Asset Management & Capacity Development Guidelines for PWS - Chapter 11

1. Asset Management & Capacity Development Guidelines for PWS - Chapter 11 Michael J. Maynard MassDEP, Drinking Water Program MassDEP 2011 Spring Training Michael.Maynard@state.ma.us Massachusetts Department of Environmental Protection Drinking Water Program

2. Agenda • Capacity Development • Chapter 11 Capacity Guidelines Changes • Asset Management & Capacity • Asset Management Tools

3. What is Capacity Development? Capacity development is the process through which water systems acquire and maintain adequate technical, managerial, and financial capabilities to enable them to consistently provide safe drinking water. http://water.epa.gov/type/drink/pws/smallsystems/basicinformation.cfm

4. What is Chapter 11? • Chapter 11 provides PWS with guidance and tools to establish and maintain Capacity: • Technical Capacity • Managerial Capacity • Financial Capacity

5. Capacity Development Chapter 11 Guidelines - Changes 11. 3.17 - Health and Safety Policy (new) 11.3.18 - Risk Management Policy (new) 11.4 – Water System Planning (modified) to include: Strategic Planning Asset Management Planning

6. When could DEP require the use of Chapter 11? • When specifically requested inwriting • E.g. Enforcement issue, sanitary survey etc. • For substantial modifications requiring a permit • For new construction

7. 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

8. Capacity Contacts • SERO– Therese Dayian 508.946.2765 • CERO – Elizabeth Kotowski 508.767.2202 • WERO – Michael McGrath , 413.755.2289 • NERO – Sean Griffin 978.694.3404 • Boston – Michael Maynard 508.767.2735 • Boston – Yvette DePeiza 617-292-5857 • Email Questions: Program.Director-DWP@state.ma.us  Attn: Guidelines

9. Using Asset Management to Maintain Capacity • Between 2007 – 2027 • Public Water Systems will need to invest $334.8 billion to maintain the assets of their drinking water systems. http://water.epa.gov/infrastructure/drinkingwater/dwns/upload/2009_03_26_needssurvey_2007_fs_needssurvey_2007.pdf

10. What is Asset Management? Rehab - Repair - Replace

11. Asset Management means… • Maintaining a desired level of service at the lowest life cycle cost; • Rehabilitating, repairing or replacing an asset • Cost vs. Benefit

12. When to engage in Asset Management? • A new systemdevelops Capacity and Asset Management through the new system/new source approval/ permit process. • An existing systemdevelops Capacity and Asset Management through using the available tools and programs. • E.g. sanitary surveys

13. Asset Management Benefits Protect public health Properly maintained equipment Provide safe drinking water to consumers Help to maintain system Capacity

14. Asset Management Benefits Save money $$$ Better Planning Fund upgrades and replacements Increase the life of your equipment

15. Asset Management - Overview Best Practices Guide http://water.epa.gov/type/drink/pws/smallsystems/managementhelp.cfm

16. Five Cores of Asset Management Current State of Asset Level of Service Long-Term Funding Plan Asset Management Minimum Life Cycle Cost Critical Assets http://water.epa.gov/type/watersheds/wastewater/index.cfm

17. Asset Management (5) Core Questions http://water.epa.gov/type/drink/pws/smallsystems/managementhelp.cfm What is the current state of my system’s assets? What is my required “sustainable” level of service? Which assets are critical to performance? What are my minimum life cycle costs? What is my best long-term funding strategy?

18. 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) Asset Management Guidebook – New Mexico EPA Infrastructure Needs Survey (DWINSA) - Worksheets Capital Improvement Planning Guidance (MassDEP)

19. Asset Management Tools Repair vs. Replace?

20. EPA Simple Asset Inventory for Very Small Systems (VSS) Asset Management – Tool 1 http://www.epa.gov/ogwdw/smallsystems/pdfs/final_asset_inventory_for_small_systems.pdf

21. Asset Inventory for VSS • http://www.epa.gov/ogwdw/smallsystems/pdfs/final_asset_inventory_for_small_systems.pdf • 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: http://www.epa.gov/ogwdw/smallsystems/pdfs/final_asset_inventory_for_small_systems.pdf

23. Asset Management – Tool 2 Asset Management Worksheet http://www.mass.gov/dep/water/drinking/assetmgt.pdf

24. Asset Management Worksheet • Worksheet allows for a simplified approach for small systems, labeling assets, replacement costs, useful life, annual reserve, cost per user. http://www.mass.gov/dep/water/drinking/assetmgt.pdf

25. 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: http://www.mass.gov/dep/water/drinking/assetmgt.pdf

26. EPA –Asset Management: Handbook for Small Water Systems Asset Management – Tool 3 http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf

27. 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. http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf

28. 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 • http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf

29. Handbook Five-Step Approach: • http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf • 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.

