{"id":6905,"date":"2021-03-11T16:03:08","date_gmt":"2021-03-11T16:03:08","guid":{"rendered":"https:\/\/swefc.unm.edu\/iamf\/?page_id=6905"},"modified":"2026-05-01T20:13:46","modified_gmt":"2026-05-01T20:13:46","slug":"life-cycle-costing-long-term-replacement-plans-cip-timeframe","status":"publish","type":"page","link":"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\/","title":{"rendered":"Life Cycle Costing \/ Long Term Replacement Plans \/ CIP Timeframe"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|tablet&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; positioning=&#8221;none&#8221; horizontal_offset_tablet=&#8221;&#8221; horizontal_offset_phone=&#8221;&#8221; horizontal_offset_last_edited=&#8221;on|tablet&#8221; custom_margin=&#8221;0px||||false|false&#8221; custom_margin_tablet=&#8221;&#8221; custom_margin_phone=&#8221;&#8221; custom_margin_last_edited=&#8221;on|desktop&#8221; custom_padding=&#8221;0px|||0px|false|false&#8221; custom_padding_tablet=&#8221;|||25px|false|false&#8221; custom_padding_phone=&#8221;&#8221; da_disable_devices=&#8221;off|off|off&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover_enabled=&#8221;on|desktop&#8221; theme_builder_area=&#8221;post_content&#8221; da_is_popup=&#8221;off&#8221; da_exit_intent=&#8221;off&#8221; da_has_close=&#8221;on&#8221; da_alt_close=&#8221;off&#8221; da_dark_close=&#8221;off&#8221; da_not_modal=&#8221;on&#8221; da_is_singular=&#8221;off&#8221; da_with_loader=&#8221;off&#8221; da_has_shadow=&#8221;on&#8221; custom_padding__hover=&#8221;0px|||0px|false|false&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; width=&#8221;100%&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; text_font_size=&#8221;16px&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<h2>Capital Improvement Plan Timeframe<\/h2>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"none\">The Capital Improvement Plan (CIP) should cover as\u00a0long of a time frame\u00a0as possible with the data available. The\u00a0time frame\u00a0should be increased as data improves until\u00a0both\u00a0short- and long-range\u00a0plans\u00a0are developed.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><strong>Short-range plans\u00a0<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span data-contrast=\"none\">Shorter-range\u00a0plans will cover 5 to 10 years in a more specific and detailed manner and can include up to 20 years with the latter 10 years being less detailed.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Smaller, less\u00a0invasive plans support long-term plans and goals<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Shorter plans provide opportunities for lower cost investments to build trust with the community to address more immediate needs<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Long-range plans\u00a0<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span data-contrast=\"none\">A long-range plan allows consideration of the replacement of the longest-lived assets. For some assets\u00a0useful\u00a0life can be 100 years or more.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">The long-range (20+ years) plans will be generalized but can provide\u00a0good information\u00a0to the system about the\u00a0magnitude\u00a0and timing of major capital investments.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Long term\u00a0planning\u00a0avoids the temptation to put off shorter term investments because that delay will cause even larger capital investments later as the assets scheduled for replacement in those years are added to the capital needs that were deferred.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span data-contrast=\"none\">Once a long-term look at capital investments is completed, it is possible to examine the needed expenditures and\u00a0determine\u00a0the average annual investment\u00a0required\u00a0to meet the long-term needs. It is unlikely that the system will invest exactly that amount of money every year because some years will require more asset replacement than others, but on average, this quantity should be invested to prevent significant replacement backlog.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The CIP should define the amount of money needed for capital replacements and should be the basis for the capital budget. The capital budget should present all the needs to the decision makers so that they can understand the costs and benefits of the various projects and the risks associated with budget cuts. When the budget does not support replacing all the assets\u00a0in a given year, the\u00a0<\/span><span data-contrast=\"auto\">asset risk<\/span><span data-contrast=\"none\">\u00a0should be used to help prioritize projects.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">For those projects with a high dollar amount,\u00a0<\/span><span data-contrast=\"auto\">business case evaluation<\/span><span data-contrast=\"none\">\u00a0should also be completed to justify the need for the project and fully consider all alternatives for the project. The definition of high dollar is\u00a0system specific. A smaller utility\u00a0might\u00a0see a high dollar project as one costing a few hundred thousand dollars, a medium system a few million, and a\u00a0large system tens\u00a0of millions. The exact amount is not important; what is\u00a0important\u00a0is to carefully consider these projects to ensure the most\u00a0cost-effective\u00a0solution has been selected.