Asset management at water utilities has received much attention ... ASSET
MANAGEMENT ELEMENTS & BACKGROUND. 1 ... ture (Damodaran et al. 2005)
.
Fact Sheet
ASSET MANAGEMENT Elements & Background
Structured Approach Needed to Maintain and Renew Assets Quick Facts • The GAO reports mounting evidence that the integrity of the U.S. drinking and wastewater infrastructure is at risk • The EPA estimates utilities will need to spend $334.8 billion over the next 20 years on infrastructure needs • Several public and proprietary asset management programs and approaches are available to help utilities Overview
and needs a concerted effort to improve the management
Asset management at water utilities has received much
of key assets—pipelines, treatment plants, and other facili-
attention lately, as part of the broader U.S. focus on
ties—and a significant effort to maintain, rehabilitate, and
the deterioration of our public assets and their need for
replace these assets (GAO 2002).
renewal. In fact, as a result of highly publicized water main breaks leading to significant flooding, the pub-
The U.S. Environmental Protection Agency (EPA) esti-
lic has become more attuned to deteriorating water
mates that drinking water utilities will have to invest
system assets. Consequently, people now have a bet-
$384.2 billion over the next 20 years to address their
ter understanding of the reasons for an increase in
deteriorating infrastructure needs. However, it is becom-
related projects and the increased rates that frequently
ing more difficult for water utilities to finance these
accompany that work.
investments (EPA 2013). For instance, according to the GAO, one-third of water utilities have deferred mainte-
According to a U.S. Government Accountability Office
nance because of insufficient funding, report that 20%
(GAO) report on the water infrastructure in the United
or more of their pipelines are nearing the end of their
States, there is mounting evidence that the integrity of
life, and lack plans for managing their capital assets
the U.S. drinking and wastewater infrastructure is at risk
(GAO 2002).
waterrf.org
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of water utilities have deferred maintenance because of insufficient funding
authority, open sharing of data and information across departments, and clear objectives for the program. Water utilities should engage in dialogue with their customers about the costs and risks associated with deteriorating assets. This will help utilities develop a more comprehensive needs assessment and enable analysis of different approaches to extend the life of their infra-
Estimates of Renewal Needs
structure (Damodaran et al. 2005). These conversations with customers will also help water utilities explain the
There are a number of U.S. estimates of infrastructure
value and benefits of infrastructure repairs, because
replacement at water utilities, in particular those based on
customers will ultimately be paying for this work through
demographics and those that are conducted by the EPA
higher rates.
every five years. These assessments are useful in helping water utilities develop asset management programs.
Steps To Address Asset Management
Demographic assessments have resulted in what has
Water utilities should consider the following
been termed the Nessie Curve—as the population grows,
steps when developing or implementing an asset
so does the length of installed water system piping. Also,
management program:
as the pipe ages, it will reach its maximum lifespan along with other pipes installed at the same time. Therefore,
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Commence asset management activities by devel-
pipe replacement needs reflect the population growth of
oping a plan (Cromwell and Speranza 2006, AMWA
many years earlier (Cromwell et al. 2003, Cromwell and
et al. 2007) •
Speranza 2006).
Establish an interdepartmental asset management team, including senior management
Asset Management Programs
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Establish levels of service and key performance indicators for the water utility (Cromwell and
To address these issues, water utilities need to develop
Speranza 2006, AMWA et al. 2007, Damodaran et
a systematic, structured approach that allows for main-
al. 2005, Thacher et al. 2011)
tenance and renewal of assets at a manageable pace,
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those assets. Many asset management programs and
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Design a business risk assessment program, considering assets to be managed and how they might fail
approaches are available to water utilities as they develop
(Barnes et al. 2008, Gaewski and Blaha 2007)
their own programs. Some are public while others are proprietary to consulting firms, software providers, or
Create an inventory of assets throughout the utility (AMWA et al. 2007, Matichich et al. 2005)
while maintaining an adequate level of performance from
•
Begin using data to establish the remaining life of water utility assets (Deb et al. 2002, Rajani et al.
consortia. These programs include:
2011, Thomson and Wang 2009) •
International Infrastructure Management Manual
•
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Record all breaks and failures, including leaks (Friedman et al. 2010, Deb et al. 2002)
(IPWEA 2011) Implementing Asset Management: A Practical Guide
•
Thomson and Wang 2009)
• “Sustainable Infrastructure Management Program Learning Environment” (WRF and WERF 2008)
Consider condition assessment activities to gauge current condition of assets (Marlow et al. 2007,
(AMWA et al. 2007) •
Plan renewal activities based on the best possible evaluation of the water utility (Cromwell et al. 2003, Grigg 2004, Deb et al. 2002)
When designing and implementing an asset management program, water utilities should ensure that there is high level management support, development of a multi-department asset management team with decision-making
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Asset Management
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Elements & Background
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Continuously improve asset management activities
References AMWA, NACWA, and WEF (Association of Metropolitan Water Agencies, National Association of Clean Water Agencies, and the Water Environment Federation). 2007. Implementing Asset Management: A Practical Guide. Washington, D.C.: AMWA. Barnes, Z. A., M. Caudwell, P. R. Chadwick, N. Clarke, A.
