Asset Management for Water and Wastewater Professionals

Jim Newton, P.E., DEE

Course Outline

This eight hour course provides valuable information for those individuals who participate in the operations and management of drinking water and wastewater utilities.  Completion of this course will provide the student the necessary information and testing to meet the continuing education requirements in order to renew their licenses.  It was designed by an instructor who has developed and implemented numerous similar training courses. 

This course includes a multiple-choice quiz at the end, which is designed to enhance the understanding of the course materials.

Learning Objective

At the conclusion of this course, the student will be able to:

• Understand how asset management can improve a utility’s financial health;
• Understand how asset management can improve a utility’s ability to provide safe drinking water or wastewater treatment;
• Understand how asset management fits into strategic planning;
• Understand how to conduct a thorough asset inventory;
• Understand how to prioritize the rehabilitation of assets;
• Understand how to prioritize the replacement of assets;
• Understand how to develop an annual estimate of needed reserves;
• Understand how to develop an annual budget;
• Understand how to develop an asset management plan;
• Understand how to implement an asset management plan;
• Understand how to review an asset management plan;
• Understand how to revise an asset management plan;
• Understand how asset management helps a facility keep a precise inventory of assets;
• Understand how asset management can be used to ensure regulatory compliance;
• Understand how to determine a facility’s strengths;
• Understand how to determine a facility’s weaknesses;
• Understand how to spot gaps in a facility systems; security;
• Understand how to explain the system’s current condition;
• Understand how to explain the system operates;
• Understand how to identify important contact information;
• Understand the elements of a simple asset inventory;
• Understand how to estimate the typical lifetime of equipment;
• Understand how to document the life expectancies of equipment;
• Understand how to prioritize based on the importance of an asset;
• Understand how to establish a budgeting table;
• Understand various terms used to set rates;
• Understand why rate setting is important;
• Understand the definition of full cost pricing;
• Understand how to determine a utility’s costs;
• Understand how to determine current revenue;
• Understand how to estimate a reserve to be set aside;
• Understand how to determine the actual revenue required from customers of the utility;
• Understand how to design a rate to cover all costs;
• Understand common rate structures;
• Understand how to review a rate on a periodic basis;
• Understand the challenges facing utilities;
• Understand the benefits of asset managements;
• Understand how to determine the required sustainable level of service;
• Understand what questions to ask when determining those assets critical to sustained performance;
• Understand the roles of local officials in asset management;
• Understand how to build an asset management team;
• Understand why an asset team is a valuable tool;
• Understand the components of an asset management team;
• Understand how to create and maintain an asset management structure;
• Understand key team members’ roles; and
• Understand key tem members knowledge base.

Intended Audience

The intended audience for this course is any professional who is involved in the operation and management of a water or wastewater utility.

Benefit to Attendees

Attendees of this course will understand what an asset management program is, the benefits of an asset management program, how to conduct an asset management program, and the costs of an asset management program.

Course Introduction

Asset management consists of the following five steps:

• Taking an inventory. Before a facility, whether drinking water or wastewater, can manage its assets, it needs to know what assets they have and what condition they are in. This information will help the facility schedule rehabilitations and replacements of your assets.
• Prioritizing assets. The water or wastewater system probably has a limited budget. Prioritizing the assets will ensure that the facility allocate funds to the rehabilitation or replacement of its most important assets.
• Developing an asset management plan. Planning for the rehabilitation and replacement of a facility’s assets includes estimating how much money will be needed each year to maintain the operation of the system. This includes developing a budget and calculating the required reserves.
• Implementing the asset management plan. Once the facility has determined how much money it will have to set aside each year and how much additional funding (if any) it will need to match that amount, the facility needs to work with its management and customers and with regulators to carry out the plan and ensure that the facility has the technical and financial means to deliver safe water to its customers.
• Reviewing and revising the asset management plan. Once the facility has developed an asset management plan, the facility should not stick it in a drawer and forget about it! The asset management plan should be used to help the facility shape its operations.  It is a flexible document that should evolve as the facility gains more information and as priorities shift.

Asset management will help a facility improve the management of its system by:  

• Increasing its knowledge of its system, this will allow the facility to make better financial decisions. This is useful information when considering options to address various system challenges such as meeting regulatory requirements or upgrading system security.
• Reducing system “down-time” and the number of emergency repairs, since the facility will have planned for the replacement and rehabilitation of its assets.
• Prioritizing rehabilitation and replacement needs and providing time to research cost-effective alternatives.
• Showing investors and the public that it is using its money effectively and efficiently, which may make them more likely to increase investment or tolerate rate increases.
• Giving it greater access to financial assistance. Some funding sources give applicants extra credit (higher priority ratings) for having an asset management plan or a capital improvement plan.
  
  

Course Content

This course is based upon the following US EPA documents:

“Asset Management: A Handbook for Small Water Systems”, EPA 816-R-03-016, September 2003.

“Taking Stock of Your Water System”, EPA 816-K-03-002, October 2004.

“Setting Small Drinking Water Rates for a Sustainable Future”, EPA 816-R-05-006, January 2006.

“Asset Management: A Best Practices Guide”, EPA 816-F-08-014, April 2008.

“Asset Management for Local Officials”, EPA 816-F-08-015, April 2008.

“Building an Asset Management Team”, EPA 816-F-08-016, April 2008.

Please click on the above underlined hypertext to view, download or print the document for your study. Because of the large file size, we recommend that you first save the file to your computer by right clicking the mouse and choosing "Save Target As ...", and then open the file in Adobe Acrobat Reader.

 

Course Summary

This course discusses the need for, the benefits of and the elements of an asset management program for water and wastewater utilities.

Related Links

For additional information related to this subject, please visit the following websites or web pages:

US Environmental Protection Agency

 

Quiz

Once you finish studying the above course content, you need to take a quiz to obtain the PDH credits.

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DISCLAIMER: The materials contained in the online course are not intended as a representation or warranty on the part of PDH Center or any other person/organization named herein. The materials are for general information only. They are not a substitute for competent professional advice. Application of this information to a specific project should be reviewed by a registered architect and/or professional engineer/surveyor. Anyone making use of the information set forth herein does so at their own risk and assumes any and all resulting liability arising therefrom.

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