With growing concerns over aging infrastructure, limiting
budget, increasing regulatory requirements, and aging workforce,
the Albuquerque Bernalillo County Water Utility Authority
(Authority) decided to enhance its asset management practices. The
key achievement of the Authority’s asset management improvement
efforts was the development of the asset management plan.
An asset management plan is a long-range strategic
planning document used to provide a rational framework for
understanding and documenting the assets owned and managed, service
levels committed, risks exposed, and financial investments
required. The Authority’s asset management plan was developed to
address the five fundamental questions of asset management:
1. What is the current state of my
assets?
2. What is my required level of
service?
3. Which assets are critical to
sustained performance?
4. What are my best O&M and CIP
investment strategies?
5. What is my best long-term
funding strategy?
The asset management plan not only helped
consolidate and capture the Authority’s asset management work to
date, but also utilized the much improved asset data to gain an
understanding of their future capital needs. The asset management
plan included a long-range, 100-year, asset replacement and
refurbishment need projection and, through multiple funding
scenarios, bolstered by 10-year tactical plans, the Authority was
able to initiate the development of a sustainable financial plan.
The financial plan presented a justifiable case to the governing
board for increased capital funds over the next decade.
With their first asset management plan, the
Authority was able to paint a realistic picture of the current
state of their assets, identify anticipated changes in demand,
develop a comprehensive risk profile, and understand the future
financial needs to provide the committed levels of service. With
the asset management plan, the Authority was able to further their
proactive management practices.