve Capacity Issues. Gaining a better overall picture of your system will help you to
spot gaps in your water system's security or performance so that you can take steps to address them.
Documenting your actual needs can lead to a stronger justification when applying for financial
assistance to correct capacity issues.

>	Encourage Knowledge Sharing. Knowing the details of your system will enable you to explain its
current condition and how it operates day-to-day. You will be better able to answer questions from
customers, local health officials, and the media.

Maintaining and Replacing Your Assets - The Basis of Asset Management

An important part of conducting an inventory is determining when to repair, rehabilitate, or replace
an asset. At some point, continuing to repair the asset will no longer be cost-effective and you will
need to rehabilitate or replace it. The worksheets in this brochure will help you get a better picture
of your current assets, including the ones nearing the end of their useful service life. To further help
you manage your assets, EPA has developed Asset Management: A Handbook for Small Water
Systems. You can download it from EPA's STEP Guide Series Website.

Inside this document you will find information and worksheets (both completed examples and blank) to help
you prepare an asset inventory and begin to develop a written asset management plan. You should keep a
copy of this document and refer to it, along with other relevant records, when making decisions about your
water system. Contact your State or Tribal Drinking Water Primacy Agency for help completing the worksheets
or for more information on conducting an asset inventory. State and territorial contacts can be found on EPA's
website here. EPA's Regional Tribal Drinking Water Coordinators can be found on EPA's website here.

2


-------
How to Use this Document

The worksheets on the following pages will enable you to get an idea of the overall state of your water system.
There are worksheets for source and intake structures, treatment system, storage tanks, distribution system,
valves, electrical systems, buildings, service lines, and hydrants.

Carry out the following steps to complete the worksheets:

1	¦ Fill in as much information as you can about the asset's

characteristics, including quantity, size, location, age,
and the manufacturer of the components. These
characteristics will vary by asset type.

2	¦ Using the estimates from the table, "Typical Life

Expectancies of Water Supply Equipment," on page 5,
and assessing the current condition of each asset, its
service history, and your experience, estimate an
adjusted useful life for each of your assets. Subtract
the age of your asset from its adjusted useful life to
calculate a remaining useful life. Adjusted useful lives
are the typical life expectancies of water system assets
adjusted based on the characteristics of your system
(e.g., poor source water quality, extreme weather
conditions, operation, and maintenance routines).

Adjusted useful life can be the same as or lower than
typical life expectancies.

3	¦ Identify the contact information of the person or

company you would call to service each component and
include a telephone number. If you do not know who to
call, you can ask your State or Tribal Drinking Water
Primacy Agency, parts manufacturers and distributors, or other water systems.

Once you've completed the asset inventory worksheets, use them to develop a basic asset
management plan. Completing the asset management plan worksheets (on pages 29 and 33) will help
you prioritize the components that will need to be replaced or rehabilitated, plan for the timing of
replacement or rehabilitation, and help you determine how much money you'll need to set aside each
year if you plan to pay for replacements and rehabilitations through cash reserves.

Each worksheet is preceded by a completed example that illustrates how to fill out the worksheet. Refer to the
example if you have any questions about the sort of information you should include.

Inventorying your assets can be an intensive job. Get the best information you can but use
estimates if you need to. If you keep up with an asset management program, new information will
become available as assets are replaced or rehabilitated, and your inventory of assets will improve.

How Taking Stock of Your
Water System Can Improve
Your System's Capacity

"Water system capacity" describes a
system's ability to plan for, achieve, and
maintain compliance with national and
State drinking water standards. System
capacity has three components:
technical, managerial, and financial.
Completing this asset inventory will help
you improve all three components by:

•	Increasing your knowledge of the
physical components of your system,
which will allow you to make better
technical and managerial decisions

•	Identifying components that may
need to be replaced or rehabilitated
in the near future, which will enable
you to develop a financial plan and
research cost-effective options.

More information about capacity and
asset management can be found on
EPA's website here.

3


-------
Elements of a Simple Asset Inventory

A note to the users of this document: It is quite likely that all of the details of the asset management plan presented in this document will not apply to
every small drinking water system. Help in using this document, conducting asset inventories, and preparing future plans is available from your State or
Tribal Drinking Water Primacy Agency.

Drinking Water Source

The source provides water to the
treatmentand distribution systems.



Storage

Storage provides a sufficient
amount of water to average
or equalize the daily water
demands.

Buildings, Treatment,
and Electrical Systems

Buildings, Treatment, and Electrical Systems

Buildings contain components of a watersystem, including
treatmentequipment, offices,and pumps.

Treatment plants provide the necessary treatment to make
water safe to drink.

Electrical systems include transformers, motor control
centers (MCCs), variable frequency drives (VFDs), alarm
circuits, sensors, level indicators, computers, and wiring.

Storage

Valves

Valves regulate the flow of
water through the pipes of a
drinking watersystem.

Hydrants

Hydrants provide water for
fire suppression, line flushing,
and irrigation.

Valves

Service Lines

Service lines are the pipes and appurtenancesthat are
necessary to deliver water from the system's water main
to the customer's plumbing connection. Each service line
typically provides service for one or two users or
connections.

