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The\u00a0<\/span><\/span>t<\/span>riple\u00a0<\/span><\/span>b<\/span>ottom\u00a0<\/span><\/span>l<\/span>ine\u00a0<\/span><\/span>a<\/span>nalysis is defined by the AWWA Asset Management Definitions Guidebook as \u201c<\/span>a<\/span>\u00a0<\/span>method of assigning financial values to financial, social, and environmental factors that do not have an assigned\u00a0<\/span><\/span>m<\/span>arket\u00a0<\/span><\/span>v<\/span>alue, such as service interruptions to customers, noise, pollution, traffic delays, community aesthetics, consumer confidence, and public health and safety\u00a0<\/span><\/span>r<\/span>isks.\u201d\u00a0<\/span><\/span>Use a\u00a0<\/span><\/span>triple bottom line analysis when evaluating the costs for each phase of the\u00a0<\/span><\/span>asset\u2019s<\/span>\u00a0<\/span>life cycle. The table below presents each life cycle phase and the financial, environmental, and social factors\u00a0<\/span><\/span>to consider<\/span>\u00a0<\/span>when completing a triple bottom line analysis.<\/span><\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][dvmd_table_maker tbl_row_header_count=”0″ tbl_chead_cell_color=”#2ea3f2″ _builder_version=”4.16″ _module_preset=”default” tbl_chead_text_font=”|700|||||||” background_color=”#000000″ border_width_all=”2px” border_color_all=”RGBA(0,0,0,0)” locked=”off” global_colors_info=”{}” border_width_all__hover_enabled=”on|hover” border_width_all__hover=”2px” theme_builder_area=”post_content”][dvmd_table_maker_item col_label=”Life Cycle Phase” col_content=”Life Cycle Phase<\/strong> <\/span><\/p>\n Different assets might have different impacts on the system\u2019s financial bottom line because they might not follow the same accounting rules. Some assets depreciate, while others appreciate or\u00a0maintain\u00a0their value. As discussed previously in this section, gray assets are more likely to depreciate upon installation, while green assets are more likely to appreciate or\u00a0maintain\u00a0value over time. These two investments have different impacts on the system\u2019s finances. The timeline for cost recovery is not the same if an asset is\u00a0purchased\u00a0through capital versus operational funds. The purchase budget might also\u00a0impact\u00a0the rates charged by the system if it charges rates. Systems should be aware of these variances when planning projects and budgets.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Triple Bottom Line The\u00a0triple\u00a0bottom\u00a0line\u00a0analysis is defined by the AWWA Asset Management Definitions Guidebook as \u201ca\u00a0method of assigning financial values to financial, social, and environmental factors that do not have an assigned\u00a0market\u00a0value, such as service interruptions to customers, noise, pollution, traffic delays, community aesthetics, consumer confidence, and public health and safety\u00a0risks.\u201d\u00a0Use a\u00a0triple bottom line analysis when evaluating the costs for each phase of the\u00a0asset\u2019s\u00a0life cycle. The table below presents each life cycle phase and the financial, environmental, and social factors\u00a0to consider\u00a0when completing a triple bottom line analysis.\u00a0Table 1 – Factors to consider when completing a Triple Bottom Line analysisTable 1 – Factors to consider when completing a Triple Bottom Line analysis<\/h3>\n
\nPlanning<\/strong>
\nDesign<\/strong>
\nConstruction<\/strong>
\nO&M<\/strong>
\nRepair<\/strong>
\nRehabilitation<\/strong>
\nReplacement<\/strong>
\nDisposal<\/strong>” col_chead_cell_color=”#2ea3f2 ” _builder_version=”4.16″ _module_preset=”default” border_color_all_col_tcell_cell_border=”#000000″ global_colors_info=”{}” theme_builder_area=”post_content”][\/dvmd_table_maker_item][dvmd_table_maker_item col_label=”Financial” col_content=”Financial<\/strong>
\nPersonnel time
\nPersonnel time
\nCapital Budget
\nAnnual Budget
\nParts and labor (annual budget), unbudgeted expenses, legal fees, loss of revenue
\nParts and labor, capital project planning
\nParts and labor, capital project planning
\nFees, labor, capital project planning” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/dvmd_table_maker_item][dvmd_table_maker_item col_label=”Environmental” col_content=”Environmental<\/strong>
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Costs and the Triple Bottom Line<\/span><\/b>\u00a0<\/span><\/h4>\n