Res 2016-032/Water Reuse Asset Management Plan

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City of San Marcos Water Reuse System Asset Management Plan 8 Asset Investment Plan 8.1 Long -Term Investment Forecast The long -term investment forecasts the pace and magnitude of long term investment needed to sustain the City's water reuse system assets into the future. The long -term forecast is designed to predict the level of asset rehabilitation or replacement required to maintain City's standards of customer service and system performance over the coming decades. Because the City's system assets is relatively young and have anticipated useful lives exceeding 90 years, major rehabilitation or replacement costs were forecasted through the year 2080. The long -term analysis looks at broad categories of assets or cohorts that have similar useful lives and degradation profiles. This high level overview of the system is used to forecast costs based on industry replacement data that have been customized with specific institutional knowledge from within the City. The long -term forecast provides justification for budgetary targets relative to City's current investment in its assets. Given that many utilities have fallen behind with their system renewal efforts, the long -term forecast provides the fiduciary motivation to maintain more informed renewal budgets over time. It can also help communicate to stakeholders the value of the existing infrastructure assets and the renewal investment required to sustain those assets. The reuse system assets were grouped by equipment type under the assumption that similar equipment will have comparable aging characteristics. Failure curves for each asset type were started with industry standard life expectancies, which were then adjusted by City's staff for the specific conditions in the reuse system. Figures 8.1, 8.2 and 8.3 are examples of failure curves developed for reuse system assets, reclaim water line, and reclaim water valves respectively. Failure curves are based on the number of years from installation to the point where: • 100% of the original asset would still be functional or the number of years until the first major asset failure. • 50% of the asset would still be in service without substantial rehabilitation /replacement or the number of years identified as the average useful life of an asset group or cohort. February 2016 Page 42