Res 2016-032/Water Reuse Asset Management Plan

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City of San Marcos Water Reuse System Asset Management Plan 3. A management practice to minimize the total life -cycle cost of owning and operating infrastructure assets while delivering the desired levels of service and performance at an acceptable level of risk to the organization. 2.2 Benefits Derived from Asset Management Achieving the lowest life -cycle cost for a given infrastructure asset requires informed decisions on the appropriate levels of maintenance, repair, rehabilitation, and on the ultimate replacement and disposal of an asset. Asset management provides the framework for making appropriate decisions on the investments required for rehabilitating, repairing, or replacing an asset. Asset management allows a utility to shift from a reactive infrastructure management approach that relies primarily on staff experience and knowledge to a more proactive approach that predicts asset investment requirements as a means to achieve and fund sustainable infrastructure. As an asset management program evolves in an organization, it incorporates detailed asset inventories, operation and maintenance functions, and long -range financial planning to build system capacity, and it puts systems on the road to sustainability. There are a number of benefits that can be derived from an effective asset management program: 1. Prolonging asset life and aiding in rehabilitation, repair, and replacement decisions through efficient and focused operations and maintenance. 2. Meeting performance demands with a focus on system sustainability. 3. Developing capital, operations, and maintenance costs based on sound operational and financial planning data and information. 4. Long -term budget forecasts focused on activities critical to sustained performance. 5. Meeting service expectations and regulatory requirements. 6. Improving responses to emergencies. 7. Reducing overall costs for both operations and capital expenditures. 2.3 EPA Asset Management Principles The EPA has developed recommended asset management principles and practices for the water utility industry. The EPA asset management principles are centered on a framework of five core questions, which provide the foundation for many asset management best practices: February 2016 Page 7