Infrastructure Asset Management - Sustainable Water Infrastructure

Infrastructure Asset ManagementManagement

Sunil K. Sinha, PhD,Associate Professor and Program Area CoordinatorVia Department of Civil & Environmental Engineering

Email: [email protected]: 540-231-9420

Infrastructure Asset Management

Phone: 540 231 9420

Infrastructure Asset Management g

DEFINITIONS

TECHNIQUES

BEST PRACTICES

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DEFINITIONSDEFINITIONS

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Civil Infrastructure

• Categories of Infrastructure1. Transportation System (Highways, Bridges, etc.)2. Municipal System (Water, Sewer, etc.)3. Building System (Residential, Industrial, etc.)g y ( , , )4. Sport/Recreational System (Stadium, Theme Park, etc.) 5. Hydro-System (Dam, Canal, etc.)6 Energy System (Nuclear Plant Renewal Energy etc )6. Energy System (Nuclear Plant, Renewal Energy, etc.)7. Communication System (Wireless, Cyber, etc.)

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Why Infrastructure Asset Management?

Infrastructure Asset Management

Asset Management Frameworkg

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Definition of Asset ManagementDefinition of Asset Management

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FHWA Asset Management DefinitionFHWA Asset Management Definition

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Definition from USEPADefinition from USEPA

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Other DefinitionsOther Definitions

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Other DefinitionsOther Definitions

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What does that mean?What does that mean?

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Guiding PrinciplesGuiding Principles

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Civil Infrastructure SystemsCivil Infrastructure Systems

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What is Infrastructure?What is Infrastructure?

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What is Infrastructure?What is Infrastructure?

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Milestones in U.S. HistoryMilestones in U.S. History

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Service LifeService Life

• Physical service life is the length of Physical service life is the length of time which a piece of infrastructure is able to be kept in useful service– Depends on all life cycle phases– Can be extended from original design due to

rehabilitation or preventive maintenance

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Expected Service Life EstimatesExpected Service Life Estimates

• Airport Buildings: 150yrs• Airport Buildings: 150yrs• Runways: 50yrs

B id D k 50• Bridge Decks: 50yrs• Bridge Sub/Superstructure: 125yrs

T l 200• Tunnels: 200yrs• Sports Complexes: 300yrs• Electricity/telephone lines: 400yrs

Source: Hudson, Haas, Uddin

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Governmental AccountingGovernmental Accounting

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What is GASB-34What is GASB 34

• GASB stands for Governmental Accounting Standards Board

• The number refers to Statement 34, issued in June 1999,

• GASB-34 is a new reporting standard for utilities that treat infrastructure as investments instead of expensestreat infrastructure as investments instead of expenses

• GASB-34 is important because it recognizes that infrastructure’s service life is usually extended infrastructure’s service life is usually extended indefinitely and encourages the adoption of an Infrastructure Asset Management Plan

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GASB-34

What is Infrastructure Management?g

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Overall FrameworkOverall Framework

Program/Network/System Level

Project Level DatabaseProject Level

In-Service Monitoring &

Evaluation

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Program/System Levelg y

D t (l ti • Data (location, performance, evaluation)Financing evaluation)

• Deficiencies/Needs (current future)

Budgets(current, future)

• Alternatives & Analyses

PoliciesAnalyses

• Priorities

Exogenous Factors

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Project/Section LevelProject/Section Level

D t ( t i l • Data (materials, loads, flows, costs, etc )

Standards/Specifications

etc.)• Detailed Design• Construction

Budget Limit• Construction• MaintenanceEnvironmental

ConstraintsConstraints

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Ideal SystemIdeal System

• Would coordinate and enable the • Would coordinate and enable the execution of all activities

• Maximizes use and expenditure of • Maximizes use and expenditure of resources

• Maximize performance of assetsMaximize performance of assets• Serve all management levels

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Key IssuesKey Issues

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ASCE Report CardASCE Report Card

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State of WaterState of Water

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Overview of InfrastructuresOverview of Infrastructures

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Infrastructures InterdependenciesInfrastructures Interdependencies

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Infrastructure InterdependenciesInfrastructure Interdependencies

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Critical InfrastructuresCritical Infrastructures

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Critical InfrastructuresCritical Infrastructures

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Infrastructure interdependencies are intuitive but not well understoodintuitive but not well understood

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Water – Energy InterdependencyWater Energy Interdependency

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TECHNIQUES

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Advanced Asset Managementg

Advanced Asset ManagementAdvanced Asset Management

Inspection / Data CollectionInspection / Data Collection

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Asset DataAsset Data

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Why do we Need Data?Why do we Need Data?

