(A) In order to demonstrate adequate
managerial capacity, personnel commitments that are needed to provide for
effective management, operation and financials of the public water system shall
be proven with documentation. The asset management program shall include, but
is not limited to, the following:
(1) Demonstration of
ownership accountability, which includes the legal authority to take the
measures necessary for construction, operation, and maintenance of the system,
including maintaining staffing skills, resources, and prioritizing continuous
improvements of the water system.
(2) Demonstration that
the owner has committed to proper operation and management of the public water
system in accordance with agency 3745 of the Administrative Code, as
(3) Demonstration to
ensure continued, proper operation of the public water system through
succession planning, such as having a continuity plan in place for critical
(4) The owner or operator
of the public water system shall include at least the following information in
the asset management program:
(a) A brief, non-technical description of the water system,
including major components, source type, number of service connections, and
number and type of customers.
(b) An operating plan defining the tasks to be performed in
managing and operating the public water system, which shall consist of at least
(i) A high-level table of
organization that identifies critical personnel including the operator, manager
and supervisor responsible for operations, maintenance, treatment, and
distribution. The table shall include clearly defined job
classifications/titles and the individuals within those job
classifications/titles. The table shall include differentiation between a
property owner and business owner or lessee, if applicable.
(ii) If cited with
significant deficiencies, the director may require fiscal and managerial
training for water systems governing bodies and responsible management, and
documentation of governing bodies and employees attending appropriate water
system fiscal and management training.
(iii) An operation and
maintenance program as described in paragraph (B)(4) of this rule.
(c) Demonstration of the owner's ability to address
violations of applicable portions of the Revised Code and the Administrative
Code. The demonstration shall include an explanation of how the water system
will establish and maintain effective communications and relationships between
the water systems management, its customers, professional service providers and
any applicable regulatory agencies.
(d) An inventory of external contacts and resources
necessary for proper operation of the system, including a description of how
the contacts and resources will be effectively utilized.
(e) Description of internal contracting and purchasing
procedures to accomplish routine and emergency repairs and
(f) Supporting documentation on the following, if
(ii) Use of system
(iii) Billing practices
and revenue collections.
(B) In order to demonstrate adequate
technical capacity, the asset management program shall include, but is not
limited to, the following:
(1) Schematic of water
source, treatment, storage and distribution.
(2) Inventory of assets,
including the following:
(a) Asset name.
(b) Known purchase or installation date, or estimated age
of asset if different.
(c) Status of asset (e.g. in use, available for use, needs
repaired, etc.) as identified by the water system.
(d) Locations of assets, including up-to-date
(3) Evaluation of assets,
including the following:
(a) Condition (e.g. excellent, good, fair, poor, needs
(b) History of maintenance and repair.
(c) Estimated remaining useful life based upon condition
(d) A prioritization of assets based on criticality and
(4) Operation and
(a) Standard operating procedures for daily operation of
(b) Maintenance schedules or supporting documentation of
the maintenance performed for each of the following as applicable:
(i) Wells, all raw-water
reservoirs and intakes.
(ii) Pump stations.
equipment and controls.
(iv) Water treatment
(v) Water storage tanks
and/or hydropneumatic tanks.
(vi) Distribution system
components, including hydrants and valves.
(vii) Auxiliary power.
(c) Demonstration of an adequate maintenance log.
preparedness and contingency planning program.
(a) Community public water systems shall prepare a written
contingency plan meeting the requirements of Chapter 3745-85 of the
(b) Non-community public water systems shall prepare a
written contingency plan in accordance with paragraphs (B), (C)(1), (C)(2),
(C)(4), (D)(3), (D)(4)(c), (D)(4)(d), (D)(4)(e), (D)(4)(g), (D)(4)(h),
(D)(4)(i), (D)(4)(j), (D)(12), (D)(13), (D)(14), (G)(1) and (G)(2) of rule
3745-85-01 of the Administrative Code.
(6) Source water
(a) The public water system shall review the source water
assessment annually and every five years shall evaluate the assessment to
determine if revisions are necessary.
If revisions are deemed necessary, the
public water system shall request, in writing, a consultation with Ohio EPA on
any suggested revisions. If Ohio EPA determines that re-assessment is
necessary, the re-assessment shall be conducted by Ohio EPA or under guidance
provided by Ohio EPA.
