Capacity Development Asset Management Sanitary Survey

1. Capacity DevelopmentAsset Management Sanitary Survey Michael J. Maynard MassDEP, Drinking Water Program MassDEP 2014 Spring Training Michael.Maynard@state.ma.us

2. Outline Challenges in Water Sector Asset Management Sanitary Survey / Questions

3. Challenges in the Water Sector

4. Challenges in the Water Sector Rising costs Aging infrastructure Increasingly stringent regulatory requirements Population changes Rapidly changing workforce

5. Asset Management Rehab - Repair - Replace

6. Asset Management (5) Core Questions Current State of your assets? Required Level of Service (LOS)? Which Assets are Critical to performance? http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/upload/2008_06_05_cupss_presentation_cupss_training_session1_2008june5webinar.pdf

7. Asset Management (5) Core Questions What are (CIP) and (O&M) Strategies? What is the Long-Term Financing Strategy? http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/upload/2008_06_05_cupss_presentation_cupss_training_session1_2008june5webinar.pdf

8. Five Cores of Asset Management Current State of Asset Level of Service Long-Term Funding Plan Asset Management Minimum Life Cycle Cost Critical Assets http://water.epa.gov/type/watersheds/wastewater/index.cfm

9. Asset Management Benefits • Protect public health • Properly maintained equipment supplies fresh drinking water to consumers.

10. Asset Management Benefits • Save money $$$. • With better planning you can fund upgrades and replacements, have better maintenance, and increase the life of your equipment

11. Asset Management - Overview Best Practices Guide (http://water.epa.gov/type/drink/pws/smallsystems/managementhelp.cfm)

12. Sanitary Survey Question #1 • Does the system actively perform Asset Management which includes the minimum information noted below: • an inventory of their infrastructure • the estimated useful life of their assets • a schedule and a yearly cost estimate for maintaining their assets and • a long-term replacement plan (sometimes called Capital Improvement Plan)for their assets with a schedule and estimated costs?

13. Sanitary Survey Question #1 • If yes, does the Capital Improvement Plan or other acceptable capital planning document including items such as: • a long-term replacement plan for large equipment purchases or construction projects that will be needed over the next 20 years • If yes, Is it followed? Yes No • analysis and planning for the future operations, development, improvement, and long-term sustainability of the water system • If yes, Is it followed? Yes No

14. Sanitary Survey Question #2 • Does the system produce a yearly Annual Budget or other document that includes the minimum information noted below? • personnel • training (time & resources) • testing supplies • operating expenses • contract services • repairs • a reserve fund to cover capital improvements • debt service payments • an emergency fund

15. Sanitary Survey Question #3 • Does the system have a written regular Preventive Maintenance Program plan that includes (as necessary): valve maintenance, hydrant testing, water main flushing, pump repair, storage tank inspection and cleaning, regular master meter calibration, and checking the condition of the source well? • If yes, Is it followed? Yes No

16. Sanitary Survey - Optional • Optional: Other useful questions • Does the system have an enterprise fund? Yes No NA • What are the water rates?       • Are the rates sufficient to cover the true cost of producing and delivering water? Yes No • Are rates adjusted periodically in order to adequately fund the budget? Yes No • Is PWS spending more money than they generate? Yes No • Annual Revenue       • Annual Expenses      • Reserve Account Balance      • Rate of Saving every year     

17. (6) Asset Management – Tools EPA Simple Asset Inventory for Very Small Systems (VSS) Asset Management Worksheet (MassDEP) EPA –Asset Management: Handbook for Small Water Systems EPA Check Up Program for Small Systems (CUPSS) EPA Infrastructure Needs Survey (DWINSA) - Worksheets Capital Improvement Planning Guidance (MassDEP)

18. Asset Management Tools Repair vs. Replace?

19. Asset Management – Tools EPA Simple Asset Inventory for Very Small Systems (VSS)

20. EPA Simple Asset Inventory for Very Small Systems (VSS) http://www.epa.gov/ogwdw/smallsystems/pdfs/final_asset_inventory_for_small_systems.pdf

21. Asset Inventory for VSS • The Asset Inventory includes a section that guides PWS: • Lists water system assets • Captures the characteristics of the assets; • Quantity, size, location, age, manufacturer • Attach “Typical Life Expectancies” (from table) • Estimate adjusted useful life & remaining useful lives. http://www.epa.gov/ogwdw/smallsystems/pdfs/final_asset_inventory_for_small_systems.pdf

22. Asset Inventory for VSS • Provides basis for asset management plan (CUPSS) • Includes Strategy to involve key decision makers • Forms available at: http://www.epa.gov/ogwdw/smallsystems/pdfs/final_asset_inventory_for_small_systems.pdf