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Data NeedsData Needs

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Data is for Decisions…Data is for Decisions…

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Data is for Decisions…Data is for Decisions…

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What data do we need?

• InventoryL ti• Location

• Facility type• AgeAge• Size• Value

• Performance• Condition• Congestion• Reliability• Use• Safety

What data do we need?What data do we need?

• Cost• Cost– User– New construction– New construction– Maintenance– Asset valueAsset value

• Original cost• Replacement costp

– Lifecycle

Data IssuesData Issues

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Inventory DataInventory Data

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Performance DataPerformance Data

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Data SummaryData Summary

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Condition AssessmentCondition Assessment

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Asset PerformanceAsset Performance

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Level of ServiceLevel of Service

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Deterioration ModelDeterioration Model

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Prediction ModelingPrediction Modeling

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Life Cycle Cost AnalysisLife Cycle Cost Analysis

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Consequences & Risk Modeling

• Risk is defined as the product of the probability of

Consequences & Risk Modeling

disruption (intended or not) by the consequence of that disruption:

• R = Pd*C

• Risk defined this way represents a mathematical Risk defined this way represents a mathematical expected value: Likelihood of failure times Consequence size

• Consequence refers to the importance of the effects caused by the disruption Negligible Catastrophic

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Consequences & Risk ModelingConsequences & Risk Modeling

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Risk Management ProcessRisk Management Process

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Risk & ConsequenceRisk & ConsequenceTable 5-2. Example Consequence Rating Matrix.

CriteriaRating

HealthEnvironmen

t Reputation Regulation Financial

A. Extreme A1 A2 A3 A4 A5

B. Major B1 B2 B3 B4 B5

C. Moderate C1 C2 C3 C4 C5

D. Minor D1 D2 D3 D4 D5

E. Insignificant E1 E2 E3 E4 E5

Consequence of Failure 1 2 3 4 5A Medium Medium High Extreme Extreme

Likelihood of Failure

B Medium Medium High Extreme Extreme

C Medium Medium High High High

D Low Low Medium Medium Medium

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E Low Low Medium Medium Medium

Decision MakingDecision Making

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Maintain/Repair/Rehabilitate/ReplaceMaintain/Repair/Rehabilitate/Replace

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Prioritize for Future AnalysisPrioritize for Future Analysis

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Security of Asset SystemsSecurity of Asset Systems

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Security / VulnerabilitySecurity / Vulnerability

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Strategic, Tactical, OperationalStrategic, Tactical, Operational

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Tactical and StrategicTactical and Strategic

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Pipe Infrastructure SystemPipe Infrastructure System

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Pipe Failure in Maryland

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Pipe Data CollectionPipe Data Collection

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Conceptual Model of PipeConceptual Model of Pipe

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Pipe Life CyclePipe Life Cycle

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Failure ParametersFailure Parameters

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Condition ModelingCondition Modeling

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Deterioration Models

Good

ExcellentExcellent

Goodn n

Bad

Poor

Good

Poor

Bad

Pipe

Con

ditio

Pipe

Con

ditio

n

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Maintenance Maintenance MaintenanceRehabilitate Rehabilitate

Time/Age

Maintenance Replace

Time/Age

Sustainability

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What is SustainabilityWhat is Sustainability

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Triple Bottom Line – Sustainability MetricsTriple Bottom Line Sustainability Metrics

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Sustainability – Transportation System

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The Four Pillars of Sustainable Urban TransportationUrban Transportation

• The unsustainable nature of current The unsustainable nature of current urban transportation and land use is well recognized. What is less clear is the prescription for how to move towards a more sustainable future,

i ll i th i t t especially given the many interest groups involved, the complexity of urban systems and the fragmented urban systems and the fragmented nature of decision-making in most urban regions.

