Public Technology Incorporated GIS Forum Ft. Worth, Texas November 29, 2006

1. Modeling ROI for GIS, IT and Telecom InvestmentsThe City and County of Geopolis State of Locahoma, Public Technology Incorporated GIS Forum Ft. Worth, Texas November 29, 2006 (*Note: Katy lives and works in the City of Geoppolis) Filename/RPS Number

2. The evolution of Geospatial Information Systems • Geography and geology are sciences that go back thousands of years. • Location fields and location information within a database emerge from these highly technical fields. • Location fields were part of the first databases but early IT systems did not incorporate the science of location. (33 102nd) versus (33…West…102…Place….10025….75Ed….20Precinct x12345:y12345), etc. • As time went on almost all databases, and especially operations databases, contained location elements, and eventually rigorous geospatial data and IT system evolved. Practitioners became aware of the layer cake effect and how useful it was to have different layers of information relating to each others. • GPS, AVL, digital photography all revolutionize the capture and use of geospatial elements. Practitioners become increasingly aware that the geospatial element can enable enterprise data integration. • E-GIS across a city, county, state or nation makes it possible to realize significant benefits – sometimes by a degree of magnitude - in productivity, efficiency and effectiveness over standalone systems. It’s the power of data combinations. Filename/RPS Number

3. GIS, IT and Telecommunications: Perfect together • “Information Technology” serves the demand for information. Accurate and complete information whenever and wherever required, in the form best suited to effective action is key. Everything people do depends upon information. • GIS can be especially adept at elevating data, through visualization, integration and analysis, from information to knowledge and insight. Its not “GIS” but rather the more effective use of IT that GIS facilitates • Geospatial capabilities extend the power of information and require the use of computer and telecommunications technologies; existing systems and data. GIS as a capability apart…fails. • CIO’s should look at GIS as an essential component of their operations • GIS leaders should view IT as the place where they can find enterprise data for integration, along with the infrastructure they need to make information products available. • The entire digital revolution is predicated on the ability of computer systems to create more/better value and benefits. • IT without GIS is like atomic fission; IT with GIS is like atomic fusion revealed in ROI. Filename/RPS Number

4. Why Enterprise GIS (E-GIS) is essential? • Create once, use many: Initial investment in framework data, infrastructure and staff maximizes reusable elements, creates synergies and reduces the costs of applications and data for any one agency • Because all location enabled data within agencies is created upon a common geospatial base, data can be shared across agencies with minimal concerns about compatibility and accuracy. Equally so applications where components can be shared. • Enterprise standards for data quality and application modules can increase sharing and keep development and operating costs down. • Enterprise approach eliminates duplication of efforts. Also creates a large staff on common data, infrastructure and software supporting collaboration and sharing. • Starting GIS applications in many agencies spreads the load for achieving the ROI – that no one agency or application could provide - to justify the initial investment to build a comprehensive spatial data infrastructure. Filename/RPS Number

5. Barriers to success: It’s the silly culture • Turf wars between agencies prevent collaboration and planning. Reduces the possibilities of building shared resources. • Turf wars between central IT and departmental IT and GIS: High priests versus direct agency support. • Turf wars between GIS and IT: Often considered two different worlds. GIS zealously guarding its independence while IT scoffs at geo-babble it doesn’t understand. • Turf wars between uniform and civilian: Civilian GIS disdained by uniform public safety officers. Clash of cultures. • Single use applications and supporting data developed independent of each other because of no coordinating mechanism. Leads to duplication and minimized ROI. Filename/RPS Number

6. GIS data and applications: Build once to create many revenue streams Filename/RPS Number

7. Why is assessing ROI important • E-GIS with significant up front investment is most effective in producing benefits but requires a leap of faith that a good ROI analysis can support • Knowing where benefits are possible can help to guide investment priorities and amounts. Policy makers often totally misjudge the value of GIS seeing it as an exotic system, separate from IT and Telecom. • Being able to convincingly document the potential of benefits can raise the profile and priority of GIS investments. • A clear articulation of benefits can help win advocates and champions for GIS implementation across the government. • A focus on documenting ROI can protect GIS efforts should there be a budget crunch. • Overcome institutional resistance to collaboration: Assessing benefits can identify implementation and collaboration strategies that will yield the greatest benefits. • Even if you have an existing E-GIS system, an ROI assessment can document currently levels of benefits to support requests for new investments Filename/RPS Number

