Section R309-800-5 - Implementing an Asset Management Program(1) Water systems are encouraged to develop and implement an asset management program. An asset management program provides the following benefits to water systems: (b) Reducing overall costs for operations, maintenance, and capital expenditures.(c) Improving decisions about asset maintenance, rehabilitation, repair, and replacement.(d) Meeting customer demands with a focus on system sustainability.(e) Meeting service expectations and regulatory requirements.(f) Improving responses to emergencies.(g) Improving asset safety and security.(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 the asset's remaining useful life. (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 services 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 importance to system operation.(v) Develop specific response plans based on potential asset failure.(d) Minimum infrastructure life-cycle costs.(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 resources based on asset condition and importance.(4) All water systems subject to this rule shall complete the following:(a) Prepare and asset management plan as described in Subsection R309-800-5(3).(b) System's governing body shall formally adopt the asset management plan.(c) Submit proof of adoption to the Division.(5) In addition to the requirements in Subsection R309-800-5(4), water systems applying for financial assistance from either the federal or state Drinking Water State Revolving Fund Financial Assistance Program must also submit their asset management plan to the Division for review or request sufficient funds to create an asset management plan. Asset management plans prepared using financial assistance from the Drinking Water Board shall be submitted to the Division for review.Utah Admin. Code R309-800-5
Adopted by Utah State Bulletin Number 2023-11, effective 5/22/2023