t
2018-2027 Decade Plan for Capital Improvements
b
This Water Authority uses asset management principals to schedule renewal of its water and wastewater infrastructure. Those assets with the highest risk are targeted for renewal first. Risk of an asset failure is estimated by multiplying its “probability of failure” by its “consequence of failure.” The Water Authority is employing different evaluation techniques to evaluate the current condition of its different infrastructure assets such as videoing the inside of sewer pipelines and water reservoirs. Based on these condition assessments, more accurate estimates of the probability of failure and useful life of the asset can be determined.
Based on the 2011 Asset Management Study, the Water Authority needs to increase the rate of asset renewal to maintain the level of service accustomed by its rate payers. Proactive renewal of assets is more cost effective (i.e., lower life-cycle cost) than allowing assets to run to failure, which require asset replacement rather than rehabilitation. This is the basis for the capital spending ramp up which the board has approved.
FISCAL IMPACT:
Budgeted in Capital Budget and Ten Year Financial Plan.