Water utilities should engage in dialogue with their customers about the costs and risks associated with deteriorating assets.
Grove, A. I. J. Heather, S. Mellot, and P. D. Selby. 2008. Tool for Risk Management of Water Utility Assets. Project #4126. London: UKWIR. Cromwell, J. E., G. Nestel, and R. Albani. 2003.
IPWEA (Institute of Public Works Engineering Australia).
Financial and Economic Optimization of Water Main
2011. International Infrastructure Management Manual.
Replacement Programs. Project #462. Denver, Colo.:
Sydney, Australia: IPWEA. http://www.nams.org.nz/
AwwaRF and American Water Works Association.
pages/273/international-infrastructure-management-
Cromwell, J. E., and E. Speranza. 2006. Water Infrastructure at a Turning Point: The Road to Sustainable Asset Management. Denver, Colo.: American Water Works Association. Damodaran, N., J. Pratt, J. Cromwell, J. Lazo, E. David, R. Raucher, C. Herrick, E. Rambo, A. Deb, and J. Snyder. 2005. Customer Acceptance of Water Main Structural Reliability. Project #2870. Denver, Colo.: AwwaRF. Deb, A. K., F. M. Grablutz, Y. J. Hasit, and J. K. Snyder.
manual-2011-edition.htm. Marlow, D., S. Heart, S. Burn, A. Urquhart, S. Gould, M. Anderson, S. Cook, M. Ambrose, B. Madin, and A. Fitzgerald. 2007. Condition Assessment Strategies and Protocols for Water and Wastewater Assets. Project #3048. London, UK: IWA Publishing. Matichich, M., R. Booth, J. Rogers, E. Rothstein, E. Speranza, C. Stanger, E. Wagner, and P. Gruenwald. 2005. Asset Management Planning and Reporting
2002. Prioritizing Water Main Replacement and
Options for Utilities. Project #2848. Denver, Colo.:
Rehabilitation. Project #459. Denver, Colo.: AwwaRF
AwwaRF.
and American Water Works Association. EPA (U.S. Environmental Protection Agency). 2013. Drinking Water Infrastructure Needs Survey and Assessment, Fifth Report to Congress. EPA 816-R-
Rajani, B., Y. Kleiner, and D. Krys. 2011. Long-Term Performance of Ductile Iron Pipe. Project #3036. Denver, Colo.: Water Research Foundation. Thacher, J., M. Marsee, H. Pitts, J. Hansen, J. Chermak, and
13-006. Washington, D.C.: EPA, Office of Ground
B. Thomson. 2011. Assessing Customer Preferences
Water and Drinking Water. https://www.epa.gov/sites/
and Willingness to Pay: A Handbook for Water
production/files/2015-07/documents/epa816r13006.pdf.
Utilities. Project #4085. Denver, Colo.: Water Research
Friedman, M., G. Kirmeyer, J. Lemieux, M. LeChevallier, S. Seidl, and J. Routt. 2010. Criteria for Optimized
Foundation. Thomson, J., and L. Wang. 2009. Condition Assessment
Distribution Systems. Project #4109. Denver, Colo.:
of Ferrous Water Transmission and Distribution
Water Research Foundation.
Systems, State of Technology Review Report.
Gaewski, P.E., and F. J. Blaha. 2007. Analysis of Total
EPA/600/R-09/055. EPA Water Supply and Water
Cost of Large Diameter Pipe Failures. Denver, Colo.:
Resources Division, National Risk Management
AwwaRF.
Research Laboratory. https://cfpub.epa.gov/si/si_
GAO (U.S. Government Accountability Office). 2002. Water Infrastructure: Comprehensive Asset
public_record_Report.cfm?dirEntryID=210089. WRF and WERF (Water Research Foundation and
Management Has Potential to Help Utilities Better
Water Environmental Research Foundation). 2008.
Identify Needs and Plan Future Investments. GAO-
“Sustainable Infrastructure Management Program
04-461. Washington, D.C.: GAO. http://www.gao.gov/
Learning Environment.” Project #4013. http://simple.
products/GAO-04-461.
werf.org/.
Grigg, N. S. 2004. Assessment and Renewal of Water Distribution Systems. Project #2772. Denver, Colo.: AwwaRF.
Last updated August 2016
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Elements & Background
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