Section R309-700-5 - Implementing an Asset Management Program(1) Retail water suppliers seeking financial assistance through Utah's State Revolving Fund must commit to develop and implement an asset management program. An asset management program provides the following benefits to water systems: (a) Prolonging asset life.(b) Reducing overall costs for operations, maintenance, and capital expenditures.(c) Improving decisions about asset maintenance, rehabilitation, repair, and replacement.(d) Meeting consumer demands with a focus on system sustainability.(e) Meeting service expectations and regulatory requirements.(f) Improving responses to emergencies.(g) Improving the security and safety of assets.(h) Budgeting focused on critical activities for sustained performance.(i) Setting rates based on sound operational and financial planning.(2) An effective asset management program includes detailed asset inventories, operation and maintenance tasks, and long-range financial planning. These items should be captured in an asset management plan, which can be tailored to fit individual water system size and complexity.(3) The asset management plan shall address the following five core components. (a) The current state of the utility's assets. (i) Prepare an asset inventory.(ii) Develop a system map.(iii) Develop a method to assess and prioritize assets based on condition.(iv) Assess remaining useful life of the asset.(v) Determine asset value and replacement cost.(b) The utility's required sustainable level of service. (i) Analyze current customer demand and satisfaction.(ii) Analyze anticipated customer demand and satisfaction.(iii) Understand current regulatory requirements.(iv) Communicate system performance goals with the public.(v) Identify standard levels of service and track system performance.(c) Assets that are critical to sustained performance. (i) Conduct a failure analysis on all assets.(ii) Determine probability of failure.(iii) Analyze risk and consequences of failure.(iv) Prioritize system assets based on criticality to system operation.(v) Develop specific response plans based on potential asset failure.(d) Minimum infrastructure life cycle cost. (i) Implement an appropriate maintenance schedule including costs for all assets.(ii) Identify life cycle costs for all assets.(iii) Develop a capital improvement plan and an operations and maintenance strategy.(iv) Identify and compare the cost of rehabilitation versus replacement.(v) Determine the related costs of responding to asset failure.(e) Long-term budgeting strategy.(i) Regularly review system budget.(ii) Establish and fund a capital facilities account.(iii) Implement a rate structure to ensure financial sustainability.(iv) Explore asset renewal and replacement financing.(v) Identify financial assistance options for major asset repair or replacement.(vi) Prioritize financial resources based on asset condition and importance.(4) All water systems subject to this rule shall complete the following:(a) Prepare an asset management plan as described in this subsection.(b) Systems governing body shall formally adopt the asset management plan.(c) System shall submit proof of adoption to the Division.(5) In addition to the requirements of this subsection, water systems applying for financial assistance under Utah's State Revolving Fund Financial Assistance Program must also submit their asset management plan to the Division of Drinking Water or request sufficient funds to create an asset management plan.Utah Admin. Code R309-700-5
Amended by Utah State Bulletin Number 2023-11, effective 5/22/2023