Service Provider Collaboration: Coordination of Infrastructure Investments

1. Service Provider Collaboration: Coordination of Infrastructure Investments MTPA Annual Conference July 15, 2011

2. The Bigger Picture • Creating success through shared outcomes • Infrastructure: key component of success • Collaboration: key to quality infrastructure

4. Our shared outcomes Access to Jobs, Markets, Services, and Amenities Attractive Environmental Assets Desirable Communities Economic Prosperity Fiscally Sustainable Public Services Reliable, Quality Infrastructure

5. Interdependency of the outcomes

6. Interdependency of the outcomes

7. We’re working toward our shared outcomes Economic Prosperity Desirable Communities

8. 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

9. What’s SEMCOG’s part? • Focus our work on the shared outcomes • Evaluate and prioritize the measures • Engage others in ‘signing on’

10. Example activities • DWSD “New Normal” planning • Transportation congestion management • Local government assistance • HUD sustainability grant • Infrastructure collaboration

11. Creating a Sustainable Infrastructure System in Southeast Michigan

12. Goals • Quality infrastructure that is fiscally sustainable • Quality infrastructure that supports the region’s economy

13. Three parts to the approach • Description of the problem • Components of the solution • Action steps

14. 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we have • Underinvestment results in an increased cost, not a savings • Revenue formulas and policies are outdated

15. Water sales Detroit Water and Sewerage Department Source: The FOSTER Group

16. Michigan gasoline sales1994-2009 Source: MDELEG, Michigan Energy Appraisal reports 1996-2009

17. Impact of new fuel economy standards on gas tax revenueSoutheast Michigan

18. Yearly percent change in home price, SEV, and taxable valueSoutheast Michigan Source: SEMCOG

19. 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we have • Underinvestment results in an increased cost, not a savings • Revenue formulas and policies are outdated

20. 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

21. Unit costs are increasingDWSD water Source: The FOSTER Group

22. 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

23. We're under-investing…Changing pavement condition

24. …and it’s costing usPavement Management Funding Needs

25. 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

26. We’re on a collision course Revenues require consumption Policies require conservation

27. 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

28. 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

29. 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

30. 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

31. Components of the solution Restructured revenue collection systems Legislative Strategy Strategically invest funds to maximize all infrastructure performance Holistic view of needs and outcomes Reduce costs Collaboration amongst providers

32. 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

33. Infrastructure Collaboration Summits

34. Structure for collaboration • Bring local governments, transportation agencies, and private utilities together • Share planning process • Disclose project plans • Promote early and ongoing coordination

35. Summit agenda • Regional context • Service provider presentations • Sample project lists • Group discussion of how coordination can be improved

44. Summit agenda • Regional context • Service provider presentations • Sample project lists • Group discussion of how coordination can be improved

45. Identifying & prioritizing projects • 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)?

46. 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?

47. Addressing emergency needs • How are emergency needs addressed between budget cycles?

48. Coordination with other organizations • 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?

49. Strengths & weaknesses of current process • What is working or not working with the current coordination/collaboration process?

50. How process can be improved • Information improvements – what is being shared • Communication improvements – how it is being shared • Other ideas