1. Capacity Development Asset Management Sanitary Survey
Michael J. Maynard
MassDEP, Drinking Water Program
MassDEP 2014 Spring Training

2. Outline Challenges in Water Sector Asset Management
Sanitary Survey / Questions
This will involve me first explaining what EUM is and why it’s useful. I’ll also explain why this should be important to you. I’ll give you a quick look at what we mean when we talk about an effectively-managed utility. Then I’m going to go through a few examples of how you can incorporate EUM principles into your state programs. 2

3. Challenges in the Water Sector
As you know, water-sector utilities across the country are facing the same challenges. While many utility managers find themselves turning from one urgent priority to the next, others have instead employed an effective utility management approach and been able to effectively respond to current and future challenges. So you might wonder, what exactly is effective utility management? 3

4. Challenges in the Water Sector
Rising costs
Aging infrastructure
Increasingly stringent regulatory requirements
Population changes
Rapidly changing workforce
As you know, water-sector utilities across the country are facing the same challenges. While many utility managers find themselves turning from one urgent priority to the next, others have instead employed an effective utility management approach and been able to effectively respond to current and future challenges. So you might wonder, what exactly is effective utility management? 4

5. Rehab - Repair - Replace
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?

7. Asset Management (5) Core Questions
What are (CIP) and (O&M) Strategies?
What is the Long-Term Financing Strategy?

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

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(

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

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)

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.

22. Asset Inventory for VSS
Provides basis for asset management plan (CUPSS)
Includes Strategy to involve key decision makers
Forms available at:

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.

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:

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.

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

31. Handbook Five-Step Approach:
The handbook will provide a five-step asset management process:
Conducting a thorough asset inventory.
Prioritizing the rehabilitation and replacement of assets.
Developing an annual estimate of needed reserves and an annual budget.
Implementing the asset management plan.
Reviewing and revising the asset management plan.

32. How to Obtain the Asset Management Handbook:
You can view the handbook online at:

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 have 500-3,300 individuals
Free comprehensive asset management tool
Water & Waste Water

36. What CUPSS brings to you?
Make more informed decisions about your assets & WTP.
Save time by planning & scheduling ahead.
Back up budget talks with solid facts & provide reports.
Improve your customer service.
Prepare an Asset Management Plan in seven steps.

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 service for you WTP.
Information about your current assets.
Financial information for your utility
Information about which assets are critical to sustained performance.

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:
You may also request a CUPSS Kit at: (bulk orders are available) and request either:
User’s Kit EPA 816-K
Trainer’s Kit EPA 816-K

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.

46. EPA Infrastructure Needs Survey: (4) Sections
1. Overview, instructions, and contact information. 2. Transmission and Distribution section. 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 , 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.

51. CIP Guidance Document The six categories: Source Treatment Storage
Pumping Projects
Transmission and Distribution Mains- Inventory
Other- Project Tables

52. How to Obtain the CIP Guidance Document:
More information about the MassDEP CIP Guidance Document can be found at:

53. CIP Grants: MassDEP
In December 2010, MASSDEP awarded 53 PWS (medium to large) a total of $400,500 to prepare short-term capital improvement plans.

54. Chapter 11 Capacity Development (Standard Operating Procedures)
Chapter 11 is guidance to provide PWS with tools to establish and maintain:
Technical
Managerial
Financial

55. Capacity Development
Asset Management focuses on the Managerial and Financial components of Capacity.

56. Capacity Development Chapter 11 Guidelines
Health and Safety Policy (new) Risk Management Policy (new) 11.4 – Water System Planning (modified) to include: Strategic Planning Asset Management Planning

57. When MassDEP currently requires PWS to demonstrate Capacity:
Water Supply Business Plan (WSBP)
Major infrastructure requirement/ submitted plans for a major infrastructure improvement
Substantial modification to the system (E.g. transfer of ownership)
Significant non-complier (SNC) or a potential SNC
New Systems
Existing Systems
Major violation
State Revolving Fund (SRF) Grant Funding
Complete an Asset Management Plan
Review Your Asset Management Plan
Transfer Assets into CUPSS or equivalent Asset Management tool
Approved for Adequate Capacity

58. When to engage in Asset Management?
A new system develops Capacity and Asset Management through the new system/new source approval process.
An existing system develops Capacity and Asset Management through using the available tools and programs.

59. Asset Management Tools:
Asset Management Worksheet
EPA Simple Asset Inventory for Very Small Systems (VSS)
EPA –Asset Management: Handbook for Small Water Systems
Check Up Program for Small Systems (CUPSS)
Massachusetts Coalition for Small System Assistance (Assistance for systems serving less than 10,000 persons)
EPA Drinking Water Infrastructure Needs Survey (DWINSA)

60. Technical Assistance Contacts for Asset Management:
Michael Maynard:
Office: (508)
Yvette DePeiza:
Office: (617)

61. Questions

62. “OUT of SERVICE”