Service Lines

J

House

Courtesy of Roger Bergeron, Vermont Water Supply Division

4


-------
How Long Will It Last? Using the Typical Life Expectancies Table

One of the most important aspects of
managing your assets is determining how
much longer you think they will last. A
number of factors can affect how long your
assets will last, including routine service and
proper maintenance, excessive use, and
environmental conditions such as poor
source water quality, soil quality, or climate.

The worksheets on the following pages ask
you to:

How Long Will It Last? Typical Life Expectancies of
Water Supply Equipment

1.

Determine the adjusted useful life of

each asset. Estimate how long the
asset should last (the expected useful
life) and adjust these numbers based
on the specific conditions and
experiences of your system. The
useful life of an asset will be affected
by water quality, operation and
maintenance routines, the number of
years the asset lasted in the past, the
asset's service history, and its current
condition.

For help in determining the adjusted
useful life, you can use the table on
this page and talk to parts
distributors, your State or Tribal
Drinking Water Primacy Agency, and other public water systems.

Component

Worksheet

Useful Life

Wells and Springs

Drinking Water
Source

25 years

Intake Structures

35 years

Pumping Equipment

10 years

Disinfection Equipment

Treatment System

5 years

Hydropneumatic Tanks

Tanks

10 years

Concrete and Metal
Storage Tanks

30 years

Transmission Structures
(Pipes)

Distribution
System

35 years

Valves

Valves

35 years

Mechanical Valves

15 years

Computer

Equipment/Software

Electrical Systems

5 years

Transformers/Switchgears/
Wiring

20 years

Motor Controls/Variable
Frequency Drives

10 years

Sensors

7 years

Buildings

Buildings

30 years

Service Lines

Service Lines

30 years

Hydrants

Hydrants

40 years

Note: These expected useful lives are drawn from a variety of
sources. The estimates assume that assets have been properly
maintained. The adjusted useful life of an asset will be equal to or
less than typical useful life

2.

Subtract the estimated age of each
asset from its adjusted useful life
to determine its remaining useful

life (or how many months or years
remain before you will have to
replace or significantly rehabilitate
the asset).

Remember!

A preventive maintenance program will enable you to
maximize the useful lives of your assets, help you prepare
for the unexpected problems, and cut down or delay
replacement costs. Contact your State or Tribal Drinking
Water Primacy Agency for more information on
developing and implementing a preventive maintenance
program.

5


-------
Asset Inventory Tables

Drinking Water Source: Completed Example

Well Construction

Obtain a well log or look at receipts from the time of drilling for the following information. Remember that maintenance, water quality, use, and soil
conditions can affect useful life. Subtract estimated age from adjusted useful life to determine remaining useful life.

Drilling Contractor

Adjusted Useful Life - Estimated Age

= Remaining Useful Life

U/LL Excavations

30 years - 10 years old = 20 years

Whom would you call to maintain and repair your well? This may be the well driller.

Company/Agency

Contact

Telephone Number

WLL Excavations

U/illiam Smith

(800) 685-6850

Well Pump and Controls

Look at receipts or records from the time of installation for the following information:

Pump Manufacturer

Well Pump Model Number (typically located on pump casing. If
buried, look for information near the electrical system.)

PMP Pumps

ZZ-0001234

Remember that maintenance, water quality, use, and soil conditions can affect useful life.
Subtract estimated age from adjusted useful life to determine remaining useful life.

Adjusted Useful Life

Estimated Age = Remaining Useful Life

10 years

- 5 years old

5 years

Whom would you call to maintain and repair your pumps and controls? This may be the pump
manufacturer or installer.

Company/Agency

Contact

Telephone Number

Pro lA/ell Pumps

Samuel Higgins

(800) 741-8523

Date Worksheet Completed or Revised

8/01/21

Remember that the typical useful life of wells and springs
is 25 years, and that the typical useful life of pumping
equipment is 10 years. Use this as a basis for determining
the adjusted useful life of your well or spring and pump
and pump controls. In this example, the typical useful
lives equal the adjusted useful lives because the well,
pumps, and controls have been properly maintained.

V

A Ground Water System Well

6


-------
Drinking Water Source: Blank Table

Well Construction

Obtain a well log or look at receipts from the time of drilling for the following information. Remember that maintenance, water quality, use, and soil
conditions can affect useful life. Subtract estimated age from adjusted useful life to determine remaining useful life.

Drilling Contractor

Adjusted Useful Life - Estimated Age = Remaining Useful Life





Whom would you call to maintain and repair your well? This may be the well driller.

Company/Agency

Contact

Telephone Number







Well Pump and Controls

Look at receipts or records from the time of installation for the following information:

Pump Manufacturer

Well Pump Model Number (typically located on pump casing. If buried, look for information near the
electrical system.)





Adjusted Useful Life -

Estimated Age = Remaining Useful Life







Whom would you call to maintain and repair your pumps and controls? This may be the pump

manufacturer or installer.

Company/Agency

Contact

Telephone Number







Date Worksheet Completed or Revised



7


-------
Intake Structures: Completed Example

Intake Structures: Concrete Catch Basin

Look at receipts or records from the time of installation for the following information:
Adjusted Useful Life - Estimated Age = Remaining Useful Life

35 years - 15 years old = 20 years

Intake Structures: Underwater Pipe

Look at receipts or records from the time of installation for the following information:
Adjusted Useful Life - Estimated Age = Remaining Useful Life

15 years

5 years old =

10 years

Whom would you call to maintain and repair your intake structures?

