Policy Audit Topics: City Systems - Infrastructure, Transportation & Sustainability

IN‐PROGRESS V2 – DECEMBER 22, 2010
PHASE ONE: RESEARCH AND PRIORITIES
POLICY AUDIT TOPICS:
CITY SYSTEMS ‐ INFRASTRUCTURE, TRANSPORTATION, & SUSTAINABILITY
HAPPOLD CONSULTING
IN-PROGRESS: DECEMBER 22, 2010
TABLE OF CONTENTS
PREFACE 0
INTRODUCTION 1
SYSTEMS OVERVIEW & AUDIT OBJECTIVES 2
AUDIT OBJECTIVES 2.1
DEFINING CITY SYSTEMS 2.2
DETROIT OVERVIEW 2.3
DETROIT SYSTEMS OVERVIEW 2.4
AUDIT METHODOLOGY 3
ANALYSIS 3.1
DATA COLLECTION APPROACH 3.2
EXCLUSIONS 3.3
DATA METRICS
EXTENTS
3.4
3.5
FUTURE INTEGRATION 3.6 CITY SYSTEMS ‐ INFRASTRUCTURE, TRANSPORTATION, & SUSTAINABILITY
AUDIT ORGANIZATION
SYSTEMS REVIEW 4
WATER, ENERGY, WASTE, TELECOMS ‐ UTILITIES 4.1
ROAD, PUBLIC TRANSIT, AVIATION ‐ TRANSPORTATION 4.2
BORDER CROSSINGS, LOGISTICS & FREIGHT ‐TRANSPORTATION
CASE FOR CHANGE 5
DETROIT’S KEY SYSTEMS 5.1
EMERGING CHALLENGES 5.2
POTENTIAL MEASURES 5.3
TRANSFORMATIONAL IDEAS 6
EMERGING TRANSFORMATIONAL IDEAS 6.1
PHASE 2A AND NEXT STEPS 6.2 HAPPOLD CONSULTING
0 – PREFACE
HAPPOLD CONSULTING
POLICY AUDIT TOPIC: CITY SYSTEMS – INFRASTRUCTURE, TRANSPORTATION & SUSTAINABILITY
0.0 Preface
THE DETROIT WORKS PROJECT POLICY AUDITS
• COMMON TEXT TO BE PRODUCED BETWEEN ALL CONSULTANTS
HAPPOLD CONSULTING
1 – INTRODUCTION
HAPPOLD CONSULTING
1.0 Introduction
THE CITY SYSTEMS POLICY AUDIT
• This Policy Audit is one of several, produced in the first phase of the Detroit Works
Project, by the Technical Team.
• Happold Consulting has drafted this Audit, and it contains research, analysis and insight,
with regards to;
– Infrastructure & Utilities
– Transportation
– Fiscal Architecture
• The systems and modes studied within this Audit are outlined in the pages which follow,
but essentially consist of Energy, Telecoms, Public Lighting, Waste, Water, Roads, Border
Crossings, Public Transit, Aviation, Ports, Non‐motorized transport routes, and rail.
• In addition to an urban and physical understanding of each of these, a fiscal
understanding is developed, in order to understand the performance and behaviour of
these systems in the economy.
• The analysis builds towards an understanding of the challenges each of these systems
faces, the severity of each, and the applicability of a range of potential measures to
each.
• Conclusions are drawn as to what the most appropriate measures might be to address
these challenges, which lay down research and scenario modelling avenues for the
future phases of the project, and opportunities for interlinkages with other Policy Audits
being undertaken as part of the Detroit Works Project.
HAPPOLD CONSULTING
1.0 IN-PROGRESS: DECEMBER 22, 2010
2 – SYSTEMS OVERVIEW & AUDIT OBJECTIVES
HAPPOLD CONSULTING
2.1 Audit Objectives

THE DETROIT WORKS PROJECT - PHASE 1 POLICY AUDITS
Infra‐
CURRENT PHASE: Policy Audit structure
& Trans‐
Evidence based analysis port
Detroit Works Project phases
Integrated baseline setting Neigh‐ Regional

1 out the challenge and bor‐ & City
opportunities facing Detroit hood & Urban
Housing Form
2a
Public
2b Ecology
Land
& Land‐ Develop‐
scape ment
3 Econ‐
omy
4
HAPPOLD CONSULTING
2.1 Audit Objectives

THE CITY SYSTEMS POLICY AUDIT - OBJECTIVES
SUSTAINABLE INFRASTRUCTURE SYSTEMS ARE ESSENTIAL TO THE FUTURE
PROSPERITY AND QUALITY OF LIFE OF ALL DETROIT CITIZIENS
Phase 1
Current Status in 2010 Future Status (to 2035)
1. Provide overview of 1. Assess key trends in
current structure, population, employment,
coverage and governance spatial planning and MAKE THE CASE
of city systems governance which will FOR CHANGE
2. Assess adequacy of the impact directly on city Assess opportunities and
challenges against
services provided systems potential measures
3. Review the financial and 2. Identify the extent of
environmental investment programs
sustainability of these planned for each system
systems 3. Assess future adequacy of
systems in the light of
these trends
HAPPOLD CONSULTING
2.2 Defining City Systems

DETROIT’S KEY SYSTEMS
A city is defined by its people, its environment
and its economy – and by the pattern of spatial
distribution/connectivity between them
Strong systems are required to sustain
and enhance the city over time
HAPPOLD CONSULTING

KEY SYSTEMS COVERED BY THE AUDIT
FOR EACH SYSTEM
Public THE AUDIT WILL
Energy
COVER:
Tele‐ Electricity, Transit Aviation • Regional Resources
gas, steam
coms • Governance Structure
• Demand/supply
Roads
• Network coverage and
quality
• Fiscal Position
Public Transport
Utilities Maritime • Planned Projects
Lighting ‐ation • Benchmarks
Inter‐
• Key challenges/ Potential
national Measures to be adopted
Crossing
Waste Points
Collection Water Non‐
Disposal Potable, Rail motorized
Recycling wastewater Freight
stormwater Passenger
HAPPOLD CONSULTING
DETROIT WORKS PROJECT
2.2

ANALYZING CITY SYSTEMS
In analyzing city systems as fiscal, economic and financial systems of entities, it is important they be viewed from both a Supply side and a
Demand side. We strove to examine each of these viewpoints through 4 lenses, which are explained below:
VIEWPOINT: DEMAND VIEWPOINT: SUPPLY
1. Parameters: Elements such as the number of people and economic units placing demands on the system, the
resources available to fulfil the demand, and the configuration of the city and the system networks through which
the system’s output is to be delivered.
2. Control: Ways in which the system in question is regulated or controlled. Depending on the viewpoint, this might be
LENSES
down to market forces (e.g. a certain amount of electricity demanded exerts a certain amount of control on the
electricity system) or to regulation by various levels of government.
3. Technical: This lens is concerned with the technical‐physical parameters of the supply and demand sides of a
given city system, such as network typologies, extents, age, capacities, adaptability, etc.
4. Financial: The “money” elements of a given city system. This lens looks at monies received in terms of
funding to provide a given service, monies received in revenue from payments for provision, and the costs
to distribute a service, whilst maintaining the network and paying for the raw resources.
HAPPOLD CONSULTING
2.2

ANALYZING CITY SYSTEMS
The diagram below illustrates the interactivity between the elements of each lens, and serves to emphasize the importance of a city
systems analysis which takes these 2 viewpoints and 4 lenses into account. The major changes seen in Detroit in recent history will
have a different way of influencing each of these elements of the diagram below and affect how city systems can and ought to be
adjusted.
VIEWPOINT: DEMAND VIEWPOINT: SUPPLY
4. Financial 3. Technical 2. Control 1. Parameters
Natural City Form &
Population Economy
Resources Connectivity
Market
LENSES
GAP? Governance & Regulation
Structure
Demand Supply Network Operation

(Current levels/ future (Current capacity – new (Current extents – new (Current levels/ future
trends) capacity/obsolescence) capacity/obsolescence trends)
Revenues Cost
(Current levels/ future
Operation, Maintenance, Reinvestment
trends)
HAPPOLD CONSULTING
2.2

WHY CITY SYSTEMS MATTER AND THE IMPACT OF POPULATION DECLINE
INFRASTRUCTURE SYSTEMS FORM A MAJOR THE SCALE OF CHALLENGE IS GROWING DUE
PART OF A CITY’S ASSETS TO POPULATION DECLINE
Infrastructure systems play a major role in national and regional economic development, City population decline has resulted in excess available supply and fiscal challenges to
through improving: continue operations and maintenance for existing infrastructure.
Quality of Life: key for attracting people and thereby investors, industry and High fixed costs mean, as
occupiers
consumption drops, unit costs
Prosperity: catalyst for agglomeration economics and creating industrial clusters increase
Competitiveness: major part of the production and cost functions of industry
For example, transport infrastructure is crucial for:
Efficient logistics, business connectivity and generating transportation jobs
Linking people to jobs and education
Creating sustainable places and communities
Change in cost per unit of water, DWSD1
Source: 1. SEMCOG, 2010 HAPPOLD CONSULTING


INFRASTRUCTURE CONTEXT
City Systems can Investment climate for A push for Negative attention -
shape development Infrastructure is rich Environmental positive energy
The decline in Detroit has resulted in a
major disconnect between city
Plans for investment announced at a
federal level under the current
Sustainability Whilst Detroit might be the focus of a
certain amount of negative attention
systems, and the systems dependents. administration point to a significant Public and government support for at present, it is important to remember
Targeted interventions on the various increase in investment in transport and “greener”, more efficient, more that its unique situation at present also
city systems in specific locations can infrastructure over previous years. The ecologically benign and more means it has access to certain unique
act as tacit incentivization for Detroit Works Project will seek to steer sustainable infrastructure and governmental opportunities for
movement of density within the city, or the city in the direction of optimal transportation systems is at an all time support, as well as a particularly strong
provide platforms for growth in parts funds and optimal usage of funds, to high. This is reflected in both bottom‐up, grassroots base of
of the city where growth is sustainable. take maximum advantage of this rich regulation and incentivization intelligence and innovation, from
investment climate. programmes at all levels of community organizations and the
governance. There is an opportunity general public. The population and
for Detroit to reform its current organizations of Detroit are a font of
sustainability profile, by taking information and data, and will be an
advantage of the need for large‐scale important resource in determining
change and the availability of funding how the urban systems of the city
for innovative new sustainable ought to be adjusted over the life of
interventions. The time is now, and this project.
the lifespan of most city infrastructure
means that if the sustainable choices
are not made now, they will not be in
place for the subsequent half century
at least.
HAPPOLD CONSULTING
2.3 Detroit Overview

COMMON SLIDES TO BE COMPLETED BY TECHNICAL TEAM
• Scales
• Regional overview
• Population projections
• Employment projections
• Population density (regional)
• Population density (city)
• Detroit Economic profile
• Employment locations
• Commuting patterns
• Detroit Environmental profile
• Detroit Social issues profile
HAPPOLD CONSULTING
2.3 Detroit Overview

CITY ORGANIZATIONAL STRUCTURE
HAPPOLD CONSULTING
2.3 Fiscal Overview

CITY FINANCIAL POSITION
EXPENDITURES GENERALLY RISING
• Expenditures in the city exceeded revenues in 5 out of the last 8 years
• Current deficit
REVENUES VOLATILE AND DECLINING
• Revenues are volatile and not rising in line with expenditures due to limited
pricing capabilities and falling population
• Revenues are mainly generated from taxes and sales and service charges –
nearly 70%
OVERALL FISCAL POSITION
• Very difficult fiscal position with an increasing deficit over the period
• Given the decreasing population and employment numbers – current and
forecast, the fiscal position will remain challenging
• The current tax burden in the city is high relative to the Michigan average
• Increasing taxes in the future to balance the budget will be difficult given the
economic conditions and may harm efforts to attract businesses and people to
the city
HAPPOLD CONSULTING
2.3 Fiscal Overview

HISTORIC CITY BUDGET
TAXES
• Property taxes cannot rise anymore as these are currently set at the
highest level allowed by the State of Michigan
• Utility users tax is also set at the highest allowed by the State
REVENUES
• The majority are from non‐departmental (municipal income tax,
property tax, state revenue sharing, etc) and enterprise agencies
FUNDING CHALLENGES
• The city’s ability to generate more funding through its non‐
departmental activities may be limited, especially that it has
exhausted its tax raising abilities and it is partly funding the activities
of some of the enterprise agencies
CURRENT ACTIONS
• Through the Kresge Foundation, McKinsey & Co. have been contracted
to conduct a review of city agencies to identify greater efficiencies
that can be applied in the short term to help the city improve its fiscal
conditions.
HAPPOLD CONSULTING
2.4 Detroit Systems Overview

DETROIT’S RICH CITY SYSTEMS LEGACY
• One of the great American Cities – 4th largest city in
America at its high point (early 1950s)
• Technologically advanced for its day – the quality and
sheer scale of the infrastructural systems put in place is
staggering.
• Detroit now has: (Region)
– Great rail (and even better rail potential)
– Water, water, water!
– Interstate Highways
– An abundance of airfields (circa 35)
– Many international connections into Canada
– Good ports (and potential for more throughput)

2.4 Detroit Systems Overview

DETROIT’S RICH LEGACY
DETROIT’S ORIGINAL GROWTH
WAS FOUNDED ON STRONG
INFRASTRUCTURE SYSTEMS, THE
CHALLENGE NOW IS TO MAKE
THEM RELEVANT TO DETROIT AS IT
IS NOW AND WILL BE IN 2035
For example:
Transportation Infrastructure:
• International border crossings
• The Ambassador Bridge is the busiest border crossing
in North America (27% of the total trade between the
U.S. and Canada).
• Strong Railroad Network and key cross border railroad
routes
Water Infrastructure
• The Detroit Wastewater Treatment Plant is the largest
single‐site wastewater treatment facility in the United
States. However it is aging, and its centralized nature
means it is not as resilient in the face of a changing
Detroit as such a system ought to be.

3 – AUDIT METHODOLOGY
HAPPOLD CONSULTING
3.1 Analysis
OVERALL ANALYSIS APPROACH
This policy audit will include examinations of the following, for transport modes,
and utilities.
Overview Governance Resources & Network Planned Projects

The overview of each mode or utility This examination will explain how the This sub‐section will briefly outline the Based on research and meetings with
will provide an outline of the key utility or mode is governed physicality of the utility or mode in the relevant governing bodies, this
characteristics of the system, such as hierarchically (federal, state, city) and question. I.e. what resources are section will outline the on‐going
what service it provides, to whom, how how and by whom the required required to produce the utility (e.g. projects, as well as those planned,
it is delivered, and where. governance functions such as coal for electricity) and where does the which pertain to the maintenance,
regulation, finance, operation and network consist of (e.g. cables of development, or alteration of the
delivery are undertaken. various voltages, for electricity). The modes and utilities in question.
networks will also be mapped spatially
in this section.
NOTE: Where a certain area of analysis listed above is not relevant, or where data was unavailable, an exclusion will be made (see 3.3). HAPPOLD CONSULTING

3.1 Analysis
OVERALL ANALYSIS APPROACH
Fiscal Position Benchmarks & Adaptability Challenges Assessment against
Based on research and interaction
with the relevant organizations, the
Targets Each utility or mode will have its
own particular characteristics,
Having examined the
aforementioned areas in some
Potential Measures
fiscal position of each utility and For each of the modes or utilities, which will affect how easily it can detail, the penultimate Over the course of this Policy
mode will be outlined in this sub‐ a process of benchmarking will be be adapted to change as methodological tool deployed on Audit a number of potential
section. Revenue, expenditures, attempted, in order to establish a Detroit’s situation changes. This each of the city systems will be measures begin to emerge which
funding and financing sources will performance unit and level to section will therefore assess the an examination of the various could be deployed to bring the
be examined here. which the system in question adaptability of the systems in challenges affecting the systems city systems into line with the
ought to aspire. In order to question to Detroit’s evolving in question, and an evaluation of changing demographic, economic
assert these targets, precedents situation. the severity of each. and spatial situation in the city.
or case studies may be used. The suitability of each of these
potential measures will be
assessed against the specific
situation and characteristics of
each mode or utility, in this sub‐
section.
NOTE: Where a certain area of analysis listed above is not relevant, or where data was unavailable, an exclusion will be made (see 3.3). HAPPOLD CONSULTING

3.2 Data Collection Approach
A COMMON DATA DETROIT AS A CITY SYSTEMS AS

PLATFORM REGIONAL ENTITY ECONOMIC ENTITIES
• This project aims to collate, display and • In the data collection process for this • It is important that data is collected and
analyse information from the myriad of Policy Audit, it was important not to analysed for the various city utilities
different exercizes which have been restrict the collection of data to the and transport modes which helps the
undertaken to understand Detroit. Detroit City Limits. As such, where city team understand these systems as not
• This information will be examined at a systems go beyond the city limits, they only physical entities, but as both
range of scales, and attempt to offer up are to be understood and analyzed as economic and financial entities, with
a data platform from which evidence‐ regional systems accordingly. The costs, budgets, expenditures, funding
based decisions can be made. boundary of our analysis for the city sources, and targets.
systems examined herewith therefore
• Data catalogue – For the Detroit Works
Project, Happold Consulting assembled corresponds with the extents of the
a single multi‐page PDF data catalogue systems themselves, not the city.
containing illustrations and descriptions
of the datasets obtained by the project
team, and made this available to all as
a menu of available information.
• Spatial database ‐ Data will be
represented spatially, creating a shared
GIS‐based spatial database of Detroit
information to be used in the
development of and debate on,
strategies later in the project, by all
stakeholders.
HAPPOLD CONSULTING
3.2 Data Collection Methods

MAP SOURCING
Data Driven Detroit
MDOT Border Com.
Dept. Public Works
Pub. Lighting Dept.
Detroit Intermodal
Nat’l Wildlife Fed.
Charter Rev. Com.
AT&T / Comcast
East Jefferson
Microsoft V.E
Google Maps
State of MI
ESRI (GIS)
McKinsey
SEMCOG
SMART
U of M
DWSD
MDOT
P&DD
DDOT
DCDC
MCGI
LISC
GIS Data &
Mapping
Reports
Interviews/
Meetings
CC Green Task Force
DTC (People Mover)
Data was obtained for this Policy Audit in 3 major ways; through GIS
Resource Recovery
Det. Muni. Parking
Connect Michigan
data obtained from Detroit stakeholders, through the reading and
Dept. Env. Affairs
Riverfront Cons.
interpretation of reports prepared by those studying Detroit at present
Woodward LRT
Wayne State U
Port of Detroit
Michigan EGC
and in the past, as well as group meetings and targeted interviews with
C. Y. Airport
relevant Detroit agencies.
DEGC
GIS Data &
Mapping
Reports
Interviews/
Meetings
HAPPOLD CONSULTING
3.3 Exclusions
LIMITATIONS IN DATA AVAILABILITY
It is important to note that despite a wide‐reaching research effort, there are several key
pieces of information, which at the date of printing, remain out of reach to the technical
team. Reasons vary from the data simply not existing, its being withheld from the
Technical team for reasons of commercial sensitivity, or it simply not having been provided
to the team yet.
Major items which affect this Policy Audit are listed here:
Condition information for utilities networks
Details regarding age and design life of various sections of utility networks
Telecoms network mapping
Economic Performance /ridership of bus lines mapped spatially to specific lines
Water and power network capacities / utilization by neighborhood district
HAPPOLD CONSULTING
3.4 Metrics
THE FOLLOWING SUSTAINABILITY PRINCIPLES WERE USED AS A
FRAMEWORK OF OBJECTIVES FOR THE CITY SYSTEMS AUDIT
1. Balance redevelopment and environmental priorities. 4. Increase diversity of energy supply mix to reduce vulnerability and
increase the sustainability and resilience of supply.
This will aim to provide a safe, healthy and sustainable environment
protected for the benefit of present and future generations through A diversified energy mix will enable Detroit to be less vulnerable to
securing ecologically sustainable development and use of natural fluctuations in the energy market (e.g. rises in oil prices). Integration of
resources, whilst promoting justifiable social and economic development renewable energy technologies can serve to provide an element of
resilience, flexibility and competitiveness within the energy sector.
2. Minimize the city’s carbon footprint and reduce the city’s reliance on
non‐renewable resources. 5. Improve connectivity and accessibility across the city through the
use of an efficient and affordable public transit system.
This will aim to preempt the impending legislative requirements to
reduce carbon emissions. A reduced reliance on non‐renewable The aim is to create a public transit and transportation network which
resources will provide flexibility within the energy market of the city. provides high levels of connectivity and accessibility for residents and
visitors to the City of Detroit.
3. Maximize resource efficiency and ensure efficient utilization of
infrastructure. 6. Reduce poverty and social exclusion within the utility and
transport sectors.
The aim is to reduce the resources required for city processes which in
turn will reduce associated costs and waste streams. If less resources are The aim is to enable residents and visitors to have access to utility and
required, less transportation services which are affordable and reliable.
HAPPOLD CONSULTING
3.4 Metrics
CATEGORIZING CHALLENGES
Issue Testing Severity UNDERSTANDING THE CURRENT
SITUATION, THROUGH EIGHT
X Impact? Consequence? Potential CHALLENGES, COMMON ACROSS
Measure SYSTEMS
As section 4 of this Policy Audit attests, the building of an
information baseline for each city system results in an
understanding of the various challenges they face. We
CHALLENGES were able to reduce the range of challenges to eight which
applied across the board. For each utility or mode, the
impacts and consequence of each challenge is assessed,
A Utilization and the severity of these consequences over time
evaluated, and scored using a traffic light assessment. This
is not an assessment of the performance of the
B Current Level of Service implementing agency or overall system performance, rather
the challenges facing the various systems.
C Resource Usage
As certain challenges turn out to be more relevant to
certain systems, they help identify the most apt measures
D Network Adaptability to address them (see next page).
E Efficacy of Governance Structure Good
Problems Emerging
F Fiscal Position
Inadequate
G New Investment
Poor
H Disinvestment
Not applicable
HAPPOLD CONSULTING
3.4 Metrics
TESTING POTENTIAL MEASURES
Measure Testing Score BUILDING A CASE FOR CHANGE
BASED ON NINE POTENTIAL
X Effectiveness? Implementation? Modelling MEASURES FOR EACH SYSTEM
After building a baseline for each system, identifying the
key challenges and opportunities, nine potential measures
were identified against which to build a case for change.
POTENTIAL MEASURES
An assessment was undertake for each measure for the
effectiveness and ease of implementation for each.
1 Change level of service provided An overall traffic light assessment Indicates the relative

efficacy of each. Those with the best potential will be taken
2 Raise direct revenues from provision of infrastructure services forward in phase 2A of the project for detailed scenario
testing.
3 Increase efficiency of service provision
Strong
4 Develop synergies between networks
Potential
5 Optimize delivery models
Increase efficiency of resource use Challenges
6
Bring new users – Economic and population growth Difficult
7
8 Realign networks size/capacity Not applicable
9 Use excess capacity to serve external markets
HAPPOLD CONSULTING
3.5 Extents
SYSTEMS THINKING AT VARIOUS SCALES
DETROIT SYSTEMS ARE BIGGER THAN
DETROIT
Whilst the Detroit Works project limits the terrain which it can
influence to the city limits of Detroit proper, it is important to note that
the economic, social, natural and constructed city systems of the city of
Detroit function at several scales. As such, the “extents” per se of the
city systems research in the policy audit are determined by the
functional scale of each system covered herewith.
1. United States and Canada 2. State of Michigan
3. 7-County Region 4. City of Detroit
SOURCE: ESRI / SOM HAPPOLD CONSULTING

3.6 Future Integration

INTEGRATION & COBENEFITS BETWEEN POLICY AUDITS
Theme AECOM HAA SOM ICIC HRA Community / Civic

Ecology & Neighborhood & Regional & City Economy Public Land Engagement
Landscape Housing Urban Form Development
Infrastructure • Open space as drainage • Links between • Links between • Linking resource • Linking investment in • “on the ground” data

provider neighborhood infrastructure strengths (e.g. water) public land or sale • Stakeholder feedback
Systems • Flood management typologies and investment and quality, with industrial thereof with evolving
role of open space infrastructure and future opportunities (e.g. Blue infrastructure network
• Open spaces as utility investment development zones Economy)
corridors
Transportation • Greenways and other • Movement patterns • Links between • Linking new • Linking investment in • “on the ground” data
open spaces as within and between transport infrastructure employment centers public land or sale • Stakeholder feedback
Systems movement corridors neighborhoods and urban structure, with evolving transport thereof with
future development infrastructure developments in the
zones transport network
Fiscal Sustainability • Links between • Links between new • Efficiencies with • “on the ground” data

neighborhood industrial strategies regards to public asset • Stakeholder feedback
structure and viability and public facilitation / strategy
of utilities support thereof
HAPPOLD CONSULTING
3.6
4 – SYSTEMS REVIEW
HAPPOLD CONSULTING
4.1 – INFRASTRUCTURE POLICY CONTEXT
HAPPOLD CONSULTING
4.1 Federal Government’s Vision for the National Transportation Infrastructure

