ERMUSR Misc 05-10-2007 - Laserfiche WebLink

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~~~~ i/i~~l/1<<s try?tit r,~~n~~.7~~rs i:~t`A~%;<~w~~/ms's' Elf~t~r ~l~i~'~t~r ~',~~i.~t. -E~ u~~t~ PCIf3r1%I-~ft~;`~ ~t?L'l1CCt' Cs!? b't/1t~F~ f a::t!<:F'S "Unfortunately, it seems to require a disaster or catastrophe." "Sadly, the greatest impact would be an example of catastrophic failure somewhere." "The tyranny of the immediate has taken over public decision-making." "It will probably take a crisis." "Unfortunately, many times it is a disaster or major problem." "For most communities, it will probably take a significant critical event where it is perceived that the public's health or safety has been put in jeopardy. Then elected officials can champion the solution and position themselves as protecting the public from imminent disaster." SOURCE: Water Infrastructure at a Turning Point: The Road to Sustainable Asset Management, AWWA, 2006. The two charts shown in Figure 1 appeared in Dawn of the Replace- ment Era (AW~Y~A, 2001). These charts present data from 20 medium- and large-sized US water utilities. Figure 1, part A shows the replace- ment cost value (in 2001 dollars) of the pipe assets of those 20 utilities, plotted in the historical year in which they were installed. Part B shows a projected ramping up of pipe replace- ment investment needs in the twenty- first century. This investment gener- ally echoes the historical pattern of pipe installation, with allowances for differences in asset lives resulting from manufacturing eras and oper- ating environments. Although the graphs in Figure 1 do define a crisis in the real sense of the word, they also convey consid- erable good news. • The pattern of pipe installation produced by historical demographic trends results in an echo wave of rein- vestment needs. This pattern does not indicate a sudden increase in expen- ditures, but rather a ramping up of expenditures that extends over sev- eral decades-the period we call "the provided to customers. This is espe- cially important as knowledge of asset wear-out processes and appli- cation of renewal technologies con- tinue to improve. 'T'here is also considerable risk conveyed in Figw-e 1. Communities that do not act at this crucial point to implement asset management and ramp up reinvestment will fall behind the curve, leaving the next genera- tion with a mountainous funding problem that will constitute a true threat to sustainability. 1LLA~iAi~ll"~t~ Tf•IE i,SStIE Today's utility managers and gov- erning board members are ar a turn- ing point. There is an urgent need to mobilize and sustain proactive invest- ments to prevent catastrophic or dis- astrous conditions from developing in our infrastructure. Mobilizing action to prevent catastrophe is, in many ways, more challenging than mobilizing action in response to cat- astrophe. There are broadly held beliefs that an acute crisis is required to motivate significant new spending. However, framing the issue in this manner suggests that aone-tithe ex- penditure is an effective response. In contrast, proactive asset management, coupled with a sustained ramping-up - _ ;w . `.t ., ~ - f T , '~Y, ~ S Ana } ~r ~ 1 1, ,, .~:. l l ~ w , t. ~ J Y t ~n . ,ilvs . Y"~~M F 1.-. r ~ ~ +h~ . ,, 3~+ .. ~ .. } .._ .i!_....._,. dawn of the replacement era." Con- sequently, utilities are able to gradually transition to a new steady state that is at a higher level of spending needed to sustain a mature pipe network. • Experience with the best asset management practices indicates that there are many ways to flatten and stretch the ramping-up phase without compromising the level of service of expenditures, is the appropriate re- sponse for probable infrastructure needs-a point that must be commu- nicated to stakeholders. Water infra- structure renewal requires along-term commitment that cannot be sustained if perception of the problem and the reality are not brought closer together. The sense of urgency that gave rise to the crisis rhetoric is not mis-