News Introduction to Asset Management

Operating a utility system comes with a host of daily challenges like handling new connections and addressing unexpected disruptions in service. The challenges increase significantly as utility infrastructure ages, personnel retire, and utility system data becomes outdated or lost. Asset management helps operators come to grips with these challenges by inventorying the assets and making a plan to operate, maintain, and replace or upgrade them.

What is asset management?

Asset management is the practice of strategically managing infrastructure to maximize its value and extend its useful life. It involves collecting and organizing data on assets, such as roads, bridges, utilities, and public buildings, and using that information to guide decisions about maintenance, repair, replacement, and investment.

What is an asset management plan?

An asset management plan is a long-range planning document that accomplishes five goals:

1. Identifying the assets in a system
2. Evaluating their current condition
3. Determining the likelihood and consequences of their failure
4. Estimating the cost and schedule of rehabilitation or replacement
5. Establishing a schedule for performing maintenance and upgrades

Why is an asset management plan important?

An asset management plan helps asset owners and utility operators manage asset networks in five ways:

1. Estimating the real service life of assets
2. Predicting the location and severity of asset failure
3. Providing network visualizations for presentations to key decision-makers
4. Budgeting for asset rehabilitation and replacement
5. Identifying opportunities for synergy among multiple projects

How do I create an asset management plan?

There are nine steps to creating an asset management plan:

1. Determine the status of all sources of utility system data
2. Design a new GIS database or update an existing database to capture utility system data
3. Perform field data collection
4. Create GIS connectivity
5. Perform a utility condition assessment
6. Complete a risk matrix
7. Complete a decision matrix
8. Determine financial viability and plan
9. Write the asset management plan

How can I afford to fund a plan or the recommended improvements?

In addition to an annual budget line item, there are five ways to fund an asset management plan:

• Rate adjustments
• Capital reserve fund
• Loans
• Grants
• Savings from improved system efficiency

How can WithersRavenel help with an asset management plan?

WithersRavenel’s Funding & Asset Management Team focuses on creating, managing, and funding utility systems. They can help with all of the steps of creating and implementing an asset management plan, including identifying and securing sources of funding.