Company/Agency Contact

Telephone Number

Kent's
Contractors

Simon Kent

(800) 963-8521

Whom would you cail if you had a potential wellhead protection problem? You can find
the appropriate contact by contacting your State or Tribal Drinking Water Primacy
Agency.

Regulatory/Agency Contact

Telephone Number

Natural	Rodrick Morrow

Resources Dept.

(555) 854-9635

Date Worksheet Completed or Revised

8/01/21

Remember that the typical useful life of concrete catch
basins is 35 years. Use this as a basis for determining your
concrete catch basin's adjusted useful life.

Remember that the typical useful life of underwater pipes is
15 years. Use this as a basis for determining your
underwater pipe's adjusted useful life.

A Drinking Water Intake for a Surface Water System

8


-------
Intake Structures: Blank Table

Intake Structures: Concrete Catch Basin

Look at receipts or records from the time of installation for the following information:

Adjusted Useful Life - Estimated Age = Remaining Useful Life

Intake Structures: Underwater Pipe

Look at receipts or records from the time of installation for the following information:

Adjusted Useful Life - Estimated Age = Remaining Useful Life

Whom would you call to maintain and repair your intake structures?

Company/Agency

Contact

Telephone Number

Whom would you call if you had a potential wellhead protection problem? You can find the appropriate contact by contacting your State or Tribal
Drinking Water Primacy Agency.

Regulatory/Agency

Contact

Telephone Number

Date Worksheet Completed or Revised

9


-------
Treatment System: Completed Example

Many systems are required to disinfect their water as treatment against common disease-causing organisms (bacteria, viruses, and protozoa). The
characteristics of your water source and the regulations of your state wiii dictate what type of treatment system, if any, your drinking water system
needs.

Look at receipts or records from the time of installation for the following information:

Treatment System Name/Type

Manufacturer

Chlorinator

Chlorinator, Inc

Model Number (may be located on the apparatus)

CL-00987

Remember that maintenance, water quality, use, and soil conditions can
affect useful life. Subtract estimated age from adjusted useful life to
determine remaining useful life.

Adjusted Useful Life

- Estimated Age = Remaining Useful Life

5 years

- 3 years old =

2 years

Whom would you call to maintain and repair your treatment system? This
may be the manufacturer or installer.

Company/Agency

Contact

Telephone Number

Claire's

Chlorine

Specialties

Ty Frank

(555) 333-9876

Date Worksheet Completed or Revised

8/01/21

Remember that the typical useful life of disinfection systems is 10 years.
In this example, adjusted useful life for the chlorinator is 5 years lower
than the typical useful life because the system has not properly
maintained it.

A Chlorination System

10


-------
Treatment System: Blank Table

Many systems are required to disinfect their water as treatment against common disease-causing organisms (bacteria, viruses, and protozoa). The
characteristics of your water source and the regulations of your state will dictate what type of treatment system, if any, your drinking water system
needs.

Look at receipts or records from the time of installation for the following information:

Treatment System Name/Type

Manufacturer

Model Number (may be located on the apparatus)

Adjusted Useful Life - Estimated Age = Remaining Useful Life

Whom would you call to maintain and repair your treatment system? This may be the manufacturer or installer.

Company/Agency

Contact

Telephone Number

Date Worksheet Completed or Revised

11


-------
Tanks: Completed Example



Your system will most likely use one of the following types of tanks:

•	A hydropneumatic tank is automatically started and stopped by the air pressure in a
compressed- air or captive-air chamber. The air in the tank maintains pressure throughout the
distribution system.

•	A concrete reservoir is a structure that is either cast in place or pre-cast to be used for water
storage.

•	A metal reservoir is a water storage tank constructed by weiding or bolting galvanized or painted
plates of metal.

Remember that the typical useful life of
tanks can vary. Concrete and metal tanks
generally last 30 years. Hydropneumatic
tanks generally last 10 years. In this
example, the adjusted useful life is the
same as the typical useful life because the
tank has been properly maintained.

Look at receipts or records from the time of instaiiation for the following information:

Type of Tank (hydropneumatic, concrete
reservoir, metal reservoir)

Size

Manufacturer

Hydropneumatic

100 gallons

Storage Tank Maker, Inc.

Major Maintenance

Pressure tested, 2002

Remember that maintenance, water quality, use, and soil conditions can affect useful life. Subtract
estimated age from adjusted useful life to determine remaining useful life.

Adjusted Useful Life - Estimated Age = Remaining Useful Life

10 years - 7 years old = 3 years
Whom would you call to maintain and repair your pressure tank?

Company/Agency

Contact

Telephone Number

Riley's Tanks Bryan Riley
inc

(555) 999-7777

Date Worksheet Completed or Revised

8/01/21

A Hydropneumatic Storage Tank

rZW'X

A Metal Storage Tank

12


-------
Tanks: Blank Table

Your system will most likely use one of the following types of tanks:

•	A hydropneumatic tank is automatically started and stopped by the air pressure in a compressed- air or captive-air chamber. The air in the
tank maintains pressure throughout the distribution system.

•	A concrete reservoir is a structure that is either cast in place or pre-cast to be used for water storage.

•	A metal reservoir is a water storage tank constructed by welding or bolting galvanized or painted plates of metal.