8. Vision For NSDI to Support Homeland Security Best Data = Local Data, Maintained, and Tied Into Local Processes Filename/RPS Number

9. NYCMAP, COGIS and LION Filename/RPS Number

10. Parcel Building Utility billing 911 response Zoning Street trees Land use Real estate Probationers Hydrant inventory Assessment Legal claims Address Ownership Crime data Water utility work orders Tenancy Sanitation violations X,Y Building -level permits Cell phone calls to 911 Code enforcement Environmental sampling Street segment 24/7 contacts Pavement management Anti- abandonment Landmarks inventory Street-level permits Sanitation schedule GeoSpatially Enabled Enterprise Data Integration (GEDI) Filename/RPS Number

11. Electric Gas Steam Telecom Landmarks Stadiums Malls Reservoirs Valve Chambers Tranmission Lines WC Plants Plants Building Connections Water Tunnels Hydrants Control Centers Mains Water & Sewer Security Facilities Pump Stations Watershed Statue of Liberty Piers Ports, Airports, Transit Yankee/Shea Stadium Fuel Storage MSG Container Storage Bridges Tunnels Empire State Bldg Toll Booths Bloomingdales Security Facilities Air Intake Approaches GeoSpatially Enabled Infrastructure Data Integration Filename/RPS Number

12. NYC Killer Apps • School bus routing: In late 1970’s Federal Education mandated NYC calculate distance from student residence to school in order to qualify for $30M in school bus funding. Mainframe application using TIGER file. Benefit: $30M direct financial • Complaint system geocoding: Validate and normalize address in mainframe applications and allow complaint information from public (street lights, catch basins, potholes, etc.) to be routed to the correct service yard. Now used in 311 system. Benefit: uncalculated but in the M’s in productivity/efficiency • Watershed filtration avoidance: EPA required NYC to comply with a large number of mandates to avoid building a $10 billion filtration system for its Catskill reservoir system. GIS mandated. Benefit: Avoids $500M to $1B in capital interest payments • CompStat: Crime mapping using centerline file, addressing and geocoding helps reduce murders and other violent crime 70%+ over last twelve years. Benefit: Value of 1,400 less murders annually. • West Nile Virus: Aided efforts to control the disease through a predictive model that targeted spraying and supported mitigation efforts. Benefit: Deadly disease now under control • September 11th: Emergency Mapping and Data Center (EMDC) and satellites provided information and analysis support to response and recovery. Benefit: Incalculable Filename/RPS Number

13. Framework for thinking about ROI: Benefits roll up across geographies, between different sectors of society and between related government functions at different levels Private companies \ Institutions \ Non-profit \ [Municipal (Finance) – Municipal – Municipal = Regional (Latitudinal) I l l l l l l l l County (Finance) – County – County = Regional] I State (Taxation) I Federal (IRS) (Longitudinal) Filename/RPS Number

14. E-GIS benefit tiers • Direct financial: collect more taxes, reduce law suit payouts, increased federal funding, collect more fines and fees • Direct safety gains taken as saved lives, reduced injury and reduced property damage: For example, a reduction in murders due to pattern identification, or reduced cardiac arrest deaths due to faster 911 response times. The unnecessary loss of life has a value to society. Lower crime can lead to direct financial benefits by reducing court courts. • Productivity gains: Enables a greater output per worker. Often results in better service to the public or the shift of employees to areas of greater need. Can lead to direct financial benefits if revenue collection processes are involve. Also, if reduction in workforce is made possible. • Indirect safety, social, operational and strategic benefits: Where improvements lead to acknowledged increases in effectiveness that cannot be measured but can be estimated. • Economic benefits: Increased business activity, new construction, more jobs, etc. (Most GIS applications can produce ROI in several or all benefit categories) Filename/RPS Number

15. Examples of multi tier benefits when a police department implements modern crime management systems that help reduce violent crime • Direct financial: Reduced overtime, lower liability, reduced court and prison costs, reduced probation and parole costs • [Direct safety: Reduced murder rate]* reduction in major crimes, lives saved, faster response time • Productivity gains: Less time lost to manual record keeping, faster information look-ups • Indirect social benefits: Better community relations, higher police morale • Economic development: Improved investment climate, more tourists and visitors downtown, increased jobs * focus of this analysis Filename/RPS Number