INVESTMENT PLANS IN INFRASTRUCTURAL DEVELOPMENT, 2010
THE PRESIDENT’S OFFICE HAS LAID UPFRONT INFRASTRUCUTURE THE LONG‐TERM FRAMEWORK
OUT A BOLD VISION FOR INVESTMENT INCLUDES FOLLOWING
RENEWING AND EXPANDING THE • An up‐front investment: The President will work with MEANINGFUL REFORMS –
TRANSPORTATION Congress to enact a new up‐front investment in nation’s
infrastructure ‐ This initial investment would fund • The establishment of an Infrastructure Bank to leverage
INFRASTRUCTURE – improvements in the nation’s surface transportation, as federal dollars and focus on investments of national and
well as the airports and air traffic control system. regional significance that often fall through the cracks in
Some of the tangible accomplishments of the President’s the current siloed transportation programs;
plan over the next six years include: • A vision for the future: The President proposes to pair • The integration of high‐speed rail on an equal footing
this with a long‐term framework to reform and expand into the surface transportation program to ensure a
• ROADS: Rebuild 150,000 miles of roads – renewing our the nation’s investment in transportation infrastructure– sustained and effective commitment to a national high
commitment to the backbone of our transportation through a $50 billion up‐front investment speed rail system over the next generation;
system; • Streamlining, modernizing, and prioritizing surface
transportation investments, consolidating more than 100
• RAILWAYS: Construct and maintain 4,000 miles of rail – different programs and focusing on using performance
enough to go coast‐to‐coast; measurement and “race‐to‐the‐top” style competitive
pressures to drive investment toward better policy
• RUNWAYS: Rehabilitate or reconstruct 150 miles of outcomes;
runway – while putting in place a NEXTGEN system that • Expanding investments in areas like safety,
will reduce travel time. environmental sustainability, economic competitiveness,
and liveability.
SOURCE Union of Concerned Scientists‐ Illinois Renewable Portfolio Standard Summary HAPPOLD CONSULTING

4.1 Safe Drinking Water Act

FEDERAL LAW
THE SAFE DRINKING WATER ACT
(SDWA) IS THE PRINCIPAL FEDERAL
LAW IN THE UNITED STATES THAT
ENSURES SAFE DRINKING WATER
FOR THE PUBLIC
SDWA authorizes the United States Enviromental
Protection Agency (USEPA) to set national; health based
standards for drinking water productus to protect against
both naturally ocurring and manmade decontaminent that
may be found in drinking water. US EPA states and water
system then work together to make sure that these
standards are met.
SDWA was originally passed by Congress in 1974 to protect
public health by regulating the nation's public drinking
water supply. The law was amended in 1986 and 1996 and
requires many actions to protect drinking water and its
sources: rivers, lakes, reservoirs, springs, and ground water
wells.
Source: United States Environmental Protection Agency HAPPOLD CONSULTING

http://www.epa.gov/lawsregs/laws/cwa.html IN-PROGRESS: DECEMBER 22, 2010
4.1
4.1 Clean Water Act (CWA)

FEDERAL LAW
THE ACT ESTABLISHED THE BASIC
STRUCTURE FOR REGULATING
DISCHARGES OF POLLUTANTS
INTO THE WATERS OF THE U.S.
The Federal Water Pollution Control Act popularly known
as the Clean Water Act (CWA) was enacted in 1972 and
amended in 1977, this law became commonly known as the
Clean Water Act. The CWA gave the Environmental
Protection Agency (EPA) the authority to implement
pollution control programs such as setting wastewater
standards for industry and set water quality standards for
all contaminants in surface waters.
The CWA requires the EPA to establish effluent limitations
for the amounts of specific pollutants that may be
discharged by municipal sewage plants and industrial
facilities.
The two‐step approach to setting the standards includes:
(1) establishing a nationwide, base‐level treatment through
an assessment of what is technologically and economically
achievable for a particular industry and
(2) requiring more stringent levels of treatment for specific
plants if necessary to achieve water quality objectives for
the particular body of water into which that plant
discharges.
Source: United States Environmental Protection Agency HAPPOLD CONSULTING

http://water.epa.gov/lawsregs/guidance/sdwa/upload/2009_08_28_sdwa_fs_30ann_sdwa_web.pdf IN-PROGRESS: DECEMBER 22, 2010
4.1
4.1 Water Infrastructure Sustainability Policy, EPA, 2010

‘SMART GROWTH’- GUIDING POLICY FOR FEDERAL FUND ALLOCATION
EPA HAS ISSUED ITS CLEAN WATER
AND DRINKING WATER
X INFRASTRUCTURE SUSTAINABILITY
1 POLICY AS PART OF ITS EFFORTS
CLEAR TO PROMOTE SUSTAINABLE
EVIDENCE BASED
INFRASTRUCTURE IN WATER
S T R AT E G I C
DIRECTION
SECTOR
Objective of the policy is to :
• Employ processes that focus on projects that are‐ cost
effective throughout their life cycle; resource efficient;
Image of road/ highway and, consistent with community sustainability goals;
• Introduce a mechanism (Smart Growth) to facilitate the
infrastructure allocation of federal funds ($3.3b) to drive the
sustainable infrastructure initiative across states;
• To build on the infrastructural gap findings of the 2002
Gap analysis conducted by the EPA and come up with a
relevant set of actions for the future;
• Encourage better management practices, efficient water
use, full‐cost pricing of water and a watershed approach
to protection to operate more sustainably.
SOURCE: http://www.dleg.state.mi.us/mpsc/comm/telecom/pa179.pdf HAPPOLD CONSULTING

4.1 Public Act 295

MICHIGAN CLEAN, RENEWABLE AND EFFICIENT ENERGY ACT, 1998
THE ACT ESTABLISHED A
RENEWABLE ENERGY STANDARD
X THAT REQUIRES MICHIGAN
1 ELECTRIC PROVIDERS TO ACHIEVE
CLEAR A RETAIL SUPPLY PORTFOLIO THAT
EVIDENCE BASED
INCLUDES AT LEAST 10%
S T R AT E G I C
DIRECTION
RENEWABLE ENERGY BY 2015
The Public Act 295 requires electric utilities in the state of
Michigan to develop and implement plans to:
• Obtain at least 10% of the electricity furnished to retail
customers from renewable energy resources by 2015
• Reduce consumption of electricity by instituting energy
optimization measures such as providing incentives to
customers to use more energy efficient equipment and
devices and instituting other energy conservation
measures.
• Incentivize the program for impact maximisation
SOURCE: Michigan Public service Commission (http://www.michigan.gov/mpsc/0,1607,7‐159‐16393‐‐‐,00.html, http://www.michigan.gov/mpsc/0,1607,7‐159‐16393_55027‐‐‐,00.html HAPPOLD CONSULTING

4.1 Act 51
MICHIGAN TRANSPORT FUND (MTF) DISTRIBUTION
ACT 51 CHANNELS RESTRICTED
TRANSPORT REVENUES INTO
X SPECIAL REVENUE FUNDS AND
1 SETS OUT A FUND ALLOCATION
CLEAR MECHANISM
Act 51 governs the state apportions for most Michigan
EVIDENCE BASED transportation programs. The Act creates the Michigan
S T R AT E G I C Transportation Fund as the main collection and distribution
DIRECTION fund for the state generated transportation revenue.
In addition the ACT also :
• Directs how the State Trunkline Fund and
Comprehensive Transportation Funds are spent and
determines the priority order for funding those
programs;
• Provides internal formulas which direct how local
agencies can spend their distribution of MTF;
• Allocates federal highway funds between Michigan
Department of Transportation and local road agencies;
and;
• Creates a number of compliance and reporting
requirements.
SOURCE February 2007, House Fiscal Agency , A guide to 1951 Public Act 51 and Michigan Transportation Funding HAPPOLD CONSULTING

4.1 Transportation 141

THE CUSTOMER CHOICE AND ELECTRICITY RELIABILITY ACT, 2000
THE CUSTOMER CHOICE AND
ELECTRICITY RELIABILITY ACT OF
X 2000 AUTHORIZED THE CREATION
1 OF A LOW‐INCOME AND ENERGY
CLEAR EFFICIENCY FUND (LIEEF)
EVIDENCE BASED The Customer Choice and Electricity Reliability Act (Public
S T R AT E G I C Act 141; scrutinized 142) established the Low Income And
DIRECTION Energy Efficiency Fund. The fund was administered by the
Michigan Public Service Commission via grants to qualifying
organizations.
The Commission determined that approximately 75% of the
grant monies awarded would be allocated to providing low‐
income energy assistance and low‐income energy efficiency
programs and 25% would be allocated to the development
of energy efficiency programs to benefit all customer
classes. The Commission also stated it intended to set aside
a portion of the proceeds to create an endowment to
finance programs that assist low‐income customers and
support energy efficiency projects beyond the six‐year
existence of the Fund.
SOURCE : Michigan Public Service Commission, http://www.michigan.gov/mpsc/0,1607,7‐159‐52493‐79463‐‐,00.html HAPPOLD CONSULTING

4.1 Public Act 179

MICHIGAN TELECOMMUNICATION ACT, 1991
THE MICHIGAN
TELECOMUNICATIONS ACT OF
X 1991 WAS PROPOSED TO
REGULATE AND INSURE THE
AVAILABILITY OF CERTAIN
TELECOMMUNICATION SERVICES;
TO PRESCRIBE PENALTIES; TO
REPEAL CERTAIN ACTS AND PARTS
OF ACTS; AND TO REPEAL THIS
ACT ON A SPECIFIC DATE
In addition, The Michigan Public Service Commission's
(MPSC) statutory responsibilities related to
telecommunications services require that technical support
be available to companies providing the services and
customers using the services. In providing that support, the
MPSC must recognize the policy to permit and encourage
market competition to govern prices and services in
markets where competition exists
Source: Michigan Telecommunications Act (http://www.dleg.state.mi.us/mpsc/comm/telecom/pa179.pdf) HAPPOLD CONSULTING

UTILITIES
HAPPOLD CONSULTING
Utilities - Introduction
AT THE CORE OF A STRONG REGIONAL NETWORK
SERVICING THE CITY WITH CRITICAL UTILITY
SERVICES
The following sections summarise the key agencies and their responsibilities for
utilities related activities within the Detroit Metropolitan Region, as well as
developing a baseline of Detroit’s utility systems within the city limits as well as its
wider connectivity with the region.
These following sections address:
1. Water
2. Energy
3. Waste
4. Telecomms and ICT
HAPPOLD CONSULTING
4.2 – WATER
HAPPOLD CONSULTING
4.2 Water
OVERVIEW
REGIONAL WATER RESOURCES
Water is one of the Detroit Region’s great assets. Almost all water in
the Region is drawn from the Great Lakes. This is the largest fresh
water body on earth, holding nearly 20 percent of the world’s and 90
percent of North America’s fresh surface water.
Water Quality remains high aside from some local pollution (see SOM
and AECOM reports.) The current rate of consumption is sustainable, as
population and use has declined significantly. However, water use
efficiency and conservation are performing poorly and future
consumption growth may become unsustainable
The following sections summarise the key agencies and their
responsibilities for water related activities within the Detroit
Metropolitan Region, with specific focus on developing a baseline of
Detroit’s Water Resource Management within the city as well as wider
water resource issues.
Current Stresses to the system are:
• Aging infrastructure.
• Reduced consumption resulting from:
– Declining population growth
– Declining Job/Economic growth
– Increased sustainability/water‐use efficiency initiatives
• Under‐use of network capacity increases maintenance
requirements.
This report covers three water systems:
1. Potable Supply Network
Map showing Detroit’s proximity to the Great Lakes 2. Sewage Network
3. Storm Water Management. HAPPOLD CONSULTING
4.2
4.2 Water
GOVERNANCE FRAMEWORK
GREAT LAKES COMPACT REGULATES
USAGE
• Water usage is governed by the Great Lakes Compact signed into Law
with 8 US States in 2008. The Canadian provinces of Ontario and
Quebec are associate members of the compact.
• The Compact governs “Lakes Erie, Huron, Michigan, Ontario, St. Clair,
Superior, and the St. Lawrence River, together with any and all
natural or manmade water interconnections between or among
them.”
• It also applies to “all rivers, ponds, lakes, streams, and other
watercourses which, in their natural state or in their prevailing
conditions, are tributary to Lakes Erie, Huron, Michigan, Ontario, St.
Clair, and Superior or any of them or which comprise part of any
watershed draining into any of said lakes.”
• Water diverted from the Great Lakes Basin region must be returned
to the Great Lakes in the quantity and quality level that it was
removed in order to preserve the status of the water‐dependent
natural resources residing within the Great Lakes.
• Great Lakes Compact forbids the export of water outside the area
covered by the compact to states further to the south .
• The Compact is intended to provide a long term lever for reversing
movement of population and economic activity to South West –
expectation that they will have to return to where the water is rather
than piping it to them.
HAPPOLD CONSULTING
4.2 Water
RESPONSIBLE BODIES
Strategic Oversight:
Federal: Environmental Protection Agency (EPA):
• Develops environmental policy, legislation and control
• Ensures enforcement of federal law.
Michigan State:
• Department of Natural Resources & Environment (DNRE): sets
statewide water policy taking into account federal laws and
standards
• Department of Environmental Quality (DEQ): regulates water
operations including permitting & compliance monitoring.
Planning:
South Eastern Michigan Council of Governments (SEMCOG):
• 50 year strategic water plan for the Detroit Region
• Designated Water Quality management agency
Operations/Delivery:
City of Detroit: Detroit Water and Sewage Department (DWSD):
• Set up as Enterprise Agency delivering all water services for the
city on a ‘not for profit’ basis
Governance Framework for Water and Waste Water • Sole provider of water services (owns and controls treatment
plants & supply network) within Detroit City Area.
• Majority provider within SEMCOG region
• Governed by 7 water board commissioners
appointed by the City Mayor who are
representatives of Detroit and surrounding
suburban areas
Sources: http://www.epa.gov/ow/ ; http://www.michigan.gov/som/0,1607,7-192-45414---,00.html ; http://www.semcog.org/Water.aspx • Responsible for revenue HAPPOLD CONSULTING
collection from customers.
4.2 Water
RESOURCES AND NETWORK
POTABLE SUPPLY NETWORK
Coverage/Extents:
• The system covers a 1079 sq mile area including Detroit City and 126
suburban communities.
• The system serves:
• All Detroit Population (750,000)
• 3 million in neighboring communities
• Together this is equivalent to 43 % of Michigan’s population.
Network:
• The water system owned by DWSD covers:
• 3000 miles of directly owned piping, including 27,244 fire
hydrants across the city.
• 9,000 miles of connected mains owned by wholesale customers
(suburban communities buy water on a wholesale basis).
• Detroit neighborhoods are supplied by loop systems in order to
maintain pressure and water quality
• The water system includes 21 booster pump stations and 32
water storage reservoirs located throughout the system, plus
auxiliary facilities managed by DWSD.
Map showing Potable Water Network in Detroit

Source: DWSD HAPPOLD CONSULTING
4.2 Water
POTABLE SUPPLY NETWORK (cont.)
Supply:
• DWSD system has rated capacity of 1.7 billion gallons per day and a
currently effective capacity of 1.4 billion gallons.
• DWSD treats water from Lake Huron and the Detroit River and
manages and operates 5 water treatment pumps/plants, averaging
662 million gallons of drinking water each day.
• This is well within network capacity and is also less than
Michigan/Detroit entitlements under the Great Lakes Compact.
• Approx. 30% summer to winter variance in demand.
• Consumption falling by 5% a year.
• Network is operating on average at 39% of rated capacity and 47%
of effective capacity. Even peaks are well within capacity – recent
hot summers have not produced any ‘billion gallon days’.
Map showing Potable Water Network in Detroit

4.2 Water
SEWAGE NETWORK
Coverage/Extents:
• The DWSD sewage system covers 946 sq miles serving city of Detroit
and 76 suburban areas.
• The system provides sewage services to:
• All Detroit Population (750,000).
• 2 million in neighboring suburban communities.
• Together this is equivalent to 35 % of Michigan population.
Network:
• The DWSD manage and operate over 14,200 mile of municipal
sewers.
• The sewer is a combined system carrying untreated sewage and
storm water within its pipes.
• These combined sewers convey all dry weather flow, and a large
portion of the wet weather flow to the wastewater treatment plant
at 9300 W. Jefferson in accordance with National Pollutant Discharge
Elimination System (NPDES) permit MI0022802.
Treatment:
• DWSD manage and operate 11 sewerage pump station and 8
combined sewerage and disinfectant stations.
• The Detroit wastewater treatment plant is one of the largest in the
world (measured by peak flow capacity).
• Treated waste water is discharged into the Detroit River.
• Sewage sludge is incinerated.
• River Rouge Plant is in non‐compliance.
• More sewage sludge than allowed by
Federal/State Regulation is stored on site.
Map showing Waste Water service area around Detroit Operations/Delivery:
• Network is operating below capacity.
4.2 Water
STORM WATER MANAGEMENT
Coverage/Extents:
• Most of the storm water runoff is conveyed through the combined
sewer system which carries sanitary waste along with storm water
drainage within its pipes to waste treatment plants.
• Detroit also has a few municipally‐owned separate storm sewers with
limited drainage area, primarily parkland with river frontage.
Network:
• Within Detroit City, all major natural drainage channels have been
blocked off and all storm water is diverted into the sewage network –
this prevents pollution of the Great Lakes/Detroit River by run‐off from
contaminated areas of the city.
• During severe weather events, the overflow of the combined sewer is
permitted to discharge directly into the Rouge River.
Regulation:
• Detroit’s storm water discharge is regulated by a General Storm Water
Discharge Permit (GSWDP) issued by the State of Michigan.
• The permit requires that a Storm Water Management Program Plan
(SWMPP) be developed too reduce discharge of pollutants and to
protect quality of water.
Influences:
• A number of departments have influence over the management of
storm water, including: Recreation Department; Building & Safety
Engineering Department; Planning & Development Department;
Department of Public Works;
Department of Environmental Affairs;
Detroit Economic Growth Corporation;
Greater Detroit Resource Recovery Authority;
Map showing Waste Water service area around Detroit and the General Services Department
Corporation Council. HAPPOLD CONSULTING
Source: http://www.dwsd.org/index.html ; http://www.detroitmi.gov/DepartmentsandAgencies/DepartmentofEnvironmentalAffairs/StormWaterManagement.aspx IN-PROGRESS: DECEMBER 22, 2010
4.2
4.2 Water
UTILIZATION
REDUCING CONSUMPTION
Declining Industry and Population:
• Manufacturing Industry is in decline.
• Population numbers are reducing by approximately 10,000 per year.
• Water Network currently operating below capacity with a reducing
utilization rate.
• Networks are oversized & have maintenance issues associated with
under‐use.
• On average, the total quantity of water attributed to Unaccounted‐
for Water is 42,570 MG each year.
Reducing Consumption, Increasing Prices:
• Consumption of water is falling year on year.
• Fewer units are being used leading to less revenue and the need to
increase rates to cover the revenue shortfalls.
• Thousands of residences have had their water connections cut by
DWSD, forcing people to adopt informal methods to gain access to
drinking water.
Declining water sales

Average daily water use, Detroit Water and Sewerage Department
(DWSD)
Source: The Foster Group
-Need to tighten up referencing of stats

Source: The Foster Group HAPPOLD CONSULTING
4.2 Water
MAJOR PLANNED/ON-GOING PROJECTS
PROPOSALS
Planned Projects:
• SEMCOG ( Southeast Michigan Council of Governments) outlined a
50 year water and sewer service strategy due to expected
population growth and expansion of service need.
• £2.8 billion was planned to be invested over next 5 years for water
and sewer projects. As a result of CWMP, the Capital Improvements
Program has been established to maintain water systems and
replace poor infrastructure to reduce main line breaks and leaks.
• Investment will also be made in the form of environmental
protections schemes – i.e. replacing old aging water mains and
sewerage systems and enhancement of severe weather protection
devices.
• Springwell Water treatment Plant is ageing and needs complete
replacement/major retrofit.
• The city is implementing a long term control program to ensure
adequate treatment of sewage inline with federal and
environmental requirements.
Map showing Sewer Network Expansion in Detroit

Source: http://www.dwsd.org/index.html ; http://www.semcog.org/Water.aspx ; http://www.detroitmi.gov/Departments/tabid/61/Default.aspx HAPPOLD CONSULTING
4.2 Water
PROPOSALS
Planning Framework
2010 2020 • In 2004, DWSD developed a Comprehensive Water
Master Plan (CWMP)
• The vision for the plan was to create a CWMP that would
guide and direct the expansion of the water system to
meet the growing needs of the communities within the
service area over the next 50 years.
• Key objectives of the plan were to identify strategies for
capital improvements and operation/maintenance
procedures which would help to reduce the amount of
‘Unaccounted‐for Water’.
• Investment is directed by this 50 year Strategic Plan
which was prepared in co‐operation with SEMCOG.
• Recent economic weakness has required the revision of
this plan
Source: http://www.dwsd.org/index.html ; http://www.semcog.org/Water.aspx ; http://www.detroitmi.gov/Departments/tabid/61/Default.aspx HAPPOLD CONSULTING

4.2 Water
Planning Framework (cont.)
2030 2040 2050
Source: 1. DWSD; 2003 HAPPOLD CONSULTING

4.2 Water
MITIGATION STRATEGIES ALREADY
IDENTIFIED AS PART OF CAPITAL
WORKS MANAGEMENT PLAN (
CWMP):
Operation and Maintenance Procedures:
Leak Detection Program
• CWMP, DWSD Contract No. CS‐1278, March 2004, states that roughly
28 percent of the total unaccounted‐for water (UFW) is attributed to
leaks found through a leak detection program.
• Elimination of this UFW equates to annual savings of approximately
$6.5 million.
• This number is conservative, as it does not account for subsurface
leaks lasting for more than a year or for the additional costs of
treating the leaks that drain into the sewer system.
• However the ongoing leak detection and repair program has made
significant gains in reducing UFW. DWSD also had a leak detection
program being performed in the early 1990s.
• It should be noted that the period between these programs (1994‐
1997 highlighted opposite in blue) was the only time that the UFW
Figure 1 was obtained from the DWSD annual Summary of Operating Statistics reports for 1991
actually increased.
through 2000 and shown in CWMP, DWSD Contract No. CS-1278, March 2004.
DWSD had a leak detection program from 1991-1993 and an ongoing program active since 1997 • Based on this data it can be shown that a leak detection and
to which recent reductions in % unaccounted-for water may be attributed. The total UFW repair program should be ongoing and not a one‐time event.
attributed to leaks reduced from a high of nearly 20 percent in 1997 to 16 percent in 2000. • It is was recommended that DWSD
continue with its annual leak
detection and repair program.
Source: http://www.dwsd.org/about/water/Task_C_UFW.pdf HAPPOLD CONSULTING

4.2 Water
MITIGATION STRATEGIES (cont.)
Capital Improvements:
• Pipe rehabilitation and replacement program
• CWMP, DWSD Contract No. CS‐1278, March 2004, states that the
majority of main breaks can be attributed to old pipes that have
exceeded their useful life.
• Based on the last 5 years, DWSD has replaced an average of 13 miles
of pipe annually.
• Approximately, 1,950 miles of pipe are older than 75 years and
should be replaced. However, this will take approximately 150 years
to complete at the current replacement rate.
• A new pipe rehabilitation and replacement program is being
developed as part of the CWMP.
• This report will propose a strategy for the DWSD to better
manage its replacement program in order to accelerate the
rate of pipe replacement.
OTHER STRATEGIES INCLUDE:
Figure 2 is a summary of the DWSD UFW from 1998 – 2003 as presented in CWMP, DWSD
Contract No. CS-1278, March 2004. On average, the total quantity of water attributed to UFW is • Water Treatment Plant Metering
42,570 MG each year. The largest known quantity of UFW is attributed to leaks, then hydrant • Metering of Accounts
use (mainly by other City departments). • Meter Testing
• Water Audit
• Unidirectional Flushing
SOURCE: 1. DWSD, http://www.dwsd.org/about/water/Task_C_UFW.pdf HAPPOLD CONSULTING

4.2
4.2 Water
FISCAL POSITION
POTABLE SERVICE AND SEWAGE SERVICE
Funding:
•As an Enterprise Fund of Detroit City, DWSD draws its funding from:
• Revenue ‐ Customer charges: 99.11% sales and charges on basis of:
• Potable: Metered and Combination
• Sewage: % of potable consumed
• Wholesale: Bulk meter. Charge is to community as a whole – local council responsible
for collection from individual consumers
• Miscellaneous income in the form of grants and revenue from both the City of Detroit General
Fund and State and Federal subsidies
• Around 75% of water sales are to wholesale customers in the suburbs, the rest is sold in Detroit
• Over 40% of sewerage revenues are from suburban customers
Fiscal Governance:
•Budget anticipates that as an Enterprise Fund, both the Water and Sewage Funds will be self‐financing
and profits are reinvested or transferred to City General Fund
•Budget set on an annual basis.
• Budget set on the basis of forecast of how much water will be sold and treated in coming year.
• Budget covers both operations and investment
•The Water and Sewage Enterprise Funds are designed to be self‐financing
•Charges must be approved by the Board of Water Commissioners supported by a Technical Advisory
Committee
HAPPOLD CONSULTING
SOURCE: 1. McKinsey, DDOT Diagnostics, October 2010. 2. DWSD Meeting, October 2010, 3. City of Detroit Budgets IN-PROGRESS: DECEMBER 22, 2010
4.2 Water
FISCAL POSITION
Current position and identified issues Opportunities in the short to medium term Impact on Detroit Works
• Capital investment challenges • Improve the benefit of DWSD to the General The future state of the water and sewerage
– Wastewater treatment plants have been non- Fund systems, along with the viability of DWSD as an
compliant periodically for the past 40 years – Use unilateral actions and change current entity are key to the Detroit Works project. The
– Water bond payments increased by 50% rulings to get the highest value to the city current lack of investment in the water and
over the period 2004/05 to 2009/10 but from DWSD sewerage infrastructure is of concern and are likely
capital investments decreased by 8% over to become more challenging as service standards
the same period • Private operators are raised. The current infrastructure will be unable
– Sewerage bond payments increased by 42% – Explore private partnership structures with to cope as the recent under-investment takes its toll.
over the period 2004/05 to 2009/10 but private investors, operators, General Fund
capital investments decreased by 61% over and DWSD
the same period – This could help extract more value from the
water and sewerage systems
• Staffing challenges – Private operators may also be better placed
– Skilled personnel are being lost and DWSD to generate more revenues and further cost
is finding it increasingly difficult to fill savings
budgeted positions – For example, typical operational cost savings
could be in the range of 10 to 20% from such
• Rate setting and regulatory challenges an arrangement
– Difficult to increase rates as constantly
contested in the courts for both Detroiters
and suburbs
HAPPOLD CONSULTING
SOURCE: 1. McKinsey, DDOT Diagnostics, October 2010. 2. DWSD Meeting, October 2010, 3. City of Detroit Budgets
4.2 Water
FISCAL POSITION
The typical monthly water bill in Detroit
ranks 11 (1=lowest) and is below the
average and median values when
compared with 50 largest US cities. • Compared to other cities Detroit has both low levels of
Detroit ranks 3 (1=lowest) in terms of median household income and average water bills.
median household income rankings of • Increase in water rates will have implications on
50 largest US cities (by population) Average median affordability
household
income=$47121
30
Typical Monthly
Water Bill US $ Seattle
Residential Customers,
15,000 Gallons Billable 25
Water Usage Fresno
Oakland city
Kansas
Long beach
20 Atlanta Colorado Virginia Beach
Albuquerque Sacramento
Louisville Portland Average bill =$17
15 Honolulu
Oklahoma Oakland
Minneapolis
Tucson
Detroit Tulsa
10 Las Vegas
Cleveland
Omaha
0
0 10000 20000 30000 40000 50000 60000 70000
Median Household
Source: Black & Veatch 2009/2010 Water/Wastewater Rate Survey of 50 largest cities (by population) in US, Income US $ HAPPOLD CONSULTING
American Communities Survey, HC analysis 50 largest cities IN-PROGRESS: DECEMBER 22, 2010
4.2 Water
BENCHMARKS/SUSTAINABILITY
DETROIT’S WATER
• Detroit’s household water consumption is slightly larger than the
US average but significantly lower than other areas in the DWSD
service area .
• DWSD Comprehensive Water Masterplan 2004 noted that