Look at receipts or records from the time of installation for the following information:

Type of Tank (hydropneumatic, concrete reservoir,
metal reservoir)

Size

Manufacturer







Major Maintenance

Adjusted Useful Life - Estimated Age = Remaining Useful Life

Whom would you call to maintain and repair your pressure tank?

Company/Agency

Contact

Telephone Number

Date Worksheet Completed or Revised

13


-------
Distribution System: Completed Example



You may want to note the location of shut-off valves to isolate particular sections of the system in case
of an emergency.

You may also want to note the location of "as-built" drawings showing the layout of the distribution
system.

If your system has many types of pipe (e.g., different size, different material), reproduce this worksheet
and list the information for each type.

Remember that the typical useful life of
pipes is 35 years. In this example, the
system has estimated that the adjusted
useful life will be the same as the typical
useful life because in the past its
distribution system pipes have lasted for



the typical number of years.

Look at receipts or records from the time of installation for the following information:

Type of Pipe

Size

Length (feet)

PVC

6-inch

2,200 feet

Where Used or Located

Main Street Line

Remember that maintenance, water quality, use, and soil conditions can affect useful life. Subtract
estimated age from adjusted useful life to determine remaining useful life.

Adjusted Useful Life - Estimated Age = Remaining Useful Life

35 years - 21 years old = 14 years
Whom would you call to maintain and repair your pipes?

Company/Agency

Contact

Telephone Number

Broken old rusty pipes

Kent's Contractors

Simon Kent

(800) 963-8521

Date Worksheet Completed or Revised

8/01/21

14


-------
Distribution System: Blank Table

You may want to note the location of shut-off valves to isolate particular sections of the system in case of an emergency.

You may also want to note the location of "as-built" drawings showing the layout of the distribution system.

If your system has many types of pipe (e.g., different size, different material), reproduce this worksheet and list the information for each type.

Look at receipts or records from the time of installation for the following information:

Type of Pipe

Size

Length (feet)

Where Used or Located

Adjusted Useful Life - Estimated Age = Remaining Useful Life

Whom would you call to maintain and repair your pipes?

Company/Agency

Contact

Telephone Number

Date Worksheet Completed or Revised

15


-------
Valves: Completed Example

Valves can be used to isolate portions of the distribution system for cleaning, maintenance, and repairs. In addition, valves regulate flow and
pressure.

Air-relief valves (or manual bleeds) are used to release trapped air and prevent surge problems when lines are filled. They also can eliminate water
hammer (a condition in which pressure in the pipes increases and decreases very quickly, possibly damaging the tank, valves, piping network, and
customers' plumbing). These valves respond to pressure variations.

Blowoff valves are used to eliminate accumulated sediment or stagnant water from low spots or dead ends in the line and can be used to dewater
lines or reservoirs for repairs or inspection.

Backflow prevention valves and devices eliminate reverse flow conditions to prevent contamination in the system's distribution pipes.

If your system uses more than one type of valve, reproduce this worksheet, and list the information for each type.

Look at receipts or records from the time of installation for the following information:

Valve type (air-relief, blowoff,
etc.)

Number of
Valves

Size

Manufacturer

Air Relief

5 valves

4 inches

LV Air Valves

Remember that maintenance, water quality, use, and soil conditions can affect useful life.
Subtract estimated age from adjusted useful life to determine remaining useful life.

Adjusted Useful Life - Estimated Age = Remaining Useful Life

20 years - 3 years old = 17 years
Whom would you call to maintain and repair your valves?

Company/Agency

Contact

Telephone Number

LV Air Valves Laura Vang

(555) 555-6789

Date Worksheet Completed or Revised

8/01/21

Remember that the typical useful life of valves is 35
years. In this example, the adjusted useful life is lower
than the typical useful life because of the system's
source water characteristics and lack of routine
maintenance.

An Air-Pressure Relief Valve

16


-------
Valves: Blank Table

Valves can be used to isolate portions of the distribution system for cleaning, maintenance, and repairs. In addition, valves regulate flow and
pressure.

Air-relief valves (or manual bleeds) are used to release trapped air and prevent surge problems when lines are filled. They also can eliminate water
hammer (a condition in which pressure in the pipes increases and decreases very quickly, possibly damaging the tank, valves, piping network, and
customers' plumbing). These valves respond to pressure variations.

Blowoff valves are used to eliminate accumulated sediment or stagnant water from low spots or dead ends in the line and can be used to dewater
lines or reservoirs for repairs or inspection.

Backflow prevention valves and devices eliminate reverse flow conditions to prevent contamination in the system's distribution pipes.

If your system uses more than one type of valve, reproduce this worksheet, and list the information for each type.

Look at receipts or records from the time of installation for the following information:

Valve type (air-relief, blowoff, etc.)

Number of Valves

Size

Manufacturer









Adjusted Useful Life - Estimated Age = Remaining Useful Life

Whom would you call to maintain and repair your valves?

Company/Agency

Contact

Telephone Number

Date Worksheet Completed or Revised

17


-------
Electrical Systems: Completed Example

Electrical systems help control the automatic components of a water system. Your electrical systems may include transformers, motor control centers
(MCCs), variable frequency drives (VFDs), power supplies, aiarm circuits, sensors (level indicators, pH, flow meters), computers, wiring, and other
instrumentation. If your system uses multiple types of electrical systems, reproduce this worksheet, and list the information for each type.