16. Some methods and assumptions • Convert all benefits into dollars because that’s what decision makers understand. • Assume that financial managers find investments acceptable if there can be a full return in benefits from that investment within 5 years. • Underestimate benefits and overestimate costs. • Whenever possible have agency managers set cost and benefit estimations themselves with the guidance of examples from other jurisdictions (“expert choice” exercise) Filename/RPS Number

17. Characteristics: City and County of Geopolis in the State of Locahoma • City and County of Geopolis are coterminous and under one government • Population: 1,000,000 exactly 1/300th the population of the U.S. • State of Locahoma, population 6,000,000 or 1/50th the population of the U.S. • Total cost of developing GIS framework data and infrastructure before 2007: $7,500,000 • Annual maintenance of framework data and infrastructure: $300,000 • GIS central staff: 6 employees, annual cost of employees: $600,000 @$100,000. Total GIS staff in Geopolis for agencies covered by this analysis: 45 FTE • Within Geopolis 120 murders were committed last year • Area: 30 miles by 33.3 miles = 1,000 square miles • 5,000 miles of roads, sewers pipes and water mains Filename/RPS Number

18. More characteristics: City and County of Geopolis in the State of Locahoma • Geopolis Gross Municipal Product = $40 Billion annually $12+Trillion annual national GDP / 300M population = $40,000 per person x 1M population • Expected cost of disaster events = $100M annually, $1B over 10 years $300 billion in damage over 10 years from major US events / 300 = $1B/10 = $100M annually • Geopolis payouts for liability annually = $50M • Total budget from taxes and revenue sharing: $5 billion annually • Total expenditures: $5 billion annually • 10,000 County and City employees excluding teachers • Geopolis contains a significant port and airport, and major mass transit and freight hubs. Geopolis is #25 on the HSIP ranking, and is a UASI urban area eligible for HLS funds. Filename/RPS Number

19. Core investment in GIS data, computers, telecommunications, applications and central staff • Cost for aerial photography, feature extraction, address ranges and point addresses, parcel layer, structure layer, hydro, transportation, topo, etc. $3,000,000 • Cost for improved existing computer infrastructure, architecture and internet capabilities: $2,000,000 • Cost for improved cable, fiber and wireless communications $2,000,000 • Cost for comprehensive geocoding application $ 500,000 • 10 percent annual maintenance on all investments $ 750,000 • Annual cost for 6 full time technical staff @100,000 $ 600,000 • ROI model assumes a total of 45 GIS staff hired Filename/RPS Number

20. Chart of cost of E-GIS versus benefits Filename/RPS Number

21. Benefit/Cost calculation formula Benefits: Total value of revenue stream or cost of operation or GDP of jurisdiction X (Background data references) % estimated benefit = total benefit X % of benefit attributable to GIS = value of GIS benefit distributed over 10 years Costs: Capital investment (data, application, consultants, infrastructure) + Maintenance (10% of all capital investments – SW, HW, data; plus staff costs) Filename/RPS Number

22. Structure of benefit form: GIS benefit type and application Background Data: PTI technology project examples and metrics Journal/web articles Personal experience in NYC Assumptions: Reasonable assumptions about costs, staffing and benefits of Geopolis GIS projects. GIS FTE estimated at $100K annually. Other municipal employees generally estimated at $50K annually Benefits: Calculation of benefits over ten years from 2007 – 2016. It can take between 3 and 10 years for benefits to ramp up to their full estimated potential. Costs: Assume data, application and infrastructure costs are prior to 2007 while personnel and maintenance costs are constant over a 10 year period. Filename/RPS Number

23. Benefit type: Direct Financial - Census Count Background Data 1) Phoenix, Arizona estimates increase federal and state funds per person is $432 2) NYC estimates use of GIS lead to 5% increase in census count. Benefits could range up from $100 per person. 3) Delaware County, Ohio estimates that use of GIS led to a 37.5% increase in census count and estimates that each person counted represented $375 in federal and state assistance Assumptions for the City and County of Geopolis, in the State of Locahoma: Current population: 1,000,000 Value of each person counted in state and federal assistance: $200 Additional headcount due to GIS in 2010 census: 5% or 50,000 Benefits Annual additional benefit: $10,000,000 2007: $0 2008: $0 2009: $0 2010: $5,000,000 2011 – 2016: $10,000,000 Cumulative benefits over ten years: $65,000,000 Costs: Prior to 2007 – Data, applications, infrastructure: $1M; 2007 – 2016 annual costs for maintenance and 3 FTE @$100K: $400,000 Cumulative costs over 10 years: $5,000,000 Filename/RPS Number