Residential Water Consumption per capita per day was around 130
Gallons/capita/day) In Detroit residential use was around 85
Water Benchmarks Comparison Graph Gallons; Milwaukee’s use was similar to the US average of 65
Gallons.
• Circle of Blue’s Urban Water Pricing Survey 2010 noted that

Detroit’s Average Daily per Capita residential use had declined to
63 Gallons; Milwaukee had also declined to 47 Gallons. These
figures highlight a reduction in water use of around 25%.
Declining water sales: Average daily water use, Detroit Water and Sewerage • Water rates are relatively low in the Great Lakes region due to
Department. Source: The Foster Group proximity to abundant water
• However, in most major cities water use is declining while rates

charged to residential customers are rising.
• For this reason, many cities in the Region are actually looking to
increase water use because of spare infrastructure capacity and
ample supply.
• Many cities are hoping to lure industry back to the region through
discounted industrial water rates.
HAPPOLD CONSULTING
4.2 Water
ADAPTABILITY
SUMMARY
Declining Industry and Population:
• Manufacturing Industry is in decline and population numbers are
reducing by approximately 10,000 per year.
Inefficient Use of Water and Water Networks:
• On average, the total quantity of water attributed to Unaccounted‐
for Water is 42,570 MG each year.
• Networks are oversized & have associated maintenance issues
Increasing Unemployment:
• Unemployment is increasing and many people have not been able to
keep up with their utility bills, even with city and state financial
assistance.
Reducing Consumption:
• Consumption falling by 5% a year leading to increased rates (as the
cost of the service must be spread over the smaller number of
gallons used.)
Declining water sales
Increasing Price of Water:
Average daily water use, Detroit Water and Sewerage Department
• The drop in Detroit’s net water demand has prompted the city’s
Source: The Foster Group water utility to increase water rates to compensate for lost revenue.
Reducing Ability to Pay:
• Many poor residents now simply can’t afford the basic service.
• Thousands of residences have had their water connections cut by
DWSD, forcing people to adopt informal methods to gain access to
drinking water.

4.2 Water
Potential Water & Waste Water Measures Advantages Disadvantages Application to Detroit
1. Continue maintenance/upgrade of ¾Systems are in place ready to meet any new growth ¾Costly if not in line with actual future growth. ¾Upgrades to the existing system could improve

existing systems 1 ¾Surplus capacity is a competitive advantage1. ¾No immediate cost savings and upgrades will require significant reliability and retain it as an asset in the region.
investment. ¾Increase reliability of network for residents in
addition to cost savings as a result of efficient
network.2
¾Current 50 year plan aims to increase redundancy
of the existing network.4
2. Shut down or decommission water lines ¾Streamlined, more efficient systems, less infrastructure to ¾Wastes past investment ¾ The grid‐bound water infrastructure of the Detroit
or sewer lines to meet reduced demand 2 maintain ¾Up front costs to shut down or decommission. region will make it difficult to thin the network
¾Reduce operation and maintenance costs for areas that without affecting the integrity of the grid for the
¾Could impact overall functioning of the infrastructure if key portions
are decommissioned. are shut down. wider region.1
¾Provide disincentive for development in declining areas. ¾May add long term costs if these lines prove necessary to reinstate in ¾DWSD anticipate that the supply and transmission
¾Could make it faster and easier to determine the causes of the future. infrastructure cannot be effectively downsized. 4
leaks due to reduced size of overall grid.. ¾ DWSD stated that distribution networks in Detroit
¾Eliminating service in some areas may be controversial and costly to
some property owner. can be shut down in limited situations where a) no
users remain and b) there is no other current or
¾Unknown and potentially large environmental impacts, particularly if immediate future need for water supply (e.g. fire
there is no scope for recycling the physical infrastructure. cover).4
¾Grid bound infrastructure cannot be easily thinned in response to
population loss as this affects the integrity of the grid. ¾Savings will be marginal but may be justified based
on system efficiency improvements.4
3. Mothball for future use 1 ¾Retains asset base ¾Systems may not survive – unknown quality when re‐commissioned. ¾This approach has limited flexibility for Detroit as
¾Reduces maintenance costs ¾Water quality, health issues, leaks, possibility of animal and plant it requires following the existing network routes,
¾New plastic pipes can be easily inserted into the existing ingress, etc. (none of which would be identified until the network is which may no longer be located adjacent to
pipes using a ‘bursting’ method which will maintain the brought online) demand.
asset while creating an updated network. ¾It will also require the maintenance of accurate records to minimize
damage to dormant networks which will have an associated
¾Majority of new network costs is associated with ground administration cost.
works rather than the pipes themselves. The ‘hole in the
ground’ is therefore the largest asset of the network.
4. Reduce to a core system with satellite ¾Lower fixed costs due to eradication of long pipe systems. ¾Various costs involved in creating a semi‐centralised system. ¾Working towards semi‐centralised systems would
semi‐centralised zones 3 ¾Adjustable and flexible combinations of techniques can be ¾ Requires identification of boundary between the core centralised provide a good adaptive strategy for future growth
used. system and the satellite semi‐centralised systems. or decline in population.
¾Integrated stormwater management works best at a local ¾Modular construction of installations and pipes,
level in terms of operation and management. connecting smaller units together to form flexible
networks, would make it relatively easy to shut off
¾Controlled, modular growth is possible with semi‐ or add system elements
centralised systems. ¾Reduces financial risks of long‐term infrastructure
construction 1.
HAPPOLD CONSULTING
SOURCES: 1. Hoornbeek, J. & Schwarz, T. (2009) Sustainable Infrastructure in Shrinking Cities, Options for the Future 2.Kresge (2010). Building a Green Economy in Detroit and Developing a Sustainable City Agenda. DETROIT WORKS PROJECT
IN-PROGRESS: DECEMBER
3. Hummel, D. & Lux, A. (2007) 22, 2010
Population decline and Infrastructure: The Case of the German Water Supply System. 4. Minutes of DWSD meeting (7th October, 2010)
4.2 Water
KEY CHALLENGES: SUMMARY
Water DWSD has sufficient scale to address water supply and sewerage brief effectively.
Status as city department presents issues in terms of independent price setting, budgeting, revenue
collection, access to funding/finance, employment regulations
Continuous supply and at adequate pressure maintained to almost all customers. High potable water
standards met.
Some aspects of sewage treatment are non‐compliant with EPA/State regulation (sludge storage, discharge)
Water is drawn from sustainable sources at a rate which will not significantly deplete this resource.
Energy usage by system treat, pump and maintain pressure requires further investigation
Maintenance cycles are being delayed and will result in network deterioration in some areas
Network is currently operating far below capacity (approx 45%)
DWSD does not have access to sufficient funding to meet new investment/reinvestment requirements.
Revenues are falling rapidly and DWSD does not have access to sufficient investment funding. Debt service
payments make up large item of annual budget. Revenue collection from Detroit customers is a significant
issue. However, therren is some scope to raise prices.
Supply and transmission network is inflexible and does not yet incorporate significant redundancy
Local distribution networks can be modified or shut down but only in limited circumstances and to little
financial advantage
HAPPOLD CONSULTING
Emerging IN-PROGRESS: DECEMBER 22, 2010
4.2 Good Inadequate Poor
Problems
4.2 Water
POTENTIAL MEASURES ASSESSMENT
Potential Measures Effectiveness Ease of Notes
Implement‐
ation
Reduce level of service No possibility to reduce water quality or main system pressure.
Lower level of redundancy can be contemplated – sparing future investment.
provided Investigate role of natural drainage systems to reduce peak load on storm
drainage/waste water network
Raise direct revenues from Scope for future price rises – see American Waterworks Association price
comparisons.
provision of infrastructure Improve revenue collection – requires new powers (currently under review)
services
Increase efficiency of service No significant scope for internal restructuring/ staff cuts (‘fat cut out from 2005
onwards’)
provision
Develop synergies between Greater coordination around neighborhood development would help with managing
local distribution networks.
networks
Optimise delivery models Change of governance structure to provide greater independence would help
considerably but will take considerable planning and consultation
Increase efficiency of resource No underlying water availability crisis. Increased efficiency will further reduce
network throughput (increasing system stress and decreasing revenue)
use
Bring new users – Economic Attracting new users would help significantly to distribute burden of high fixed costs.
New industrial users would be DWSD preference.
and population growth
Realign networks size/capacity Not possible for supply and transmission. Possible for distribution if large area is
depopulated.
Decommissioning costs – only marginal savings to be realised
Use excess capacity to serve Great Lakes Compact forbids out of state export. No significant customers available
with GLC area – and would need extensive investment to reach them
external markets HAPPOLD CONSULTING
Strong Potential Challenges Difficult Not applicable
4.3 – ENERGY
HAPPOLD CONSULTING
4.3 Energy
OVERVIEW
REGIONAL ENERGY RESOURCES
responsibilities for energy creation and supply within the Detroit
Metropolitan Region, with specific focus on developing a baseline
of Detroit’s Energy Resources within the city as well as wider energy
resource management issues.
This report covers two sources of energy:
1. Fossil Fuels, including coal, oil and natural gas
2. Renewable Energy, including wind, solar, biomass
Current Stresses to the system are:
• Depleting reserves of fossil fuel
• Changing energy markets favouring renewable sources
• Aging infrastructure
• Reduced consumption resulting from:
– Declining population growth
– Declining Job/Economic growth
– Increased sustainability/energy‐use efficiency initiatives
HAPPOLD CONSULTING
4.3 Energy
RESPONSIBLE BODIES
Strategic Oversight & Planning:
• Federal: Department of Energy (DOE):
• Enabling national energy and economic security
• Ensuring environmental control on energy development.
• Clean Cities: provides direction for coalitions by establishing
goals within a strategy framework through the Office of Energy
Efficiency.
•Michigan State: Department of Labor and Economic Growth (DeLEG)
and Bureau of Energy Systems (BES):
• Set overall policy direction through State Energy Plan
• Support Clean Energy Coalition at Statewide level
Operations/Delivery
• A number of key providers operating vertically in power generation
and distribution are involved:
National Players – Private Corporations
• DTE Energy: NYSE Listed Operating in Detroit through:
• Detroit Edison Energy (DTE)
• Michigan Consolidated Gas Company (MichCon)
• Thermal Ventures: Operating in Detroit through Detroit Thermal
State
• CMS Energy Corporation trading as
Consumers Energy
City
• City of Detroit: working through
Public Lighting Department (PLD)
an enterprise department HAPPOLD CONSULTING
4.3 Energy
RESOURCES AND NETWORKS
FOSSIL FUELS
Nuclear ‐ 16.5%
• Michigan state is a large user of energy with annual costs exceeding
Natural Gas ‐ 1.4% $30 billion or the 8th highest in the nation.
Oil ‐ 0.2%
• Michigan imports 100% of the coal and uranium used, 96% of the
fuel oil and petroleum products and 75% of the natural gas used.
Renewables ‐ 1.4%
Nuclear • Detroit Edison's Fuel Mix Used to Supply Electricity:
Natural Gas – Coal: 80.5%
Oil – Nuclear: 16.5%
Renewables – Natural Gas: 1.4%
Coal – Oil: 0.2%
– Renewable: 1.4%
• The challenge is to strengthen Michigan's value‐added economy
while minimizing reliance on fossil fuels, particularly those imported
Coal ‐ 80.5%
from other, less stable countries.
Source: Detroit Edison's Fuel Mix, 2009 HAPPOLD CONSULTING

4.3 Energy
GREAT LAKES REGION ENERGY
RESOURCES
• U.S. electricity sold to Canada is sourced via 5 cities:
Detroit, Michigan; Great Falls, Montana; Portland, Maine;
Ogdensburg, New York; and Pembina, North Dakota.
• The map highlights a marked shift towards more
renewable energy sources in Canada, including Hydro‐
electric and Thermal Electric Facilities.
• In contrast, the northern States of America which border
the Great Lakes still rely predominantly upon non‐
renewable energy sources such as coal and natural gas.
• In 2009, Detroit showed the severest rate of decline
among American suppliers of electricity imported into
Canada = $102.8 million, down 81.4% (17.9% of Canadian
Imports)
• The Canadian market for imported electricity from non‐
renewable resources is declining.
SOURCE: 1. ENERGY INFORMATION ADMINISTRATION & CANADIAN CENTRE FOR ENERGY HAPPOLD CONSULTING

4.3 Energy
COAL BASIN A POTENTIALLY EXPENSIVE
SOURCE OF ENERGY
• Detroit Edison Energy (DTE) burns about 80 percent more coal today
than 35 years ago.
• More than 70 percent of the 22 million tons of coal burned in Detroit
Edison power plants is lower sulphur western coal.
• DTE imports western sub‐bituminous coals to reduce SO2 emissions
• In addition, two new flue gas desulfurization (FGD) units came on
line at the Monroe Power Plant in 2009 to reduce SO2 emissions
even further in preparation for anticipated federal regulations.
• Large deposits of coal exist throughout the middle of the state,
however new coal facilities are enormously costly to build and are
not considered economical at present as demand is flat and/or
possibly declining.
• Oil seaports exist in Detroit and Port Huron.
Source: Michigan DNRE HAPPOLD CONSULTING

4.3 Energy
NATURAL GAS IS AN IMPORTANT
REGIONAL RESOURCE
• Michigan has more natural gas reserves than any other
State in the Great Lakes region.
• The Antrim natural gas fields, in the northern Lower
Peninsula, are among the largest in the Nation.
• Michigan has the most underground natural gas storage
capacity of any State in the Nation and supplies natural
gas to neighbouring States during high‐demand winter
months.
• Natural gas heats roughly four‐fifths of Michigan homes.
Source: US Energy Administration HAPPOLD CONSULTING

4.3 Energy
NEGLIGABLE USE OF RENEWABLES
• Currently less than 2% of the electricity generated in
Michigan is from renewable sources. This will result in
significant challenges over the next decade.
• Detroit Edison's Renewable Fuel Mix Used to Supply
Electricity:
– Biofuel: 0.01%
– Biomass: 0.64%
– Solar: 0%
– Solid Waste Incineration: 5.4%
– Wind: 0.04%
– Wood: 0.08%
• Future Potential for Renewable Sources:
– Solar – potential of 3000‐4500 WHr/m2
(i.e. 1 sqmi of PV could power 9,000 homes)
– Wind – currently < 0.1MW of a 7,460MW potential
– Tidal – none at present
– Hydro – 1872MW at present
– Biomass – 2400MW potential
Source: US Energy Administration HAPPOLD CONSULTING

4.3 Energy
DETROIT EDISON & MICHCON NETWORKS
Coverage/Extents:
• Detroit Edison serves 2.1 million customers across a 7600 sq mile
area with electricity and is the main electricity provider in Detroit
City and the SEMCOG area
• MichCon serves 1.2 million gas customers statewide including Wayne
County and Detroit City
Generation and Supply:
• DTE operates its own power generation plants:
• 9 Fossil fuel plants – primarily coal.
• 1 Nuclear Plant
• MichCon owns and operates 278 storage wells representing
approximately 34% of the underground working capacity in
Michigan.
Network:
• DTE and MichCon operate:
• 44,000 miles of electricity supply lines on 1million poles
• 15,000 miles of gas supply line
• Network is relatively old – particularly in Detroit City:
• 138 sq mile area (2% of total) some parts
run on old 48kv system others have been
upgraded to 132kv. Arbitrary mix reduces
diversity/resilience in city grid.
• City Grid is not ‘smart’.
Source: DTE & Michcon websites HAPPOLD CONSULTING

4.3 Energy
DETROIT EDISON & MICHCON NETWORKS
(cont.)
Operations/Delivery
• System currently operating below capacity with typically a 60‐80%
utilization rate.
• Overall rate masks wider local differences:
• Ann Arbor and Mid‐town Detroit lack capacity and need further
investment.
• Areas of the ‘doughnut’ in Detroit are only operating at 25‐40%
utilization.
Source: DTE & Michcon websites HAPPOLD CONSULTING

4.3 Energy
CMS ENERGY CORP – CONSUMERS
ENERGY
Coverage/Extents:
•Consumer’s Energy is Michigan’s second‐largest electric
and natural gas utility provider.
•Provide service to more than 6 million of the state’s 10
million residents in all 68 counties in the Lower Peninsula:
• Provides electricity to 1.8 million customers and
serves 275 cities and villages within 68 counties
• Provides natural gas service for heating and other
uses to more than 1.7 million customers in 44 of the
68 counties in Michigan’s Lower Peninsula.
•Secondary supplier in SEMCOG area where DTE dominates
Generation and Supply Network
•CE operates its own power generation plants:
• 14 Fossil fuel plants – 12 coal, 2 oil.
• 13 Hydro‐electric plants – 130MW
• 1 pumped storage plant for peak loads
• 1 Nuclear Plant
•Generating capacity = 6,354 MW
•Owns and maintains 15 natural storage fields in Michigan
•Operates more than 27,000 miles of transmission and
distribution pipelines
Operations/Delivery
• System currently operating at XX%
Source: CMS website HAPPOLD CONSULTING

4.3 Energy
UTILIZATION
ELECTRICITY & GAS CONSUMPTION
Operations/Delivery
• Electrical system currently operating below capacity with typically
a 60‐80% utilization rate.
• Overall rate masks wider local differences:
• Ann Arbor and Mid‐town Detroit lack capacity and need
further investment.
• Areas of the ‘doughnut’ in Detroit are only operating at 25‐
40% utilization.
• Networks are oversized & have maintenance issues associated
with under‐use
Reducing Electricity Consumption; DTE Electricity Deliveries. Source: DTE

Energy Reducing Consumption, Increasing Prices:
• Consumption of Electricity and Natural Gas is falling year on year.
• Fewer units are being used leading to less revenue and the need
to increase rates to cover the revenue shortfalls.
Reducing Natural Gas Consumption: Consumers Energy Gas Deliveries. Source: Consumers HAPPOLD CONSULTING
4.3
Energy IN-PROGRESS: DECEMBER 22, 2010
4.3 Energy
ENERGY EFFICIENCY/CARBON
Planning Framework:
• State Energy Plan: The State Energy plan outlines how Federal
government funding (approximately $57 million for state owned
buildings and a further $1 billion for renewable sources) will be
utilized to develop the states energy systems and to promote
renewable and alternative sources of energy as well as increase
employment opportunities in the sector. The plan influences regional
and local planning directives for energy consumption.
• DTE and other energy providers expected to achieve target of 10% of
baseload provided from renewable sources
• Clean Cities Program: is a locally based government and industry
partnership that is coordinated by DOE aimed at expanding availability
of renewable / alternative use of fuels. It combines local decision
making processes with voluntary action by partners and is designed to
change the way organizations operate by implementing sustainable /
alternative use of fuels.
Objectives:
•Develop clean city corridors
•Increase public awareness
•Support regulates transport fleets
•Facilitate use of alternative fuel and green transport
Detroit Skyline. Source: Flickr, Bernt Rostad
HAPPOLD CONSULTING
4.3 Energy
DTE & CMS INVESTMENT GOVERNMENT GRANT GIVEN TO
PLANS RETROFIT CITY‐OWNED FACILITIES INTO
ENERGY EFFICIENT BUILDINGS
Network Renewal Ongoing:
The US Department of Energy has given the City of Detroit a
• DTE aims to upgrade Detroit city to a higher capacity,
$8,862,400 grant to retrofit the City‐owned facilities into more energy
smarter network:
efficient and energy saving buildings. The DBA together with the GSD
• Adopt ‘scalpel’ approach – undertaking small
are in the middle of having approximately 20 buildings audited, and
scale renewal where opportunity permits.
some of the installations will begin this fall. Completion is scheduled for
• Use ‘avoided maintenance’ argument to justify
early winter 2012.
budget
Alignment to planning;
•Align maintenance and upgrade program to emerging
planning priorities including the DSFP
Encourage new power using industries to locate in

area:
• E.g. Ongoing discussions with Battery Industry
Absorbing Energy. Source: Flickr, WTL photos
HAPPOLD CONSULTING
4.3 Energy
FISCAL POSITION
Average residential electricity bill • Compared to other cities Detroit has high levels of
in Detroit is high and median average electric bills and low median household
household income is low when income
compared with other cities
Average median
household
income=$45952
Average residential
electricity bill
180
1000KWh usage
US$ Boston
160
140
Detroit
120 Los Angeles
100 New Orleans Omaha

Austin Average bill =$97
Indianapolis
80
Memphis Lincoln
San Antonio
Seattle
60
40
20
0
0 10000 20000 30000 40000 50000 60000 70000
Median Household
Income US $
Source: Memphis light, Gas and Water Division, 2010 Utility Bill Comparisons for Selected U.S. Cities, HC analysis HAPPOLD CONSULTING

4.3 Energy
ENERGY BENCHMARKS - CHICAGO CLIMATE ACTION PLAN
Industrial Processes and
Product Use, 1.6, 5%
Waste and Waste Water,
1.4, 4%
THE PRESENT SITUATION
• 2005 Emissions rate of 36.2MMTCO2e
X
1 • 2.9 million residents Transportation, 7.3, 21%
• 2005 Emissions rate per resident of 12.5 TCO2e
CLEAR THE ASPIRATION

The Chicago Climate Action Plan aims to reduce the
Energy, 24.4, 70%
EVIDENCE BASED City’s Carbon emissions to 24.2MMTCO2e by 2020, a
S T R AT E G I C reduction of 25% on 1990 base rates, and to
DIRECTION 6.5MMTCO2e by 2050. Chicago’s Carbon Emissions by Sector 2000 [2]
THE ACTION PLAN

The Climate Action Plan outlines five key strategies in order to meet these stringent targets.
1. Energy Efficient Buildings (Strategies 7, 8, 9, 10, 11, 12, 33)

Retrofitting of existing building stock, the efficient use of water, policy
enhancement, green roofs and green streets
2. Clean & Renewable Energy Sources (Strategies 14, 15, 16, 17, 18, 19)
Upgrading and improvement of Power Plants, renewable energy,
decentralization of energy supply to district supply systems.
3. Improved Transportation Options (Strategies 20, 21, 22, 23, 24, 25, 26, 27, 28, 29)
Improvement and upgrading of the city wide transit system, encouragement of
walking and cycling, car share system , efficiency improvements on the city’s
fleet
4. Reduced Waste & Industrial Pollution (Strategies 30, 31, 32)
Reduce, Reuse, Recycle : aims to reduce waste to landfill by 90% by 2020.
HFCs phased out entirely by 2020, stormwater management
5. Adaption (Strategies 2)
Engage the public, manage heat, pursue innovative cooling, plan for the future
Chicago’s Mitigation Strategies [1]
SOURCE: 1.Center for Neighborhood Technology, 2008. Chicago’s Gas Emissions: An Inventory, Forecast and Mitigation Analysis for
HAPPOLD CONSULTING
Chicago and the Metropolitan Region.2.City of Chicago, 2008: Chicago Climate Action Plan. IN-PROGRESS: DECEMBER 22, 2010
4.3
POLICY AUDIT TOPIC: CITY SYSTEMS –
POLICY AUDIT TOPIC : XXXXX XXXXXX INFRASTRUCTURE, TRANSPORTATION & SUSTAINABILITY
XXXXXX XXXXXX XX
NAMEPHASE ONE: RESEARCH AND PRIORITIES
OF SECTION: NORTH AMERICAN CITY PLANS
4.3 Energy
ENERGY BENCHMARKS - NYC PLAN 2030
Transit, 1.74, 3%
On‐road Vehical
THE PRESENT SITUATION Transportation, 11.6, 20% Residential Building
Energy Use, 17.4, 30%
• 2005 Emissions rate of 58MMTCO2e
• 8.17 million residents
X • 2005 Emissions rate per resident of 7.1 TCO2e
1 THE ASPIRATION Institutional Buildings