Look at receipts or records from the time of installation for the following information:

Type of Equipment (MCC,
VFD, etc.).

Number of Units

Size of Units (HP, voltage,
KvA)

Computer

2

Core i5 processor

Manufacturer

Model Number

Photon Computers

CC-5657; CC-5658

Company/Agency

Contact

Telephone Number

DM Computer
Processors

Derek Mills

(555) 345-6789

Date Worksheet Completed or Revised

8/01/21

Remember that maintenance, water quality, use, and soil conditions can affect useful life.
Subtract estimated age from adjusted useful life to determine remaining useful life.

Adjusted Useful Life - Estimated Age = Remaining Useful Life

5 years - 2 years old = 3 years
Whom would you call to maintain and repair your electrical components?

Remember that the typical useful life varies by type of
electrical equipment. The typical useful life for computers
is 5 years, sensors typically last 7 years, MCCs, and VFDs
typically last 10 years, and transformers, switchgears, and
wiring typically last 20 years. In this example, the adjusted
useful life is the same as the typical useful life because the
computer has been properly maintained.

An Electric System

18


-------
Electrical System: Blank Table

Electrical systems help control the automatic components of a water system. Your electrical systems may include transformers, motor control centers
(MCCs), variable frequency drives (VFDs), power supplies, alarm circuits, sensors (level indicators, pH, flow meters), computers, wiring, and other
instrumentation. If your system uses multiple types of electrical systems, reproduce this worksheet, and list the information for each type.

Look at receipts or records from the time of installation for the following information:

Type of Equipment (MCC, VFD, etc.).

Number of Units

Size of Units (HP, voltage, KvA)

Manufacturer

Model Number

Adjusted Useful Life - Estimated Age = Remaining Useful Life

Whom would you call to maintain and repair your electrical components?

Company/Agency

Contact

Telephone Number

Date Worksheet Completed or Revised

19


-------
Buildings: Completed Example

List ail buildings owned by the water system, note a single building can have multiple
estimated ages.

Look at receipts or records from the time of installation for the following information:

Structure Use

Structure Type (building, shed, manufactured home)

Administrative
Facilities

Manufactured Home

Major Maintenance Needed

Roof repairs due to leaking problems

Remember that maintenance, water quality, use, and soil conditions can affect useful life.
Subtract estimated age from adjusted useful life to determine remaining useful iife.

Adjusted Useful Life - Estimated Age = Remaining Useful Life

30 years - 16 years old = Leaking roof should be repaired
(Roof: 15 - 20 years)	now. Rest of building 14 years.

Whom would you call to maintain and repair your building?

Company/Agency

Contact

Telephone Number

Vargas Roofing Oliver Vargas

& Maintenance

Co.

(555) 444-6666

Date Worksheet Completed or Revised

8/01/21

Remember that the typical useful life of buildings is 30
years. In this example, the adjusted useful life for the
roof is the same as the age (16 years) since it is leaking
and should be repaired now. The adjusted useful life for
the rest of the building is the same as the typical useful
life.

Pumphouses

20


-------
Buildings: Blank Table

List all buildings owned by the water system, note a single building can have multiple estimated ages. If you need more space to list all your buildings,
click on the button to the right of the row to add additional rows.

Look at receipts or records from the time of installation for the following information:

Structure Use

Structure Type (building, shed, manufactured home)

Major Maintenance Needed

Adjusted Useful Life - Estimated Age = Remaining Useful Life

Whom would you call to maintain and repair your building?

Company/Agency

Contact

Telephone Number

Date Worksheet Completed or Revised

21


-------
Service Lines: Completed Example

The service line is composed of the parts that are necessary to deiiver water from the main to the customer's or user's plumbing connection. Each
service line typically provides service for one or two users or connections.

Look at receipts or records from the time of installation for the following information:

Ownership of Lines

Size of Lines (inches)

VJater system owns all lines

1-inch

Number of Lines

Approximate Length of Lines

42

75 ft. each

Materials of Lines

Adjusted Useful Life - Estimated Age = Remaining Useful Life

30 years - 6 years old = 24 years
Whom would you call to maintain and repair line maintenance

Company/Agency

Contact

Telephone Number

Jerry's Maintenance Jerry Meyers
Company

(555) 123-4567

Date Worksheet Completed or Revised

8/01/21

Remember that the typical useful life for service lines is 30
years. In this example, the system has estimated that the
adjusted useful life will be the same as the typical useful life
because in the past its distribution system assets have lasted the
typical number of years.

PVC

Remember that maintenance, water quality, use, and soil conditions can affect
useful life. Subtract estimated age from adjusted useful life to determine remaining
useful life.

Service Lines

22


-------
Service Lines: Blank Table

The service line is composed of the parts that are necessary to deliver water from the main to the customer's or user's plumbing connection. Each
service line typically provides service for one or two users or connections. If you have more than one type of service line, click on the button to the
right of the row to add additional rows.

