[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|tablet” _builder_version=”4.16″ _module_preset=”default” positioning=”none” horizontal_offset_tablet=”” horizontal_offset_phone=”” horizontal_offset_last_edited=”on|tablet” custom_margin=”0px||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”0px|||0px|false|false” custom_padding_tablet=”|||25px|false|false” custom_padding_phone=”” da_disable_devices=”off|off|off” global_colors_info=”{}” custom_padding__hover_enabled=”on|desktop” custom_padding__hover=”0px|||0px|false|false” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.27.5″ _module_preset=”default” width=”100%” max_width=”2560px” custom_padding=”||0px||false|false” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”27px” min_height=”52.8px” custom_padding=”||0px|||” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.5″ _module_preset=”default” width=”100%” max_width=”2560px” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text admin_label=”Text” _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
Water, wastewater, and stormwater systems are customer service businesses. They exist because their customers want them to provide a service: bringing water to\u00a0their homes, taking\u00a0wastewater away from\u00a0their homes,\u00a0and keeping stormwater from flooding their property or\u00a0streets. They expect a\u00a0Level\u00a0of\u00a0Service\u00a0to be provided\u00a0that\u00a0generally includes\u00a0a combination of\u00a0reliability,\u00a0safety,\u00a0quality,\u00a0customer service,\u00a0environmental protection,\u00a0public health protection, and\u00a0affordability.<\/span>\u00a0<\/span><\/p>\n <\/span><\/p>\n To meet these customer expectations,\u00a0a water, stormwater, or wastewater system needs to\u00a0conduct foundational operations and functions\u00a0well.\u00a0These can\u00a0include, but are not limited to:<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” custom_margin=”-49px|||||” custom_padding=”0px|||||” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n To do the basics well, utility staff and other staff need to understand what the required functions are to ensure that they can set goals and measurable metrics. There needs to be enough information to prioritize activities properly and sufficient resources, such as money and people, to cover operations that ensure safe, reliable drinking water is reaching the community and wastewater is effectively being removed from the community, cleaned, and properly returned to the environment.<\/p>\n There is often an\u00a0imbalance\u00a0between the time and\u00a0resources\u00a0it takes to complete all the basic tasks of\u00a0operating\u00a0the system and the funding available, while also\u00a0preparing for\u00a0the\u00a0additional\u00a0personnel and financial\u00a0burdens of extraordinary events. While customers\u00a0might\u00a0expect\u00a0a high\u00a0Level\u00a0of\u00a0Service, they do not always understand the need to pay for it; therefore, rate increases\u00a0and infrastructure investments are often not considered until necessary. Water is\u00a0generally undervalued,\u00a0and in turn, systems\u00a0might\u00a0be underfunded.<\/p>\n System staff must make decisions\u00a0regarding\u00a0the trade-off between funds and activities. Asset management is a strategic approach designed to help people decide how and where to spend their limited resources to achieve the desired results. Such a process is needed when there are competing priorities for limited funding.