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• It is argued that the process of It is argued that the process of achieving more sustainable transportation requires suitable establishment of four pillars: – effective governance of land use and

itransportation; – fair, efficient, stable funding;

t t i i f t t i t t d– strategic infrastructure investments; and– attention to neighborhood design.

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Potential Funding Sourcesg

Non-vehicle related Non-location-related General tax base

Local transportation levyLocation-related Development fees

Transit impact feesRight of way feesLeverage real-estate assetsVehicle-related

Non location related Fuel taxesNon-location-related Fuel taxesVehicle license feesNew vehicle or vehicle parts salesTaxesVehicle use feesEmissions fees

Location-related Road tolls

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Congestion pricingParking feesTransit user fees

Transportation SystemTransportation System

• Sustainability is present in most state DOT y pmissions

• Not just a matter of technology, requires an integrated approach from policy, technology, education, operation, and, p ,

• Not just a matter of fuel type, is also how transportation is conceived

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Sustainability – Water System

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Water Sustainability - USEPAWater Sustainability USEPA

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Four Pillars of SustainabilityFour Pillars of Sustainability

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Metrics Sustainable Water UseMetrics Sustainable Water Use

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Resiliency

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What is ResilienceWhat is ResilienceAccording to Walker 2006:

Or Milman 2008:Or Milman 2008:

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Proposed Components of Resiliencep p

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Advanced Asset ManagementAdvanced Asset Management

BEST PRACTICESBEST PRACTICESBased on USEPA AAM Workshop

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Water / Wastewater SystemWater / Wastewater System

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Summarizing in the Five Core QuestionsSummarizing in the Five Core Questions

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Integration of 5 core questions with 10 step process10-step process

2 What is my required

DevelopAsset

AssessPerformance,

DetermineResidual

DetermineLife Cycle &R l t

Set TargetLevels of

2. What is my required level of service?1. What is the current state of my assets?

AssetRegistry

Performance,Failure Modes

ResidualLife

ReplacementCosts

Levels ofService (LOS)

Determine Optimize Optimize Determine Build AMBusiness Risk(“Criticality”)

O&MInvestment

CapitalInvestment

FundingStrategy

Build AMPlan

3. Which assets 4. What are my best O&M and CIP 5. What is my best long-term are critical to sustained performance?

investment strategies? funding strategy?

Views on Asset Management – FrameworkViews on Asset Management Framework

• Asset management gcan be thought of as an object - a box or framework

128framework

• Following is a brief characterization of

37characterization of 8 different views on asset management 4

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• These views make up the framework

View 1: Definition - Asset ManagementView 1: Definition Asset Management

• Management paradigm and body of management practices

• Applied to the entire portfolio of infrastructure assets at all levels of the organizationg

• Seeking to minimize total costs of acquiring, operating, maintaining, and renewing assets…Withi i t f li it d • Within an environment of limited resources

• While continuously delivering the service levelscustomers desire and regulators require

• At an acceptable level of risk to the organization

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View 2: Life Cycle Business ProcessesView 2: Life Cycle Business Processes

Support processesPlan Support processes• Demand management• Knowledge of assets• CIP validation

a

AcquireDispose• Accounting & economics• Condition & performance

monitoring• Business risk exposure

CoreProcesses

AcquireDispose

Renew Operate

p• Works resource

management• Review & continuous

improvement

Maintain

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View 3: Core AM Program ElementsInformation

Systems

Data &Knowledge

LifecycleProcess &Practices

Total Asset

Organizational People

Total AssetManagement

Plan

Service

OrganizationalIssues

PeopleIssues

Sustainable best value service delivery

Delivery

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Sustainable, best value service delivery

View 4: Management FrameworkView 4: Management FrameworkAsset ManagementBusiness ProcessesBusiness Processes

Asset ManagementPlans

Strategic Initiatives

Annual Budgets

Operating Budget Capital Budget

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View 5: Five Core QuestionsView 5: Five Core Questions1. What is the current state of my assets?

What do I own?Where is it?Where is it?What condition is it in? What is its performance?What is its remaining useful life?What is its remaining economic value?