Look at receipts or records from the time of installation for the following information:

Ownership of Lines

Size of Lines (inches)

Number of Lines

Approximate Length of Lines

Materials of Lines

Adjusted Useful Life - Estimated Age = Remaining Useful Life

Whom would you call to maintain and repair line maintenance

Company/Agency

Contact

Telephone Number

Date Worksheet Completed or Revised

23


-------
Hydrants: Completed Example

if your system uses different types of hydrants (e.g., dry-barrel, wet-barrel), reproduce this worksheet and iist the information for all types of
hydrants.

If your system is not responsible for the hydrants, note the contact for flushing and maintenance.

Look at receipts or records from the time of installation for the following information:

Number of Flush Valve
Vaults

Number of
Hydrants

Manufacturer

0

2

M&H

Remember that maintenance, water quality, use, and soil conditions can affect useful
life. Subtract estimated age from adjusted useful life to determine remaining useful
life.

Adjusted Useful Life - Estimated Age = Remaining Useful Life

40 years - 23 years old =	17 years

Whom would you call for hydrant maintenance?

Company/Agency

Contact

Telephone Number

Jerry's Maintenance Jerry Meyers
Company

(555) 123-4567

Date Worksheet Completed or Revised

8/01/21

Hydrants Provide Water for Fire Suppression, Line
Flushing, and Irrigation

24


-------
Hydrants: Blank Table



If your system uses different types of hydrants (e.g., dry-barrel, wet-barrel), reproduce this worksheet and list the information for all types of
hydrants.

If your system is not responsible for the hydrants, note the contact for flushing and maintenance.

Look at receipts or records from the time of installation for the following information:

Type of Hydrant

Diameter of Pipe (inches)





Type

Size of Nozzle





Number of Flush Valve Vaults

Number of Hydrants

Manufacturer







Adjusted Useful Life - Estimated Age = Remaining Useful Life



Whom would you call for hydrant maintenance?

Company/Agency

Contact

Telephone Number







Date Worksheet Completed or Revised



25


-------
Next Steps: Asset Management Plan

Once you have completed the worksheets in this booklet, you can use them to develop an asset management
plan. Asset management is a planning process that ensures that you get the most value from each of your
assets and have the financial resources to rehabilitate and replace them when necessary. The worksheets on
the following pages will guide you through the process of creating an asset management plan.

A completed asset management plan will help you:

>	Prioritize the rehabilitation and replacement of your assets.

>	Develop an annual estimate of needed reserves to pay for replacement or rehabilitation of your assets
and an annual budget.

You should review, revise, and update the worksheets in this booklet at least once a year, noting any changes
such as new acquired assets. As you are implementing and maintaining an asset management plan, starting
small and growing from what you learn along the way may be the best approach, especially for smaller
systems. Updated information in the worksheets will give you a better picture of your system's position and
better prepare you to meet your water system's future needs.

Just as an asset inventory is one part of an asset
management plan, asset management is part of a
larger management concept called strategic
planning. Strategic planning supports you to
prepare for and address anticipated and unexpected
problems. This utilizes asset management to
evaluate your system's current physical state, and it
also evaluates your system's financial and
managerial situation. It requires you to make
fundamental decisions about your water system's
purpose, structure, and functions. Using this guide
along with EPA's Strategic Planning: A Handbook for
Small Water Systems will help you develop,

implement, and receive optimal benefit from an A Wmf jQwer Hq$ Qutlived ,ts Usefu, ufe,
asset management plan that fits in with your
system's overall strategy.

26


-------
Prioritization Table

Use the inventory information you collected on the worksheets to fill out the prioritization table. Consider how
important the asset is to your ability to provide safe drinking water to your customers, how soon you will need
to replace an asset to adequately serve your customers (its remaining useful life), and how important the asset
is to the operation of your system (can other assets do the same job?).

>	In the Asset column, list a short name for the asset (e.g., chlorinator). List different components of the
asset on separate lines.

>	In the Remaining Useful Life column, enter the value you determined for that asset on its worksheet
(earlier in the booklet). Components of your asset that have different remaining useful lives should be
listed on separate lines. For example, the building roof and the building structure in the example on
page 20 have different useful lives and, therefore, should be listed separately.

>	In the Importance column, describe the importance of each asset to the operation of your system and
the protection of public health. Assets that are required to keep your system running are usually more
important than assets that just make its operation more efficient. Assets that may affect public health
are more important than those that improve the aesthetics of your water. Assets without a backup
unit available (i.e., there is no redundant unit) should have a higher priority than units that have a
backup (i.e., a redundant unit).

>	In the Priority column, rank your assets according to how important it is to reserve money for them.
Consider impact on public health, remaining useful life, and importance to your system's operation
when ranking your assets.

Things to Keep in Mind

•	Assets that are more important to your ability to deliver safe water should have a higher
priority because these assets affect public health.

•	Assets with short remaining useful lives should have a higher priority because you will have to
replace these assets soon.

•	Assets for which there is less redundancy should have a higher priority because your system
will have trouble continuing to operate without them.

27


-------
Prioritizing Your Assets: Completed Example

Asset

Remaining Useful Life

Importance

Priority

Notes

Administrative
building (roof)

1 year — leaking
roof should be
repaired

Medium

2



Chlorinator

2 years

High — system
cannot operate
without it

1



Hydropneumatic
Tank

3 years

High — maintains
pressure in the
system

3



Computer

3 years

Medium

4































































28


-------
Prioritizing Your Assets: Blank Table

Asset

Remaining Useful Life

Importance

Priority

Notes



































































































































29


-------
Budgeting for Rehabilitations and Replacements

Once you have inventoried and prioritized your assets, you should determine how much money you will need
to rehabilitate or replace them. Budgeting for these projects now can help avoid large, unplanned
expenditures in the future and will ensure that you allocate your resources efficiently.

