2011-08-23_PWETC_AgendaPacket - Laserfiche WebLink

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Asset management is successfully practiced in large cities and regional sewer collection systems. In a simpler form, it can also be used in smaller cities starting with existing staff resources and equipment. Asset management has many benefits including improved operation and maintenance, improved financial management, and improved capital improvement planning. These are critical in times of financial and resource limitations imposed on utilities by decision makers and customers. Another way of looking at asset management is a comparison of asset management with no asset management. Table 11- Comparison of Asset Management Alternatives With Asset Management Without Asset Management • Operations scheduled for efficiency • Operations scheduled without consideration for efficiency • Maintenance performed based on operator feedback, demonstrated • Maintenance performed based on past effectiveness, cost and results practices without consideration of cost or results • Maintenance is planned and budgeted in advance • No capital improvement planning • Capital improvements based on five or • Capital improvements are often six year planning and cost- benefit or required by system failures and cost - effectiveness studies emergencies • Capital improvements usually performed • No long -term financial planning before complete failure or emergency • Budgeting is reactive and often in deficit • Capital improvements are intervention type projects designed to extend the life • Rate increases are poorly justified and of assets customers often skeptical • Capital budget is separate from ongoing • Poor employee morale budget • Rate increases are justified by studies and are adequate to fund operational and capital goals • High employee morale Page 57