30. How to Obtain the Asset Management Handbook: • You can view the handbook online at: http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_asset_mgmnt.pdf

31. Check Up Program for Small Systems Asset Management – Tool 4 http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/

32. Check Up Program for Small Systems http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/ • Designed for PWS that have500-3,300 individuals • Free comprehensive asset management tool • Water & Waste Water

33. What CUPSS brings to you? • Make more informed decisionsabout your assets & WTP. • Save timeby planning & scheduling ahead. • Back up budget talks with solid facts& provide reports. • Improve your customer service. • Prepare an Asset Management Planin seven steps. http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/basicinformation.cfm

34. CUPSS Sections • Set Up • CUPSS Training • My Inventory • My O & M (Operations and Maintenance) • My Finances • My Check Up • My CUPSS Plan

35. CUPSS Sections

36. What do you bring to CUPSS? • An understanding for a desired "sustainable" level of servicefor you WTP. • Information about your current assets. • Financial informationfor your utility • Information about which assets are critical to sustained performance. http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/basicinformation.cfm

37. CUPSS Section: My Inventory

38. 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.

39. 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.

40. How to Obtain CUPSS: • You can download the latest version of CUPSS online at: http://water.epa.gov/infrastructure/drinkingwater/pws/cupss/software.cfm • You may also request a CUPSS Kit at: 1-800-490-9198 (bulk orders are available) and request either: • User’s KitEPA 816-K-08-002 • Trainer’s KitEPA 816-K-08-001

41. Asset Management – Tool 5 Asset Management Guidebook – New Mexico http://nmefc.nmt.edu/documents/AssetManagementGuideRevAug2009.pdf

42. Asset Management Guidebook The guidebook approaches asset management through the following sections: • Asset Management: The Way To Do Business • Current State of the Assets • Level of Service • Critical Assets • Life-Cycle Costing • Long-term Funding Strategy • Implementation http://nmefc.nmt.edu/documents/AssetManagementGuideRevAug2009.pdf

43. Asset Management – Tool 6 EPA Infrastructure Needs Survey Worksheets (DWINSA) http://www.mass.gov/dep/water/drinking/dwinsaq.pdf

44. DWINSA http://water.epa.gov/infrastructure/drinkingwater/dwns/index.cfm http://water.epa.gov/infrastructure/drinkingwater/dwns/upload/2009_03_26_needssurvey_2007_fs_needssurvey_2007.pdf • Developed for PWS that serve over 3,300. • Developed to identify infrastructure needs • Basis for MA SRF $$ allocation - $21 m per/yr

45. DWINSA 2003 2007 2011 2015 2019 • 2011 – (73) PWS Systems chosen to have a 20 CIP completed • MassDEP/DMS – Funding Consultant Engineers to complete DWINSA for PWS • Submittal Dates: May 30th (26) repeats and June 30th (47) new PWS 1999

46. PWS selected for the 2011 DWINSA

47. The four sections of DWINSA include: 1. Overview, instructions, and contact information. 2. Transmission and Distributionsection. 3. Storage, Treatment, Storage, Pumping, and Other Projects. 4. Backflow Prevention Devices/Assemblies, Flushing Hydrants, Service Lines, Valves, and Water Meter

48. How to Obtain the DWINSA: • Information, factsheets and reports located at: http://water.epa.gov/infrastructure/drinkingwater/dwns/index.cfm • MassDEP:http://www.mass.gov/dep/water/drinking/dwinsaq.pdf • Questions: MassDEP - DMS Patrick Rogers 617-292-5658

49. Asset Management – Tool 7 MassDEP Capital Improvement Planning (CIP) Guidance Document http://www.mass.gov/dep/water/laws/cipform.pdf • 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.

50. CIP Guidance Document • The six categories: • Source • Treatment • Storage • Pumping Projects • Transmission and Distribution Mains- Inventory • Other- Project Tables • http://www.mass.gov/dep/water/laws/cipform.pdf