Municipal Grants and LoansAsset Management

Investing in your Drinking Water System

Vanessa Wike, P.E.Statewide Engineering Coordinator(907) 269-7696555 Cordova St.Anchorage, AK 99501vanessa.wike@alaska.gov

Department of Environmental ConservationDrinking Water Program

2

Asset Management

A planning process that ensures that you get the most value from each of your assets and have the financial ability to repair and replace them when necessary.

3

4

Asset Management Process

1. Conducting a thorough asset inventory.

2. Prioritizing the rehabilitation and replacement of your assets.

3. Developing an annual estimate of needed reserves and an

annual budget.

4. Implementing an asset management plan.

5. Reviewing and revising the asset management plan.

5

System Inventory

• Identify system assets and age.

• Record the condition of each asset.

• Record service history – how long an asset typically lasts.

• Adjust your asset’s useful life based on site conditions and experience.

• Estimate the remaining useful life.

Page 9 Asset Management Handbook

6

Prioritization Worksheet

• Prioritize your assets based on their remaining useful life, redundancy, and importance.

Page 15 Asset Management Handbook

7

Required Reserve Worksheet

• The estimated cost of repair/replacement.

• Doesn’t include standard costs for O&M.

• Provide a 5 year forecast.

Page 21 Asset Management Handbook

8

Budgeting Worksheet

• Annual Revenues (fees, loans, grants, interest…)

• Annual Costs (maintenance, utilities, salaries, benefits, supplies, taxes, payments …)

• Net Income

Page 27 Asset Management Handbook

9

Next Steps

An asset management plan will help you• Plan for community needs• Prepare funding applications• Maintain a sustainable water system

EPA’s Strategic Planning Tools: Simple Tools for Effective Performance (STEP) Guides

10

ReferencesEPA Small Systems and Capacity Development:

• http://water.epa.gov/type/drink/pws/smallsystems/index.cfm

EPA Asset Management: • http://water.epa.gov/infrastructure/sustain/asset_management.cfm

CUPPS (Check Up Program for Small Systems): • http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/software.cfm#get

• Boise State Environmental Finance Center: • http://efc.boisestate.edu/

11

Contacts

Vanessa Wike555 Cordova St.Anchorage, AK 99501(907)269-7696vanessa.wike@alaska.gov

DEC Drinking Water Program Engineering Grouphttp://dec.alaska.gov/eh/dw/dwmain/engineering.html