2 What is my required level of service (LOS)?2. What is my required level of service (LOS)?What is the demand for my services by my stakeholders?What do regulators require?What is my actual performance?

3 Whi h t iti l t t i d f ?3. Which assets are critical to sustained performance?How does it fail? How can it fail?What is the likelihood of failure?What does it cost to repair?Wh t th f f il ?What are the consequences of failure?

4. What are my best O&M and CIP investment strategies?What alternative management options exist?Which are the most feasible for my organization?

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y g5. What is my best long-term funding strategy?

View 6: AM Plan 10-step Processp

DevelopAsset

AssessPerformance,

DetermineResidual

DetermineLife Cycle &

R l t

Set TargetLevels of

Determine Optimize Optimize Determine Build AM

AssetRegistry


ResidualLife Replacement

Costs


Business Risk(“Criticality”)

O&MInvestment

CapitalInvestment

FundingStrategy

Build AMPlan

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View 6: AM Plan 10-step ProcessSystem Layout;Data Hierarchy,Standards, and

Demand Anal.;Balanced

Scorecard;Valuation; LifeCycle Costing

Expected LifeTables;

Decay Curves

ConditionAssessment

Protocol; Rating

p

DevelopAsset

AssessCondition,

DetermineResidual

DetermineLive Cycle &R l t

Set TargetLevels of

Inventory Perform. MetricsDecay CurvesMethodologies

DevelopAsset

AssessPerformance,

DetermineResidual

DetermineLife Cycle &

R l t

Set TargetLevels of

Determine Optimize Optimize Determine Build AM

AssetRegistry

Condition,Failure Modes


Costs


AssetRegistry



Costs


Determine Optimize Optimize Determine Build AMBusiness Risk(“Criticality”)

O&MInvestment

CapitalInvestment

FundingStrategy

Build AMPlan

Root Cause; Confidence LevelFMECA; Asset Mgmt Plan;

Business Risk(“Criticality”)

O&MInvestment

CapitalInvestment

FundingStrategy

Build AMPlan

Root Cause;RCM; PdM;

ORDMB/C Analysis

Confidence LevelRating; Strategic

Validation;ORDM

FMECA;Business RiskExp.; DelphiTechniques

RenewalAnnuity

Asset Mgmt Plan;Policies and

Strategy;Annual Budget

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ASSET RegistryASSET Registry

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ASSET LivesASSET Lives

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ASSET RiskASSET Risk

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Level of ServiceLevel of Service

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Maintenance & MonitoringMaintenance & Monitoring

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View 7: Seven Principles of Asset Managemente Se e c p es o sset a age e t

1. The “Value Added/Level of Service” Principle—assets exist to deliver services and goods that are valued by the customer-deliver services and goods that are valued by the customerstakeholder; for each consumer-stakeholder there is a minimum level of service below which a given service is not perceived as adding value.

2. The “Life Cycle” Principle—all assets pass through a discernable f flife cycle, the understanding of which enhances appropriate

management.3. The “Failure” Principle—usage and the operating environment work

to break-down all assets; failure occurs when an asset can not do what is required by the user in its operating environmentwhat is required by the user in its operating environment.

4. The “Failure Modes” Principle—not all assets fail in the same way. 5. The “Probability” Principle—not all assets of the same age fail at

the same time. 6. The “Consequence” Principle—not all failures have the same

consequences.7. The “Total Cost of Ownership” Principle—there exists a minimum

optimal investment over the life cycle of an asset that best

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p ybalances performance and cost given a target level of service and a designated level of risk.

View 8: Enterprise Asset Management PlanView 8: Enterprise Asset Management PlanExecutive Summary

Levels of ServiceSection - 2

State of the AssetsSection - 1

Growth & DemandSection - 3

Lifecycle ManagementSection - 4

A t tiO&M Renewal

Management Strategies

AugmentationO&M Renewal

Risk Profile Financial Planning

Business Improvement PlanSection - 8

StrategiesSection - 6Section - 5

gSection - 7

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Section - 8

Questions ?Questions ?Comments?

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Infrastructure Asset Management - Sustainable Water Infrastructure

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