24. Benefit type: Direct financial – Parcel based taxes and fees Background Data Washenaw County, Michigan found 10,000 parcels missing from tax rolls Oblique angle photo vendors report 3% increase in assessments due to photo ID of improvements Assumptions Current property based taxes take in $1B annually Through GIS photo ID and improved parcel processes 1% annual increase in revenue is possible. Benefits realized in 20% increments over five years Benefits Total potential benefit: $10,000,000 annually 2007: $2M, 2008: $4M, 2009: $6M, 2010: $8M, 2011: $10M 2012 – 2016: $10M Cumulative benefits over 10 years: $80M Costs Investment prior to 2007 in data, applications, process change and infrastructure: $2M. Annual maintenance including 3 FTE: $500K Filename/RPS Number

25. Benefit type: Direct financial – Reduced liability payouts Background Data New York City pays out approximately $720M annually in lawsuits which equates to $90M per million population. No figures for how much the City takes in from successful lawsuits it brings. Assumptions Geopolis pays out $50M annually in liability to municipal workers, citizens and private companies for slip and falls, vehicle accidents, lawsuits against police, etc. Geopolis institutes an aggressive risk management program that uses spatial analysis as a tool to identify patterns of accidents allowing mitigation. Geopolis uses geospatial data and imagery in court to defend against lawsuits or to bring lawsuits. Benefits Average impact of use of GIS is 1% per year with some liability areas declining>10% and others not impacted. Also includes improved ability to win liability suits against others. $500,000 potential annual benefit after 5 years growing at 20% increments. 2007: $100,000; 2008: $200,000; 2009: $300,000; 2010: $400,000; 2011 - 2016: $500,000; total: $4M Costs: $250,000 data, applications and infrastructure; $125,000 annually for 1 FTE and maintenance. Filename/RPS Number

26. Benefit type: Direct financial - Collection of fines Background Data NYC collects about $475M annually in fines including parking violations, building violations, sanitary violations, health violations, environmental violations, vehicle fines, etc. Collections rates vary from 85% for traffic tickets to less than 50% for some building and environmental fines. Uncollected fines are about $75M annually. Often fines go uncollected because location information on the summons is incorrect or the address of responsible parties is wrong. Violations non-payment data is stovepiped so checks cannot be made across databases in different agencies. Assumptions Geopolis issues $50M in fines annually and $5M goes uncollected. There is a $15M backlog of unpaid fines over the past ten years. E-GIS and the geocoding of all fines data and mailing address information will increase fine collection and allow municipal workers to identify non-payers at any point of contact with Geopolis workers. E-GIS can increase fine revenue by 10% or $500K annually. Benefits Benefits will build in 20% increments over 5 years. Over ten years: $5M Costs: Data, application and infrastructure cost of $250,000; annual maintenance cost including 1 FTE: $125K Filename/RPS Number

27. Benefit type: Direct financial – Fraud reduction Background Data Fraud is commonly estimated at about 3% of total social services and other distribution expenditures Katrina fraud is estimated 11% of expenses and 21% of money given to individuals You heard little discussion of fraud relating to 9/11 in part because all claims were geocoded and mapped Lipton, Eric, Breathtaking Waste and Fraud in Hurricane Aid, New York Times, published June 27, 2006 ; McKeefry, Hailey Lynne, Louisiana Stamps out Food-Stamp Fraud, eWEEK.com, published June 8, 2006 Assumptions Geopolis spends $500M annually on social services distributions and various subsidies annually and 3% or $15M are lost to fraud including double dipping, payments to ineligible individuals, overlapping payments to same household, etc. Use of name and address matching and geospatial analysis can find and eliminate 5% of fraud potentially worth $750K Benefits Potential annual benefit grows by 20% increments – 2007: $150,000; 2008: $300,000; 2009: $450,000; 2010: $600,000; 2011 – 2016: $750,000; 10 year total: $6M Costs: Data, applications and infrastructure: $500,000; Annual maintenance including 2 FTE: $250K Filename/RPS Number

