R653-14-3. Capital Asset Management Plan

(1) As a condition to receiving federal or state financing or grants for improvement to capital assets related to water infrastructure, a water conservancy district must commit to adopt a capital asset management plan consistent with Section 73-10g-502 and this rule. (2) The capital asset management plan shall require the water conservancy district to: (a) complete an inventory of each capital asset, including the following information for each inventoried asset: (i) a technical description; (ii) location; (iii) physical condition; (iv) documentation of the asset's standard features; (v) warranties; (vi) maintenance history; (vii) replacement costs; (viii) estimated value; (ix) estimated original useful life; and (x) estimated remaining useful life; and (b) assess the physical condition of the capital asset in accordance with a method established under Subsection (3)(a)(i) at least every five years. (3)(a) The plan shall establish: (i) a method to assess the physical condition of each capital asset; (ii) performance and condition standards for each capital asset; (iii) a program for monitoring and reporting the water conservancy district's application of and compliance with the plan, including a comparison of each capital asset's current status and targeted standards for that capital asset as set forth in the plan; (iv) a process to evaluate existing capital assets for efficiency and expected service delivery; and (v) objective criteria for ranking capital asset criticality and prioritizing maintenance and replacement. (b) A performance and condition standard described in Subsection (3)(a)(ii) may be: (i) a mandated safety standard; (ii) a standard condition of receiving federal, state, or local funding; or (iii) an applicable engineering or other professional standard. (4) The plan shall include: (a) a multiyear financial component that includes: (i) criteria and guidelines for saving and allocating sufficient funds in the water conservancy district's annual operating budget for assessing, maintaining, repairing, and replacing capital assets; and (ii) guidelines for dedicating revenue to priority capital assets identified under Subsection (3)(a)(v); and (b) the water conservancy district's assurance it will: (i) implement the capital asset management plan and seek to comply with its terms; and (ii) adopt annual operating budgets that include ongoing funding for capital asset maintenance, repair, and replacement.