The worksheet on pages 32 and 33 will help you figure out how much money you need to reserve each year to
fund your highest priority activities.

It is important that you update this worksheet every year, and as new information becomes available, because
your system's priorities and finances may change. Costs of new assets or rehabilitations may also change.
Updating your worksheet annually and setting aside the required reserve amount will help ensure that you
have enough money to cover rehabilitations and replacements when you need them.

Remember that although the total reserves needed each year may seem like a lot of money, it is easier to put
aside $200 a year to replace or repair a chlorinator than to come up with $2,000 once it fails.

The budgeting worksheet asks for the estimated cost of rehabilitation and replacement activities associated
with your highest priority assets. Remember to gather information on all of the costs associated with the
rehabilitation or replacement of an asset, such as equipment purchase, installation, pilot tests, labor charges,
cleanup, and disposal of the replaced asset. To determine what a rehabilitation or replacement might cost, you
can:

>	Consult with your State or Tribal Drinking Water Primacy Agency;

>	Ask local contractors and businesses for estimated costs;

>	Contact equipment manufacturers; and

>	Talk to other systems about the cost of their rehabilitations or replacements.

The budgeting worksheet does not include standard operation and maintenance costs such as chemicals for
disinfection. It accounts only for funds you will need to replace or rehabilitate your assets. You should keep
standard operation and maintenance costs in mind when thinking about financing your asset management
plan.

30


-------
Budgeting Table

The table on the next page will help you determine how much money you will need to set aside each year to
ensure you can continue to deliver safe and secure drinking water to your customers and pay for the necessary
replacement of your assets. A completed example follows the blank worksheet.

>	In the Asset column, list the short name for your asset (e.g., chlorinator). You should list different
components of the asset on separate lines.

>	In the Activity column, list the rehabilitation and replacement activities that you expect to perform.
Provide enough detail so that you can determine the cost of each activity.

>	In the Cost column, fill in the expected cost of each activity. Make sure to include the complete cost
including preparation, cleanup, and disposal of any waste.

>	In the Years Until Action Needed column, fill in the remaining useful life of the asset from the
inventory worksheets you completed earlier.

>	Divide the cost by the years until action needed. Enter the result in the Reserved Required Each Year
column. This is the amount of money you will have to set aside each year to ensure that you have
enough money to perform the required activity in the allotted time.

>	Add up the amounts in the Reserve Required Each Year column and enter the total in the box marked
Total Per Year. This is the amount of money you should be setting aside each year to be able to pay for
all of your planned replacements or rehabilitations.

31


-------
Budgeting for Rehabilitation and Replacement of Assets: Completed Example

Asset

Activity

Cost

Years Until Action Needed

Reserve Required Each Year

Chlorinator

Replace unit

$2,000

3

$667

Administrative
Building (roof)

Repair roof

$1,500

1

$1,500

Hydropneumatic
Tank

Replace unit

$300

13

$23

Computer

Replace unit

$1,000

4

$250







































































Total Per Year:

$2,440


-------
Budgeting for Rehabilitation and Replacement of Assets

Asset

Activity

Cost

Years Until Action Needed

Reserve Required Each Year















































































































Total Per Year:

33


-------
How to Carry out the Plan

It may be overwhelming to see how much money you should be saving each year to fund the replacement and
rehabilitation of your assets. You can finance capital improvements by saving the total per year cost of
replacements (calculated in the budgeting table) in a reserve account. Alternatively, you can use the money
you already have more efficiently and put the savings towards replacing and rehabilitating your assets. Here
are some strategies that could help you use your current resources more efficiently or raise additional funds:

>	Form partnerships. Working with other water systems may allow you to reduce operating costs,
simplify management, and continue to provide your community with safe drinking water. Some water
partnerships can be as simple as having an informal cooperation to share equipment, or as complex as
transferring ownership to become a larger, centralized system.

>	Consider charging rates or increasing your rates to raise revenue. If your system does not already
do so, you can charge your customers a separate fee for water. Alternatively, consider assessing a flat
fee for infrastructure improvements or for funding a reserve account. Check out EPA's Setting Small
Drinking Water Rates for a Sustainable Future for more information.

>	Apply for financial assistance. Banks and government agencies can help fund infrastructure projects
such as treatment system upgrades and distribution line repairs. For large projects, you may want to
research funding options such as state and federal drinking water grant and loan programs. Refer to
for sources of financial assistance.

Once you have completed the worksheets and tables in this brochure and identified your system's needs, you
can use the results to help you evaluate your infrastructure and shape decisions about your water system. Do
not stick the worksheets and tables in a drawer and forget about them! You should try to review the
worksheets at least once a year and make changes as your system's situation changes. Developing a good
picture of when you will need to replace your assets and how much money you will need to fund those
replacements will allow you to continue to deliver safe and secure drinking water to your customers.

Remember!

The worksheets in this guide could contain sensitive information about your water system. Make
sure you store the worksheets, as well as all other information about your system's assets, in a
secure location.