Energy Use, 6.96, 12%
CLEAR The NYC Plan 2030 aims to reduce the City’s

Carbon emissions by 30% below 2005 levels by
EVIDENCE BASED 2030 and by 80% by 2050. Industrial Buildings Energy
Use , 5.8, 10% Commercial Buildings
S T R AT E G I C Energy Use, 14.5, 25%
DIRECTION
NYC’s Carbon Emissions by Sector 2005
PLAN 2030 [1]
The NYC Plan is to implemented under five main areas:
1. Land
Use of brownfield sites, adaption of existing stock, development to be
closely aligned with transit system
2. Water
Maximise existing facilities, launch of water conservation project and
water efficiency measures within public facilities.
3. Transport
Upgrading of the bus fleet, improve reach of existing transit network,
promote cycling and use of ferry services, upgrade commuter rail
services.
4. Energy
Creation of an energy efficiency authority, peak load management
programmes, use of targeted incentives, stronger building codes, energy
awareness campaigns, more distributed generation, grid modernization.
5. Air
SOURCE: The City of New York (2007). PlaNYC: A Greener, Greater New York
Reduce vehicle and transportation emissions through fuel efficiency,
4.3 modernization and cleaner fuels, collaborative approach to air HAPPOLD CONSULTING
quality study, increase urban greenery. IN-PROGRESS: DECEMBER 22, 2010
4.3 Energy
ENERGY BENCHMARKS
RENEWABLE OPPORTUNITIES
• Michigan should diversify its energy sources to include more
in‐state renewable resources.
•The Anderson Economic Group completed a study for the
University Research Corridor (Michigan State University,
University of Michigan and Wayne State University) and
reported that Michigan has the potential to supply up to 60%
of its power needs through alternative fuels.
•While Michigan will not become a renewable energy exporter
in the foreseeable future, the state must take advantage of the
energy sources in the state to minimise CO2 emissions and
provide for future requirements where feasible.
Questionable Feasibility:
•Can energy based upon renewables be sufficiently cost
effective to maintain and attract employers to Michigan
alongside being affordable to residents?
•Can energy opportunities benefit the state’s professional
talent contributing to non‐governmental organizations,
academia, government and the private sectors?
39 % of Michigan’s CO2 emissions come from electricity generation
HAPPOLD CONSULTING
4.3 Energy
ADAPTABILITY OF NETWORK
Potential Energy Measures Advantages Disadvantages Application to Detroit
1. Eliminate energy infrastructure and ¾May reduce costs, since there would be fewer lines to ¾Political issues involved in identifying areas for ¾Possibility of providing a low density service model2.

discontinue service to depopulated maintain. decommissioning—likely to be controversial. ¾Decommissioning of services in areas of Detroit likely to
areas of a city 1 ¾Could make it faster and easier to determine the causes ¾Difficult and expensive to restore service at a later point if an area compound areas of severe depravation.
of power outages since the overall grid would be regains population.
reduced. ¾Lines in under‐used areas may be needed to service other areas.
2. Reduce public lighting costs1. ¾Likely to reduce costs, short payback periods expected. ¾Darker streets may meet with resistance and some may argue it ¾The replacement of existing streetlights with LED

¾Targets depopulated areas for reduction or elimination fosters crime. streetlights appears well suited, with financial savings as well
of services ¾Energy efficient lighting, organizing lighting down times, and/or as energy savings expected. (The capital payback period for
eliminating lights in some areas would all require up front costs. the potential Ann Arbor LED street lighting scheme estimated
as 4.4 years2).
3. Increase the generation of ¾Has the potential to produce low cost power in some ¾May require substantial up front investments ¾Wind energy under construction3

decentralized energy1. settings. ¾Investments may not yield steady power streams need to tie in ¾Possible implementation of geothermal neighbourhood
¾May produce incentives for conservation if power can with existing utilities heating systems, use of vacant plots2.
be sold to utilities
¾There may be federal and state incentives forthcoming ¾Existing district heat and power networks in Detroit provide
in this area. working examples, and bases for further decentralized energy
networks.
4. Mothballing for future use. ¾Retains asset base ¾Systems may not survive – unknown quality when re‐ ¾This approach has limited flexibility for Detroit as it

¾Reduces maintenance costs commissioned. requires following the existing network routes, which may no
¾New plastic pipes can be easily inserted into the existing ¾ It will also require the maintenance of accurate records to longer be located adjacent to demand.
pipes using a ‘bursting’ method which will maintain the minimize damage to dormant networks which will have an ¾With likely future changes in Detroit’s energy sources,
asset while creating an updated network. associated administration cost. mothballed networks may be misplaced and unfeasible for
¾The advent of new technology may make mothballed incorporation into the City’s future energy supply network.
¾Majority of new network costs is associated with infrastructure unviable for future recommissioning.
ground works rather than the pipes themselves. The ‘hole
in the ground’ is therefore the largest asset of the
network.
SOURCES: 1.Hoornbeek, J. & Schwarz, T. (2009) Sustainable Infrastructure in Shrinking Cities, Options for the Future 2. Kresge (2010).Building a Green Economy in Detroit and developing a Sustainable City
Agenda.2. Minutes of NextEnergy meeting (4th October, 2010).
HAPPOLD CONSULTING
4.3 DETROIT WORKS PROJECT
4.3 Energy
DECENTRALIZED ENERGY SYSTEMS
A decentralised energy system, also known as district
energy system, involves a number of community scale
energy centers which can provide a combination of heating,
cooling and electricity (as appropriate) within the city.
This approach is well suited to a phased construction
sequence, allowing energy centers and associated
infrastructure to be constructed separately, depending on
capacity requirements and funding availability. Capital cost
expenditure can therefore be better linked with each area
of development, reducing the financial risk associated with
each phase of work.
Advantages Disadvantages Application to Detroit System characteristics include:
¾Increased flexibility within the energy market ¾Initial investment in the construction of energy ¾Opportunity to create community energy Multiple smaller utility/energy centers distributed locally

¾Opportunity for the use of large scale renewable infrastructure networks to connect existing and schemes for isolated areas of Detroit. This around the site can be built and brought online with phased
energy technologies (ground source, CHP, etc.) that future buildings. would allow a more efficient ‘core’ construction reducing capital expenditure
can provide substantial carbon savings, economies of ¾Increased maintenance requirements due to distribution network while providing energy
scale, long term fuel flexibility, lower energy prices decentralization of energy generation. services to outlying areas. High infrastructure flexibility during phased construction
and a reliable income stream. ¾The establishment of a energy network may ¾A variety of technologies can be used as High city wide energy resilience through many independent
¾Increased resilience of the network lock communities into a need for heat and energy part of a community energy scheme which
systems, interconnection of networks allows networks to be
¾Minimization of power outages and distract from the potential for demand provides flexibility as to the resources
available in each community. shared increasing resilience
reduction.
¾Direct control over energy use and distribution
¾District heating has mainly been operated in ¾Energy schemes can be established as Specific demands on the site can be met with targeted
¾Isolation of micro‐grids to respond to faults funding is made available rather than
highly regulated markets; operation of district solutions
¾Monitoring of grids to minimize disturbance heating in liberalised energy markets poses requiring a substantial initial capital
¾Local energy storage challenges. investment for city wide strategies. Maintenance procedures needed to maintain local plant
¾Reduction in transmission losses ¾Detroit may be able to take advantage of sites
¾Integration of intermittent energy sources (e.g. solar national incentives towards the integration of
PV, etc.). green energy technologies in a series of
¾Promotion of consumer participation by provision of relatively short term projects.
information and options available to them
¾Creation of local economies within the districts
¾Reduced financial risk associated with large scale
energy distribution networks.
HAPPOLD CONSULTING
4.3 Energy
PUBLIC LIGHTING DEPARTMENT (PLD)
PUBLIC LIGHTING DEPARTMENT
The Public Lighting Department (PLD) is tasked with providing adequate
lighting and electric services to the citizens of Detroit
Responsibilities:
•Inspects and regulates the use of utility poles in the City
•Maintains the Police and Fire communications network
•Maintains city’s traffic signal system (approximately 1,286
intersections)
• Wayne County also operates and maintains some of the city’s
traffic signal system (approximately 235)
• MDOT have recently installed traffic signal systems which they
operate and maintain (no stated numbers)
• The Detroit City Department of Public Works (Traffic
Engineering Division) also installs and maintains traffic signal
systems (no stated numbers)
Traffic Lights
Source: Flickr, Horia Varlan
HAPPOLD CONSULTING
4.3 Energy
PUBLIC LIGHTING DEPARTMENT (PLD)
ELECTRICITY GENERATION
Coverage/Extents:
• Small utility company wholly owned by City of Detroit:
• Mandated to supply power to all Federal, State and other public
buildings within the City area
• Mandated to provide public lighting (see Section 4.4)
• 400 customers – primarily public institutions in 890 buildings.
• Used to supply steam as well but has now left (is leaving) this
business – Detroit Thermal will take over remaining steam plant
(Herman Kiefer) and customers.
Generation and Supply
• Customer demand of 84MW includes supplying 35,000 out of 88,000
street lights
• Generation:
• PLD used to operate 180MW of capacity in 1979
• Declined to 45MW by 2010 of which only 16MW at the
Mistersky power plant are in regular operation
• Shortfall made up by purchasing power from DTE. This allows
department to meet 10% renewables requirement. DTE supplies
remaining 53,000 street lights.
• In some cases, PLD powers streetlamps through pieces of network
Detroit Skyline at 3am owned by DTE. Should DTE pull out of a neighborhood, PLD would
Source: Flickr, Peter W Gilbet therefore have to install cable to continue powering the street lights.
HAPPOLD CONSULTING
4.3 Energy
PUBLIC LIGHTING DEPARTMENT
RECENT DEBATES/PLANNED PROJECTS
• The Public Lighting Department is unsustainable but service must be
maintained
• Infrastructure has deteriorated and service is inadequate
• A 2002 Mackinac Center for Public Policy report said the city spends
$57 to produce one megawatt‐hour of electricity compared to $22
by DTE.
• Action is being considered to improve service, and reduce costs:
• In July 2010, Mayor Bing proposed a four‐year, $150 million
contract with DTE Energy to buy electricity to improve
services and augment the city's Public Lighting Department.
Traffic Light
Source: Flickr, Grendelkhan
HAPPOLD CONSULTING
4.3 Energy
PLD’S FISCAL POSITION
• Infrastructure has deteriorated and service levels • Outsource services In line with other proposals for service
are inadequate – Allowing DTE to provide electricity to Detroit’s reconfiguration or realignment, these proposals in
– This includes all of PLD’s core services: PLD customers will eliminate capital the short to medium term will impact on the viability
street lighting, transmission and distribution, investment needed for transmission and of neighborhoods and general safety and security in
electric services to customers and power distribution the case of PLD. Whilst this rationalization is
generation necessary, the spatial implications need to be
– Funding and staffing levels have fallen • Reconfigure services addressed in line with the Detroit’s overall plans and
substantially along with capital investment – Reconfigure the number of street lights economic development objectives.
– Staff levels have fallen by 58% between operated and maintained from the current
2000 to budgeted positions in 2011 – with level of 88,000 lights to 40-45,000 lights
skilled positions seeing the sharpest falls – This could reduce the necessary capital
investment required by $70 to 100 million and
• The necessary capital investment and require only around $9 million in annual
operational funding requirements are funding
unobtainable
– $140 to 200 million needed to update street
lighting system
– $100 million needed for transmission and
distribution
– Additional $5m annually for operations
SOURCE: 1. McKinsey, DDOT Diagnostics, August 2010. 2. DDOT Meeting, October 2010, 3. City of Detroit Budgets HAPPOLD CONSULTING

4.3 Energy
STEAM: THERMAL VENTURES – DETROIT THERMAL
STEAM
Coverage/Extents:
• DT was established in 2003 by parent company Thermal
Ventures LLP. Thermal Ventures specialty within the energy
industry is purchasing energy systems and up‐grading and
investing in them throughout the United States within central
business districts and down town areas.
• DT was purchased by Thermal Ventures from DTE (Detroit
Edison) please see page on DTE.
• DT manages, maintains and supplies the District energy system
within the city. It provides steam energy to 104 commercial and
public clients in 146 premises in the Central Business District
(CBD).
Generation and Supply Network
• DTE operates its own power generation plants:
• 9 Fossil fuel plants – primarily coal.
• 1 Nuclear Plant
• DT operates 3 plants within the city area and energy is derived
from a city waste incinerator which is managed by GDRRA
(Greater Detroit Resources Recovery Authority‐ Please see
Waste Section 4.4)
• Some network pipes in poor condition leaks are damaging other
co‐located utility networks e.g. optical fibre telecoms lines.
Operations/Delivery
• System currently operating below capacity
Map showing Network of Pipes and Pressure across Detroit with typically a declining utilization rate.
HAPPOLD CONSULTING
4.3 Energy
FISCAL POSITION
MUNICIPAL STEAM AND
ELECTRICITY SALES
Private Funding:
Fiscal Governance:
•Private companies (DTE, CE and DT) are expected to
• Provision of energy services regulated by the Michigan
meet operational and investment expenses from:
Public Service Commission.
• Revenues from charging customers for energy
• The Commission will approve:
supply
• Investment and operating budget
• Banks and capital markets.
• Resultant Charges to Consumers
•PLD draws the majority of its funding from customer
charges (heat and power plant operation revenues) • There has been a large fall ion revenue from steam sales
and a small amount from the Street Fund and a slight fall in electricity revenues from the
municipality in recent years
• This is despite a significant increase in consumer charges
Municipal Funding:
for electricity and steam since 2005
•The City Municipality generates income from the sale
• This has resulted in a corresponding fall in revenue to the
of both excess electricity and steam generated from its
City General Fund
power plants
•Operating and investment revenue is drawn from a
combination of user charges and the Street Fund
HAPPOLD CONSULTING
4.3 Energy
PLD, DTE & CMS KEY CHALLENGES
DTE & CMS
Steam
PLD
HAPPOLD CONSULTING
4.3 Emerging IN-PROGRESS: DECEMBER 22, 2010
Good Problems Inadequate Poor
4.3 Energy
Implement‐
ation
Reduce level of service Some potential to manage service levels during rare peak demand periods (e.g.
Summer peak cooling days). May require extensive network realignment
provided
Raise direct revenues from Price structure and arrears must be addressed.
provision of infrastructure
services
Increase efficiency of service Critical to future of PLD.
provision
Develop synergies between PLD could benefit further from integration with DTE or CMS.
networks
Optimise delivery models DTE and TV/DT models are effective. PLD delivery structure
requires extensive review
Increase efficiency of resource Critical to examine resource use, and efficiency of networks. Numerous proposals
exist. Dependence on non‐renewable energy is very high
use
Bring new users – Economic Key to long‐term success,
Realign networks size/capacity Critical to efficiency.
Use excess capacity to serve Need to address issues of competitiveness with other providers,
external markets particularly Canada.
HAPPOLD CONSULTING
4.4 – WASTE
HAPPOLD CONSULTING
4.4 Waste
OVERVIEW
WASTE MANAGEMENT
responsibilities for waste management within the Detroit Metropolitan
Region, with specific focus on developing a baseline of Detroit’s Waste
Management Resources within the city as well as wider waste
management issues.
This report covers solid waste:
1. Collection
2. Processing
3. Disposal
Current stresses to the management of waste include:
• Cost of waste collection does not decreased proportionally with the
decline in population
• Over‐sized Incinerator which does not conform to environmental
emissions standards
HAPPOLD CONSULTING
4.4 Waste
RESPONSIBLE BODIES
FEDRAL: Environmental Protection Agency (EPA)
• Ensures that federal law is implemented and enforced
• Oversees and promotes better waste, water, and resource
management as well as recycling options, sustainable energy
development and information sharing between organizations
• Regulates all waste under the Resource Conservation and
Recovery Act (RCRA).
STATE: Department of Natural Resources & Environment (DNRE)

• Established the Department of Environmental Quality (DEQ)
program to deal with all forms of waste.
• Provides guidance on national and state waste management
laws and information on grants/loans to assist in recycling
programs.
• The DEQ further established the WHMD ( Waste and
Hazardous Materials Division) Enforcement Section which
provides guidance and training on safe disposal of hazardous
waste and how to administer waste enforcement areas and
pollution prevention.
Planning:
SOUTHEAST MICHIGAN REGION – Southeast Michigan Council
of Governments (SEMCOG)
• Regional solid waste planning agency assisting the delivery
of state stature including development of
solid waste management plans.
• Provides technical assistance on
4.4 implementing plans of HAPPOLD CONSULTING
action & waste strategies. IN-PROGRESS: DECEMBER 22, 2010
4.4 Waste
RESPONSIBLE BODIES (cont.)

Operations/Delivery: CITY OF DETROIT – Greater Detroit Recovery
Resource Facility (GDRRF)
CITY OF DETROIT – Department of Public Works • Operated by GDRRA under the contract of the city
• Delivers essential environmental and of Detroit.
infrastructure services including: • Michigan Waste Energy firm (which is a subsidiary
– Collection and disposal of refuse and waste, of Covanta Energy) are the Energy from Waste
management and other infrastructure (EfW ) facility operators who are authorised under
requirements i.e. traffic lights. contract/ownership from the GDRRA.
– Provides management and collection of
garbage and debris. Regulation:
• The Department of Public Works adheres to
CITY OF DETROIT – GREATER DETROIT Chapter 22 (Solid Waste) codes in conjunction with
RECOVERY AUTHORITY (GDRRA) environmental ordinances of the City of Detroit
Code and other environmental statues.
• The GDRRA is a government unit – separate from
the City of Detroit. • Michigan set out a solid waste policy/framework in
2007 to guide residents, businesses, organizations
• Provider and manager of environmentally
and authorities in making smarter choices for
responsible waste disposal services for the City of
managing solid waste.
Detroit.
• National and State legislature is driving a push
• Committed to recycling whatever can be retrieved.
toward greener energy provision
• The GDRRA operate a GDRRF (facility).
• Michigan has a target of 10% of energy provided
• The Department for Public works is administered by green sources by 2015.
to collect refuse which is delivered to the site of the
Garbage Bins
Source: Flickr, Pikturewerk
GDRRF.

4.4 Waste
COLLECTION
Coverage/Extents:
• The Department of Public Works comprises the
following divisions: Solid Waste, Street Maintenance, City
Engineering, Traffic Engineering and Commercial Refuse
Accounts.
• In previous years, the Solid Waste Division collected more

than 600,000 tons of waste.
• The GDRRF disposes of residential, commercial and

industrial waste.
• The activities of GDRRA encompass total waste

management including transportation, recycling, disposal
and future generation of fuel and energy products.
• The GDRRA’s overall responsibility is to secure waste for

Refuse Derived Fuel (RDF) through the GDRRF instead of
sending waste to land fill sites. This ensures that there is
an increased reduction in emission which are strictly
regulated.
Third Street in Detroit

Source: Flickr, JSmith Photo

4.4 Waste
PROCESSING
Incineration:
• In 1986, Detroit invested in a Refuse Derived Fuel (RDF)
or “GDRRF” Energy from Waste (EFW) plant.
• It began commercially working in 1991 and is operated for
the city of Detroit under contract with GDRRA and
Covanta Energy Company.
• The facility can receive up to 4,000 tonnes of waste per
day which is separated, incinerated and produces up to
720,000 pounds of steam per hour which in turn
generates 68 mw of electricity.
• GDRRF Energy production functions include:
– Combusting the RDF in steam generating boilers;
– Transferring steam to DTE and DT via an
underground pipeline; and
– Producing electricity from the operation of the turbine
generator which provides power to all plant
equipment and for wholesale distribution.
• The energy generated products are purchased by DTE
energy (Detroit Edison) and fed back into the main
electricity grid for consumer consumption.
• The steam that is produced is fed in to a district energy
system managed by DT (Detroit Thermal)
at their two other energy plants around
the city.
Map showing location of GDRRF Incinerator in Detroit

4.4 Waste
UTILIZATION
GDRFF FACILITY UNDER-USE
BACKGROUND COSTS
• At the time of planning, the incinerator had significant • Due to the dispersed nature of the cities population,
strategic rationale: and health requirements for twice weekly collection,
– Energy from Waste was a strategic position to the cost of waste collection has not decreased
counter the USA’s energy dependence on oil & gas proportionally with the decline in population.
– Reduce the amount of waste going to landfill • In 2007‐2008 fiscal year some residents were paying up
to $172/ton for municipal waste collection.
– Offset the cost of waste collection through
the sale of energy (in particular steam) • Comparative cost of using the incinerator vs. landfill
have been described as being as much as 5 time ($125
• However, environmental health concerns relating to
vs $25 / ton).
pollution, has meant that the GDRFF plant is not allowed
to operate more than 2 furnaces at any given time.
• This equates to only: REVENUES
– 2,800 tons/day • To offset the operational costs, the city is considering
importing waste from alternate counties. Private
– around 70% of its capacity
waste contractors bringing waste to the site were being
• There is a significant lobby group protesting the charged at $12/ton (2007‐2008).
incinerator, in favour of a more comprehensive recycling
• It is more efficient to run the furnace permanently
programme.
rather than shut it down intermittently.
Incinerator, Detroit. • In addition, the GDRRA generate revenue through the
Source: Flickr, J to the Jeremy sale of steam or electricity.
• Reduced operating capacity has reduced potential
revenues generated through the sale of electricity.

4.4 Waste
RECYCLING PILOTS
• Beginning in July 2009, the City of Detroit will begia a pilot curb‐
side recycling program, which will include about 30,000
households on the east side and west side.
• The goal of the City's recycling program is to encourage all Detroit
residents to reduce, reuse and recycle:
– Reduce – cut back on materials for disposal; buy products
with less packaging; buy only what you need
– Reuse – Try to find other acceptable uses for leftover
products and items
– Recycle – Recycle products or containers if you can
• The project has now been effective for one year. A review of its
performance to date should be undertaken.
• To determine the most cost‐effective method of implementing
citywide recycling in Detroit by collecting data from a pilot curb‐
side recycling program in two designated areas and from the
recycling drop‐off locations (DPW, 2010).
• As part of an effort be more environmentally responsible, the City
of Detroit Department of Public Works has launching a campaign
to encourage all residents to recycle. Most residents can
participate by dropping off recyclable items at various locations
throughout the city
• Residents in the designated areas will
receive specific information in the mail
and when the recycling container is delivered.
4.4 Waste
FISCAL BASIS AND COST/REVENUE POSITION
SOURCE: 1 McKinsey, October 2010 HAPPOLD CONSULTING

4.4 Waste
DPW – SOLID WASTE FISCAL POSITION
• Solid waste collection costs are higher than • Improve collection rate of solid waste fee The most important element of the proposed
peers – Estimated to have an impact of $6 to 20 opportunities in the short to medium term is that any
– $187 per ton of refuse collected compared million change in number of sanitation trucks routing or
with an average of $154 for peer group frequency of bulk collection, are done in
• Restructure disposal arrangement between consideration of the viability and attractiveness of
• Solid waste collection revenues per household GDRRA and resource recovery facility the city’s neighborhoods so that these do not
have fallen – Estimated to have an impact of around $5 undermine other development efforts in the city.
– Residential fee was lowered from $300 to million
$240 in 2009
– 30% of revenue is uncollected • Review routing of sanitation trucks
– Estimated to have an impact of $3 to 7 million
• Consider outsourcing solid waste collection

– Estimated to have an impact of up to $14
million
• Reduce frequency of bulk collection

• Eliminate commercial refuse collection

– Estimated to have an impact of $1 million
SOURCE: 1. McKinsey, DDOT Diagnostics, October 2010. 2. DPW Meeting, October 2010, 3. City of Detroit Budgets~ HAPPOLD CONSULTING

4.4 Waste
BENCHMARKS
Waste Benchmarks Comparison Graph DETROIT’S WASTE
• Detroit has a high rate of household waste generation
and a very low rate of recycling when compared to other
North American cities
• A significant proportion of Detroit’s recycling is made up
of metals recovered after combustion at the energy‐from‐
waste plant.
SOURCES: STRATEGIC OPERATING ALTERNATIVES REPORT TO THE GREATER DETROIT RESOURCE RECOVERY AUTHORITY, 2009
LALONDE, SUZANNE, “BIG CITY RECYCLING,” PROCEEDINGS ‐ 2003 SOLID WASTE/RECYCLING CONFERENCE OF THE FEDERATION OF NEW YORK SOLID WASTE ASSOCIATIONS, 2003. HAPPOLD CONSULTING
4.4 Waste
ADAPTABILITY OF NETWORKS
Potential Waste Measures Advantages Disadvantages Application to Detroit
1. Reduce waste to landfill and ¾Likely to reduce costs in the long term, with ¾Initial capital costs required to implement new recycling ¾Currently recycling is unregulated, with “with little

incineration by increasing potential to generate profits1. network and facilities could be high. incentive for fully‐fledged recycling”.2
recycling capacity. ¾Could provide much needed employment ¾Service and operation costs could prove to be costly,
opportunities. depending on equivalent cost of landfill or incineration.
¾Reduced environmental impact. ¾Potential profits/reduced running costs dependent on
¾Could attract new residents who see recycling market for recycled materials.1
as essential for green living1.
2. Reduce service to ¾Reduced operation and maintenance costs. ¾Reduced revenue from unserved areas. ¾Service routes follow road network which can lead
depopulated areas. ¾More efficient collection networks. ¾Possible safety, health and welfare concerns if collection to inefficient service networks when serving or
passing through low density areas.2
frequency is altered.
¾Routing is currently a problem as service must be
¾Changes in collection routes / frequency is likely to be maintained, even in areas with very low densities.2
controversial in the short term. ¾Alternative collection options will need to be
¾May lead to increased waste dumping in surrounding investigated for low density areas.
areas. ¾Possibility of reducing waste collection to twice a
month rather than the current weekly collections.
3. Close waste incineration ¾Reduced negative impacts on local ¾Reduced revenue from energy generation of ¾GDRA could be repurposed to deal with biofuel
plant.1 environment.1 incineration plant. gasification rather than waste incineration.2
¾Improved air quality for local area.1 ¾Increased amounts of waste sent to landfill. ¾Discussions are currently underway for the sale of
¾Improved health (decreased asthma rates) and the GDRA.2
quality of life for local residents.1 ¾Transition / decommissioning costs. ¾Despite the current negative impacts of the waste
¾Reduced costs for waste removal and disposal. incineration plant, Detroit should not rule out future
waste incineration plants as the technology and
processes are improving and gaining support as a
means of generating ‘green’ energy and heat.
SOURCES: 1.Kresge (2010).Building a Green Economy in Detroit and developing a Sustainable City Agenda.2. Minutes of Detroit Public Works meeting (4th October, 2010).
HAPPOLD CONSULTING
4.4 DETROIT WORKS PROJECT
4.4 Waste
KEY CHALLENGES
Waste
HAPPOLD CONSULTING
4.4 Emerging IN-PROGRESS: DECEMBER 22, 2010
Good Inadequate Poor
Problems
4.4 Waste
CHALLENGES AND POTENTIAL MEASURES
Implement‐
ation
Reduce level of service Must meet needs of residents.
provided
Raise direct revenues from Fees have been cut recently. Under alternative delivery model
provision of infrastructure there could be potential for different revenue structure.
services
Increase efficiency of service Given current population distribution this is difficult to achieve.
provision
Develop synergies between Could have significant potential with new city structure. Strong
networks synergies already exist with thermal power generation
Optimise delivery models Opportunity to re‐examine with contract renewal.
Increase efficiency of resource Critical to long‐term sustainability of the city.
use
Bring new users – Economic Has potential to provide further economies of scale but would
and population growth require new infrastructure investment
Realign networks size/capacity See synergies.
Use excess capacity to serve Already happening – unsustainable.

