Service Provider Collaboration: Coordination of Infrastructure Investments
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Transcript of Service Provider Collaboration: Coordination of Infrastructure Investments
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Service Provider Collaboration: Coordination of Infrastructure Investments
MTPA Annual ConferenceJuly 15, 2011
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The Bigger Picture
• Creating success through shared outcomes
• Infrastructure: key component of success
• Collaboration: key to quality infrastructure
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Our shared outcomes
Economic Prosperity
Desirable Communities
Reliable, QualityInfrastructure
AttractiveEnvironmental
Assets
Fiscally Sustainable
Public Services
Access to Jobs, Markets,
Services, and Amenities
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Interdependency of the outcomes
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Interdependency of the outcomes
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DesirableCommunities
Economic Prosperity
We’re working toward our shared outcomes
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How will our work be used?
• Connect our actions to outcomes• Direct the wise use of limited resources• Create certainty, predictability
and reliability• Build rationale and support for
tough decisions
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What’s SEMCOG’s part?
• Focus our work on the shared outcomes• Evaluate and prioritize the measures• Engage others in ‘signing on’
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Example activities
• DWSD “New Normal” planning• Transportation congestion management• Local government assistance• HUD sustainability grant• Infrastructure collaboration
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Creating a Sustainable Infrastructure System in
Southeast Michigan
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Goals
• Quality infrastructure that is fiscally sustainable
• Quality infrastructure that supports the region’s economy
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Three parts to the approach
• Description of the problem• Components of the solution• Action steps
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Description of the problem
• Rate/revenue base is declining• Current revenue is inadequate to
maintain infrastructure we have• Underinvestment results in an increased
cost, not a savings• Revenue formulas and policies are
outdated
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Water sales Detroit Water and Sewerage Department
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009300
350
400
450
500
550
600
Avg
. mill
ion
gallo
ns p
er d
ay
Source: The FOSTER Group
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Michigan gasoline sales 1994-2009
Source: MDELEG, Michigan Energy Appraisal reports 1996-2009
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20093,800
4,000
4,200
4,400
4,600
4,800
5,000
5,200
Mill
ions
of G
allo
ns
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Impact of new fuel economy standards on gas tax revenue
Southeast Michigan
20102011
20122013
20142015
20162017
2018201
92020
$0
$50
$100
$150
$200
$250
$300
$350
$400
Tax Revenue w/current fuel economy Tax Revenue w/new standards
Ann
ual R
even
ue (i
n m
illio
n)
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Yearly percent change in home price, SEV, and taxable value
Southeast Michigan
Source: SEMCOG
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
-10.8%
-6.7%
Home Values SEV Taxable Value
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Description of the problem
• Rate/revenue base is declining• Current revenue is inadequate to
maintain infrastructure we have• Underinvestment results in an increased
cost, not a savings• Revenue formulas and policies are
outdated
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Transportation need vs. revenueSoutheast Michigan
Total Transportation
Need$2.8 billion
per year
Revenue Shortfall
$1.5 billion per year
Revenue Available
$1.3 billion per year
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Unit costs are increasing DWSD water
Average Day in FY 2003-04 Average Day in FY 2010-110
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Dai
ly c
ost o
f pro
vidi
ng w
ater
Source: The FOSTER Group
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Description of the problem
• Rate/revenue base is declining• Current revenue is inadequate to
maintain infrastructure we have• Underinvestment results in an increased
cost, not a savings• Revenue formulas and policies are
outdated
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We're under-investing…Changing pavement condition
Good Fair Poor0
10
20
30
40
50
60
70
80
200420052006200720082009Pe
rcen
t of L
ane
Mile
s
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…and it’s costing us Pavement Management Funding Needs
2004 2008$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$996 million
$2.35 billion
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Description of the problem
• Rate/revenue base is declining• Current revenue is inadequate to
maintain infrastructure we have• Underinvestment results in an increased
cost, not a savings• Revenue formulas and policies are
outdated
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We’re on a collision courseRevenues require
consumptionPolicies require
conservation
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Description of the problem
• We have more than we need, so we must right size
• Constrained fiscal resources are not temporary
• Region’s fiscal capacity is still declining• Our needs and expectations of service
drive costs
