Asset Management

"Asset management is managing infrastructure assets to minimize the total cost of owning and operating them while continuously delivering the service levels customers desire."
-- from the publication, Managing Public Infrastructure Assets


Assets are the most expensive sources that a community can own, maintain and upkeep. Asset Management is a tool that can be used to help assure that utility services are provided in a sustainable, cost-effective way. It helps in making sound decisions by answering questions about what we do, how we do it, when we do it, where we invest, what our costs are, and what our return is.

Asset Management is a proven method whose techniques have been refined by the international community, particularly in Australia and New Zealand. NM EFC began working with Asset Management in 2003. In 2006, at the request of EPA, the NM EFC director traveled to New Zealand and Australia to study Asset Management. We have worked with systems from the very small to the very large and have provided many trainings on Asset Management to local, state and tribal governments and to the EPA.


Five Core Components of Asset Management
  • Asset Inventory
  • Level of Service
  • Critical Asset Assessment
  • Life Cycle Costing
  • Long-term Funding Strategy
Asset Management Has Many Benefits:
  • Better operational decisions
  • Improved emergency response
  • Greater ability to plan and pay for future repairs and replacements
  • Increased knowledge of asset location and condition
  • Increased understanding of which assets are critical to the utility
  • More efficient operation
  • Improved customer communication and service
  • Easier rate-setting
  • Rates based on sound information
  • Increased acceptance of rates
  • Better prioritization of capital improvement projects

    JUST RELEASED!

    The New Mexico Environmental Finance Center is pleased to announce the release of A.M.Kan Work! the new intereactive guide to Asset Management and Energy Efficiency sponsored by the Kansas Department of Environmental Health and prepared by the New Mexico Environmental Finance Center. This new Asset Management tool is the result of two years of extensive research and includes video interviews with eighteen water and wastewater systems across the United States. This manual is intended to guide small to medium sized water and wastewater sytems through the process of Asset Management and addesses core issues of water and wastewater sustainability. Asset Management allows utilities to provide a sustained level of service at the lowest and most appropriate life cycle cost. Water and wastewater utility owners, operators, managers, and board members will find that this guidebook contains useful tools for assessing the current status of their operations and for developing strategic plans for sustainable water and wastewater service. The manual also introduces the Asset Management IQ test, a tool for assessing your knowledge and progress in the Asset Management process. A pdf file of the A.M. IQ can be downloaded below, and it will soon be available here in an interactive format.

    The A.M. Kan Work! manual is available in print form with interactive DVDs, or DVDs only. To order click the link at the bottom of this page, print out the order form and mail it to us with your check.

    You can also use the Interactive Asset Management IQ test online by clicking here.

Asset Management User Group

The NM EFC has created what we believe to be the first state-wide Asset Management User Group in the United States. These groups have been a key to the continued success and improvement of the A.M. programs in Australia and New Zealand. The group meetings are facilitated by A.M. trainers and allow participants to share experiences, successes, challenges, and future opportunities with one another. This type of peer-to-peer interaction enhances Asset Management and ensures its continued success. The group is open to any water or wastewater system that is doing Asset Management at any level, and even to those interested in starting Asset Management who would just like an opportunity to discuss the successes and challenges with those who might be further down the road. The group meets twice per year in different locations throughout the state. If you are interested in finding out about this group, contact Susan Butler at butler@efc.nmt.edu or 505-924-7034.

Funding Agencies and Asset Management

Decreasing funds and increasing project costs require funding agencies to be well informed when allocating limited funds. Funding agencies want to fund sustainable projects and ensure that repair, replacement, and O&M budgets are well thought-out. Reflecting these needs, the NM CDBG Rules and Regulations now include Asset Management as a criterion for assessing applications, and an Asset Management Plan can be worth 10 points on the application. This provides a powerful incentive in the competitive world of funding applications. With an Asset Management Plan in place, communities can show funding agencies that they won't be in need of additional money due to poor planning, and funding agencies can verify that the community understands what they are getting through a Level of Service Agreement.

Click here to access information on the EPA website for upcoming asset management workshops and other materials.




For more information, check these related documents:
Show Me Rate-Maker (Excel rate-setting software)
Instructions for Asset Management Database
Inventory Database
Asset Management IQ Printable
Order form for A.M. Kan Work! Print + DVDs
Order form for A.M. Kan Work! DVDs only
 Environmental Finance Advisory Board
EPA Environmental Finance Program
EPA Region 6 Drinking Water Program

Rocky Mountain Environmental Finance Center