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Asset Management

Blair Township Water Tower and Fire Truck
Environment, Great Lakes, and Energy

Asset Management

Luke Dehtiar

The principles of asset management are essential to proper operation of a water system. Asset management is a tool for water systems to plan for future financial needs, estimate the full cost of water service, and to ensure a sustainable utility. Most water systems already incorporate some of the principles into their business processes. The asset management rule in Michigan’s Safe Drinking Water Act aims to ensure that water systems are considering all costs as they plan for the future. The resources listed below will help water systems understand the principles of asset management and their responsibilities relative to the Safe Drinking Water Act.

Guidance materials

  • The Submission Guidance document is intended to provide clarification on the requirements for submission of asset management programs (AMP) to the Michigan Department of Environment, Great Lakes, and Energy (EGLE).

  • The Revolving Loan Section has produced a Guidance for Water Systems document that provides good background information on asset management and provides some instruction on how to use the Workbook for Water Utilities.

  • A checklist has been developed for DWEHD staff to use in reviewing the AMPs when received. This checklist is provided here for others to use as a guide while assembling or reviewing their own submissions to EGLE.

  • These training slides were used in a series of training sessions held throughout Michigan in spring of 2017. They describe asset management principles generally, show some free asset management software tools, as well as provide details on EGLE’s requirements regarding asset management.

  • The Microsoft Excel based Workbook for Water Utilities may be a viable option for small, simple systems to assemble their asset management program. The workbook has tabs to set up an asset inventory, assemble the capital improvement plan, to assess different rate structures, and to complete a budget. This workbook can be a great tool for systems looking for a simple, free tool.