<\/p>\n Asset management is a business process designed to use data of all types to make better, more informed, and cost-efficient decisions about what to do and how to do it. In simple terms, it\u00a0provides a means of\u00a0determining\u00a0the best way to spend your limited dollars to achieve the maximum impact<\/strong>. Asset management can relate to any situation and any type of infrastructure, but in this framework, we will focus on asset management as it applies to water, stormwater, and wastewater infrastructure. The process involves\u00a0Five\u00a0Core\u00a0Components:<\/span><\/strong><\/p>\n <\/span><\/strong><\/p>\n [\/et_pb_text][et_pb_accordion _builder_version=”4.27.5″ _module_preset=”default” body_font_size=”16px” border_radii=”on|19px|19px|19px|19px” global_colors_info=”{}” theme_builder_area=”post_content” custom_margin=”-55px|||||”][et_pb_accordion_item title=”Level of Service \u2013 What do you want your assets to do? ” open=”on” open_toggle_text_color=”#000000″ open_toggle_background_color=”rgba(249,198,60,0.51)” closed_toggle_background_color=”rgba(249,205,84,0.94)” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” toggle_text_color=”#000000″ toggle_level=”h4″ toggle_font=”|600|||||||” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”Current State of the Assets \u2013 What assets do you have, where are they, and what is their condition? ” open_toggle_text_color=”#000000″ open_toggle_background_color=”rgba(27,128,193,0.5)” closed_toggle_background_color=”rgba(27,128,193,0.79)” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” toggle_text_color=”#000000″ toggle_level=”h4″ toggle_font=”|600|||||||” theme_builder_area=”post_content” open=”off”]<\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”Criticality \u2013 Which assets are critical to the system and the community? ” open_toggle_text_color=”#000000″ open_toggle_background_color=”rgba(249,73,95,0.51)” closed_toggle_background_color=”#f96375″ _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” toggle_text_color=”#000000″ toggle_level=”h4″ toggle_font=”|600|||||||” theme_builder_area=”post_content” open=”off”]<\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”Life Cycle Costing \u2013 How are you going to operate and maintain, repair, replace, and rehabilitate your assets over the long term to manage them most cost-effectively? ” open_toggle_text_color=”#000000″ open_toggle_background_color=”rgba(105,76,146,0.5)” closed_toggle_background_color=”rgba(105,76,146,0.8)” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” toggle_text_color=”#000000″ toggle_level=”h4″ toggle_font=”|600|||||||” theme_builder_area=”post_content” open=”off”]<\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”Long-Term Funding \u2013 How will you pay for the operation over the long term? ” open_toggle_text_color=”#000000″ open_toggle_background_color=”rgba(136,197,41,0.5)” closed_toggle_background_color=”rgba(136,197,41,0.93)” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” toggle_text_color=”#000000″ toggle_level=”h4″ toggle_font=”|600|||||||” theme_builder_area=”post_content” open=”off”]<\/p>\n [\/et_pb_accordion_item][\/et_pb_accordion][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.5″ _module_preset=”default” width=”100%” max_width=”2560px” global_colors_info=”{}” theme_builder_area=”post_content” min_height=”1070.6px”][et_pb_column type=”4_4″ _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”post_content” min_height=”50.6px”]<\/p>\n It is unlikely that a system can<\/span>\u00a0<\/span>achieve everything\u00a0<\/span><\/span>it\u00a0<\/span><\/span>want<\/span>s<\/span>\u00a0<\/span>to do\u00a0<\/span><\/span>when working\u00a0<\/span><\/span>with a severely reduced budget, but asset management techniques<\/span>\u00a0<\/span>allow systems<\/span>\u00a0<\/span>to achieve the maximum result within available funding.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Every\u00a0system has enough information to begin the asset management process. There is no community too small or too lacking in\u00a0initial\u00a0data. The more data\u00a0collected\u00a0and\u00a0the more\u00a0robust the program, the more the community can benefit, but even a little bit\u00a0of asset management action\u00a0results in benefits.\u00a0<\/span>\u00a0<\/span><\/p>\n It is important to keep in mind\u00a0that\u00a0asset management is not a linear process. It is a continuous process with no beginning or end. The core components overlap, intersect, and rely on each other.\u202fSystem staff can start with whichever core\u00a0component\u00a0they feel most comfortable with,\u00a0or whichever core\u00a0component\u00a0is the most vital to their system at that time.