external markets
HAPPOLD CONSULTING
4.5 – TELECOMS / ICT
HAPPOLD CONSULTING
4.5 Telecoms /ICT

OVERVIEW
TELECOMMUNICATIONS
responsibilities for telecoms/ICT within the Detroit Metropolitan
Region..
This report covers 3 sources of telecoms:
1. Broadband
2. 3G Network
3. Wireless
Current stresses to the network are:
• Copper Cable Theft
• Inadequately Maintained Utilities
The Citadel - National City Building

Source: Flickr, country_boy_shane
HAPPOLD CONSULTING
4.5 Telecoms /ICT

RESPONSIBLE BODIES
Strategic Oversight & Planning:
Federal: US Department of Commerce

• Mandate to advance economic growth and
opportunities within the US
• Administers laws and regulations of the country and
enables many operational tools and advice to be
implemented at a strategy level.
Federal: Telecommunications and Information Administration

(NTIA)
• Federal department charged with administering and
managing the IT and communications services of the
county
• Operated by the Department of Commerce
• Provides management and service advice to
government agencies and state departments and
resolves technical issues for federal, state and private
sectors
• Responsible for administering infrastructure and public
telecommunications facilities grants
HAPPOLD CONSULTING
4.5 Telecoms /ICT

RESPONSIBLE BODIES
Strategic Oversight & Planning (cont.) Operations/Delivery:
State: Department of Energy, Labour and Economic Growth State/City Level: Connect Michigan

(Michigan State Government) (DeLEG) • Subsidiary of Connected Nations, commissioned by MPSC to
• Michigan Public Service commission (MPSC) map out the states broadband provision and availability
implements statutory related telecommunication & IT • Work undertaken to establish where there is a lack of
regulations. service and how best to improve availability of information
• Promotes competition between and service to the states communities
organizations with the market
National/City Level: AT & T:
Detroit/City Level: Information Technology Services • National leader in communications and information service
• Provides communication technology strategies and provision.
effective guidance tools to ensure that business and – fasted growing 3G network
information needs of the city are met. – largest coverage of the US wireless provision.
• IT services department provides services and advice – largest WI‐FI network & high speed internal system.
for both private and public bodes. • AT&T networks include extensive wired and wireless
• Administers centralized IT processing and capabilities and the service is concentrated across 22 states
telecommunications services to all departments, including Michigan.
agencies and divisions within the city as well as
maintaining public records and licenses.
State/City Level: Mich‐Tel
Telecommunication Tower
Source: Flickr, Pranav • State provider of telecoms and internet services that was
established in 2002.
• Provides services to presidents and
business across the state.
HAPPOLD CONSULTING
4.5 Telecoms /ICT

NETWORK COVERAGE CHALLENGES
• Operators need to provide basic services in all areas, this
• Telecommunication Network coverage is good in
can be costly given not every area will sign up and pay for
Detroit and considered a growing market.
the service.
• Users are willing to pay for extra telecom services as
• Under‐investment by other agencies has a directly negative
they see the added benefit of the amenity.
impact on the telecoms industry
• Telecoms are privately operated and unlike other
• AT&T’s ability to work is often hampered but DPW road
utilities, the rate of growth in demand for data has
closures or leaking Detroit Thermal steam.
grown exponentially.
• Price of service is decreasing as network overheads • Number of copper cable thefts has been growing causing
International Wi-Fi Icon are spread over ever greater numbers of users. telephone and electric service to be knocked out to
Source: Flickr, Dana Spiegel thousands of AT&T and Detroit Edison customers in and
• 95.41% of Michigan households have access to around the metro Detroit area.
terrestrial fixed broadband service of at least 768Kbps
downstream and 200Kbps upstream (excluding mobile
and satellite services.)
• 4.59% of Michigan households are un-served by a
terrestrial fixed broadband provider, representing
approximately 174,000 un-served households that do
not have access to a fixed wireless or wired
broadband service offering (excluding mobile and
satellite service.)
• With mobile broadband service included, 99.64% or
3,772,130 Michigan households have access to
broadband service of at least 768Kbps downstream
and 200Kbps upstream.
HAPPOLD CONSULTING
4.5 Telecoms /ICT

MAJOR PLANNED/ ON-GOING PROJECTS
PROGRAMMES
Broadband Technology Opportunities Program
• The US government appropriated $4.7 billion to
establish a broadband technology systems and
expand the service across the country and public
agencies.
• This includes $250 million for innovative programs
for sustainable broadband services and at least
$200 million for upgrading technology.
Telecommunication Wires
Source: Flickr, Plinkk
HAPPOLD CONSULTING
4.5 Telecoms / ICT

REGIONAL COVERAGE WAYNE COUNTY

4.5 Telecoms / ICT

REGIONAL COVERAGE OAKLAND COUNTY

4.5 Telecoms / ICT

REGIONAL COVERAGE MACOMB COUNTY

4.5 Telecoms / ICT

REGIONAL COVERAGE MICHIGAN STATE

4.5 Telecoms / ICT

REGIONAL COVERAGE – UNSERVED AREAS

4.5 Telecoms
KEY CHALLENGES & POTENTIAL MEASURES
CURRENTLY OPERATING
EFFECTIVELY, AND SERVING
Telecoms
DETROIT
• Private businesses understood to be competitive albeit
growing slightly slower than equivalents in other states.
HAPPOLD CONSULTING
Emerging IN-PROGRESS: DECEMBER 22, 2010
Problems
TRANSPORTATION
HAPPOLD CONSULTING
Transportation - Introduction
AT THE CORE OF A STRONG REGIONAL NETWORK
SERVICING THE CITY & ITS CONNECTIONS
THROUGHOUT THE SOUTH EAST MICHIGAN
REGION & BEYOND
The following sections summarise the key agencies and their responsibilities for
transportation related activities within the Detroit Metropolitan Region, as well as
developing a baseline of Detroit’s transportation within the city limits as well as its
wider transportation connectivity.
These are divided into six categories for ease of reference:
1. Road Transportation
2. Public Transit
3. Non‐Motorized Transit
4. Aviation
5. International Border Crossings
6. Freight and Logistics (inc. freight heavy rail and maritime)
These encompass six types of transportation:
• Private vehicles (predominantly car based, also trucks)
• Buses
• Rail
• Non‐Motorized Transportation
• Air
• Maritime.
HAPPOLD CONSULTING
SYSTEM SUMMARY
23,000 miles of road SE MICHIGAN’S REGIONAL
TRANSPORTATION SYSTEM IS VERY
COMPLEX, & IMPACTS THOSE WHO LIVE,
WORK, VISIT, AND PASS THROUGH THE
REGION — BOTH POSITIVELY AND
4M cars NEGATIVELY.
3,560 bridges The system consists of:
• 4 million registered vehicles;
718 non‐motorized miles • 22,800 miles of public road;
• 3,560 bridges;
• 7 public transit agencies and other transportation providers, such as
taxi cab companies and social service agencies;
• 718 miles of pedestrian and bicycle pathways;
• 4,884 miles of state and county truck routes;
30 airports • 915 miles of active rail;
• 30 airports;
8 crossings 6 ports • 7 international border crossings;
• 6 marine ports; and
• 8 rail/truck terminals.
Current Stresses to the system:
• Aging infrastructure
• Declining population growth
• Declining Job /Economic growth
• Movement of people within the system HAPPOLD CONSULTING
POLICY FRAMEWORK
SEMCOG’S 2030 REGIONAL
TRANSPORT PLAN (RTP) GOALS
AND OBJECTIVES
1. ENHANCE ACCESSIBILITY AND MOBILITY FOR ALL 3. STRATEGICALLY IMPROVE THE TRANSPORTATION 4. PROMOTE A SAFE AND SECURE TRANSPORTATION
PEOPLE, INFRASTRUCTURE TO ENHANCE COMMUNITY AND SYSTEM,
1. Reduce time spent travelling ECONOMIC VITALITY, 1. Reduce traffic crashes, especially between modes
2. Increase access to public transportation, 1. Preserve the existing transportation system, 2. Increase transit safety
prioritizing maintenance before expansion 3. Improve clearance of roadway accidents
3. Increase coordinated development of non‐
motorized facilities 2. Focus investment in areas with high 4. Develop pedestrian‐friendly routes and places
concentrations of people and jobs
4. Increase connectivity of transportation service 5. Encourage communities to define safety needs
across the region, and provide multi‐modal 3. Improve the efficiency of the system
access to major land uses 4. Increase public involvement in decision making
5. PROTECT THE ENVIRONMENT, BOTH NATURAL AND
5. Preserve rights‐of‐way
BUILT.
2. ENHANCE ACCESSIBILITY AND MOBILITY FOR FREIGHT 1. Minimize air and water pollution
WHILE MAINTAINING COMMUNITY INTEGRITY. 2. Minimize disruption or damage to resources
1. Improve freight movement, (natural and built)
2. Improve intermodal operations and facilities, 3. Ensure balance of impacts among all populations
4. Link transport decisions with land use decisions
SOURCE: SEMCOG HAPPOLD CONSULTING

DEMAND AND DEMOGRAPHICS
Population Change by Community 2000‐2030 POPULATION CHANGE IN THE REGION AS
A WHOLE MEANS THAT, IN MOST PLACES,
AN EMPHASIS ON PRESERVING EXISTING
INFRASTRUCTURE WILL BE MORE
IMPORTANT THAN BUILDING NEW
ROADS
• Southeast Michigan’s population is forecast to grow to 5.4 million by
2030, a 12 percent increase.
• By 2030, households will increase at nearly twice the rate of
population, growing 21 percent over 30 years, to reach 2.2 million.
• Most population growth will be on the edges of the urbanized areas
of the region, where land for new housing is more available,
although a substantial portion will occur farther out in more rural
areas.
• The higher rate of household growth will require housing units to be
constructed at twice the rate of population growth. Finally, housing
development on larger lots will accelerate land consumption, with
each new housing unit now occupying almost one acre of land on
average.
• There will be 800,000 more people over the age of 55 in 2030 than
there was in 2000. Elderly households will jump from 22 to 37
percent of all households by 2030.
HAPPOLD CONSULTING
DEMAND AND EMPLOYMENT CENTERS
Employment Change by Community 2000‐2030 “SUBURB TO SUBURB” COMMUTER
PATTERNS VS. “SUBURB TO CITY”
• Where people work versus where they live will always have a major
influence on transport provision strategies, for example:
– High numbers of people choosing to live outside of Detroit,
but work within it – most in the tri‐county region.
– High numbers of people remaining in Detroit, but working
outside of the city.
– Substantial numbers of people coming in from “outside
region” – including from Canada.
• Only 38% of employed Detroiters work in the City. Surrounding
counties attract most:
– Oakland 21%
– Wayne 18%
– Macomb 10%
• Employment is now substantially distributed – more people are
employed outside than inside the city limits.
• It is critical to note now that the predominant commuting pattern is
no longer “suburb to city” but “suburb to suburb”. As such, SE MI’s
road network is becoming “increasingly mismatched to travel needs”
(SEMCOG RTP 2030).
SOURCE: SEMCOG RTP 2030 HAPPOLD CONSULTING

DEMAND AND EMPLOYMENT CENTERS
MAJOR JOB CENTERS
Flint With lower taxes and other economic incentives many of
Port Huron Detroit’s jobs are moving out of the City and into the
25,000 outlying neighborhood Job Centers. The Southfield and
Pontiac Regions have seen a dramatic spike in jobs where
Pontiac many of the ‘city centers’ are seeing more of a declining
Bloomfield trend.
Lansing Waterford
62,000
Southfield City
Farmington Hills Birmingham TOTAL JOBS % GROWTH
TOTAL JOBS
Southfield Twp Madison Heights 1990 2000
95,000 Troy DETROIT CBD 93,500 80,000 ‐15.0
100,000 BIRMINGHAM 95,500 101,200 +5.0
Greater Brighton
32,000 PONTIAC 35,000 62,000 +77.0
Sterling Heights‐ Warren
76,000 STERLING 87,500 76,000 ‐13.0
SOUTHFIELD CITY 13,800 20,000 +44.0
CBD: Downtown and Midtown DEARBORN CBD 60,000 66,800 +12.0
Ann Arbor 80,000
ANN ARBOR 48,000 46,000 ‐4.0
46,000 Dearborn CBD LIVONIA 45,000 40,000 ‐13.0
Livonia / 67,000 BRIGHTON 36,800 32,000 ‐15.0
I‐96 Industrial
40,000
Decline
Slow Growth
High Growth
SOURCE: SEMCOG, ESRI BUSINESS ANALYST, SOM HAPPOLD CONSULTING

MODE OF TRAVEL
PRIVATE CAR OWNERSHIP SEEN AS
CRITICAL TO MOBILITY
Drove alone • Although new investment can be seen as secondary to the
maintenance needs of existing infrastructure, in certain areas around
the edges of the region, rapid growth will require strategies to
increase capacity on those corridors connecting high growth areas to
high‐employment areas.
• Strategies will include Intelligent Transportation Systems (ITS)
technologies to manage traffic flow, van/carpooling, and transit, in
addition to traditional strategies for adding travel lanes.
• Private car ownership is driving this demand.
Carpooled/
Vanpooled • Very high percentage of people travel alone in private cars.
Public
Transportation Other
• Addressing the new and existing travel demand through public
Worked transportation and alternate strategies is important to reduce both
Walked Means road investment, resource use and to support the needs of those who
at home cannot afford private transportation.
Detroit City Transportation to Work Modes Breakdown
(Ages 16+)
HAPPOLD CONSULTING
SOURCE: SEMCOG, COMMUNITY PROFILES (HTTP://WWW.SEMCOG.ORG/DATA/APPS/COMPROF/PROFILE.CFM?CPID=5)
HOUSEHOLDS WITHOUT A PRIVATE VEHICLE
ACCESS TO PUBLIC TRANSPORT IS
IMPORTANT FOR MANY
HOUSEHOLDS
• Accessibility and mobility is a concern for some
households despite strong car ownership rates in the
City.
• Affordability of car, insurance and other expenses is
prohibitive for some.
• Reliance on public transit is concentrated predominantly
in the Downtown area.
HAPPOLD CONSULTING
BENCHMARKS
TRANSORT‐RELATED ENERGY
CONSUMPTION EXTREMELY HIGH
Given Detroit’s car usage profile it is evident that consumption of
gasoline is very high comparative to international standards.
Urban density and
This graphic illustrates the city’s high transportation‐related energy
transportation‐related consumption. Compared to international benchmarks American cities
energy consumption are marginally lower density in terms of inhabitants per acre but
significantly higher consumers of energy.
The implications of higher energy consumption have both negative
environmental and financial implications for a city and its inhabitants.
62 124 185 247 309 371 494 618 741

Urban density inhabitants per acre
HAPPOLD CONSULTING
FISCAL POSITION – AVERAGE HOUSEHOLD EXPENDITURE BREAKDOWN
19% OF THE AVERAGE HOUSEHOLD
EXPENDITURE IN DETROIT IS ON
TRANSPORTATION; HIGHEST IN THE
REGION AND ABOVE THE MIDWEST
AVERAGE (17%)
Source: U.S. Census Bureau, 2006‐2008 American Community Survey; Adjusted 2008 inflation figures, HC Analysis HAPPOLD CONSULTING

For further information on the data collection and aggregation methodology used please see http://www.census.gov IN-PROGRESS: DECEMBER 22, 2010
FISCAL POSITION – SHARE OF INCOME SPENT ON TRANSPORTATION
X
The percentage spend on public transport
in Detroit is very low while the spend on
AN AVERAGE DETROIT HOUSEHOLD
other vehicular expenses (insurance
+maintenance) is very high SPENDS 32% OF THE AVERAGE
AVERAGE AVERAGE
TRANSPORT
HOUSEHOLD INCOME ON TRANSPORT
HOUSEHOLD
EXPENDITURE SPEND AS %
ON OF AVERAGE The total spend on transportation is significantly higher than
TRANSPORT HOUSEHOLD comparison cities. Cleveland is 25%, while Chicago and Minneapolis are
US $ INCOME US$ significantly lower at 19% of average household income spent.
The biggest driver of average transportation spend is the very high
share of spend that ‘Other vehicle expenses’ represent.
This category excludes capital purchase costs and fuel. ‘Other’
expenses include both maintenance and incidental costs, but also
includes costs such as insurance.
The $3,672 spent on average by Detroit households on 'Other vehicle
expenses' is potentially reflective of the high insurance rates reported
in the city .
Conversely, when compared with other mid west cities such as
Chicago, Minneapolis and Cleveland, on average, the Detroit household
spend on public transport is low.

4.6 ROAD TRANSPORTATION
HAPPOLD CONSULTING
4.6 Road Transportation

OVERVIEW
EXTENSIVE ROAD TRANSPORTATION
NETWORK
Metro Detroit has an extensive expressway system administered by the
Michigan Department of Transportation.
The 1940s saw the construction of the world’s first urban depressed
freeway, the Davison. An extensive freeway system constructed in the
1950s and 1960s has facilitated commuting.
There is a high dependence on private vehicles throughout the region,
resulting in an extensive local road network.
Within the city there are 687 miles of major roads, and 1887 miles of
residential streets.
SOURCE: 1. DEPARTMENT OF PUBLIC WORKS, INFRASTRUCTURE ISSUE TOPIC MEETING, 3RD AUGUST 2010; MEETING WITH DPW, 8TH OCTOBER 2010 HAPPOLD CONSULTING


RESPONSIBLE BODIES
Federal: The Federal Highways Administration (FHWA)
• Major agency of the U.S. Department of Transportation
(DOT).
• Provide leadership and direction through strategic
planning and federal funding.
Michigan State: Michigan Department of Transportation
(MDOT)
• Administer the state transportation system & state and
federal funds.
Planning:
South Eastern Michigan Council of Governments (SEMCOG)
• Sets regional transport strategy & seeks funding for
plans.
• Oversees regional transport authority and support
agencies in delivery.
Operations/ Delivery:
The Detroit Department of Public Work:
• Ensure that all public right of way is maintained for safe
pedestrian and vehicular travel in Detroit.
• Maintain the majority of the city’s major streets (through
federal funds, STPU and ARRA), and all residential streets
(state funding)
• MDOT are responsible for some
major roads.
4.6 HAPPOLD CONSULTING


RESOURCES AND NETWORK: INTERSTATE / FREEWAY
METRO DETROIT HAS AN EXTENSIVE
EXPRESSWAY SYSTEM
It is administered by the Michigan Department of Transportation
(MDOT). Four major Interstate Highways surround the city.
• I‐75 (The Chrysler and Fisher Freeways) is the region’s main north‐
south route, serving Flint, Pontiac, Troy and Detroit, before
continuing south (as the Detroit‐Toledo and Seaway Freeways) to
serve many of the communities along the shore of Lake Erie.
• I‐94 (The Edsel Ford Freeway) runs east‐west through Detroit and
serves Ann Arbor to the west (where it continues to Chicago) and
Port Huron to the northeast.
• I‐96 runs northwest‐southeast through Livingston, Oakland and
Wayne Counties and (as the Jeffries Freeway through Wayne
County) has its eastern terminus in downtown Detroit.
• I‐275 runs north‐south from I‐75 in the south to the junction of I‐
96 and I‐696 in the north, providing a bypass through the western
suburbs of Detroit. I‐375 (The Chrysler Spur) is a short spur route
in downtown Detroit, an extension of the Chrysler .
• Freeways: I‐696 (The Reuther Freeway) runs east‐west from the
junction of I‐96 and I‐275, providing a route through the northern
suburbs of Detroit. Taken together, I‐275 and I‐696 form a
semicircle around Detroit. Michigan State highways designated
with the letter M serve to connect major freeways.
SOURCE: ESRI HAPPOLD CONSULTING


RESOURCES AND NETWORK: OVERSEEN BY FEDERAL AND STATE AGENCIES
MDOT FREEWAYS IN THE MDOT FREEWAYS IN THE CITY MDOT ARTERIAL ROADS IN THE
DETROIT REGION OF DETROIT CITY OF DETROIT
The state highway system and US and M numbered
highways are the responsibility of MDOT.
SOURCE: Maps – Toni Griffin & DCDC 2010 HAPPOLD CONSULTING


RESOURCES AND NETWORK: DEPARTMENT OF PUBLIC WORKS
CITY OF DETROIT NETWORK
MAINTAINTED BY DEPARTMENT OF
PUBLIC WORKS
Map of DPW maintained road The Detroit Department of Public Works Street
network within Detroit Maintenance Division repairs and maintains city streets,
alleys and sidewalks. It provides the following services:
• Resurfacing Operations
• Maintenance / Repair Operations
• Street sweeping operations
• Snow and Ice Operations.
Within the city there are 687 miles of major roads, and
1887 miles of residential streets.
Annually the Detroit DPW repave 50 miles of residential
streets, and 37 miles of major streets.
SOURCE: DEPARTMENT OF PUBLIC WORKS, INFRASTRUCTURE ISSUE TOPIC MEETING, 3RD AUGUST 2010; MEETING WITH DPW, 8TH OCTOBER 2010 HAPPOLD CONSULTING


RESOURCES AND NETWORK:
LARGE, COMPLEX NETWORK OF
ROADS WHICH SERVE LOW
DENSITY AREAS, WHICH WILL
CONTINUE TO DECLINE.
• Connectivity by road is good throughout the city, despite
the low density in many areas.
HAPPOLD CONSULTING

RESOURCES AND NETWORK:
TRAFFIC REFLECTS THE GROWTH
OF SUBURB‐TO‐SUBURB
MOVEMENT, AROUND AND OUT
OF DETROIT, RATHER THAN
THROUGH IT
• Road network no longer matches up with population
density distribution.
HAPPOLD CONSULTING

KEY PARKING FACILITIES (10) OPERATED BY PARKING DEPARTMENT (MPD)
1. Cadillac/
Farmer Lot
DOWNTOWN DETROIT PARKING
2. Cobo Arena The Municipal Parking Department (MPD) is responsible for
Garage
planning, supervising, operating and maintaining the City of
3. Cobo Hall Detroit’s Auto Parking and Arena Systems (an Enterprise
Garage Fund) and for the management of 10 parking facilities.
4. Cobo Roof
Deck The Department:
• Provides economical on and off street parking services
5. Cultural Center
Garage • Enforces City of Detroit parking ordinance (the Parking
Violations Bureau ‐ a General Fund))
6. Eastern Market
• Coordinates parking with economical development
Garage
projects throughout the city of Detroit.
7. Ford
Underground
There are numerous private parking providers which
Garage
compete with the publicly provided facilities.
8. Grand Circus
Park Garage Declining demand for parking facilities also indicates that
9. Joe Louis Arena there may be over‐capacity in parking provision.
Garage *
10. Millennium
The profitability of parking facilities will be reduced.
Garage
11. Premier
Underground
Garage
* Monthly parkers at the Joe Louis Arena Garage has a free shuttle service to and from the parking facility and the Central Business District
SOURCE: 1. http://www.detroitmi.gov/Portals/0/docs/municipalparking HAPPOLD CONSULTING


MAIN ARTERIALS SPAN OUT
FROM DOWNTOWN TO THE
REGION
The main arterials span in all directions out from downtown
Detroit.
The Woodward corridor will be further strengthened as a
main arterial with the planned development of a light
railway.
SOURCE: 1. HAMILTON ANDERSON ASSOCIATES, 2010 HAPPOLD CONSULTING

4.6 Transportation
MAIN ARTERIALS &
EXPRESSWAY ACCESS POINTS
The overlay of both the existing radial corridor
network and the highway system illustrate a
transportation infrastructure designed to prioritize the
automobile. In this case the ¼ and ½ mile “impact
depths” are shown adjacent to 1 mile radius
“catchment” circles that show how accessible the
freeway system is to citizens who have automobiles.
In many cases, this clear “redundancy” in service
accessibility renders the conventional surface level
radial streets unnecessary for medium to long
distance commutes, further undermining their
physical and commercial viability for future
investment.
1 MILE RADIUS AT
EACH RAMP
SOURCE: HAMILTON ANDERSON ASSOCIATES, 2010 HAPPOLD CONSULTING