(b) Community and non-transient non-community public water
systems that have an endorsed drinking water source protection plan, shall
review the protection plan as stated in the plan and revise the plan as
(c) Community and non-transient non-community public water
systems that have an endorsed drinking water source protection plan that does
not include a review schedule, shall review the protection plan every three
years and revise it as necessary.
(d) Public water systems that have a drinking water source
protection checklist that has been submitted and accepted by Ohio EPA, the
water system shall review and update the checklist every five years.
(e) A revised drinking water source protection plan or
checklist shall be submitted to Ohio EPA within sixty days of making the
(7) Approved capacity
(a) Written approved capacities of small public water
systems using only ground water (such as factories, mobile home parks, office
buildings, restaurants, condominiums, and the like) will be established in
accordance with Ohio EPA's "Guidelines for Design of Small Public
Water Systems." Written approved capacity projections for all other water
systems shall meet the requirements of Ohio EPA's "Planning and
Design Criteria for Establishing Approved Capacity for: 1) Surface Water And
Ground Water Supply Sources, 2) Drinking Water Treatment Plants (WTPs), and 3)
(b) Identification of infrastructure needed to meet written
approved capacity projections.
(8) Criteria and
timelines for infrastructure rehabilitation and replacement.
(a) Identification of, and a schedule for needed repair,
rehabilitation, replacement and expansion of existing assets and prioritized to
address the most critical needs.
(b) Identification of funds that will be collected or set
aside for repair, rehabilitation, replacement or expansion of existing assets.
(9) Capital improvement
(a) A CIP shall include annual projections for a three to
five-year planning period with detailed expenditures in each of those time
(b) The projects should be listed by the year in which they
are planned and include, at a minimum, the following information:
(i) Description of the
(ii) Need for, and
benefits of, the project.
(iii) Estimate of project
cost, including engineering design and construction.
(iv) Funding sources.
(c) A description and estimated cost of significant
projected projects for the next five to twenty years.
(C) In order to demonstrate adequate
financial capacity, water systems shall include a long-term funding strategy to
support asset management plan implementation, including, but not limited to,
the identification of sources and amounts of funds to finance the needed
repair, rehabilitation, replacement or expansion of assets, including debt
(1) New publicly owned
public water systems shall include a five year pro forma statement of the next
five years of operation, which includes the following:
(a) An income statement, balance sheet, and statement of
cash flow pertaining to the water operating fund.
(b) An amortization schedule of all water system debt
including terms of all outstanding debt.
(c) Capitalization terms of long term debt anticipated to
be incurred in the next five years of operation.
(d) The current water rate ordinance in effect including
any planned periodic increases of the rate, as applicable.
(e) Documentation of triennial water rate evaluation, as
(f) Documentation of all customers being billed for water
usage, as applicable.
(g) Any existing information demonstrating bond or credit
publicly-owned public water systems shall include all of the following:
(a) All the items listed in paragraph (C)(1) of this rule.
(b) The most recent five years of annual financial reports,
as required by section 117.38 of the Revised Code, or substantively equivalent
documents which describe the performance of the owner and the water system.
(3) New non-publicly
owned public water systems shall include all of the following:
(a) A demonstration of the cost of the water treatment
components and the conveyance system including capitalization terms or lump sum
debt retirement option if selected.
(b) A demonstration of an adequate budget and revenue
sources to support the annual operation and maintenance costs of the system for
the next five years of operation including the following:
(i) Cost of required
level certified operator coverage.
(ii) Capitalization terms
of anticipated long-term debt incurred in the next five years of operation.
(4) Existing non-publicly
owned public water systems shall include all of the following:
(a) All the items shown in paragraph (C)(1) of this rule.
(b) Type of business organization and historical
origination date; including the legal document establishing the corporate
(c) The most recent five years of annual financial
statement documentation which describe all assets, liabilities, income,
expenditures, balances and equity of the water system.
[Comment: "Guidelines for Design of
Small Public Water Systems (2015)" can be found at
and "Planning and Design Criteria for Establishing Approved Capacity for:
1) Surface Water And Ground Water Supply Sources, 2) Drinking Water Treatment
Plants (WTPs), and 3) Source/WTP Systems (March 2010)" can be found at