\u00a0<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/swefc.unm.edu\/iamf\/wp-content\/uploads\/2026\/02\/Asset-Management-Wheel.png” title_text=”Asset Management Wheel” _builder_version=”4.27.5″ _module_preset=”default” max_width=”64%” module_alignment=”center” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.5″ _module_preset=”default” width=”100%” max_width=”2560px” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Asset Management planning<\/span>\u00a0<\/span>is not synonymous with a computer program.\u00a0<\/span><\/span>Free or paid c<\/span>omputer applications and programs can be extremely helpful with data collection, management, and analysis, but they are no substitute for the thinking that goes into making better decisions with the asset management process. The best of both worlds is the combination of the thought process with robust technology that holds the data necessary to make good decisions.<\/span><\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_testimonial _builder_version=”4.27.5″ _module_preset=”default” body_font_size=”16px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Your knowledge and skills are the most valuable to asset management planning.<\/span><\/span><\/p>\n\n
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Level of Service\u00a0defines what a system wants\u00a0its\u00a0assets to provide\u202frelative to their\u00a0capabilities and limitations and how\u202fa system\u202fwill\u00a0operate\u00a0and maintain the assets to meet customer expectations.\u00a0<\/span>\u00a0<\/span><\/h5>\n
Systems can understand the service level their customers want by asking them. It is typically a finite set of things. That list usually includes a combination of reliability, quality, safety, professionalism,\u00a0and\u00a0customer service. When a system understands what\u00a0its\u00a0customers want\u00a0and\u00a0compares those requests with the\u00a0system\u2019s\u00a0capacities,\u00a0it\u00a0can set goals around these needs to ensure\u00a0it\u00a0provides\u00a0customers\u00a0with\u00a0the desired\u00a0Level\u00a0of\u00a0Service.\u00a0Goals are a way to prioritize needs, communicate with stakeholders about progress,\u00a0demonstrate\u00a0an\u00a0ongoing commitment to the community vision, encourage accountability, and suggest course corrections that can help ensure continued progress toward the system\u2019s overall mission.<\/span>\u00a0<\/span><\/h5>\n
Defining the\u00a0<\/span><\/span>Current State<\/span>\u00a0<\/span>of the\u00a0<\/span><\/span>Assets<\/span>\u00a0<\/span>is the foundational element upon which all other asset management activities are built. For a system to meet\u00a0<\/span><\/span>its\u00a0<\/span><\/span>Level<\/span>\u00a0<\/span>of\u00a0<\/span><\/span>Service<\/span>\u00a0<\/span>goals,\u00a0<\/span><\/span>staff<\/span>\u00a0<\/span>need to know about the assets that make up their system. If staff do not understand what assets they have, where they are, what\u00a0<\/span><\/span>condition<\/span>\u00a0<\/span><\/span>they are<\/span>\u00a0<\/span>in, how long they will last, and what it costs to replace them, it becomes\u00a0<\/span><\/span>difficult<\/span>\u00a0<\/span>to reliably provide service and meet the\u00a0<\/span><\/span>Level<\/span>\u00a0<\/span>of\u00a0<\/span><\/span>Service<\/span>\u00a0<\/span>their customers want.\u00a0<\/span><\/span>Asset attributes will need to be stored in an asset inventory that is easily accessible<\/span>\u00a0<\/span>and updated<\/span>.<\/span>\u00a0<\/span>The attributes can be many different things, including name, asset ID, location, condition, useful life remaining, replacement cost, material, size, manufacturer, serial number, etc. This\u00a0<\/span><\/span>component<\/span>\u00a0<\/span>of asset management\u00a0<\/span><\/span>provides the foundation for\u00a0<\/span><\/span>operating<\/span>\u00a0<\/span>a utility; therefore,<\/span>\u00a0<\/span><\/span>the inventory\u00a0<\/span><\/span>must\u00a0<\/span><\/span>contain<\/span>\u00a0<\/span>enough information to support operational analysis and data-informed decision-making.<\/span><\/span>\u00a0<\/span><\/h5>\n