RESOURCES AND NETWORK: 1956 MASTER PLAN
EXPRESSWAY DEVELOPMENT IN
THE CITY
This 1956 expressway construction map illustrates the
existing and proposed expressways as part of the Detroit
Master Plan of Expressways. This planning effort,
completed at the peak of Detroit’s population, was closely
linked with the Federal‐Aid Highway Act of the same year.
While some of the planned expressways were not realized,
it is clear the current expressway infrastructure owes much
to this early planning effort. The destinational arrows at
the intersection of the city’s edge and the expressway
conveys the degree to which each byway was to be a link to
suburbs and regional cities planned for rapid growth.
At the time these expressways were seen as lifelines to
ensure Detroit’s long term viability as a commercial and
industrial hub, but ultimately these very routes aided in the
massive disinvestment and depopulation of the city.
SOURCE: UNDOCUMENTED HAPPOLD CONSULTING


BENCHMARK
DETROIT CHICAGO VANCOUVER

• Relatively dense freeway network within the city limits • Major logistics and freight distribution center, with relatively • City structure plan makes conscious effort to exclude
• Buried freeways decrease permeability fewer urban freeways freeways from within city limits
0 4 8
Miles
SOURCE: Microsoft Visual Earth by License HAPPOLD CONSULTING


PLANNED PROGRAMS
The Investment Plan is aligned with the Planning &
Development Department – projects and needs:
• Transportation Improvement Plan – directs how to
expand/invest.
• Transportation appropriation = $15 million, program
over 4 years: major streets, bridge rehabilitation.
They are also planning to:
• Install over 2000 ADA compliant handicap ramps in
downtown and midtown areas.
• Install new ADA ramps at each street intersection that is
paved each year.
• Grade alleys, upon request (where still utilized).
• $1 million used annually to replace street tree damaged
sidewalks.
• Annually assess bridges in the city (rehabilitate
Lafayette and Larned bridges).
SOURCE: DEPARTMENT OF PUBLIC WORKS, INFRASTRUCTURE ISSUE TOPIC MEETING, 3RD AUGUST 2010; MEETING WITH DPW, 8TH OCTOBER 2010, SEMCOG website (mapping) HAPPOLD CONSULTING

4.6 Road Transportation EXPENDITURES HAVE BEEN

FISCAL POSITION DECLINING, TIED TO DECLINING
FUNDING MECHANISMS
Expenditures have decreased sharply in recent years, particularly with
regards to Public Works expenditures. Allocated funding:
• 2003 $64 million
• 2007 $58.8 million
• 2009 $57.7 million
• 2010 Census certification of population and declining
gas usage = further cuts
The current maintenance cycle by the Department of Public Works is:
• Major streets are currently maintained on a 40 year cycle. Optimal
cycle identified was an 18‐20 year cycle.
• Residential streets maintained now on an 18‐25 year cycle, ideally on
a 10‐12 year cycle.
Public Works Revenue Streams:
• Physical Environment revenue is derived largely from the City
General Fund.
• Other forms of revenue include those form the City Automobile
Parking Enterprise Fund.
• Revenue from this Enterprise Fund are merged back into the City
General Fund.
• Operating revenues have increased significantly in recent years.
SOURCE: 1 MCKINSEY, OCTOBER 2010; DEPARTMENT OF PUBLIC WORKS, INFRASTRUCTURE ISSUE TOPIC MEETING, 3RD AUGUST 2010; MEETING WITH DPW, 8TH OCTOBER 2010 HAPPOLD CONSULTING


DPW - STREETS FISCAL POSITION
• Spend per mile of road below average • Reduce number of streets served The most important element of the proposed
– $22.6 per mile compared with an average of – This will result in a reduction in state funding due opportunities in the short to medium term is that any
$37.8 for peer group to funding formula change in number of miles of streets served is done in
– McKinsey estimate a reduction in miles of road by consideration of the viability and attractiveness of the
30% will lead to only a 10% reduction in state city’s neighborhoods so that these do not undermine
funding other development efforts in the city.
SOURCE: 1. McKinsey, DDOT Diagnostics, October 2010. 2. DPW Meeting, October 2010, 3. City of Detroit Budgets HAPPOLD CONSULTING


BENCHMARKS / SUSTAINABILITY
CAR RIDERSHIP IS THE NORM &
CONTINUES TO DICTATE THE CITY FORM
Drove
alone
It is clear that Detroit relies heavily on energy‐intensive transportation,
encouraged by large road network capacity, for example:
Urban density and transportation‐ • High transport‐related energy consumption.
related energy consumption Carpooled/
Vanpooled
Public • High usage of single occupancy vehicles for normal transportation.
Transportation Other Worked
Walked Means at home
•Large, dense transport network through low density areas.
Detroit Transportation Modes Breakdown (Ages 16+)
62 124 185 247 309 371 494 618 741

Urban density inhabitants per acre1
Source: 1. Kirby, A. (2008) “Kick the habit: A UN Guide to Climate Neutrality”. (UNEP)
HAPPOLD CONSULTING
4.6

Potential Road Transport Measures Advantages Disadvantages Application to Detroit
1. Asset management improvements1 ¾Could lead to large and significant long term cost ¾Requires support from top management, concerted effort, and ¾Existing authorities could compile complete

reductions and service improvements. perhaps culture change. inventories of their assets (roads, equipment,
¾Does not require large up front capital costs. ¾Requires up front investments in data and analysis. facilities, etc.), their condition and their
¾This approach is increasingly being used in ¾May be difficult to quantify cost reduction and service benefits criticality of service to the public.
infrastructure management and investments and it ¾Analysis of the number of people served and
appears consistent with current infrastructure anticipated needs for future capacity would also
management trends. be beneficial.
¾Developing and managing existing
transportation infrastructure through data
framework, decision making regarding both cost
savings and service improvements can be
improved.
2. Eliminating some existing roads and ¾Reduces or eliminates road maintenance costs ¾Significant capital cost associated with removal of roadways. ¾ Due to the significant costs to both

recycling the concrete/asphalt.1 ¾Recycling concrete could produce a revenue flow ¾Road deconstruction may prove costly to public entities. deconstruct and reconstruct roadways, this
¾Creates additional space for other purposes. ¾Recycling revenues may be one‐time only and markets for it may approach should only be considered in areas
not be stable. where the prospect of future growth is very
¾Reduces the area of impermeable surface in the city. limited.
¾Once removed, the roads will not be available for future use. ¾ Many roads serve outlying areas so cannot be
¾May have negative impacts on property values. eliminated, even in low density areas. 2
¾There is the potential to reduce roadways in
some areas where there are no connector roads
(these have not been confirmed)2.
¾Coordination between utility infrastructure
and eliminated roads would be required.
3. Narrowing roads in response to ¾Roads could be narrowed in conjunction with ¾Would not reduce maintenance costs as much as ¾ Road narrowing should be considered in

reduced traffic volumes.1 scheduled roadway repair or replacement, possibly decommissioning roadways. conjunction with broader accessibility, aesthetic
reducing long‐term maintenance costs. ¾Narrowed roads would be difficult and costly to expand if future and social requirements which can balance the
¾Creates opportunities for wider sidewalks and/or traffic volumes require greater capacity. capital costs.
deeper tree lawns. ¾There are upfront costs for narrowing existing roads. ¾Careful consideration will need to be taken in
¾Reduced traffic volumes facilitate improvements to the selection of roads in order to minimise the
aesthetics and accessibility for pedestrians and impact of future capacity requirements.
bicyclists.
SOURCES: 1. Hoornbeek, J. & Schwarz, T. (2009) Sustainable Infrastructure in Shrinking Cities, Options for the Future 2. Minutes of Detroit Public Works meeting (4th October, 2010). 3.Kresge (2010). Building a Green
¾May reduce the area of impermeable surface in the
Economy in Detroit and Developing a Sustainable City Agenda.
city (helping to reduce stormwater infrastructure).
HAPPOLD CONSULTING
SOURCES: 1. Hoornbeek, J. & Schwarz, T. (2009) Sustainable Infrastructure in Shrinking Cities, Options for the Future 2.Kresge (2010). Building a Green Economy in Detroit and Developing a Sustainable City Agenda. 3. Hummel, D. &
Lux, A. (2007) Population decline and Infrastructure: The Case of the German Water Supply System. 4. Minutes of DWSD meeting (7th October, 2010)
4.6 Road Transport

KEY CHALLENGES
Road
HAPPOLD CONSULTING
Emerging
Problems

Implementation
Reduce level of service Limited scope. Less utilized roads demand less servicing. Many services already
residents responsibility i.e. snow and ice. Currently only clear for major streets, if
provided above 6 inches of snow.
Raise direct revenues from Upcoming funds, only if increase gas charge or registration fees but isn’t yet amended
in bills. Metro and Telecoms fund this year provided $2.9 million – not dependent on
provision of infrastructure miles. Only other option is federal (earmarked) funds.
services
Increase efficiency of service Already undergone, and currently undergoing efficiency targeting.
provision
Develop synergies between Future stages of the Detroit Works Project aim to improve these synergies.
networks
Optimise delivery models N.A
Increase efficiency of resource Looking at improving the urban structure and street network to capitalise on existing
road resources and capacity. Avoid unnecessary investment in new road network.
use
Bring new users – Economic Potential for benefit, likely to only impact road transportation in the long‐term.

Realign network’s Could reduce residential streets maintenance , but the amount of residential streets
being maintained currently are on a 18‐25 year turnaround so it doesn’t make much
size/capacity financial difference now, and on less dense streets there is less use and therefore less
need for maintenance. This needs further assessment for potential benefits
Use excess capacity to serve Not possible, except for logistics and freight through traffic.
external markets HAPPOLD CONSULTING
4.7 – PUBLIC TRANSIT
HAPPOLD CONSULTING
4.7 Public Transit

OVERVIEW
EXTENSIVE PUBLIC TRANSIT NETWORK
Within Detroit there are a number of public transit services operating:
• Bus networks:
– DDOT
– SMART
• Rail:
– People Mover
• Long‐distance travel:
– Bus
– Rail
HAPPOLD CONSULTING
4.7 Public Transit

RESPONSIBLE BODIES
Federal: The US Department of Transportation (USDOT)
oversees federal transportation.
Federal Transit Authority (component of USDOT) makes
recommendations for mass transit.
Planning:
SEMCOG sets regional transport strategy, then seeks
funding for the plans. It will oversee the regional transport
authority and support the agencies in delivery.
Detroit Department of Transportation (DDOT)
•Municipally owned and operated
•Sponsoring the Woodward Light Rail Project
SMART
•Operates bus routes in Wayne, Oakland and Macomb
Counties
DTC
•Operates the People Mover in Downtown Detroit
Ann Arbor‐Detroit Commuter Rail
• A proposed project
Long‐distance
• Greyhound, Amtrak, Wally, MI Rail

4.7 Public Transit

DETROIT CITY BUS (DDOT)
CITY OF DETROIT ‐ Detroit Department of Transportation
(DDOT)
• Municipally owned and operated transportation system
under the Detroit City Charter ‐ Detroit City Code
Reference 7‐1401.
• Under the restructured 1974 Detroit city charter, the
Detroit Department of Transportation (DDOT), is the
major bus transit carrier is Southeastern Michigan as well
as the largest transit carrier in the entire State of
Michigan.
Responsibilities
• Operating transportation equipment (including
scheduling of service, performing necessary maintenance
and repairs to buses and service vehicles).
• Maintaining, replacing and repairing all DDOT properties,
including buildings, structures, systems and bus shelters.
• Sponsoring the Woodward Light Rail Project.
SOURCE: 1. http://www.detroitmi.gov/Departments/DetroitDepartmentofTransportation/tabid/80/Default.aspx HAPPOLD CONSULTING

4.7 Public Transit

RESOURCES AND NETWORK: STREET RAILWAYS NETWORK 1941
DETROIT DEPARTMENT OF STREET
RAILWAYS MAP 1941
The connections between this 1941 street car map and the
centralized lines and stops associated with DDOT’s current
bus system are fairly clear.
In many ways the same route density exists in these areas
today. It will be important to consider the contemporary
relevance of these routes and their density against the
current demographic, economic and physical characteristics
of the area today
SOURCE: Undocumented HAPPOLD CONSULTING

4.7 Public Transit

RESOURCES AND NETWORK: ALIGNING TRANSPORTATION WITH
NEIGHBORHOOD NEEDS NEIGHBORHOODS WITH
LIMITED ACCESS TO VEHICLES
ALSO DISPLAY HIGH LEVELS OF
VACANCY
It is also in this area that the DDOT bus system has the
greatest density of bus stops. On one hand this helps
to meet the unique transportation needs of the area,
yet on another, the high level of vacancy in this area
negatively impacts fare box revenues.
The Detroit Works Project must develop a plan that
aligns DDOT’s service with the core needs and capacity
of the city’s neighborhoods. As DDOT struggles to
remain solvent, with diminishing ridership base, and
the neighborhoods need services, some reconciliation
will be required.
DDOT Bus Stops overlaid on neighborhoods without access to a DDOT Bus Stops overlaid on neighborhoods with levels of
vehicle vacancy and limited population
SOURCE: SOCIAL COMPACT, 2006, HAMILTON ANDERSON ASSOCIATES, 2010 HAPPOLD CONSULTING

4.7 Public Transit

RESOURCES AND NETWORK: FREQUENCY OF SERVICE
FREQUENCY OF SERVICE
• Most frequent services along trunk routes.
• Some areas have very low ridership levels affecting fare
box revenues in low density and low usage areas.

4.7 Public Transit

SMART AND DDOT NETWORKS
COMPLEMENT EACH OTHER
• SMART networks connect with the DDOT network at the
city limits, and along trunk routes.
• SMART hubs semi‐circle Detroit’s outer limits
• Also requires many people to change buses to access key
employment centers.
HAPPOLD CONSULTING
4.7 Public Transit

UTILIZATION
DDOT IS AN ESSENTIAL SERVICE
FOR MANY
• Most Detroit riders are relatively poor (majority female) • Passenger numbers change in relation to economy and
and use the transit system out of necessity rather than specific fare offers as well as overall demographic.
choice – but it is essential to a large number of them. Despite population decline ridership remained high
during the period 2005‐2007 due to:
• They use the system to:
– Declining wealth of many Detroiters
– Access employment
– High costs of motoring
– Access governmental offices and other service
providers – Free bus travel for elderly and disabled.
– Travel to and from education (particularly the • 2007 numbers (34million passengers annually) have
afternoon journey from school) now declined by around 6% due to:
• Many make multistage journeys using the DDOT network – Increased unemployment reducing trips to access
to access the SMART network which provides access to employment.
employment centers beyond the city boundary. – Removal of the free travel entitlement for the
• Key routes/destinations are: elderly and disabled (2008 onwards).
– Downtown – Reductions in service as a result of cost saving
exercises.
– Woodward
– Gratiot – 8 mile border – access to Macomb
employment centers
– Northlands – access to Oakland employment
centers
• A new onboard (O&D) survey is being undertaken by
SEMCOG, it should report in December 2010.
SOURCE: 1. INTERVIEW WITH DDOT, 7TH OCTOBER 2010 HAPPOLD CONSULTING

4.7 Public Transit

RESOURCES AND NETWORK: TRI-COUNTY AREA BUSES - SMART
SOURCE: SMART HAPPOLD CONSULTING

4.7 Public Transit

THE DETROIT PEOPLE MOVER
(DPM)
• The Detroit Transportation Corporation, City of Detroit, is
owner and operator of the Detroit People Mover.
• The Detroit People Mover (DPM) is a fully automated
light rail system that operates on an elevated single track
loop in Detroit’s central business district.
• The DTC fleet consists of twelve driverless vehicles that
are fully automated and computer controlled.
Responsibilities
• Provide safe, reliable, efficient and accessible rail
transportation services that will serve to enhance
business development and quality of life functions in
Detroit by augmenting pedestrian travel and by
supporting both private conveyances and other modes of
public transportation.
Operation
• The DPM runs at about 15% of capacity at present.
SOURCE: DDOT, Toni Griffin & DCDC (Map) HAPPOLD CONSULTING

4.7 Public Transit

RESOURCES AND NETWORK: LONG-DISTANCE BUS TRAVEL
LONG‐DISTANCE CONNECTIONS
• Greyhound operates to numerous destinations from
Detroit, connecting into its nationwide network, and
into Canada.
SOURCE: Greyhound website, Toni Griffin & DCDC HAPPOLD CONSULTING

4.7 Public Transit

CRTSP REGIONAL TRANSIT PLAN
• Comprehensive Regional Transit Service Plan, by SEMCOG
• Combined ticketing ($10M)
• Integrated scheduling between modes
• Inclusion of all communities in tri‐county area in the
SMART scheme – some have opted out
• Development of a regional system map with all modes
• Common signage between modes regardless of provider
/ owner
• “Job Connectors” – point to point bus services linking job
nodes, to attempt to facilitate suburb‐to‐suburb
movement
• Enhancements to Existing Services:
– Improved service frequency, additional routes,
increases in Community Transit and paratransit
services, improved waiting environments and bus
stops.
• Introduction of Rapid Transit Corridors throughout the
region:
– Arterial rapid Transit (ART) services (see map to
right)
– Services could then become BRT or LRT – if
ridership and cost/benefit allow
– Light rail on Woodward corridor (see next page)
– Commuter rail from Detroit to Ann Arbor (see
section 4.9 Heavy Rail)
SOURCE: SEMCOG HAPPOLD CONSULTING

4.7 Public Transit

PROPOSED LIGHT RAIL: Phase 1 Downtown ‐ Jefferson to Grand Boulevard:
WOODWARD CORRIDOR • A $125 million, 3.4‐mile system (M‐1 RAIL), funded by
private philanthropy and public investment, to function
• DDOT has raised $55 million ($25 million of which was
initially in a circulation mode and then convert to a
provided by the American Recovery and Reinvestment
dual circulation/rapid transit mode when Phase 2 is in
Act’s discretionary grant program called Transportation
place.
Investment Generating Economic Recovery) while M1 is
providing $125 million towards the $425 million project. • M‐1 RAIL is anticipated to begin operations in 2013.
• An application will be made to the Federal Transit Phase 2: Grand Boulevard to 8 Mile Road and Beyond:
Administration’s (FTA) New Starts program to fund • Extension of transit system north along Woodward to
construction of the system. the city limits utilizing the same vehicles and
maintenance facility.
Federal Backing: • Construction targeted to follow Phase 1.
• Project has been entered onto the “Federal Register”, the • RTCC/SEMCOG plan calls for extension of service
first step in producing an EIS (Environmental Impact northward through Oakland County at the appropriate
Statement), which could lead to up to 80% federal time.
financing. The EIS is expected to take between 12 and 18
months. Funding:
• Parsons Brinckerhoff are taking the EIS process forward. • A private group called, M1 Rail, is funding the first
• Proposal for light rail up Woodward, initially in two phase.
phases from Downtown to Midtown, then from Midtown • M1 Rail, which received the required legislative
to 8 Mile Road. approvals and operating funding mechanisms in
January, will operate as a non‐profit and eventually be
turned over to the regional transit system.
SOURCE: Toni Griffin & DCDC (Map) HAPPOLD CONSULTING

4.7 Public Transit

AMTRAK PASSENGER SERVICES
• The “Wolverine” is a passenger train service operated
by Amtrak as part of its Michigan Services. The
304 miles (489 km) line provides three daily round‐
trips along the Pontiac‐Detroit‐Chicago route.
• Signalling and control systems have recently been
upgrade on this line, resulting in possible speeds of up
to 95mph.
• This route is included in the high speed rail proposals
advocated for by the Midwest High Speed Rail
Association.
SOURCE: Amtrak, Toni Griffin & DCDC (Map) HAPPOLD CONSULTING

4.7 Public Transit

Scheduling
ANN ARBOR COMMUTER RAIL • The Henry Ford center station: This station will not
include feeder bus routes, as the station is at the • The service will initially start with only 4 services per
PROPOSALS destination – the Museum, Factory Tour, Auto Hall of weekday, and 3 on the weekend, but will build up to
Fame, IMAX and Benson Research center will all be eventually have AM, midday, PM, evening and
Background weekend services.
accessible from the station.
• Project to run commuter rail along existing rail
• Dearborn Station: This station’s catchment is expected to
infrastructure between Ann Arbor and Detroit. Operations
encompass 100,000 residents, 171,000 employees, and
• Project is having funding trouble, and whilst it may be up will include 4 new feeder bus routes to key destinations • It had been stated that Amtrak would operate the
and running by the end of 2010, it may only initially in Dearborn such as the Ford HQ, or Arab American service and serve as Rail Authority initially, until an
operate for special events. museum. organization is put in place.
• Detroit Station: The current Detroit Amtrak Station will • However, recent press releases from SEMCOG state
Stations be used, at New Center in Midtown. 4 new feeder lines that the lack of a fixed operator for the service is now
• Ann Arbor Station: the existing Amtrak station on Depot will be connected to the project, taking passengers to one of the reasons the project is suffering a delay.
will be used for 18 months (at least), until the Fuller Road various destinations in Detroit.
Intermodal Gateway is complete. This will be near the U Funding
of M Medical center, on Fuller. The station is expected to Ticketing • Estimates regarding required funding state that
serve 145,000 residents, 115,000 students and 77,000 between $60‐80 million in capital expenditure is
• Fares have yet to be fixed exactly – but the project will
employees. 3 feeder bus routes will connect to the required, and $8‐$15 million in opex per year
aim to be significantly cheaper than gas prices for a
station to take passengers to key Ann Arbor destinations. subsequently. Some funding has been obtained from
similar commute, and will also be operated on a
• Ypsilanti Station: The station will be in Depot Town and “demonstration project” basis for the first 3 years, to federal grants, federal highways administration
is expected to serve 73,000 residents, 23,000 students monitor ridership, take‐up, prices and costs. funding, MDOT, and Michigan’s Congressional
and 44,000 employees, in its catchment. Delegation.
• Transfers to the feeder bus routes which will be
• Detroit Metropolitan Airport: the exact location of this implemented at the stations (see above) will be free to • SEMCOG is considering raising gas tax slightly to
station is tbc at present, but it will include feeder shuttle transfer to, with a train ticket. generate funding for the project, and will also target
routes to all terminals, hotels and employment centers at parts of a $2.5BN Federal Railroads Administration
the airport. fund in 2010, as well as federal TIGER grant dollars.
SOURCE: 1. SEMCOG, 2010 HAPPOLD CONSULTING

4.7 Public Transit

MAJOR PLANNED/ON-GOING PROJECTS: HIGH SPEED RAIL PROPOSALS
SNCF MIDWEST BULLET TRAIN AMERICAN RECOVERY AND
PROPOSAL REINVESTMENT ACT OF 2009
• In 2009, the French National Railway Company (SNCF), a • In 2009, the federal government allocated $8 billion in
world leader in high‐speed rail (HSR), responded to a the American Recovery and Reinvestment Act to be
request for information from the US Department of divided up among rail projects around the country.
Transportation with a proposal to develop, construct and States in the Midwest made 24 applications to the
operate a Midwest bullet train network. government, and on January 28, 2010, the White House
• The first phase of the system includes the Milwaukee – announced that the Chicago network would receive
Chicago – Detroit route, serving Chicago’s O’Hare and money for 3 of its requests, and two other grants were
Midway airports, and will account for 15.8 billion made to Midwestern states. The Chicago‐based routes
passengers in 2022 receiving funding were:
• They are proposing 28 stations conveniently located close • $1.131 billion for Chicago–St. Louis–Kansas
to medium and large city centers and airports. City ($1.1 billion for Chicago–St. Louis, $31
• Construction alone will create more than 316,000 new million for St. Louis–Kansas City)
jobs, and 677,000 long‐term operations and maintenance • $823 million for Chicago – Milwaukee –
jobs will attract workers from all socio‐economic Madison–Minneapolis/St. Paul ($810 million
segments. for Milwaukee–Madison, $12 million for
• Speeds up to 220 mph will be and are expected to Chicago–Milwaukee, remaining $600,000 to
study possible alignments to the Twin Cities.)
generate a significant number of new trips.
• The trains will have 500 to 550 seats, with a wide variety • $244 million for Chicago–Pontiac–Detroit
of on‐board amenities and price options. • An additional $400 million was released for the "3C"
• Once fully established, revenue will exceed operations corridor in Ohio connecting Cleveland, Columbus,
and maintenance costs and cover a portion of capital Dayton, and Cincinnati, and $17 million was allocated to
costs. Public funding will only be required for 54% of the Iowa.
initial capital investment. Capital costs for the entire • Many of the corridors receiving funding at this time were
system are roughly estimated at $68.5 billion. originally designated as high‐speed rail corridors
following the 1991 ISTEA legislation.
SOURCE: Midwest High Speed Rail Association, Midwest Regional Rail Initiative HAPPOLD CONSULTING
4.7 Public Transit

TRANSIT FISCAL POSITION - DDOT
The deficit has been
so far filled by the
General Fund. This
relationship is
expected to persist
despite DDOT being
Revenues
an enterprise fund.
from sales
and charges
has remained
largely
constant
despite and
increase in
ridership.
HAPPOLD CONSULTING
SOURCE: 1. McKinsey, DDOT Diagnostics, August 2010. 2. DDOT Meeting, October 2010, 3. City of Detroit Budgets IN-PROGRESS: DECEMBER 22, 2010
4.7 Public Transit

