What is "asset management"?
Simply put, asset management is a way of
managing infrastructure capital assets that minimizes the cost of owning
and operating those assets and maximizes their performance over time.
One of the main drivers behind asset management is the proposed set of changes to
EPA’s NPDES permitting regulations which will require sewer agencies to prepare “capacity, management, operation and maintenance”
(CMOM) plans for their wastewater systems.
These plans will likely include condition assessments of the system’s major assets, as well as long-range asset replacement and refurbishment components. More than likely, these changes will directly affect
(if they haven’t already) your day-to-day operations.
Another major driver is the phased implementation of the
General Accounting Standards Board Statement 34
(GASB 34). This new asset reporting method requires that all public agencies (except federal) report depreciation on all infrastructure assets or alternatively, implement asset management systems and report the actual cost of maintaining the condition of their infrastructure systems. These reporting standards will be effective for public agencies with revenues of less than $10 million beginning in fiscal year 2003-04 (or the period beginning after June 15, 2003). If your revenues are greater than $10 million, your effective date is even sooner.
What are the real benefits to the utility?
Facilities who choose to implement asset management will not only be ahead of the curve when it comes to compliance with CMOM and GASB 34, but they will realize the benefits in their day-to-day management of their facility. Because asset management is a way of looking at increasing system demands and aging infrastructure in an organized fashion, it allows utility managers and local officials to make the best decisions about how, when, and where to expend valuable, and often limited, resources.
What are the true costs of designing and implementing an asset management system?
The actual monetary costs of designing and implementing an asset management system (assuming you do it by yourself) are probably not significant; however, because asset management affects virtually everything about the way you do business, the cost in terms of time, effort, personnel resources, etc., are likely to be significant. The thing to keep in mind is that the payback on that investment
(particularly over the long term) is substantial.
How can I get help for my community?
MCET has developed a training program identified below to help communities implement
management at their wastewater facilities.
The subjects covered in
this Asset Management trainer's course include the establishment of management teams, developing objectives, conducting asset
inventory and condition assessments, developing maintenance and
rehabilitation programs, capital improvement planning and
program administration. Curriculum, complete with
trainers guides, can be downloaded from this site.
This toolkit consists
of three sections: 1) presentation slides and instructor notes
covering asset management principles; 2) presentation slides and
instructor notes for
Total Electronic Asset Management System; and 3) an overview and
introduction section, the
User’s Guide; and resource list. This information is in PowerPoint and PDF
All of the reference materials included and cited in this toolkit
were obtained from reliable public information sources; however, the
Maryland Center for Environmental Training (MCET) makes no
representation, expressed or implied, that this information is
either accurate or necessarily applicable in any given situation.
MCET bears no responsibility to update this work or to make
notification of any changes in information or programs described in
any of the included documents. The contents of this toolkit do not
necessarily reflect the views and policies of MCET or of the U.S.
Environmental Protection Agency (EPA), nor does mention of trade
names or commercial products constitute endorsement or
recommendation for use. Neither MCET, the College of Southern
Maryland, nor EPA, assume any liability resulting from the use of,
or reliance on, any information, guidance, suggestions, conclusions,
or opinions contained in this toolkit.
By clicking the link below you have read, understand,
and agree to the information provided in the Disclaimer.
Download the Asset Management
Guide for Wastewater Utilities
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