This work proposes a two-step approach to minimizing radial distribution maintenance cost while ensuring that the performance of a utility is as close as possible to desired reliability benchmarks. The maintenance cost is first optimized within the required reliability level. The System Average Interruption Duration Index (SAIDI) is used as the reliability measure. If budget constraints do not allow the required maintenance, or if a component degrades beyond its expected level, then components are derated and system is reconfigured to prolong component life and raise system reliability. Numerical examples are presented to illustrate this method.