Criticality\u202fis the measure of\u202frisk\u202fassociated with an asset.\u202f<\/span>Staff\u00a0<\/span><\/span>can<\/span>\u00a0<\/span>prioritize p<\/span>rojects\u202fand activities based on\u202f<\/span>Criticality<\/span>\u00a0<\/span>metrics<\/span>\u202f<\/span>to use limited financial and personnel resources efficiently.\u202fTo\u00a0<\/span><\/span>determine<\/span>\u00a0<\/span>where\u202fto\u00a0<\/span><\/span>allocate<\/span>\u00a0<\/span>resources, system staff\u202fmust\u202f<\/span>determine<\/span>\u202fthe likelihood a given asset will fail and the potential consequences if it does.\u00a0<\/span><\/span>Knowing the community\u2019s expectations that inform your Level of Service goals is helpful for\u00a0<\/span><\/span>identifying<\/span>\u00a0<\/span>important assets<\/span>\u00a0<\/span>and the consequences of their failure<\/span>; however, it is not essential to\u00a0<\/span><\/span>understanding<\/span>\u00a0<\/span>the risks and consequences of asset failure.\u00a0<\/span><\/span>Understanding the\u00a0<\/span><\/span>Criticality<\/span>\u00a0<\/span>of assets will help a system assess its overall risk and prioritize activities based on that risk.<\/span>\u00a0<\/span><\/span>\u00a0<\/span><\/h5>\n
Life Cycle Costing<\/span>\u00a0<\/span>is the process of compiling all costs an asset will incur over its lifespan<\/span>,<\/span>\u00a0<\/span>from the earliest phases of planning, through design and construction, operation, maintenance, repair, rehabilitation, and eventual replacement. At each stage of the asset\u2019s life, there are potential interventions that can be done.\u00a0<\/span><\/span>System staff need<\/span>\u00a0<\/span>to\u00a0<\/span><\/span>identify<\/span>\u00a0<\/span>and understand the\u00a0<\/span><\/span>many ways<\/span>\u00a0<\/span>they can intervene in each stage of the asset\u2019s life. The goal is to undertake the most cost-efficient interventions during each phase.\u00a0<\/span><\/span>Life Cycle Costing<\/span>\u00a0<\/span>is\u202fan important concept in asset management because it allows the\u202fsystem to\u202f<\/span>emphasize<\/span>\u00a0<\/span>long-range planning to\u00a0<\/span><\/span>optimize<\/span>\u00a0<\/span>the limited funds available<\/span>\u00a0<\/span>and reduce loss of service<\/span>.\u202fAn organization that does not pay attention to\u00a0<\/span><\/span>Life Cycle Costing<\/span>\u00a0<\/span>can only\u00a0<\/span><\/span>optimize<\/span>\u00a0<\/span>the immediate purchase cost and\u00a0<\/span><\/span>cannot<\/span>\u00a0<\/span>fully understand the potential for increased service costs of the asset later in its useful life.<\/span><\/span>\u00a0<\/span><\/h5>\n
To\u00a0maintain\u00a0the desired\u00a0Level\u00a0of\u00a0Service\u00a0for the lowest\u00a0Life\u00a0Cycle\u00a0Cost, a system must have a sustainable funding strategy. Everything costs money,\u00a0and even the most cost-efficient system\u00a0must\u00a0have a sustainable source of funding for the long term.\u00a0There are financial needs for day-to-day operations as well as repair and replacement.\u00a0Incremental investment\u00a0in\u00a0gray or\u00a0green infrastructure\u00a0is also necessary to\u00a0ensure its reliability and sustainability. The goal of asset management is to ensure the funding is spent as efficiently as possible.\u202f<\/span>\u00a0<\/span><\/h5>\n
Funding sources include both customer user charges and potentially outside public (local, state, or federal) or private (foundations, businesses) funds.\u00a0Systems\u00a0often\u202fneed to be creative when looking at various funding options. Sharing the system\u2019s goals\u202fand understanding the risk of not moving forward\u202fwith capital projects can help clearly communicate to\u00a0stakeholders\u202fthe purpose and need for funding.<\/span>\u00a0<\/span><\/h5>\n
Getting Started\u00a0<\/span><\/b>\u00a0<\/span><\/h4>\n