CAPITAL INVESTMENT PLAN & FUNDING SHORTFALL - DDOT
DDOT’s forward
looking investment
plan suggests
substantial funding
shortfalls over the
coming years. The
majority is expected
to be funded by bond
issuance.
HAPPOLD CONSULTING
SOURCE: 1. DDOT IN-PROGRESS: DECEMBER 22, 2010
4.7 Public Transit

FISCAL POSITION - DDOT
• Reliant on city’s General Fund • Realign service The most important element of the proposed
– Deficit met by General Fund making up nearly – McKinsey estimate this to have an impact of $15 opportunities in the short to medium term is the
40% of revenues to 26 million as a standalone measure realignment of services. It is imperative that this
addresses the long term position of population and
• Utilization is low • Lean maintenance employment centers in the city and surrounding
– 65% to 75% during peak time – Estimated to have an impact of $4 to 10 million counties so that this is aligned with economic
– Compared to more typical load factors of 80 to development goals and does not jeopardize the future
95% • Increase recovery of viable neighborhoods. This also needs to be aligned
– Estimated to have an impact of $3 to 6 million with other transport modes serving the city (e.g.
• Maintenance costs are high SMART).
– 60% above peer average • Restructure fares
• Missing revenue opportunities
– $6 to 9 million lost through unpaid fares • Procurement
– Base fares are below peer group – Estimated to have an impact of $7 to 10 million
– $1.5 per adult journey compared with $2 for
peer group
– DDOT last raised fares in 2001
• Service coverage
– The busiest 50% of routes account for nearly 80%
of ridership
HAPPOLD CONSULTING
SOURCE: 1. McKinsey, DDOT Diagnostics, August 2010. 2. DDOT Meeting, October 2010, 3. City of Detroit Budgets IN-PROGRESS: DECEMBER 22, 2010
4.7 Public Transit

Potential Public Transit Measures Advantages Disadvantages Application to Detroit
1. Re‐routing some existing bus and ¾Reduces vehicle and personnel costs associated ¾Reducing or eliminating services may have ¾DDOT network is flexible but funding levels and

public transit routes to focus on with routes that have minimal demand. profound negative impacts on some populations. ridership are not correlated to routes.2
areas where the need remains the ¾Residents better able to move around city and ¾Likely to be controversial. ¾Public transit services are essential for a large
access employment.3 number of Detroit residents.2
highest and/or alter the forms of ¾This would require significant research to ensure
public transportation to reduce that services are located adjacent to areas with
costs.1 the most need.
¾It is the most flexible measure in the short term
and could provide significant cost savings,
increased ridership numbers and reduced costs
due to more efficient routes.
2. Assess whether expansions in ¾Potential for long term economic savings relating to ¾The amount of up‐front investment necessary is ¾Growth in ridership numbers would help
public transportation might reduce new roads, road maintenance, etc . likely to be very large. significantly but would require additional
¾Potential for significant environmental and public ¾May require cultural change of significant investment to cope with increase.2
the need for private vehicular
health improvements proportions ¾Growth in ridership would require population
transportation in cost effective growth and the addition of new services.
¾There may be state and federal subsidies available
ways.1 for this kind of investment. ¾Current plans for Woodward LRT & other
¾Residents better able to move around city and projects could help increase ridership numbers for
access employment.3 Detroit City transit services as part of multi‐stage
journeys.
3. Asset management ¾Could lead to large and significant long term cost ¾Requires support from top management, ¾DDOT network is flexible but funding levels and
improvements.1 reductions and service improvements. concerted effort, and perhaps culture change. ridership are not correlated to ridership.2
¾Does not require large up front capital costs. ¾Requires up front investments in data and ¾Funding is not currently linked to ridership. This
¾This approach is increasingly being used in analysis. has resulted in increased ridership with reduced
infrastructure management and investments and it ¾May be difficult to quantify cost reduction and funding. 2
appears consistent with current infrastructure service benefits ¾ Developing and managing existing transit
management trends. infrastructure through data framework, decision
making regarding both cost savings and service
improvements can be improved.
SOURCES: 1. Hoornbeek,
SOURCES: J. & Schwarz,
1. Hoornbeek, T. (2009)
J. & Schwarz, Sustainable
T. (2009) Infrastructure
Sustainable in Shrinking
Infrastructure Cities,Cities,
in Shrinking Options for thefor
Options Future 2. Minutes
the Future of Detroit
2. Minutes Publicmeeting
of DDOT Works meeting (4th October,
(7th October, 2010). 3.Kresge
2010). 3.Kresge (2010). Building
(2010). Building a Green aEconomy
Green in
Economy in Detroit and Developing a Sustainable City
Detroit and Developing a Sustainable City Agenda.Agenda.
HAPPOLD CONSULTING
4.7 Public Transit

KEY CHALLENGES
Public Transit
HAPPOLD CONSULTING
Emerging
Problems
4.7 Public Transit

Implementation
Reduce level of service Only if there is evident overprovision. Must meet the needs of Detroit’s residents and

workers.
provided
Raise direct revenues from Very important could be achieved through addressing uncollected fees, improving fee
collection mechanisms and possible price restructuring.
services
Increase efficiency of service Critical to address. Maintenance efficiency is also currently being addressed.
provision
Develop synergies between Critical to ensure all transportation modes are integrated in line with the city’s urban
structure and population distribution.
networks
Optimise delivery models Ease of implementation is difficult considering the fiscal position of DDOT.
Increase efficiency of resource Tied to efficiency of service.
use
Bring new users – Economic Potential for long‐term benefit, critical to attract existing residents and workers to the
public transit system.
Realign networks size/capacity Tied to efficiency of service and resource use.
Use excess capacity to serve N/A
external markets
HAPPOLD CONSULTING
4.8 – NON‐MOTORIZED TRANSIT
HAPPOLD CONSULTING
4.8 Non-Motorized Transit

NON‐MOTORIZED PATHS
•Currently there is limited connectivity between non‐motorized paths
and there is a need to understand better the possibilities for increased
connectivity.
•Numerous initiatives are currently underway, supported by the City of
Detroit, to identify and rejuvenate potential green linkages.
• ADD GRAPH FROM SEMCOG
SOURCE: 1. SOURCE: 1. DEPARTMENT OF PUBLIC WORKS, INFRASTRUCTURE ISSUE TOPIC MEETING, 3RD AUGUST 2010 HAPPOLD CONSULTING

1.X IN-PROGRESS: DECEMBER 22, 2010
4.8 Non-Motorized Movement & the Green Grid

GREENWAYS: “BIKE, BLADE, JOG,
WALK”
•MDOT Funded a Non‐motorized masterplan by Giffels‐
Webster, along with Archive DS, Carter & Burgess, and
Brogan & Partners, which they undertook for DPW in 2006.
•The new urban trails encompass transportation, urban
wildlife, flood control, utilities, education, neighbourhood
planning, and other threads of the urban fabric.
•The study prioritized 6 types of city element which should
guide the routing of an improved non‐motorized network:
– Urban Districts/Neighborhoods
– Commercial/Job Centers
– Schools and Education Centers
– Parks and Recreation Centers
– Cultural Sites
– Connection Destinations
•During this process, 93% of Detroiters asked, stated they
had places in their weekly travel schedule, near their
homes, to which they would prefer to not have to drive.
SEMCOG 2030 RTP
•The 2030 Preferred Alternative in the RTP allocates $189
million for non‐motorized improvements,
such as bicycle/pedestrian paths and
streetscaping projects.


FISCAL POSITION
CHANGING PAVEMENT CONDITIONS, 2004‐2009, SE MICHIGAN MAINTENANCE OF SIDEWALK DECLINING,
COSTS RISING
One of the largest challenges facing the DPW is damaged sidewalks.
Routine maintenance of sidewalks is the responsibility of property
owners. However, the city still gets sued and held responsible when a
claim of injury from falling is made.
Given the increasing vacancy of properties there is also fewer residents
to maintain sidewalks. These sidewalks need to be maintained still for
use.
Deferred investment has resulted in costs of maintenance rising
INCREASING COST OF PAVEMENT MANAGEMENT, SE MICHIGAN exorbitantly.
The DPW continues to work towards maintaining sidewalks with
asphalt to minimize safety hazards, and secure funding for non‐
motorized greenway paths in mid‐town Wayne State area and construct
new streetscapes in Greektown and Michigan avenue.
SOURCE: 1. SOURCE: 1. SEMCOG, 2010; 2. DEPARTMENT OF PUBLIC WORKS, INFRASTRUCTURE ISSUE TOPIC MEETING, 3RD AUGUST 2010 HAPPOLD CONSULTING

1.X

LOCATION OF PAVEMENTS IN POOR
CONDITION ACROSS THE REGION
HAPPOLD CONSULTING
4.7 Public Transit

KEY CHALLENGES
Public Transit
HAPPOLD CONSULTING
Emerging
Problems

Implementation
Reduce level of service Need to improvelevel of service provided.

provided
Raise direct revenues from
services
Increase efficiency of service
provision
Develop synergies between Critical to align with other systems particularly public transit. Must also aligned with
population distribution and movement patterns.
networks
Optimise delivery models Should support existing initiatives and facilitate community involvement.
Increase efficiency of resource Encouraging non‐motorized transit by taking advantage of land availability and road

space.
use
Bring new users – Economic Long‐term strategy.
Realign networks size/capacity Non‐motorized network is out of line with current demand.
Use excess capacity to serve
external markets
HAPPOLD CONSULTING
4.9 AVIATION
HAPPOLD CONSULTING
4.9 Aviation
OVERVIEW
AIR CONNECTIONS
•Detroit has a total annual air traffic of more than 30 million
passengers and boasts a strong network of air connections
– both, within and outside the United States.
• The city has an annual domestic traffic of approximately
29 million domestic passengers
•The annual international passenger traffic stands at
approximately 1.5 million
•The city is connected to almost 25 cities (direct
connection)
•Detroit has connectivity with over 120 airports across the
United States
SOURCE: www.metroairport.com HAPPOLD CONSULTING

4.9 Aviation
AVIATION GOVERNANCE FAMEWORK
Strategic Oversight and planning:
• Federal: Federal Aviation Administration (FAA) : Constituted under The
Federal Aviation Act, 1958 to oversee and regulate all aspects of civil
aviation in the US‐
• Part of department of transportation (DOT)
• Annual fiscal budget, 2011 ‐ $9.8bn
• Provides discretionary Airport Improvement Program (AIP) grant
• Michigan State: Michigan Aeronautics Commission:
• General supervision of all aeronautics within the state
• Empowered by state law to make regulations governing airports
• Four statutory members include the directors of the departments of
Transportation, Natural Resources, State Police, and Military affairs
Operations:
• FAA is responsible for civil and military air traffic control and navigation
• Airports are owned by respective counties and operate under the FAA; e.g.‐
• Wayne county airport: Operated by Wayne county airport authority
• Willow run airport: Operated by Wayne county airport authority
• Ann Arbor airport: Municipally owned; operated by FAA
AVIATION INFRASTRUCTURAL FINANCING
Airport infrastructural financing is done through four sources
• Federal/State/Local grants (incl. Airport Improvement Program Grant)
• Airport cash flow
• Revenue and general obligation bonds
• Passenger facility charges
SOURCE: 1.ASCE – American Society of Civil engineers HAPPOLD CONSULTING

2. SEMCOG, 2010 IN-PROGRESS: DECEMBER 22, 2010
4.9 Aviation
AN OVERVIEW OF AIR TRANSPORT
FACILITY IN SOUTH EAST MICHIGAN
There are 30 airports located in Southeast Michigan, 18 of
which are considered system airports as their level of activity
directly influences aviation travel in the Region The three main
passenger airports are the Detroit Metro Wayne County
International Airport (DTW) located in Romulus, Wayne County
and Coleman A. Young International Airport located within the
City of Detroit–
Detroit Metro Wayne County International Airport (DTW):
• Owned by Wayne county, Michigan
• Operated by the Wayne county Airport authority
• Total traffic (no. of passengers), 2009 – 31,357,388
• Acts as a hub for Delta and Spirit Airlines
Willow Run Airport:
• Managed by the Wayne County Airport Authority
• Serves cargo, corporate, and general aviation clients
• Willow Run Airport has over 100,000 operations per year
Coleman A. Young International Airport:
• Owned by the city of Detroit
• Airport's passenger terminal is operated by the US
customs department
• Operations‐ plans to privatise the operations
SOURCE: 1. SEMCOG, 2010
2. www.metroairport.com
HAPPOLD CONSULTING
3. http://www.detroitmi.gov/DepartmentsandAgencies/Airport/AirportInformation.aspx IN-PROGRESS: DECEMBER 22, 2010
1.X
4.9 Aviation
AEROTROPOLIS HAS A WIDER
ECONOMIC REACH
The Aerotropolis has the potential to bring in 64,000
additional jobs with wages of $3.8 billion per year and more
than $10 billion of additional annual economic activity upon
full build out of thirteen primary development sites.
•Projected fiscal impact‐ Additional annual business tax
revenues ‐$30 million; Michigan personal income tax.
Revenue ‐$67; Property tax revenues ‐ $74 million annually
•Projected upfront “one‐time” economic impact‐
Development activities are expected to generate economic
activity of $173 million per year and additional jobs of
nearly 1,500 with wages of $78 million per year over the 25
year construction period
•Potential multiplier effect‐.
Case in point: The Frankfurt airport city (regional multiplier
1.26; national multiplier 2.32)
SOURCE: 1. www.detroitregionaerotropolis.com/faq.htm HAPPOLD CONSULTING

2. HC analysis?
4.9 Aviation
WAYNE COUNT AIRPORT AUTHORITY, DETROIT COLEMAN A. YOUNG INTERNATIONAL AIRPORT
METROPOLITAN WAYNE COUNTY AIRPORT MASTER PLAN,
2008‐2027 Planned major improvements:
Objectives‐ • Removal of FAA waivers of design standards on existing
• To act as an overarching policy that reflects the runways.
overall desires of the Airport Development Program • Foreign Trade Zone designation to help local industries
• Development of airside facilities • 6500 Ft runway expansion; project cost: $135‐150 Mn
• Enhancing the passenger terminal facilities and airline • Terminal improvements
areas including passenger processing, security
• Taxiway Paving and Hangar Development
• Development of landside facilities
• Facilities and Ground improvements‐
• To ensure airport’s fiscal sustainability – New landscaping;
• Reflect the airport’s commitment to the safety and – Security upgrades;
protection of airport users and employees – New paving and landscaped entryway;
• Development of airport‐owned properties to spur – Parking lot repairs;
economic growth in aviation and non‐aviation related – Local government’s planned investment: $40 Mn
areas
• objectives that pertain to the operation of the airport Completed improvements:
buildings (structures) and grounds • Renovation of main passenger terminal building
Framework‐ • Expansion and resurfacing of main runway
• Master Plan Vision, Goals and Objectives • Relocation of navigational equipment.
• Inventory of Existing Conditions
• Renovation of general aviation/corporate center at the
• Forecast of Aviation Demand Executive Terminal.
• Demand/Capacity Analysis and Facility Requirements • Resurfacing, lighting of additional parking lots.
• Alternatives Development • Reconstruction of Taxiway‐Alpha, Golf‐Taxi street Fox and
• Preferred Development Plan Terminal Apron
• Implementation Plan • New aircraft parking area
• Environmental Overview • New airfield weather system
• Airport Plans Package • Installation of a card‐access security system
• Stakeholder & Public involvement
SOURCE: 1. http://www.detroitmi.gov/DepartmentsandAgencies/Airport/Improvements.aspx HAPPOLD CONSULTING
2. http://www.metroairport.com/programs/DTWMasterPlan/
4.9 Aviation
FISCAL POSITION
DOMESTIC AND INTERNATIONAL
AVIATION
• As a City Enterprise Fund, the Airport Fund is designed to be self‐
financing
• The Fund is to facilitate both capital and operational expenditure
• The changes to the aviation industry since 2001 may partly explain
the rapid increase in operating expenditure since this point
• Although not operational sources of revenue, Federal and State
subsidies have played a significant role in the operation of the Airport
Authority
• The airport has been successful in rapidly growing its revenue
streams, particularly those not dependant upon aircraft landing fees
• The Airport Authority, despite a significant increase in revenues, has
been unable to match the equally rapid rise in operational
expenditures, leading to an increasing operational deficit year on year
• The difference is therefore taken as an expenditure –from the City
General Fund

4.9 Aviation
KEY CHALLENGES
Aviation
HAPPOLD CONSULTING
4.9 Aviation
Implementation
Reduce level of service Encourage use.
provided
services
Increase efficiency of service
provision
Develop synergies between Key asset to the city which should be utilized better by Detroit. Logistics and Freight
are important.
networks
Optimise delivery models
Increase efficiency of resource
use
Bring new users – Economic Linked to synergies.
Realign networks size/capacity
Use excess capacity to serve Linked to synergies
external markets
HAPPOLD CONSULTING
4.10 – INTERNATIONAL BORDER CROSSINGS
HAPPOLD CONSULTING
4.10 International Border Crossings

OVERVIEW: REGIONAL CONNECTION CORRIDORS
AMBASSADOR & BLUE WATER
BRIDGES RANK AS TOP TWO
COMMERCIAL CROSSINGS ON US‐
CANADA BORDER
– More than 4.7 million annual truck crossings
– 19.4 million annual passenger crossings
• Nation’s principal gateway for international trade with
Canada
– 27% of total North American land based
international trade land‐
– $150 billion through Michigan’s three ports of
entry: Detroit, Port Huron, and Sault Ste. Marie
• Michigan’s trade with Canada in 2002:
– 19% of total land based trade = $65.8 billion
– 17.7% of total truck based trade = $41.9 billion
• 20 million passenger cars in 2002
– 25% work related work‐
• 10% of Detroit’s nurses are from Canada
– 40% dining, entertainment & casinos
– 12% shopping


GOVERNANCE
Federal: US Customs and Border Control & Canadian Border
Services Agency oversee enforcement of legislation.
State: The Michigan Department of Transportation
supervises the operation of publicly owned border crossings
within Michigan.
• Establish and maintain a transportation border
infrastructure network that allows for the seamless
movement of people, goods and services in a cost efficient,
timely, and safe and secure manner and cost.
City level:
• The Ambassador Bridge is owned by the Detroit
International Bridge Company (controlled by Grosse Point
businessman Manuel Moroun).
• The Detroit‐Windsor Tunnel is jointly owned by the cities
of Detroit and Windsor. Ontario.
• The Detroit River Tunnel is owned by an equal partnership
between Canadian Pacific Railway and Borealis
infrastructure Trust.
• Detroit‐Windsor Truck Ferry is privately owned and
operated by Gregg Ward. It is the only designated
Hazardous Materials transporter.
SOURCE: 1. www.michigan.gov/mdot HAPPOLD CONSULTING


REGIONAL CONNECTIONS
Blue River Bridge
Within Michigan there are a number of international
connections, including:
Blue River Bridge
• The US and Canadian freeways leading to the crossing,
along with the bridge, have over 30 years until they
reach capacity
• Canadian processing facilities have 15‐20 years to go
until reaching capacity. US facilities between 5 and 10.
• NOTE: Rail and Ferry crossings here are both below
International Bridge capacity.
International Bridge (Sault Ste‐Marie)
• US roads and Bridge both below capacity.
• Processing facilities on both sides nearing capacity
within 10 years.
• Canadian roads nearing capacity within 10 years.
• NOTE: Rail crossing here is operating under capacity.


DETROIT CITY CONNECTIONS
Ambassador Bridge Detroit‐Windsor Tunnel Ambassador Bridge
• Plans underway to double the bridge – Environmental
Assessment submitted
Detroit‐Windsor Tunnel
• Roads and processing facilities on both sides are at or
nearing capacity.
• Tunnel is nearing capacity.
• NOTE: Rail and Ferry crossings are both below capacity
at present.
• 6.4M vehicles crossed in 2003 (MDOT)
The Detroit River Tunnel
• A partially submerged highway tunnel connecting
Detroit, Michigan in the United States, with Windsor,
Ontario in Canada. It was completed in 1930.
Detroit‐Windsor Truck Ferry
• Ferry service that has been shuttling cars and trucks
across the Detroit River
Detroit‐Windsor Truck Ferry • Toll is required, and clearance from Canada Border
Services Agency and the United States Customs &
The Detroit River Tunnel Border Protection at both terminals of the ferry route.
HAPPOLD CONSULTING

MAJOR PLANNED/ON-GOING INITIATIVES
Ambassador Bridge Expansion Plan
The expansion plan for Ambassador bridge proposes a
second six lane span
This proposal by the Detroit International Bridge Co. was
subject to strong protests from the residents.
Blue Water Bridge Plaza Study
• 30‐year plan for plaza improvements
• ITS signage
• Traffic study
• Expanded entry ramps
HAPPOLD CONSULTING

FISCAL POSITION
DECLINING INTERNATIONAL
BORDER CROSSINGS UTILIZATION
Declining industrial activity, particularly in the auto sector,
has resulted in less freight activity transporting auto parts
and components.
Addition of new connections may bring over‐capacity into
the sector.
Declining competitiveness with other border crossings may
also be impacting utilization of Detroit’s border crossings.
SOURCE: 1. PUBLIC BORDER OPERATORS ASSOCIATION, 2010 HAPPOLD CONSULTING


KEY CHALLENGES
Inter. Border Crossings
HAPPOLD CONSULTING

Implementation
Reduce level of service
provided
Raise direct revenues from Further study needed to understand revenue structure.
provision of infrastructure Competitiveness with other areas is critical to long‐term
services performance.
Increase efficiency of service See above.
provision
Develop synergies between Particularly relevant to logistics and freight, as well as cross‐border
networks transit for workers.
Optimise delivery models Current models are mixed. Coordination is required.
Increase efficiency of resource
use
Bring new users – Economic Key to long‐term viability.
Realign networks size/capacity Must to be efficient and competitive with other providers.
Use excess capacity to serve N/A
external markets
HAPPOLD CONSULTING
4.11 FREIGHT AND LOGISTICS
HAPPOLD CONSULTING
4.11 Freight and Logistics

“GLOBAL DETROIT” – GATEWAY TO THE MIDWEST
DETROIT’S LOCATION, POSITIONS
IT STRONGLY FOR FREIGHT &
LOGISTICS
Detroit is the major urban center in Southeast Michigan,
possessing important transportation connection
infrastructures. It already operates in the freight and
logistics market, but may have the potential to expand into
higher value and expanding its market share.
Traditionally freight and logistics network are made up of:
‐Road
‐ Rail
‐ Maritime
‐ Aviation
Detroit possesses many valuable assets in the region’s
networks.
Detroit is also well positioned with access to Canada, and
has another important asset:
‐ International Border Crossings (See section 4.10)
HAPPOLD CONSULTING
SOURCE: MSU AND DETROIT REGIONAL CHAMBER OF COMMERCE REPORT TO NEI FOR SE MICHIGAN, MAY 2010 IN-PROGRESS: DECEMBER 22, 2010

INTERNATIONAL LINKAGES,
CRITICAL TO VALUE PROPOSITION:
• U.S.‐ Canada trade corridor
• International/NAFTA transport links
• Access to Canadian ports
• Customs house, forwarding, and related services
• Foreign trade zone facilities
HAPPOLD CONSULTING
SOURCE: MSU AND DETROIT REGIONAL CHAMBER OF COMMERCE REPORT TO NEI FOR SE MICHIGAN, MAY 2010
FHWA Freight Analysis Framework (trucking and rail); Bureau of Transportation Statistics, Air Carrier Statistics T‐100 database (air); U.S. Army Corps of Engineers, Waterborne Commerce IN-PROGRESS: DECEMBER 22, 2010
of the United States database (marine).

