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by the fact that a staggering amount
<br />of public equity is at stake, not ro
<br />mention public health. Asset man-
<br />agement provides a necessary risk
<br />management framework in which
<br />uncertainties can be systematically
<br />investigated and ~n~eighed. This
<br />enables decision-makers to make bet-
<br />ter-informed, timelier decisions about
<br />the rate of reinvestment in w•atcr
<br />infrastructure and, in turn, to better
<br />serve their communities.
<br />Utility managers and board mem-
<br />bers are counted o^ to apply careful
<br />and balanced judgment to issues
<br />involving utility policies, operations,
<br />capital investment, and customer ser-
<br />vice. Governing board members often
<br />see their main role as that of con-
<br />trolling costs and quality of service.
<br />Asset management enables govern-
<br />ing board members to also act as
<br />stewards of invaluable water infra-
<br />structure.
<br />if viewed as unrelated line items
<br />in operating and capital budgets, the
<br />activities needed to develop, refine,
<br />and implement asset management
<br />programs are considered in the con-
<br />text of short-term benefits against
<br />other spending needs. It is in this
<br />context that true catastrophe will
<br />ultimately be needed to support
<br />changes in expenditures.
<br />When asset management initia-
<br />tives are grouped into a coherent
<br />risk management program, it is pos-
<br />sible to see the connections between
<br />a given level of capital replacement
<br />and parallel activities, such as
<br />repair, rehabilitation, and condition
<br />assessment. In turn, board members
<br />can better appreciate and make the
<br />case for ramping up key expendi-
<br />tures. Moreover asset management
<br />is a continuous improvement process
<br />that facilitates knowledge transfer
<br />from one generation of managers
<br />and board members to the next. It
<br />also provides direction for research
<br />and development of repair and
<br />replacement technologies and a bet-
<br />ter understanding of sustainable ser-
<br />vice levels.
<br />The dynamics of echo replacement
<br />waves are such that transition to a
<br />steady stare in the replacement era
<br />will extend decades into the furwc.
<br />Today's utility managers and go~~-
<br />erning board members stand at a
<br />turning point. They cannot solve the
<br />infrasn-ucture problem by writing
<br />one big check-which is an incorrect
<br />perception of this generation's
<br />responsibility. This generation is
<br />responsible for inaugurating a process
<br />of asset management that will facil-
<br />itate ramping up of reinvestment and
<br />guarantee a sustainable flow of valu-
<br />ablepublic benefits from these valu-
<br />able assets.
<br />,4ClK~il CI Wl~'Bi; l~'lEl1f
<br />This article is derived, in part, from
<br />the AWWA report, "Water Infra-
<br />structure at a Turning Point: The Road
<br />to Sustainable Asset Management"
<br />(2000 ). It was developed for the
<br />ASX~VA Water Utility Council with
<br />sponsorship from the Water Industry
<br />Technical Action Fund. The authors
<br />are indebted to a number of collabo-
<br />rators, including Gary Breaux, Tom
<br />Curtis, Paul Demit, Mike Hooker,
<br />Gary Lynch, Sue '.McCormick, John
<br />Sullivan, Kurt Vause, Gina Wammock,
<br />and Al Warburton.
<br />ABOUT THE AUTHORS
<br />~ .John Cromwell III
<br />~°`~ consa7lts for aatilities
<br />~~ ~ and perforans policy
<br />research for Stratus
<br />Consarlting Inc., in
<br />1Xlashington, D.C'.
<br />He has bachelor's
<br />.degrees in biology and economics
<br />as well as a master's degree in pub-
<br />lic policy analysis, all from the
<br />Universaty of Maryland.
<br />Cromwell may be contacted at
<br />jcronzwell@stratusconsulting.com.
<br />F,lisa Speranza is vice-president of
<br />CHZM HILL and global team
<br />leader for Utility Management
<br />Solutions. Haydn Reynolds is a
<br />leading authority in the Aus-
<br />tralian water industry on improv-
<br />ing the strategic integration of
<br />asset management and capital
<br />investment, including the assess-
<br />ment of asset lives based orz life-
<br />cycle cost concepts.
<br />If you have a comment about this
<br />article, please contact us at
<br />journal@awwa.org.
<br />R'r~~R~~7C~~
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<br />ing New Zealand, 2006. International
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<br />Group, Thames, New Zealand,
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<br />age Agenciesl, 2001. Managing Public
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<br />and Maximize Performance. AMSA,
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<br />AWWA, 2006. Water Infrastructure at a Turn-
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<br />Asset Management. AWWA, Denver.
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<br />Era: Reinvesting In Drinking Water
<br />Infrastructure. AWWA, Denver.
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