BMP A: Create a Basic Asset InventoryOne of a series of financial Best Management Practices (BMPs) for community water systems in BC

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BMP E: Create a Basic Asset inventory(Table of Contents : click on the link to go to an individual slide) WelcomeIntroduction to slidesOutline of BMPWhat and Why?Challenges & BenefitsMain Steps1: Create a Plan of Your System2: Identify and List System Assets3: Find Out Life Expectancy of Components4: Work Out the Remaining Service life of Each AssetThanks for Your AttentionClosing CommentsNext slide >3

Basic Asset InventoryWhat and Why?What is an asset inventory? A list of items of value owned by the water system, with information about each. May include:manufacturer name and model number installation date & original cost. condition of the asset & remaining useful life.  Why needed? Increases knowledge of the system, gives specific information for better financial decisions. Helps schedule repairs and replacements & to get greatest value possible from assets. If you don’t know what you have, you can’t manage it effectively.

Challenges and BenefitsChallenges to Overcome Don’t know what you have, it’s condition, or when it needs to be renewed.Have unexpected failures because you don’t know the condition of components. Don’t know how much money to set aside to renew assets.Cannot explain properly to customers why $ needed to renew assets. Benefits of an Asset InventoryShows strengths and weaknesses of physical assets, > helps to avoid problems with operation and water quality.Enables planning for replacement and renewal and to know when $ must be spent.Provides overall picture of system, and helps sharing with customers & regulators.Enables more efficient emergency responseEnables operator succession planningEnables inventory for emergency repairs.

Main StepsStep 1: Create a plan of systemStep 2: Identify and list system assetsStep 3: Find out life expectancy of componentsStep 4: Work out the reaming service life of each asset

Step 1: Create a Plan of SystemCreate a clear and current plan of water systemInformation on system can come from: As-built plansmanuals and purchase receipts well logs Construction Permits maintenance logswater system risk assessment reportsland surveys past annual reports Check original as-built plans and update them with any recent additions or replacements.A scale plan may help identify components, lengths and sizes.Keep updated files in a secure location for future reference.

Step 2: Identify and list system assets Collect information about assets and record in a systematic way.Record the following information for each:  ConditionAgeService HistoryHistory of breaks and malfunctionsUseful life. Use computer spreadsheet if available. Get the best information possible; don’t get bogged down. Use estimates where incomplete information New information will become available as assets get replaced .

Step 3: Find out the life expectancy of componentsUse sources such as: “Expected Useful Life; find life expectancy of water system components. (See also other sources)Use flexibility in defining an “asset”: Some “assets” may consist of a single component such as a pump. Other “assets” may result from the combination of several components (E.g. pumping station > includes pumps, pipework valves and other items).  Consider grouping components of similar life expectancy as one “asset”; for example group curb stop and corporation stop valves together.

Step 4: Work out remaining service life of assets Knowing when to repair, rehabilitate, or replace an asset will help get the most value from assets. At some point, continuing to repair will no longer be cost-effective > need to rehabilitate or replace it. Several factors can affect remaining service life:quality of routine servicing and maintenanceexcessive use environmental conditions such as poor source water quality, soil quality, and climate.  Use local knowledge plus manufacturers’ recommendations in working out remaining service life.  Assets in poor condition, not regularly maintained, or subject to excessive use will be at the lower end of the expected useful service life range.

Thanks for your attention. 11Return to BMP Contents >Return to Master Contents >