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Example Worksheet

The text in this topic relates to the Example System Inventory Worksheet.

A small, municipally owned water system serving 750 service connections has decided to develop an asset management plan.

A neighboring water system recently negotiated very good interest rates on a loan to fund distribution pipe replacement due in part to their asset management plan. This inspired the managers of this system to develop their own asset management plan.

In addition, the municipality plans to begin significant roadwork sometime in the next five years. The water system managers have been asked to determine whether any of the pipes under the roads scheduled to be repaired will need to be replaced in that time frame.

As a first step, the system operator develops a list of the system’s assets and evaluates the condition of each asset. To differentiate the assets, the operator includes the year that some of the assets were installed. Although he does not have comprehensive information about every asset on the list, there is enough information to begin assessing the overall health of the system. Note that although the estimated useful life for a chlorinator is 10 years, the operator of this system knows that they had to replace their previous chlorinator after only 5 years. He adjusts the useful life for the chlorinator from the estimated 10 years to a more conservative 5 years. He uses the manufacturers’ recommendations as the useful life for the hydrants, valves, and PVC pipes.

Upon completing the System Inventory Worksheet, the system managers notice that they will have to replace a significant number of their assets starting next year and then about every ten years (11, 21, and 31 years from now). They begin to consider whether spacing the projects out over two or three years is possible, or if they will need to replace these assets in the same year.

In addition to the System Inventory Worksheet, the other worksheets in this guide will help the system managers prioritize the assets and determine how much money they will need to set aside each year to meet the financial demands of replacing them when necessary.

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Instructions for the Worksheet   Step 2 – How Do I Prioritize My Assets?