34


-------
Building Community Support

Implementing an asset management program will allow you to start having a sustainable water service that
will maximize the useful lives of assets, be financially self-supporting, and protect public health and the
environment. Successfully implementing an asset management program means overcoming potential barriers
by including the community in the process. Barriers to implementing an asset management program may
include:

>	Expecting to see immediate results.

>	Changing from a focus on operations to a focus on assets.

>	Paying for short-term costs to achieve long-term savings.

>	Reconciling a short-term focus (e.g., rate increases) with long-term view of system sustainability.

Local officials and decision makers are key players in successful asset management programs because
they are uniquely positioned to address these challenges and make critical decisions about your water
system. This can be those in your community who are a part of the Board of Directors of the Association,
elected officials of the community, or owners of manufactured housing associations. For this reason, they need
to understand the financial requirements related to the rehabilitation and replacement of the system's
equipment and assets. The information compiled in this brochure should be presented to key decision makers
and incorporated into the annual budget. This information should be reviewed annually and modified as
necessary. The key decision makers can also present this information to the public at a board meeting and in
the water system's annual Consumer Confidence Report.

These barriers can be overcome by building community support for asset management's emphasis on planning
as a means for cost-effective infrastructure investment. An asset management plan is an effective way to
communicate your strategy and work. In order for your system to gain community support, your customers
should understand what you do, and the value of your services, as well as agree upon the level of service.

Having an asset management helps you:

>	Share information with your customers.

>	Describe the risks of not maintaining system components.

>	Communicate your system's requirements.

>	Justify rehabilitation, repair, and replacement project priorities.

>	Justify your long-term financial plan to the public.

35


-------
Appendix A: Sources of Financial Assistance to Drinking Water Systems

System improvements can be funded by raising rates and obtaining loans or grants. The programs presented below may provide financial assistance to
help you maintain assets in good condition, replace deteriorated assets that have outlived their useful lives, and continue to provide safe and secure
drinking water to your customers. Consult your State or Regional Tribal Drinking Water Primacy Agency for additional information. State and territorial
contacts can be found on EPA's website here. EPA's Regional Tribal Drinking Water Coordinators can be found on EPA's website here. To view the
Simple Tools for Effective Performance (STEP) Guide Series visit EPA's website.

Before you apply for funding, find out what each source will pay for and what information it will need to consider in your application. Ask about local
matching fund requirements, application procedures, what makes a project "fundable," and special program requirements and restrictions. Ask to see
applications from previously funded projects. Get an idea of what information is required for an application; most lending and granting agencies will
want to see financial statements such as budgets, income statements, and cash flow documents.

Major Providers of Financial Assistance to Drinking Water Systems

Program

Description

Contact Information

Water Finance Clearing House

Water Finance Clearinghouse is a database of financial assistance
sources available to fund a variety of watershed protection projects.

https://www.epa.gov/waterdata/water-
finance-clearinghouse

Drinking Water State Revolving Fund
(DWSRF)

These state-administered loan programs enable water systems to
finance infrastructure improvements, provide training, and fund
source water protection activities

https://www.epa.gov/dwsrf/state-dwsrf-
website-and-contacts

Rural Utilities Service (RUS) Water and
Wastewater Loan and Grant Program

This program offers loans and grants to develop water and waste-
disposal systems in rural areas.

https://www.rd.usda.gov/programs-
services/water-environmental-programs

Manufactured Housing Institute

The Manufactured Housing Institute provides information on loan
programs for manufactured homes to its members. It also offers
forums to interact with financial services companies that cater to the
manufactured homes market.

www.manufacturedhousing.org

Small Business Administration (SBA)

SBA helps small businesses get low-interest loans.

www.sba.gov

Rural Community Assistance
Corporation (RCAC)

RCAC provides loans to rural utilities in 11 western states to help
meet the financing needs of rural communities and disadvantaged
populations.

https://www.rcac.org/programs-

services/#section-0

36


-------
Appendix B: Complete List of Links

Below is a comprehensive list of the links referenced throughout the.

About Asset Management

https://www.epa.gov/dwcapacitv/about-asset-management
EPA's Simple Tools for Effective Performance (STEP) Guide Series

https://www.epa.gov/dwcapacitv/simple-tools-effective-performance-step-guide-series
State and territorial contacts

https://www.epa.gov/dwcapacitv/find-epa-capacitv-development-contact
EPA's Regional Tribal Drinking Water Coordinators

https://www.epa.gov/tribaldrinkingwater/regional-tribal-drinking-water-coordinators

EPA's Strategic Planning: A Handbook for Small Water Systems
https://www.epa.gov/dwcapacitv/strategic-planning-step-guide-2021-update

EPA's Water Finance Clearing House

https://www.epa.gov/waterdata/water-finance-clearinghouse

EPA's Drinking Water State Revolving Fund (DWSRF) Webpage
https://www.epa.gov/dwsrf/state-dwsrf-website-and-contacts

Rural Utilities Service (RUS) Water and Wastewater Loan and Grant Program
https://www.rd.usda.gov/programs-services/water-environmental-programs

Manufactured Housing Institute
www.manufacturedhousing.org

Small Business Administration (SBA)
www.sba.gov

Rural Community Assistance Corporation (RCAC)
https://www.rcac.0rg/pr0grams-services/#secti0n-Q

37


-------