Capital Asset Assessment, Maintenance and Replacement Policy (2007 and 2010)
Commentary on the GFOA Best Practices Part 3
Recommendation 3 of the GFOA centers on what we call capital project prioritization and filtering. By prioritization we mean ranking the projects to reflect the empirical, financial and political dimensions that we discussed last week. However this section makes a number of specific recommendations that we will respond to on a line by line basis.
3. Evaluating existing assets to determine if they still provide the most appropriate method to deliver
Service applicability should consider a triple bottom line approach of (1) functional ability to meet current needs, (2) physical ability to meet need and (3) consequence of failure. As an example, a utility line that has been in service for many years may not provide the capacity needed for current conditions; it could be degraded below its original capacity and could be in proximity to interrupt other services if it failed. We find that much of this information exists in an organization’s asset management and GIS systems; however it is not consistently applied to the Capital Program Management process....
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