What is an Asset Management Plan?
An Asset Management Plan (AMP) is a document developed by a Utility to assist in the long-term management of the assets necessary to support cost-effective, proactive decisions. These include the creation, acquisition, operation & maintenance, and replacement/upgrade of Utility assets. In short, an AMP helps Utilities keep track of everything in their systems and when things need to be replaced.
An AMP is, first and foremost, meant to document all assets owned by a Utility and score them based on their importance and condition. This allows a relatively objective assessment of what items are beyond their useful life and what needs to be addressed and planned for in the next 5, 10, or 20 years. This type of planning is absolutely critical to ensure Utilities make the most of their limited resources. Even more critical is the evaluation of current water and sewer rates and if they are sufficient to meet the ongoing and future needs of the Utility. The ultimate goal is to ensure the Utilities are providing and maintaining the desired level of service for their customers.
If a Utility is pursuing funding from the State Revolving Fund (SRF), an AMP is required. At this time, an AMP is not required to pursue funding from the United States Department of Agriculture (USDA) Rural Development (RD). More information related to the SRF requirements for an AMP can be found at https://www.in.gov/ifa/srf/applications-guidance-and-documents/. To learn more about the benefits of an AMP, when it is required, and how Commonwealth Engineers might be able to assist, contact Theresa Criss-Hartwig.