28. Benefit type: Direct financial – Water and sewer taxes Background Data Obsolete ownership and parcel record keeping, and a lack of information about structures can handicap water and sewer billing operations. A 5% postal return rate on bills mailed to property owners is not uncommon. Inaccurate parcel dimensions and residential units, plus incorrect identification of commercial and industrial uses can all contribute to a significant impact on revenues. Assumptions Assume Geopolis collects $150M annually in water/sewer taxes keyed to property ownership, residential units, type use, type structure, parcel boundaries, and the correct contact information for responsible parties. Assume that E-GIS can increase annual revenues by 2% due to improved records and addresses.Benefit potential is $3M annually. Benefits 2007: $600K; 2008: $1.2M; 2009: $1.8M; 2010: $2.4M; 2011 – 2016: $3M; Ten year total: $24M Costs: Data, application and infrastructure: $500K; annual maintenance including 2FTE: $250K Filename/RPS Number

29. Benefit type: Direct financial – Business activity tax Background Data Business taxation operations usually suffers from the same issues of property tax and water/sewer taxes. Obsolete record keeping, poor structure, parcel and ownership data, bad addresses, etc. Assumptions Geopolis charges a business tax that collects revenues of $250M annually however the County/City understands that it does not have the ability to group together the different facilities that may be owned and operated by the same company. Additionally, because of business turnover, it does not have complete records of all the companies operating at one time. Because of ownership changes 5 percent of all tax mailings never arrive at their proper destination. Assume an improved parcel, structure, land use and address databases will significantly improve the ability of Geopolis to identify its businesses and to tax them appropriately. Assume a potential increase in tax collection of 1% annually or $2.5M. Benefits 2007: $500,000; 2008: $1.0M; 2009: $1.5M; 2010: $2.0M; 2011-2016: $2.5M; 10 Year total: $20M Costs: Data, application and infrastructure costs: $500K; Annual maintenance with 2 FTE: $250K. Filename/RPS Number

30. Benefit type: Direct financial – Grants Background Data Many urban areas receive significant funding for homeland security and disaster preparedness. Increasingly, grants are being used to build E-GIS data, application and technology foundations. Also, many federal agencies will strongly consider county and city government for grants for developing geospatial data and applications especially if they support the work of federal agencies or result in lower costs and other benefits. Assumptions Geopolis is in the midst of a larger region that is rated #25 on the HSIP list of Urban areas and therefore gets significant amounts of HLS funding. Internal revenue and Locahoma State taxation bureau recognize that the building of a comprehensive structure, centerline and address database will help it identify tax avoiders and tax cheats. Other federal agencies look to partner with Geopolis because their excellent geospatial data can be of assistance to their operations. Benefits Geopolis receives a $750,000 to support it’s E-GIS development. Thereafter, Geopolis averages $250,000 in federal and state grants that support the improvement of it’s E-GIS system. Costs: Assume $25K prior to 2007 and $10K from 2007 - 2016 Filename/RPS Number

31. Benefit type: Safety: Saving Lives and Preserving Property – Crime analysis Background Data http://www.fbi.gov/ucr/05cius/data/table_16.html shows homicide rates in urban areas. NYC murders have dropped from 2,200 in the early ’90’s to under 600, a reduction of 1,400 annually Assumptions The Geopolis murder rate is 12/100,000 annually for a total of 120 annually. Using geospatially improved dispatch and crime analysis along with better policing techniques, a 12.5% reduction in the murder rate over a five year period is possible. Every murder can be valued at $1M in police, medical, court costs, and in victim costs. Assume murder rate is reduced by three each year starting in 2007 and levels out after 2011 Assume 20% of benefits can be attributed to GIS Benefits 2007: $600K; 2008: $1.2M; 2009: $1.8; 2010: $2.4M; 2011 - 2016: $3.0M; 10 Year Total: $24.0M Benefits don’t yet take into account reduced costs of less crime: less trials, less prisoners, improved business climate, etc. (Does not take into account reductions in 8740 violent crimes annually) Costs: GIS data, applications and infrastructure: $1.5M; Maintenance including 8 FTE: $950K Filename/RPS Number

