What is Asset Management?
Asset Management involves developing a plan to manage the infrastructure of a water, wastewater, or stormwater utilities, enabling it to be operated at a desired standard of service. The goal is to maintain system infrastructure at the lowest life-cycle cost, which is the most appropriate cost of rehabilitating, repairing, or replacing an asset.
A successful Asset Management Plan incorporates detailed asset inventories with condition ratings, risk assessments, level of service documentation, operation and maintenance strategies, and capital/financial plans to provide sustainability for the utility and prepare the system for potential growth opportunities.
Steven Rutkowski, Senior Project Engineer
Why Asset Management?
Indiana Code 8-1-2-128 enacted via House Enrolled ACT 1459, requires all water and wastewater utilities to report on their asset management programs every four years.
This is a rolling 4-year cycle, and the schedule is as follows:
- Water Utilities A-L July 2026
- Water Utilities M-Z July 2027
- Wastewater Utilities A-L July 2028
- Wastewater Utilities M-Z July 2029
These reporting requirements include a system map, inventory and evaluation of system assets, a capital plan for maintaining, repairing, and replacing assets, and a detailed financial plan to provide the funding necessary to complete these activities in a timely manner.
How Jones & Henry Can Assist
Jones & Henry understands that limited funds are available for Asset Management Planning. It is important for utilities to understand, however, that Asset Management Plans are now a regulatory requirement.
Jones & Henry can assist in providing an important service in an efficient manner to your community. Our firm has performed numerous life cycle analyses of water and wastewater systems. It is this expertise that Jones & Henry can apply to the current condition of critical system components.
From there, we can run an Asset Management Model using any of the numerous software packages available. But once an Asset Management Model is developed, it is more than just a spreadsheet. It can be an asset inventory that generates work orders for action by field management teams. The work orders will be generated based on the critical nature of the equipment to be properly maintained. The maintenance itself should be entered back into the Asset Management Program. This will update the Asset Management System on a continuous basis.
Asset Management Systems
Asset Management Systems are interactive.
Water can be broken down into distribution and treatment; from there further broken down into pump systems, tanks, treatment equipment, etc. Similarly wastewater systems can be broken down by collection, treatment and disposal; and further broken down into gravity sewers, pump stations, force mains, manholes etc.
From the asset management analysis, Jones & Henry will determine the current state of the utility’s assets and identify critical assets for sustained performance. Jones & Henry will also be able to determine a maintainable level of service (LOS) for the utility. This will include minimum life cycle costs and the best long-term funding strategies.
The Challenges
An Asset Management Plan typically involves multiple components that can be both subjective and time-intensive to develop.
An Asset Management Plan includes evaluating appropriate staffing levels needed to operate and maintain the utility system while meeting regulatory requirements; preparing system maps for
water distribution and sewer collection networks; compiling an inventory and condition assessment of key assets—such as pumps, blowers, and facilities—across water, wastewater, and stormwater systems; and developing an operations, maintenance, and replacement budget, along with a rate structure sufficient to support the plan.
Once completed, an Asset Management Plan serves as a vital tool in helping a utility achieve its goals of efficient and effective operation. To remain relevant and useful, the plan must be reviewed and updated regularly to evaluate its performance and to reflect evolving operational, maintenance, equipment, and infrastructure needs.
Key Benefits of Asset Management Planning
An Asset Management Program can be a great benefit to any community.
High-performing Asset Management Programs reducing overall system risk, increase operational efficiency, reducing long-term capital expenditures, and improving level of service to all customers.
- Prolonging asset life and aiding in rehabilitation, repair and replacement decisions through Efficient and focused operations and maintenance.
- Meeting consumer demands with a focus on system sustainability.
- Setting rates based on sound operational and financial planning.
- Budgeting focused on activities critical to sustained performance.
- Meeting service expectations and regulatory requirements.
- Improving responses to emergencies.
- Improving the security and safety of assets.
Connect With Us Today
Contact us about Asset Management.
Steve Rutkowski, PE
Senior Project Manager
Asset Management Specialist
FortWayne@JHEng.com
269-482-1920