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Description of the problem
• We have more than we need, so we must right size
• Constrained fiscal resources are not temporary
• Region’s fiscal capacity is still declining• Our needs and expectations of service
drive costs
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Description of the problem
• We have more than we need, so we must right size
• Constrained fiscal resources are not temporary
• Region’s fiscal capacity is still declining• Our needs and expectations of service
drive costs
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Description of the problem
• We have more than we need, so we must right size
• Constrained fiscal resources are not temporary
• Region’s fiscal capacity is still declining• Our needs and expectations of service
drive costs
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Components of the solution
Restructured revenue collection systems
Reduce costs Collaboration amongst providers
Strategically invest funds to maximize all
infrastructure performance
Legislative Strategy
Holistic view of needs and outcomes
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Proposed action steps Collaboration amongst providers
• Implement pilot project to serve as model•Seek formal agreement to cooperate from
service providers•Identify specific areas of cooperation:
Maintenance/asset management; etc.
•Emphasize cost savings
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Infrastructure Collaboration Summits
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Structure for collaboration
• Bring local governments, transportation agencies, and private utilities together
• Share planning process• Disclose project plans• Promote early and ongoing coordination
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Summit agenda
• Regional context• Service provider presentations• Sample project lists• Group discussion of how coordination
can be improved
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Summit agenda
• Regional context• Service provider presentations• Sample project lists• Group discussion of how coordination
can be improved
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• How and when are projects identified and prioritized?
• What factors drive your decision-making process?
• What data informs these decisions (e.g. Asset Management rating of pavement condition)?
Identifying & prioritizing projects
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Project timing
• Is project selection an annual process or do you plan for multiple years?
• What time of year does project selection occur?
• What time of year does budgeting for these projects occur?
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• How are emergency needs addressed between budget cycles?
Addressing emergency needs
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• How are impacted parties currently involved in the planning process or informed of project decisions?• Other service providers• Neighboring communities
• Does existing coordination/collaboration take place before project decisions are made or afterward?
Coordination with other organizations
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• What is working or not working with the current coordination/collaboration process?
Strengths & weaknesses of current process
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• Information improvements – what is being shared
• Communication improvements – how it is being shared
• Other ideas
How process can be improved
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• What are the benefits that your organization would derive from improved coordination /collaboration?
Outcomes/benefits
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Summit agenda
• Regional context• Service provider presentations• Sample project lists• Group discussion of how coordination
can be improved
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Project list
• Project Name• Project Limits• Proposed Work
– Project type (transportation, water, etc.)– Work Type (repair, new, maintenance, etc.)
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Project list
• Jurisdiction• County/Community• Fiscal Year • Start/End Date
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Project list
• Grade• ROW• Contact information
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Summit agenda
• Regional context• Service provider presentations• Sample project lists• Facilitated discussion
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Facilitated discussion
• Is the information on the sample lists useful? What other information is needed?
• When does this information need to be known to make it most useful?
• How should we collect/distribute this information regionally?
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Facilitated discussion
• Is this type of collaboration helpful?• How often should collaboration occur
and when?• Who else should be involved?• How can we communicate better with
our customers/constituents?
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Positive feedback
• Useful; conduct at least annually• Interaction among agencies• Support for sharing project lists
– Update annually– Contact information most important
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Potential outcomes
• Centralized information– Service areas and contacts– Project lists
• Regular meetings• Network of communication• Written agreements among major
providers
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More information
• Infrastructure report … http://www.semcog.org/SustainableInfrastructure.aspx
• Collaboration summit … http://www.semcog.org/infrastructuresummit.aspx
• Jennifer Evans– [email protected]– 313-324-3306