1. (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. (2) The capital asset management plan shall require the water conservancy district to:

   1. (a) complete an inventory of each capital asset, including the following information for each inventoried asset:

      1. (i) a technical description;
      2. (ii) location;
      3. (iii) physical condition;
      4. (iv) documentation of the asset's standard features;
      5. (v) warranties;
      6. (vi) maintenance history;
      7. (vii) replacement costs;
      8. (viii) estimated value;
      9. (ix) estimated original useful life; and
      10. (x) estimated remaining useful life; and
   2. (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. (3)(a) The plan shall establish:

   1. (i) a method to assess the physical condition of each capital asset;

      1. (ii) performance and condition standards for each capital asset;
      2. (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;
      3. (iv) a process to evaluate existing capital assets for efficiency and expected service delivery; and
      4. (v) objective criteria for ranking capital asset criticality and prioritizing maintenance and replacement.

   2. (b) A performance and condition standard described in Subsection (3)(a)(ii) may be:

      1. (i) a mandated safety standard;
      2. (ii) a standard condition of receiving federal, state, or local funding; or
      3. (iii) an applicable engineering or other professional standard.

4. (4) The plan shall include:

   1. (a) a multiyear financial component that includes:

      1. (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
      2. (ii) guidelines for dedicating revenue to priority capital assets identified under Subsection (3)(a)(v); and

   2. (b) the water conservancy district's assurance it will:

      1. (i) implement the capital asset management plan and seek to comply with its terms; and

      2. (ii) adopt annual operating budgets that include ongoing funding for capital asset

         maintenance, repair, and replacement.

KEY: capital asset management plan

Date of Last Change: May 9, 2024

Authorizing, and Implemented or Interpreted Law: 73-10g-502