32. Benefit type: Safety: 911 emergency response Background Data USA Today’s Robert David noted in a series of articles that more than 1,000 savable lives are lost annually because of slow response time to sudden cardiac arrest. Calculations show about 1 cardiac arrest death per 5,000 people annually Dr. Robert J. Myerburg estimates that every reduction of 1 minute in response time reduces fatalities by 10%. Improved dispatch technology and systems, street address data, routing and AVL capabilities, can easily lead to a 1 minute or more improvement in dispatch time from initial call to arrival on the scene. Assumptions Geopolis suffers 200 annual deaths through sudden cardiac arrest annually and can reduce fatalities by 20 annually through faster response times and equipping emergency responders with defibrillation devices. Four lives will be saved in 2007 increasing by four until 2011 when benefits level off. Assume each life is worth $1M in lost taxation and benefit payments to family. Assume 50% of benefit can be attributed to GIS. Benefits 2007: $2M; 2008: $4M; 2009: $6M; 2010: $8M; 2011-2016: $10M; Total 10 years: $80M (Does not take into account deaths from heart attack, respiratory failure, bleeding, etc. where time is of the essence.) Costs: Data, application and infrastructure: $2.5M; annual maintenance including 4 FTE: $650K Filename/RPS Number

33. Benefit type: Safety: Disaster preparedness Background Data In the past ten years about $300B has been lost in major US disasters (>$1B) including hurricanes, terrorist attacks and earthquakes. This does not include smaller or less damaging disasters such as tornadoes, forest fires and floods. etc. A 2005 study of the Multihazard Mitigation Council found that “…a dollar spent on mitigation saves society an average of $4.” http://www.nibs.org/MMC/MitigationSavingsReport/Part1_final.pdf (pg5) Creating E-GIS is funded by DHS in a number of jurisdictions for disaster and emergency preparedenss Assumptions Over the next ten years Geopolis will suffer $1B in damage from the average expectable effect of emergencies or an average of $100M annually. E-GIS used by the Geopolis OEM will improve critical infrastructure data, allow analysis of vulnerabilities and dependencies, allow rapid access to essential data in a crisis, enable better mitigation. Assume $5M invested in E-GIS in Geopolis of direct application to emergency management. Therefore assume $20M in benefits over 10 years or $2M annually. Benefits 2007 – 2016: $2M annually, total $20M. Costs: Data, application and infrastructure: $2.5M; Annual maintenance with 3 FTE: $550K Filename/RPS Number

34. Benefit type: Productivity gain – Field force automation Background Data GITA assessment of field force productivity gains through the use of location aware technologies is greater than 25%. Many utility companies have, for years, reported remarkable increases in field force productivity through the use of improved address data, accurate utility maps, routing and AVL. Assumptions Geopolis, with a total municipal and county workforce of 10,000 has 1,000 field workers who can directly benefit from field force automation including AVL, routing, wireless communications, accurate location data and maps, etc. Workers include sanitation and street cleaning workers, social workers making home visits, highway work crews, health inspectors, building and other inspectors, etc. Assume annual salary of workers is $50,000 annually for a total annual salary of $50M. Potential field automation benefits equal $50M x 25% = $12.5M Assume potential of 20% of benefits can be attributed to E-GIS and location technologies or $2.5M annually. Assume benefits can be captured at 10% increments over the course of 10years. Benefits 2007: $250K;2008: $500K;2009: $750K…….2016: $2.5M Costs: Assume $2M for data, applications and infrastructure; Annual maintenance including 3 FTE: $500K Filename/RPS Number

35. Benefit type: Productivity gain – Back office automation Background Data Many municipal workers are engaged in back office work processes that involve the processing of location information including: supporting property work processes, answering public inquiries, recording work requests, providing maps, etc. The use of web based GIS applications allowing automated look ups and work requests, and the ability of municipal workers to look up location data using similar applications can greatly increase productivity. Assumptions Of Geopolis’ 10,000 workers, 500 spend at least 25% of their work day on work processes that require access to location information, or providing geospatial information to the public. In many instances location enabled web and intranet applications can greatly reduce or simplify this work. Assume 500 workers x 25% x $50,000 average annual salary = value of time spent using location information on work processes or $7.5M annually. Assume a 25% increase in productivity, 50% of which can be attributed to E-GIS. Potential annual productivity savings = $973,500 rounded off to $1M. Assume benefits built by $100,000 increments over 10 years. Benefits 2007: $100K with $100K increments to 2016: $1M. Benefits over 10 years: $5.5M Costs: Inter/intranet application development and infrastructure: $500K; Annual maintenance including 1 FTE: $150K Filename/RPS Number