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=&#8221;1_2,1_2&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; width=&#8221;100%&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<p>Prioritizing <span class='et-tooltip'>CIP<span class='et-tooltip-box'>Capital Improvement Plan<span class='et-tooltip-arrow'><\/span><\/span><\/span> dollars based on criticality &#8211; Stan Allred, Chief Financial Officer, Albuquerque Bernalillo County Water Utility Authority, Albuquerque, NM<\/p>\n<p>[\/et_pb_text][et_pb_video src=&#8221;https:\/\/youtu.be\/QPnCWFzxz8A&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; border_radii=&#8221;on|25px|25px|25px|25px&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][\/et_pb_video][\/et_pb_column][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<p>Using data to drive <span class='et-tooltip'>CIP<span class='et-tooltip-box'>Capital Improvement Plan<span class='et-tooltip-arrow'><\/span><\/span><\/span> budgets &#8211; Derek Sherry, President and General Manager, Timber Creek Sewer Company, Platte City, MO<\/p>\n<p>[\/et_pb_text][et_pb_video src=&#8221;https:\/\/youtu.be\/GZPUazGdqlo&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; border_radii=&#8221;on|25px|25px|25px|25px&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][\/et_pb_video][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capital Improvement Plan Timeframe &nbsp; The Capital Improvement Plan (CIP) should cover as\u00a0long of a time frame\u00a0as possible with the data available. The\u00a0time frame\u00a0should be increased as data improves until\u00a0both\u00a0short- and long-range\u00a0plans\u00a0are developed.\u00a0\u00a0 Short-range plans\u00a0 Shorter-range\u00a0plans will cover 5 to 10 years in a more specific and detailed manner and can include up to 20 years with the latter 10 years being less detailed.\u00a0\u00a0 Smaller, less\u00a0invasive plans support long-term plans and goals\u00a0 Shorter plans provide opportunities for lower cost investments to build trust with the community to address more immediate needs\u00a0 Long-range plans\u00a0 A long-range plan allows consideration of the replacement of the longest-lived assets. For some assets\u00a0useful\u00a0life can be 100 years or more.\u00a0 The long-range (20+ years) plans will be generalized but can provide\u00a0good information\u00a0to the system about the\u00a0magnitude\u00a0and timing of major capital investments.\u00a0\u00a0 Long term\u00a0planning\u00a0avoids the temptation to put off shorter term investments because that delay will cause even larger capital investments later as the assets scheduled for replacement in those years are added to the capital needs that were deferred.\u00a0\u00a0 Once a long-term look at capital investments is completed, it is possible to examine the needed expenditures and\u00a0determine\u00a0the average annual investment\u00a0required\u00a0to meet the long-term needs. It is [&hellip;]<\/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":"<!-- wp:divi\/placeholder \/-->","_et_gb_content_width":"","footnotes":""},"class_list":["post-6905","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Life Cycle Costing \/ Long Term Replacement Plans \/ CIP Timeframe - 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\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Life Cycle Costing \/ Long Term Replacement Plans \/ CIP Timeframe - Integrated Asset Management Framework\" \/>\n<meta property=\"og:description\" content=\"Capital Improvement Plan Timeframe &nbsp; The Capital Improvement Plan (CIP) should cover as\u00a0long of a time frame\u00a0as possible with the data available. The\u00a0time frame\u00a0should be increased as data improves until\u00a0both\u00a0short- and long-range\u00a0plans\u00a0are developed.\u00a0\u00a0 Short-range plans\u00a0 Shorter-range\u00a0plans will cover 5 to 10 years in a more specific and detailed manner and can include up to 20 years with the latter 10 years being less detailed.\u00a0\u00a0 Smaller, less\u00a0invasive plans support long-term plans and goals\u00a0 Shorter plans provide opportunities for lower cost investments to build trust with the community to address more immediate needs\u00a0 Long-range plans\u00a0 A long-range plan allows consideration of the replacement of the longest-lived assets. For some assets\u00a0useful\u00a0life can be 100 years or more.\u00a0 The long-range (20+ years) plans will be generalized but can provide\u00a0good information\u00a0to the system about the\u00a0magnitude\u00a0and timing of major capital investments.\u00a0\u00a0 Long term\u00a0planning\u00a0avoids the temptation to put off shorter term investments because that delay will cause even larger capital investments later as the assets scheduled for replacement in those years are added to the capital needs that were deferred.