{"id":1546,"date":"2021-01-14T21:32:40","date_gmt":"2021-01-14T21:32:40","guid":{"rendered":"https:\/\/swefc.unm.edu\/iamf\/?page_id=1546"},"modified":"2026-04-02T15:45:40","modified_gmt":"2026-04-02T15:45:40","slug":"level-of-service-how-level-of-service-goals-impact-system-costs","status":"publish","type":"page","link":"https:\/\/swefc.unm.edu\/iamf\/level-of-service-how-level-of-service-goals-impact-system-costs\/","title":{"rendered":"Level of Service \/ How Level of Service Goals Impact System Costs"},"content":{"rendered":"

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How Level of Service Goals Impact System Costs<\/h2>\n

 <\/p>\n

Level of Service goals are critical for budgeting, planning, operations, management, and\u00a0allocating\u00a0resources. There is a direct link between the level of service provided and the resources needed to provide that level of service. There is also a link between the level of service and the cost\u00a0to\u00a0the customer. In broad terms, an overall higher level of service results in a higher cost.\u00a0<\/span>\u00a0<\/span><\/p>\n

Consider the change from hauling water from a creek or a well to a household to having untreated piped water to the house. This change provided a higher level of service but comes at a cost. Then, going from untreated water to treated water is an increase in the level of service and comes at a cost. Moving to modern water systems with treatment, disinfection, pumping, piping, fire hydrants, and storage tanks that provide safe, reliable, quality service\u00a0greatly increased\u00a0the level of service provided as well as the cost. When considering an individual goal within the utility, the tie between level of service and cost may not be quite as direct. In some cases, goals can be created so that the cost stays the same or even potentially decreases if the system is able to gain some efficiency.<\/span>\u00a0<\/span><\/p>\n

In cases where higher levels of service on an individual goal will result in an increased cost, there is a chance for the utility to have an open dialogue with its customers regarding whether they are willing to pay for this increase. For example, customers may complain about secondary or aesthetic contaminants in the water (those contaminants that cause taste, odor, or color issues, but not health concerns) and wish to have these contaminants removed. The water system can install treatment to remove these contaminants, but it will cost each customer more for their water each month. The water system can have a dialogue with the customers to explain what the treatment would entail, what the finished water quality would be, and how much it would cost the customers. Following the discussions, the customers could decide whether they were willing to pay for\u00a0the additional\u00a0treatment.\u00a0<\/span>\u00a0<\/span><\/p>\n

A utility will have to prioritize spending to match the priorities of the identified level of service goals. The utility needs to consider the capital, operation, maintenance, and labor costs associated with their goals, as well as the resources\u00a0required\u00a0to measure them. There should be a balance between the quantity of resources (time and money) it takes to collect data and measure progress, and the importance of having the data. A utility may need to find cost-effective ways to measure a goal, or they may have to re-evaluate the goal if it is too costly. Below is an example of how costs have increased with service levels over the years for a water system. It is a graph adapted from a graph created by Ross Waugh, founder of\u00a0<\/span>Waugh Infrastructure Management.<\/span><\/a>\u00a0<\/span><\/p>\n

Graph 1: Costs associated with service level of specific assets over time for drinking water systems<\/strong><\/p>\n

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Higher levels of service do not always mean higher costs for green infrastructure. The upfront cost and long-term maintenance of green infrastructure stormwater systems are understandably a concern for communities. In some cases, upfront green infrastructure capital costs can be more than conventional stormwater systems; however, upfront costs may be recouped due to lower maintenance costs over time. Green assets will require more maintenance in the first few years to become established and reach their\u00a0optimal\u00a0service level, but once they are\u00a0established, maintenance requirements will decrease, thus reducing costs while the level of service stays consistent or even improves. To keep costs manageable, utilities should consider installing green assets with maintenance activities that a department can easily handle, like mowing or cleaning catch basins.<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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What level of service are people willing to pay for? – Ross Waugh, Waugh Infrastructure Management Ltd, Timaru, NZ<\/p>\n

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Changing service levels will cause costs to change \u2013 Ross Waugh, Waugh Infrastructure Management Ltd, Timaru, NZ<\/p>\n

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How Level of Service Goals Impact System Costs   Level of Service goals are critical for budgeting, planning, operations, management, and\u00a0allocating\u00a0resources. There is a direct link between the level of service provided and the resources needed to provide that level of service. There is also a link between the level of service and the cost\u00a0to\u00a0the customer. In broad terms, an overall higher level of service results in a higher cost.\u00a0\u00a0 Consider the change from hauling water from a creek or a well to a household to having untreated piped water to the house. This change provided a higher level of service but comes at a cost. Then, going from untreated water to treated water is an increase in the level of service and comes at a cost. Moving to modern water systems with treatment, disinfection, pumping, piping, fire hydrants, and storage tanks that provide safe, reliable, quality service\u00a0greatly increased\u00a0the level of service provided as well as the cost. When considering an individual goal within the utility, the tie between level of service and cost may not be quite as direct. In some cases, goals can be created so that the cost stays the same or even potentially decreases if the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-1546","page","type-page","status-publish","hentry"],"yoast_head":"\nLevel of Service \/ How Level of Service Goals Impact System Costs - Integrated Asset Management Framework<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/swefc.unm.edu\/iamf\/level-of-service-how-level-of-service-goals-impact-system-costs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Level of Service \/ How Level of Service Goals Impact System Costs - Integrated Asset Management Framework\" \/>\n<meta property=\"og:description\" content=\"How Level of Service Goals Impact System Costs   Level of Service goals are critical for budgeting, planning, operations, management, and\u00a0allocating\u00a0resources. There is a direct link between the level of service provided and the resources needed to provide that level of service. There is also a link between the level of service and the cost\u00a0to\u00a0the customer. In broad terms, an overall higher level of service results in a higher cost.\u00a0\u00a0 Consider the change from hauling water from a creek or a well to a household to having untreated piped water to the house. This change provided a higher level of service but comes at a cost. Then, going from untreated water to treated water is an increase in the level of service and comes at a cost. Moving to modern water systems with treatment, disinfection, pumping, piping, fire hydrants, and storage tanks that provide safe, reliable, quality service\u00a0greatly increased\u00a0the level of service provided as well as the cost. When considering an individual goal within the utility, the tie between level of service and cost may not be quite as direct. 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