36. Benefit type: Improved government effectiveness – Social services Background Data Not all benefits yield money in the bank or save lives. Some can produce a higher quality of life that is difficult to quantify but very important never-the-less. Social workers can use GIS to track the locations of problem families and children minimizing those “lost” in the system. Identify underserved communities. Site facilities and concentrate services where the needs are, etc. Assumptions Assume that the ability of E-GIS to support demographic, economic, housing, and neighborhood trends supports the delivery of social services by providing Geopolis’ 500 social workers with better information about community needs, child placements, placement of facilities, etc. Geopolis’ manager when asked agrees that E-GIS can make their social workers, and their programs at least 5% more effective in addition to any productivity gains. Workers will be more responsive and State and Federal oversights will appreciate better documentation. The potential benefit value can be calculated as 500 x 5% x $50,000 average salary = $1.25M annually Benefits Build in 10% increments over ten years starting in 2007 with a benefit of $125K. Geopolis manager believes use of E-GIS will allow better tracking of clients and prevent a child from slipping through the safety net with risk of injury or death. Costs: Data, applications and infrastructure: $350,000; Annual maintenance include 2 FTE: $235K Filename/RPS Number

37. Benefit type: Improved government effectiveness – Health services Background Data Since the use of spatial analysis to trace the source of cholera to a water pump in London, location has been a staple of epidemiological analysis and support for a wide variety of Health operations. Assumptions There are 150 health care professionals working for the Geopolis Department of Health engaged in dozens of operations including food inspections, lead poisoning, west nile virus management, etc. The annual budget of the Health Department is $15M. Rather than conduct an extensive analysis of the entire Health Department, the Commissioner, who can use GIS desktop software, declares that he believes the development of a comprehensive spatial data infrastructure could increase the effectiveness of his Department by a minimum of ten percent annually. He commits to personally seeing to it that GIS is fully implemented in the Department of Health within three years. He is prepared to make the appropriate investments in GIS personnel, data conversion and applications development. The Commissioner believes that using GIS can save at least 5 lives annually in Geopolis but is unwilling to publically commit to this number until he can get real measures. Benefits Potential benefit of $1.5M. 2007: $500K; 2008: $1M; 2009 - 2016: $1.5M; Costs: $3M investment in infrastructure, applications and data; $700K for maintenance including 4 FTE. Filename/RPS Number

38. Benefit type: Economic Development Background Data A Price Waterhouse study for Australia in 1994 estimated that for every $1 invested in producing spatial information, $4 of benefits were generated within the economy. Many private firms depend upon excellent address data for mailing operations, delivery, routing, customer service, etc. Efficient routing can increase productivity, reduce miles traveled, fuel costs and cost of vehicle maintenance. Efficient property transaction processes, access to infrastructure information and improved permitting and inspection processes can reduce construction time, reduce infrastructure conflicts, and promote collaboration and efficiencies. Each month of construction delay adds 0.5% to construction costs. The above can make Geopolis a more attractive place to locate and expand. Greater profitability due to better information can lead to higher tax income. Assumptions Based on US GDP at an average $40,000 per capita, total gross “municipal” product is $40B for Geopolis. Geopolis makes available anywhere from $1M to $5M of its geospatial data and applications to the private sector with a potential benefit range of $4M to $20M annually. For purposes of this analysis, assume benefit grows to $4M annually in 10% increments over 10 years. Benefits 2007: $400,000; increasing by $400,000 increments until 2016: $4M Costs: Data, application and infrastructure: $500K; Annual maintenance including 2 FTE: $250K Filename/RPS Number

39. Chart of cost of E-GIS versus benefits Filename/RPS Number

40. Some observations • Based on total benefits Geopolis’ E-GIS pays back in it’s third year even as it supports continuing maintenance and staff support. • Based only on direct financial benefits Geopolis’ E-GIS fully pays back investment in it’s fifth year. • Given a full 5 year payback standard for capital investment Geopolis could have justified an additional $7M – $81M in GIS/IT/Telecom investments. • After 10 years ROI calculations, depending on benefit type, range from $110M – $308M. Filename/RPS Number