\u00a0\u00a0 Once a long-term look at capital investments is completed, it is possible to examine the needed expenditures and\u00a0determine\u00a0the average annual investment\u00a0required\u00a0to meet the long-term needs. It is [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\/\" \/>\n<meta property=\"og:site_name\" content=\"Integrated Asset Management Framework\" \/>\n<meta property=\"article:modified_time\" content=\"2026-05-01T20:13:46+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\\\/\",\"url\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\\\/\",\"name\":\"Life Cycle Costing \\\/ Long Term Replacement Plans \\\/ CIP Timeframe - Integrated Asset Management Framework\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/#website\"},\"datePublished\":\"2021-03-11T16:03:08+00:00\",\"dateModified\":\"2026-05-01T20:13:46+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Life Cycle Costing \\\/ Long Term Replacement Plans \\\/ CIP Timeframe\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/#website\",\"url\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/\",\"name\":\"Integrated Asset Management Framework\",\"description\":\"Combining Green and Gray Assets\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Life Cycle Costing \/ Long Term Replacement Plans \/ CIP Timeframe - Integrated Asset Management Framework","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\/","og_locale":"en_US","og_type":"article","og_title":"Life Cycle Costing \/ Long Term Replacement Plans \/ CIP Timeframe - Integrated Asset Management Framework","og_description":"Capital Improvement Plan Timeframe &nbsp; The Capital Improvement Plan (CIP) should cover as\u00a0long of a time frame\u00a0as possible with the data available. The\u00a0time frame\u00a0should be increased as data improves until\u00a0both\u00a0short- and long-range\u00a0plans\u00a0are developed.\u00a0\u00a0 Short-range plans\u00a0 Shorter-range\u00a0plans will cover 5 to 10 years in a more specific and detailed manner and can include up to 20 years with the latter 10 years being less detailed.\u00a0\u00a0 Smaller, less\u00a0invasive plans support long-term plans and goals\u00a0 Shorter plans provide opportunities for lower cost investments to build trust with the community to address more immediate needs\u00a0 Long-range plans\u00a0 A long-range plan allows consideration of the replacement of the longest-lived assets. For some assets\u00a0useful\u00a0life can be 100 years or more.\u00a0 The long-range (20+ years) plans will be generalized but can provide\u00a0good information\u00a0to the system about the\u00a0magnitude\u00a0and timing of major capital investments.\u00a0\u00a0 Long term\u00a0planning\u00a0avoids the temptation to put off shorter term investments because that delay will cause even larger capital investments later as the assets scheduled for replacement in those years are added to the capital needs that were deferred.\u00a0\u00a0 Once a long-term look at capital investments is completed, it is possible to examine the needed expenditures and\u00a0determine\u00a0the average annual investment\u00a0required\u00a0to meet the long-term needs. It is [&hellip;]","og_url":"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\/","og_site_name":"Integrated Asset Management Framework","article_modified_time":"2026-05-01T20:13:46+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\/","url":"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\/","name":"Life Cycle Costing \/ Long Term Replacement Plans \/ CIP Timeframe - Integrated Asset Management Framework","isPartOf":{"@id":"https:\/\/swefc.unm.edu\/iamf\/#website"},"datePublished":"2021-03-11T16:03:08+00:00","dateModified":"2026-05-01T20:13:46+00:00","breadcrumb":{"@id":"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-cip-timeframe\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/swefc.unm.edu\/iamf\/"},{"@type":"ListItem","position":2,"name":"Life Cycle Costing \/ Long Term Replacement Plans \/ CIP Timeframe"}]},{"@type":"WebSite","@id":"https:\/\/swefc.unm.edu\/iamf\/#website","url":"https:\/\/swefc.unm.edu\/iamf\/","name":"Integrated Asset Management Framework","description":"Combining Green and Gray Assets","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/swefc.unm.edu\/iamf\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/swefc.unm.edu\/iamf\/wp-json\/wp\/v2\/pages\/6905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swefc.unm.edu\/iamf\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/swefc.unm.edu\/iamf\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/swefc.unm.edu\/iamf\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/swefc.unm.edu\/iamf\/wp-json\/wp\/v2\/comments?post=6905"}],"version-history":[{"count":11,"href":"https:\/\/swefc.unm.edu\/iamf\/wp-json\/wp\/v2\/pages\/6905\/revisions"}],"predecessor-version":[{"id":26202,"href":"https:\/\/swefc.unm.edu\/iamf\/wp-json\/wp\/v2\/pages\/6905\/revisions\/26202"}],"wp:attachment":[{"href":"https:\/\/swefc.unm.edu\/iamf\/wp-json\/wp\/v2\/media?parent=6905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}