23. Asset Management – Tools Asset Management Worksheet (MassDEP)

24. Asset Management Worksheet • Worksheet allows for a simplified approach for small systems, labeling assets, replacement costs, useful life, annual reserve, cost per user. http://www.mass.gov/dep/water/drinking/assetmgt.pdf

25. Asset Management Worksheet

26. Asset Management Worksheet - Application • Establishing a reserve account (Example) • Calculating the replacement cost of PWS assets • Calculating the cost per user • For a blank worksheet, you may find one at: http://www.mass.gov/dep/water/drinking/assetmgt.pdf

27. Asset Management – Tools 3. EPA Asset Management: Handbook for Small Water Systems

28. EPA –Asset Management: Handbook for Small Water Systems

29. EPA –Asset Management: Handbook for Small Water Systems • Review the basic concepts of asset management and be provided with tools to develop an asset management plan. http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf

30. Benefits of the Asset Management Handbook • Prioritize rehab & replacement • Reducing system “down-time” and the number of emergency repairs • Demonstrates to public that you are using money effectively http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf

31. Handbook Five-Step Approach: • The handbook will provide a five-step asset management process: • Conducting a thorough asset inventory. • Prioritizing the rehabilitation and replacementof assets. • Developing an annual estimate of needed reservesand an annual budget. • Implementing the asset management plan. • Reviewing and revisingthe asset management plan. http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf

32. How to Obtain the Asset Management Handbook: • You can view the handbook online at: http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf

33. Asset Management – Tools 4. Check Up Program for Small Systems (CUPSS)

34. Check Up Program for Small Systems

35. Check Up Program for Small Systems • Designed for PWS that have500-3,300individuals • Free comprehensive asset management tool • Water & Waste Water http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/

36. What CUPSS brings to you? • Make more informed decisionsabout your assets & WTP. • Save timeby planning & scheduling ahead. • Back up budget talks with solid facts& provide reports. • Improve your customer service. • Prepare an Asset Management Planin seven steps. http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/basicinformation.cfm

37. CUPSS Sections • Set Up • CUPSS Training • My Inventory • My O & M (Operations and Maintenance) • My Finances • My Check Up • My CUPSS Plan

38. CUPSS Sections

39. What do you bring to CUPSS? • An understanding for a desired "sustainable" level of servicefor you WTP. • Information about your current assets. • Financial informationfor your utility • Information about which assets are critical to sustained performance. http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/basicinformation.cfm

40. CUPSS Section: My Inventory

41. CUPSS Section: My O&M • Create and track current, past and future operations and maintenance activities using this module. • Scheduling tasks, as well as a history of each task, alerts • Past due tasks will be documented in your O&M.

42. CUPSS Section: My Check Up • Two customizable reports are produced by CUPSS: • My Asset Check Up • My Financial Check Up • You can create targeted reports to manage current and plan for future scenarios.

43. How to Obtain CUPSS: • You can download the latest version of CUPSS online at: http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/software.cfm • You may also request a CUPSS Kit at: 1-800-490-9198 (bulk orders are available) and request either: • User’s KitEPA 816-K-08-002 • Trainer’s KitEPA 816-K-08-001

44. Asset Management – Tools 5. EPA Infrastructure Needs Survey Worksheets

45. EPA Infrastructure Needs Survey • Developed for PWS that serve over 3,300. • Developed to identify infrastructure needs • EPA conducts a needs survey every four years. http://water.epa.gov/infrastructure/drinkingwater/dwns/index.cfm http://water.epa.gov/infrastructure/drinkingwater/dwns/upload/2009_03_26_needssurvey_2007_fs_needssurvey_2007.pdf

46. EPA Infrastructure Needs Survey: (4) Sections 1. Overview, instructions, and contact information. 2. Transmission and Distributionsection. 3. Storage, Treatment, Storage, Pumping, and Other Projects. 4. Backflow Prevention Devices/Assemblies, Flushing Hydrants, Service Lines, Valves, and Water Meter

47. EPA Infrastructure Needs Survey: Sections • Four lists assist in completing report : • List 1: Type of Need • List 2: Reason for Need • List 3: Regulation or Requirement • List 4: Documentation

48. How to Obtain the DWINSA: • More information about the Needs Survey can be found at http://water.epa.gov/infrastructure/drinkingwater/dwns/index.cfm, along with factsheets and reports from previous years. • MassDEP web site:

49. Asset Management – Tools 6. MASSDEP Capital Improvement Planning (CIP) Guidance Document

50. MassDEP Capital Improvement Planning Guidance Document • This CIP Guidance Document can be utilized to identify and document capital projects for a PWS. • The CIP is divided into 6 categories, which gathers existing engineering and planning information. http://www.mass.gov/dep/water/laws/cipform.pdf