41. Benefit tiers left out Lower murders and violent crime: Reduced court costs, police overtime, prison costs, increased economic development 911 emergency response: Reduced injury and death due to faster response to heart attacks, stroke, respiratory failure, bleeding, etc. Pinpoint calls in rural areas when address is not given. Also, fewer police, fire and EMS injuries due to improved data in the field. Tax and fine collections: Faster research across tax and fine operations. Shared data between research offices less duplication of research. At all contact points between public and government the opportunity to ID non-payers. Property transactions: Re-engineered operations to speed data access, allow online transactions, and automate paper processes State, Federal, Private and Institutional Benefits Filename/RPS Number

42. ROI types left out • Odd ball ROI determined by unique municipal/county circumstances • Public works: Capital planning, design, construction and maintenance costs • Utility/municipal interaction: One stop, cost of utility damage, interferences • Conflict free construction: Don’t rip up street the day after it was paved • Bonding and GASB 34 compliance: Full knowledge of infrastructure and assets • Specific field operations such as garbage collection, street cleaning, snow removal, property assessment, etc. • Specific back office operations: Parcel sales, splits, joins; building inspections, permitting, etc. Filename/RPS Number

43. How to keep GIS investment as low as possible • Make sure data and application specifications satisfy all major players and their expected ROI yielding applications. • Make sure data and applications comply with all standards to maximize opportunities for re-using components, and sharing across agencies. • Barter municipal and county data for important private and institutional data sets. • Share applications with other jurisdictions. • Acquire data regionally, state-wide or nationally to capitalize on economies of scale (Imagery for the Nation; Transportation features for the nation) and reduce or eliminate duplication. • Win grants from federal and state agencies by showing them the advantages of municipal data and application builds. • Collaborate with professors and students at local university (UCGIS member?) Filename/RPS Number

44. A new paradigm? ROI leading IT, GIS and Telecom planning, investment and organization • Based upon our collective experience identify the benefit values for all GIS, IT and Telecommunications options. • Gear investment, organization and design (enterprise architecture) to capture maximum value. • Appeal to C-suite executives based on ROI as a strong “political” plus Filename/RPS Number

45. Next steps • Get feedback, corrections, additional metrics and supplemental information. Upgrade powerpoint. • Answer the question: Can this kind of analysis help GIS/IT managers get additional funding? • If this analysis is determined to be useful, decide whether to go further. • What kinds of elaboration would be helpful? • Leave it the way it is? • Write an article/white paper for publication • Determine whether a more formal way of capturing ROI information from PTI member jurisdictions is warranted to continue enhancing this analysis with additional inputs • Information capture could be as simple as using a version of the ROI capture form. Filename/RPS Number

46. References • Sabety, Pari; Reamer, Andrew and Clark, Lindsay November 30, 2004. Understanding Our Communities: Funding the American Community Survey. The Brookings Institution, Cities and Suburbs. http://www.brookings.edu/views/op-ed/reamer/20041130.htm (Census) • McKeefry, Hailey Lynne, Louisiana Stamps out Food-Stamp Fraud, eWEEK.com, published June 8, 2006 http://www.eweek.com/article2/0,1895,1972079,00.asp(Fraud) • Davis, Robert 2006 Six Minutes to Live or Die. USA Today, May 20,2006, http://www.usatoday.com/news/nation/ems-day2-cover.htm (911 emergency response) • Fenster, Jeffrey MD, etal. Armed with AEDs, Police Save Lives by Cutting Response Time, Journal Report August 7, 2002, American Heart Association http://www.americanheart.org/presenter.jhtml?identifier=3004253 (911 emergency response) • Werschuler, Tim; Rancourt, Julie; The Dissemination of Government Geographic Data In Canada: Guide To Best Practices, Page 11. GeoConnections, Winter 2005, Version 1.2 (Economic development) • Lipton, Eric, Breathtaking Waste and Fraud in Hurricane Aid, New York Times, published June 27, 2006 http://www.nytimes.com/2006/06/27/washington/27katrina.html?ex=1309060800&en=1683e5fa71ecfb90&ei=5090&partner=rss&emc=rss(Fraud) • Multihazard Mitigation Council (MMC) of the National Institute of Building Sciences (NIBS), Natural Hazard Mitigation Saves, 2005; http://www.nibs.org/MMC/MitigationSavingsReport/Part1_final.pdf(Disaster prep.) • Nebert, Douglas; U.S. FGDC and Geospatial One-Stop Activities Related to Return on Investment, Report to ROI Workshop, Ispra, January 2006: http://sdi.jrc.it/ws/costbenefit2006/presentations/nebert.pdf Filename/RPS Number