&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 ------- |