Utah Admin. Code 653-14-3

Current through Bulletin No. 2024-21, November 1, 2024

Section R653-14-3 - Capital Asset Management Plan

(1) As a condition to receiving federal or state financing or grants for improvement to capital assets related to water infrastructure, a water conservancy district must commit to adopt a capital asset management plan consistent with Section 73-10g-502 and this rule.

(2) The capital asset management plan shall require the water conservancy district to:

(a) complete an inventory of each capital asset, including the following information for each inventoried asset:

(i) a technical description;

(ii) location;

(iii) physical condition;

(iv) documentation of the asset's standard features;

(v) warranties;

(vi) maintenance history;

(vii) replacement costs;

(viii) estimated value;

(ix) estimated original useful life; and

(x) estimated remaining useful life; and

(b) assess the physical condition of the capital asset in accordance with a method established under Subsection (3)(a)(i) at least every five years.

(3)

(a) The plan shall establish:

(i) a method to assess the physical condition of each capital asset;

(ii) performance and condition standards for each capital asset;

(iii) a program for monitoring and reporting the water conservancy district's application of and compliance with the plan, including a comparison of each capital asset's current status and targeted standards for that capital asset as set forth in the plan;

(iv) a process to evaluate existing capital assets for efficiency and expected service delivery; and

(v) objective criteria for ranking capital asset criticality and prioritizing maintenance and replacement.

(b) A performance and condition standard described in Subsection (3)(a)(ii) may be:

(i) a mandated safety standard;

(ii) a standard condition of receiving federal, state, or local funding; or

(iii) an applicable engineering or other professional standard.

(4) The plan shall include:

(a) a multiyear financial component that includes:

(i) criteria and guidelines for saving and allocating sufficient funds in the water conservancy district's annual operating budget for assessing, maintaining, repairing, and replacing capital assets; and

(ii) guidelines for dedicating revenue to priority capital assets identified under Subsection (3)(a)(v); and

(b) the water conservancy district's assurance it will:

(i) implement the capital asset management plan and seek to comply with its terms; and

(ii) adopt annual operating budgets that include ongoing funding for capital asset maintenance, repair, and replacement.

Utah Admin. Code R653-14-3

Adopted by Utah State Bulletin Number 2024-10, effective 5/9/2024