DETROIT’S ASSETS
• Ports: There are 7 ports in the region linked to the
DETROIT’S FREIGHT & LOGISTICS world market via the Great Lakes/St. Lawrence Seaway.
ASSETS: The largest port in the region is the Port of Detroit
which includes 7 privately owned terminals located on
the Detroit and Rouge Rivers. In 2002, the Port of
• Trucks: Southeast Michigan has a total of 4,884 miles Detroit accounted for 17.3 million tons of cargo
of state and county truck routes (only counted in one
direction of travel). This includes 1,579 miles of state
• Rail: Over 900 miles of active rail line exist in the region
and 3,305 miles of county routes. Of which it is
and are primarily privately owned and/or operated by
estimated 328 miles fall within the City of Detroit.
five Class I Railroads; Norfolk Southern, CN (formerly
Canadian National), CSX Transportation, Canadian
• Border Crossings: In Southeast Michigan there are two Pacific and Conrail. There are also six Short Line
primary crossing locations – Detroit/Windsor and Port Railroads in the region; Ann Arbor Railroad, Tuscola &
Huron/Sarnia. In Detroit, crossings are via the Detroit‐ Saginaw Bay Railroad. Indiana & Ohio, Detroit
Windsor Tunnel, Ambassador Bridge and the Detroit Connecting, Delray Connecting and Coe Railroad.
River Tunnel (rail). In Port Huron, the Blue Water Bridge Amtrak provides passenger service on some of these
and a double‐stack rail tunnel provide access. There is lines.
also a freight barge which operates on the Detroit
River.
PROPOSED
• Rail: Construction of a new, high‐clearance rail tunnel
• Air: There are 30 airports located in Southeast in the Detroit‐Windsor corridor. The new, larger tunnel
Michigan, 18 of which are considered system airports is proposed to be built next to the existing tunnels
as their level of activity directly influences aviation
• Plans for construction of the Detroit Intermodal Freight
travel in the Region. There are also 5 airports outside
Terminal (DIFT) in southwest Detroit are also moving
the region which contribute to the Southeast Michigan
forward which will further improve and consolidate
airport system. Detroit Metro, Detroit City, Oakland
County International and Willow Run carry the bulk of existing intermodal freight activity in the region.
the region’s air cargo.
HAPPOLD CONSULTING

Mode Tonnage Percentage TONNAGE IS IMPORTANT, BUT SO
Trucking 166,037,000 75% IS VALUE OF GOODS BEING
Railroad 37,793,000 17% TRANSPORTED.
Marine Vessel 17,449,000 8%
According the MSU and Detroit Regional Chamber of
Aircraft 206,000 0.1% Commerce study submitted to the New Economy Initiative:
TOTAL 221,485,000 100% Air, freight & rail are more important than maritime in
terms of value of freight
Commodity Flows Into and Out of the Detroit Region,
2003
Modes have different cost and time service profiles:
• Air –> truck connections: faster / expensive
• Water –> rail: slower / less costly
HAPPOLD CONSULTING
SOURCE: MSU AND DETROIT REGIONAL CHAMBER OF COMMERCE REPORT TO NEI FOR SE MICHIGAN, MAY 2010; CAMBRIDGE SYSTEMATICS REPORT TO SEMCOG, FREIGHT ECONOMIC DEVELOPMENT, 2009 IN-PROGRESS: DECEMBER 22, 2010

MARKET OPPORTUNITIES
UTILIZING PHYSICAL & CAPITAL ASSETS
TO GENERATE VALUE
VALUE PROPOSITION:
• LAND AVAILABILITY: Opportunities for land availability, although
still challenges to agglomeration
• INFRASTRUCTURE AVAILABILITY: Excess capacity in some areas
• GEOGRAPHIC CONNECTIONS: Utilize Arctic Circle rout to or from
SE Michigan for air shipments, dramatically reduces transport time
internationally
• AUTO SECTOR PROCESSES AND IP : systems and processes have
wider opportunity for application in freight and logistics
• CONGESTION in the existing freight and logistics networks
(particularly through Toronto ‐ Chicago) presents an opportunity
to fill market space. Other areas are also ‘land locked’ and face
difficulty in expanding.
• EXISTING MARKET: It is already the busiest international trade
border in North America
Market opportunity may exist for comprehensive supply chain
management solution > logistics & freight proposition
HAPPOLD CONSULTING

IMPEDIMENTS TO MARKET
CONGESTION AND SUBSTANDARD
INFRASTRUCTURE ARE IMPEDIMENTS
• Despite its valuable connections and network of transportation
assets, Detroit also faces impediments to functioning in the freight
and logistics markets, including:
– Congestion: ~1,500 miles of highways experience over 2.9
hours of delay per 1,000 vehicle‐miles travelled (truck
congestion marked on facing map)
– Old and underserviced border‐crossing infrastructure
– Highway pavement conditions are an issue:
– Facilities in “poor condition” exceeded 30 percent in
2008, up from 9 percent in 2004
– Highways in “fair conditions averaged 57 percent in
2008, down from 73 percent in 2004
• Logistics and intermodal system are not fully developed
• Relatively little freight transportation employment in Detroit
compared to other cities (e.g., Indianapolis, Columbus)
• Heavy reliance on trucking (75‐83 percent in Detroit) despite
having four Class I railroads
FALLING BORDER TRAFFIC IS AN INDICATION OF CHALLENGES TO
VALUE PROPOSITION.
HAPPOLD CONSULTING
SOURCE: 2030 REGIONAL TRANSPORTATION PLAN FOR SOUTHEAST MICHIGAN: REGIONAL TRANSPORTATION NEEDS (SEMCOG, 2004); MSU AND DETROIT REGIONAL CHAMBER OF COMMERCE REPORT TO NEI FOR SE
MICHIGAN, MAY 2010; CAMBRIDGE SYSTEMATICS REPORT TO SEMCOG, FREIGHT ECONOMIC DEVELOPMENT, 2009

SUPPLY CHAIN MANAGEMENT (SCM) PROPOSAL
WHAT OPPORTUNITY FOR
DETROIT? MUST ALSO LOOK TO
WINDSOR
The Opportunity Assessment for Regional Supply Chain Hub
submitted to the New Economy Initiative for Southeast
Michigan by Michigan State University and the Detroit
Regional Chamber of Commerce is investigating the
potential for the region to develop the “potential for
offering unique hub capabilities”.
Detroit’s infrastructure and support capabilities position it
well for Heavy Manufacturing and Distribution. Light
manufacturing also supported by air‐truck interfaces which
already exist.
The supply chain hub is viewed as a collection of supply
chain facilities which connect between:
– Air freight to motor freight
– Rail freight to motor freight
And which utilizes Detroit’s existing human capital to
provide:
– Value added services
• Consultancy
• Physical labor
HAPPOLD CONSULTING

STRATEGY UNDER DEVELOPMENT TO DELIVER PROPOSITION
EXPERTS IDENTIFIED EIGHT SIGNIFICANT POTENTIAL FOR THE WEAKNESSES TO BE ADDRESSED
‘UNIQUE STRATEGY ELEMENTS” REGION
ABILITY TO SERVE GLOBAL MARKETS GOOD POTENTIAL FOR CROSS‐BORDER DISTRIBUTION HUB AWAY FROM LOCATED ON PENINSULA, UNLESS CROSS‐BORDER
CHICAGO‐TORONTO MOVEMENT CONSIDERED
GOOD POTENTIAL FOR TRANS‐LOADING HEAVY IMPORTS FROM
HALIFAX, MOTNREAL OR PRINCE RUPERT FROM OCEAN PORTS WITH
LESS CONGETION TO U.S.
INFRASTRUCTURE AND SUPPORT FACILITIES GOOD AIRPORT AND HIGHWAY INFRASTRUCTURE, LIMITED INFRASTRUCTURE BARRIERS, PARTICULARLY AT BORDER
CONGESTION
GOVERNMENT REGULATIONS CUSTOM PROCESS BARRIERS, PARTICULARLY AT BORDER
COMPETITIVE TAX CLIMATE PERCEIVED OR REAL HIGH GROSS RECEIPTS AND
PERSONAL PROPERTY TAXES
AVAILABILITY OF HUMAN, LAND, SUPPLIER, SKILLED MANAGEMENT AND LABOR TALENT IS READILY AVAILABLE POOR PERCEPTION OF CURRENT CAPABILITIES

LAND AND FACILITIES READILY AVAILABLE LAND AMALGAMATION ISSUES WITHIN DETROIT
AND FINANCIAL CAPITAL
ECONOMIC COMPETITIVENESS AND LOWEST RELATIVELY INEXPENSIVE OUTBOUND MOTOR CARRIER CAPACITY PERCEIVED OR REAL HIGH UNION WAGE RATES

TOTAL COST TO SERVE
SUPPLY CHAIN SUSTAINABILITY MINIMAL UNCERTAINTY, RELIABLE WEATHER CURRENT INDUSTRIES IN RECESSION
COLLABORATION AND PARTNERSHIP STRONG PRIVATE SECTOR ‘MESSAGE’ LACK OF PRIVATE PUBLIC PARTNERSHIP AUTHORITY

ABSENCE OF REGIONAL GOVERNMENT AUTHORITY TO
COORDINATE AND PROMOTE SCM
HAPPOLD CONSULTING

GOVERNANCE AND INVESTMENT ARE CRITICAL TO SUCCESS
VALUE PROPOSITION MUST BE THE POTENTIAL FOR
BACKED BY SUPPORT & TRANSFORMATIVE EFFECT OF THIS
INVESTMENT PROPOSAL MUST BE CONSIDERED
In addition to the existing availability of physical and A strong value‐proposition and business case are under
technical expertise collaboration and a governance development to deliver this proposal.
mechanism for delivering the SCM proposition are critical.
Investment sources must also be identified.
The current fragmentation of assets, and limited regional
cooperation are holding it back.
Collaboration must come at all levels:
• Public stakeholders: International, federal, multi‐state and
regionally
• Private stakeholders: manufacturers/ industry,
distributors, freight carriers etc
Investment must be sourced from public and private funds.,
and collaborative efforts
HAPPOLD CONSULTING
HEAVY RAIL: FREIGHT
HAPPOLD CONSULTING
4.11 Heavy Rail

OVERVIEW
OVERVIEW OF REGIONAL RAIL
LINES
• 2,228 miles of Class I railroads operate in Michigan
• 766 miles of regional railroads
• Canadian National Railway Company operates 6 miles
• 324 miles of switching and terminal railroads
SOURCE: 1. SEMCOG, 2010; Association of American Railroads, Railroads and States ‐ 2000, Washington, DC: 2002, available at HAPPOLD CONSULTING

http://www.aar.org/AboutTheIndustry/StateInformation.asp as of Mar. 19, 2002. IN-PROGRESS: DECEMBER 22, 2010
1.X
4.11 Heavy Rail

RAIL FREIGHT
• Four Class I railroads are active in the Detroit area:
Norfolk Southern, CSX, CN, and CP. Based on
commodity flow data, an estimated 300,000 loaded rail
cars cross between Canada and southeast Michigan
annually, or more than 800 loaded rail cars per day. CP
operates the Detroit‐Windsor rail tunnel while CN
operates the St. Clair River Tunnel north of Detroit
between Port Huron and Sarnia. The St. Clair River
Tunnel is a new facility handling modern double‐stack
cars and RoadRailer service. Norfolk Southern and CSX
provide service between Detroit and points west.
• Trucks and rail‐truck intermodal transfer facilities are
critical to the automobile industry's just‐in‐time
inventory process. There are eight rail‐truck transfer
facilities in the Detroit area. Norfolk Southern operates
four of these facilities ‐ the Triple Crown, Delray, and
Oakwood facilities in Wayne County and the
Thoroughbred Bulk Transfer Facility in Washtenaw
County. CN operates an intermodal facility in Oakland
County (CN North America) and CP operates a facility in
Wayne County (Oak Yard). Two other intermodal
facilities are the New Boston Auto Ramp and the
Detroit Junction/Livernois Intermodal Terminal, both in
Wayne County.
SOURCE: 1. FHWA, FREIGHT ANALYSIS FRAMEWORK; 2. http://www.michigan.gov/documents/MDOT_Official_Rail_130897_7.pdf HAPPOLD CONSULTING

4.11 Heavy Rail

FREIGHT NETWORK AND
PLACMENT OF INDUSTRIAL LAND
ARE MIRRORED
• Most industrial land follows main railway and freeway
networks.
• History of transportation for assemblage informs the
location of many industrial facilities.
• This is a competitive advantage for many firms.
SOURCE: 1. FHWA, FREIGHT ANALYSIS FRAMEWORK. HAPPOLD CONSULTING

4.11 Heavy Rail

CONNECTION TO FREIGHT
DESTINATIONS AND ORIGINS
Domestic Freight:
• Over half (58 percent) of Detroit's rail tonnage remains
in the north central states and 27 percent moves to
and from the northeast states
International Freight is Significant:
• $40 billion worth of trade with Canada & Mexico
comes through the SEMCOG area
• 45% of all North American rail trade comes through
the SEMCOG area
• California has the next largest share at only 10%
• Port Huron at $22 billion worth of trade is the #2 rail
port in North America
• Detroit at $15 billion is #3
Rail Commodity Flows (domestic) To and From Detroit, 2003
HAPPOLD CONSULTING
4.11 Heavy Rail

DETROIT INTERMODAL FREIGHT
TERMINAL
The Detroit Intermodal Freight Terminal proposes
enhancement of intermodal operations by four Class I
railroads1 at four intermodal terminals that will continue to
exist in the future: Livernois‐Junction Yard; CP/Expressway;
CP/Oak; and, CN/Moterm.
Provides:
• Additional terminal capacity
• Better coordination
• Better interface with road system & rail facilities
• Efficiency of business, industry & US military
SOURCE: 1. FHWA, FREIGHT ANALYSIS FRAMEWORK. HAPPOLD CONSULTING

MARITIME
HAPPOLD CONSULTING
4.11 Maritime
OVERVIEW
SHIPPING ROUTES SUPPORT LARGE
ECONOMIC BENEFIT TO REGION
Domestic Shipping
• Michigan's annual shipments of limestone and gypsum account for
29 million tons or 80% of all Great Lakes shipments of these
commodities
• Michigan's ports handle:
‐ 80% of all Great Lakes cement shipments
‐ 25% of all Great Lakes iron ore shipments
‐ 30% of all Great Lakes coal shipments
• The Detroit River is responsible for moving approximately 80
million tons of cargo annually
• Michigan is home to over 40 commercial ports, eight more then
the other seven Great Lakes states combined
Foreign Shipping
• Since 1959, the St. Lawrence Seaway has provided a link between
the world marketplace and the industrial and agricultural
heartland of North America. The 2,000‐mile long Seaway system is
responsible for annual commerce exceeding 200 million net tons.
Over 30 million people rely on the Great Lakes/St. Lawrence
Seaway system, either recreationally or commercially. The shipping
of foreign goods through Michigan waters translates into $2 billion
to the State's economy
• Annually, approximately 7 million tons of overseas and Canadian
cargo crosses our docks here at the Port of Detroit
• Foreign shipping accounts for 20% of all maritime activity with the
State of Michigan
4.11 Maritime
RESPONSIBLE BODIES
Federal: The Foreign‐Trade Zones Board (U.S. Dept. of
Commerce) oversee the Greater Detroit Foreign Trade Zone.
State: Five‐member board of directors with one member
appointed by the State of Michigan, two by Wayne County
and two by the City of Detroit oversee the Detroit/Wayne
County Port Authority.
Port Authority
• Funding for the Port Authority is provided by the State
of Michigan, Wayne County and the City of Detroit
Greater Detroit Foreign Trade Zone
• Is a separate non‐profit Michigan corporation
administered by the Port Authority.
• Funded through fees paid by the foreign trade zone
general‐purpose zones and subzones.
– Allow domestic activity involving foreign items to
take place prior to formal Customs entry
– Greater Detroit Foreign Trade Zone, Inc. (GDFTZ)
is the grantee or administrator of Foreign Trade
Zone No. 70 and is responsible for the
development, marketing and administration of
foreign trade zones in its grant area, which is,
essentially Southeast Michigan.

4.11 Maritime
Mode Port of Detroit PORTS MOSTLY SERVE
Tonnes REGIONAL MARKET
Percentage
Foreign 4,465,000 26% The largest port in the region is the Port of Detroit, which
Imports has seven privately owned terminals located on the Detroit
and Rouge Rivers. The region also has port facilities along
Foreign 261,000 2% the St. Clair River. The port handles approximately 17
Exports million tons annually, 28 percent of it foreign, and ranks
40th among the nation's water ports as measured by
Lakewise 12,028,000 71% tonnage. Most Port of Detroit freight (71 percent) remains
within the Great Lakes (Lakewise) with a very small
Internal and 237,000 1% percentage remaining in Detroit itself.
Local
TOTAL 16,991,000 100%
Waterborne Commerce at the Port of
Detroit, 2001
SOURCE: 1. FHWA ‐ U.S. Army Corps of Engineers, Waterborne Commerce of the United States database HAPPOLD CONSULTING

4.11 Maritime
PORT OF DETROIT
• 35‐acres site
• Docks approximately 2,150 feet in length
• Seaway depth of 27 feet
• 128,000 square feet of covered storage for rolled steel or
other products.
• The Port of Detroit site includes a vacant and functionally
obsolete ten‐story warehouse that sits just southwest of
the 35‐acre marine terminal, and is currently planned for
conversion by the Port Authority. This approximate 4‐acre
site will be used for enhanced storage and handling
operations of bulk commodities.
• The Windsor Port is slightly North of the Port of Detroit.
The Port of Detroit is approximately one quarter mile from
Interstate 75 to the north and the Ambassador Bridge to
the east. Interstates 94 and 96 are within minutes from I‐75
and the Bridge, as well. Downtown Detroit is approximately
four miles east on Fort Street. Active rail spurs serve the
former Motor City Intermodal property adjacent, and to the
west, of the Port of Detroit. The Detroit/Wayne County Port
Authority will re‐activate the rail spurs leading into the Port
of Detroit providing true multi‐modal options in downtown
Detroit.
HAPPOLD CONSULTING
4.11 Maritime
UTILIZATION
Dollar
UTILIZATION IS HIGHLY
Estimated Business
Commodity Revenue 2003 Tonnage
Revenue DEPENDENT ON ORE
per Ton
Steel 156 370,000 $57,720,000
A major goal of the Detroit/Wayne County Port Authority is
General Cargo 73 121,000 $8,833,000 to diversify the cargoes at the Port of Detroit, to become
Ore 11 6,594,000 $72,534,000 less dependent on the fluctuating market of steel.
Coal 15 1,520,000 $22,800,000
Cement 16 1,267,000 $20,272,000
Stone/Aggregate 14 2,081,000 $29,134,000
Petroleum 16 933,000 $14,928,000

Dry Bulk 14 916,000 $12,824,000
Liquid Bulk 49 284,000 $13,916,000
Total 14,086,000 $252,961,000
The table above illustrates the economic impact select commodities have on Detroit.
Commodities may differ in the amount of impact they generally provide largely due to the
amount and/or type of care they receive at the port. One ton of steel may take several
different types of workers and handling one ton of ore will not due to self-unloading
mechanisms that don't need intensive lab
HAPPOLD CONSULTING
SOURCE:http://www.portdetroit.com/statistics/stat_commodities.htm IN-PROGRESS: DECEMBER 22, 2010
4.11 Maritime
BENCHMARKING
DETROIT IS A MAJOR DOMESTIC
PORT
• Significantly more inbound traffic than outbound
• Steel slab imports make up the majority of inbound
shipments
HAPPOLD CONSULTING
Source: 1. http://www.portdetroit.com/materials/2006_traffic_by_port.gif
4.11 Logistics and Freight

KEY CHALLENGES
Inter. Border Crossings
Heavy Rail
Maritime
Aviation
Road
HAPPOLD CONSULTING
4.11 Logistics and Freight

Implement‐
ation
Reduce level of service Level of service should be commensurate with demand
provided
services
Increase efficiency of service Competing in a high‐tech logistics model will require efficiency
provision improvement and new technology.
Develop synergies between Critical to effective logistics and freight. Interconnectivity of
networks systems is a competitive advantage.
Optimise delivery models Important if logistics and freight hub is developed to align delivery
model. Flexibility and adaptability required.
Increase efficiency of resource Tied to service provision.
use
Bring new users – Economic Key to long‐term success, inherent in Global Detroit proposals.
Realign networks size/capacity Critical to success of Global Detroit proposals.
Use excess capacity to serve Critical to success of Global Detroit proposals.

external markets
HAPPOLD CONSULTING
5. CASE FOR CHANGE
5.1 DETROIT’S KEY SYSTEMS
5.2 EMERGING CHALLENGES
5.3 POTENTIAL MEASURES
HAPPOLD CONSULTING
5. 1 DETROIT’S KEY SYSTEMS
HAPPOLD CONSULTING
5.1 Detroit’s Key Systems

STRONG REGIONAL SYSTEMS
STRONG REGIONAL SYSTEMS:
• Large Scale
• High capacity
• Relatively new – many from 1970s
• Strong cross‐border linkages
• One of the great American Cities – 4th largest city in
America at its high point (early 1950s)
• Technologically advanced for its day – the quality and
sheer scale of the infrastructural systems put in place is
staggering.
• Detroit now has: (Region)
• Great rail (and even better rail potential)
• Water, water, water!
• Interstate Highways
• An abundance of airfields (circa 35)
• Many international connections into Canada
• Good ports (and potential for more throughput)


KEY PRIMARY NETWORK
STRONG REGIONAL SYSTEMS:
• Large Scale
• Relatively new – many from 1970s
• Strong cross‐border linkages
• Large people‐moving capacity
• High‐capacity utilities
• Relatively strong downtown
• Abundance of industrial plant
• Strong institutions
• Developing green grid
HAPPOLD CONSULTING

INTERCONNECTIVITY OF SYSTEMS - EXISTING
This diagram illustrates the
current systems within Detroit,
and the inter‐linkages between
them.
Those linkages which appear in a
light grey colour, illustrate
potential for connectivity, which
at present is not occurring.
“Smart‐systems”, i.e. data‐rich
utility and transport systems
which can use real‐time data to
adapt to surges and falls in
demand, also have yet to be
realized in Detroit.
•existing systems and processes
within the City of Detroit.
•Industrial processes have been

excluded from the diagram due to
their complexity and variety.
These will need to be addressed
in more detail once the key
sector strategies have been
identified.
HAPPOLD CONSULTING
5.3 Potential Measures

INTERCONNECTIVITY OF SYSTEMS - EXISTING
Use Current System Current Problems
Transport ¾High reliance on personal vehicle transport. ¾Due to the lack of an effective public transport infrastructure, the current population

¾Transit system which has service routes and funding that are not linked to ridership demographic of Detroit will find themselves increasingly marginalized due to the predicted rise in
numbers and primarily rely on oil as fuel source1. oil prices.
¾Significant number of roads for which the city is responsible1. ¾Low densities increase commute length and resource use.
ICT / Telecommunications ¾Copper network. ¾Copper cables have a limited capacity.

¾Damage to cables.2
Electricity ¾Over 90% of energy generated from non‐renewable resources (DTE). ¾Existing waste to energy plant is negatively impacting the air quality of local residents3.
¾Primarily supplied through a mixture of coal, nuclear and natural gas from sources ¾Significant CO2 emissions for the City of Detroit and the region with no reduction plans currently
outside the City of Detroit. in place. Future legislation is likely to require reductions in CO2 emissions.
¾Limited electricity provided from waste incineration plant. ¾Grid structure lacks flexibility and resilience with a limited capacity.
Heating ¾Small district heating service provided by waste incineration plant. ¾Existing waste to energy plant is negatively impacting the air quality of local residents3.
¾Remaining heating requirements are met through the use of natural gas and electricity. ¾Limited distribution of current district heating service.
¾Reliance on non‐renewable resources.
¾Cost of services has led to heat poverty for many Detroiters.
Hot Water ¾High reliance on natural gas and electricity for water heating. ¾Reliance on non‐renewable resources.
¾Limited heat provided from waste incineration plant. ¾Cost of services has led to heat poverty for many Detroiters.
Cooling ¾Predominantly generated through the use of electric and absorption chillers for ¾Reliance on non‐renewable resources.

commercial purposes. ¾Cost of services is prohibitive for the majority of residents.
¾Residential properties rely on the use of electric cooling units. ¾Future legislation is likely to require reductions in CO2 emissions.
Potable Water ¾Potable water is primarily provided through treatment of water from the Great Lakes. ¾DWSD anticipate that the supply and transmission infrastructure cannot be effectively
downsized to take account of population decline. 4
¾High water usage in DWSD service area.5
¾Leakage and maintenance issues.
Non‐Potable Water ¾Potable water is currently used for all purposes. ¾Potable water requires high levels of treatment which results in increased costs due to energy
usage, operation and maintenance requirements.
Detroit River ¾Treated water is released into the Detroit River. ¾Water is not reused prior to discharge into the river.

Food ¾Limited urban agriculture programs. ¾No existing city wide strategy to provide urban agriculture with fertilizer or non‐potable water.
¾Lack of availability of low cost and accessible food sources.
SOURCES: 1. Minutes of DDOT meeting (7th October, 2010). 2.Minutes of AT&T meeting (24th of August, 2010) 3.Kresge (2010). Building a Green Economy in Detroit and Developing a Sustainable City
Agenda. 4. Minutes of DWSD meeting (7th October, 2010). 5. DWSD Comprehensive Water Masterplan, 2004.
HAPPOLD CONSULTING
5. 2 EMERGING CHALLENGES
HAPPOLD CONSULTING
5.2 Emerging Challenges

OVERALL TRENDS IN DETROIT HAVE A DIRECT IMPACT ON INFRASTRUCTURE
Fiscal Crisis for Detroit Infrastructures
Key City Trends
D Inflexible supply and
Falling Economic transmission Systems
Activity A Falling demand
Falling Population C Still trying to
maintain
Declining coverage E Misaligned funding and
Employment & A administrative structures
Falling utilization of all areas:
Opportunity ‐ to original
Declining Quality service standards
of Life ‐ using existing F High costs & falling
systems revenues
Sprawling Urban B Decreasing density
Form Low resource efficiency
Reduced G Lower spend on
administrative maintenance and new
options CATEGORIZING CHALLENGES projects
• The Categories A‐H above will be used to summarize H
the key challenges facing Detroit’s Infrastructure Emerging uncontrolled
Systems disinvestment
HAPPOLD CONSULTING

A. FALLING POPULATION LEADS TO FALLING DEMAND/UTILIZATION
DEMAND IS FALLING
• Falling city and regional population and falling levels of
economic activity feed into lower demand for the
services provided by all of the major infrastructure
providers.
– E.g. Water demand declining by 5%/year
(DWSD/SEMCOG)
– Gas consumption declining 2%/year (gas
deliveries Consumers Energy)2
– Electricity consumption declining 1%/year (DTE
electricity deliveries)2
Vehicle miles travelled in SE Michigan DTE Electricity Deliveries – Average daily travel declining 2%/year (vehicle
miles travelled)2
UTILIZATION IS FALLING
• Lower demand means that system utilization is falling:
– DWSD network operating at 45% of effective
capacity
– DDOT average utilization is X%
Consumers Energy gas deliveries
Average daily potable water use (DWSD)
Source: 1. Meeting with DSDW 24th August, 2010 HAPPOLD CONSULTING

2. SEMCOG, 2010
Note: consumption analysis calculated based on compound annual growth rates

A. DECLINING DEMAND IS STRUCTURAL AS WELL AS CYCLICAL
Shift from resource intensive manufacturing, to less resource intensive health care employment2
DETROIT ECONOMY IS BECOMING
LESS RESOURCE INTENSIVE
Employee (no’s)
• A shift is underway from manufacturing activity and
employment towards less resource intensive service
industries (such as business services, healthcare and
creative industries).
• Manufacturing is becoming greener – fewer resources
are needed to create each dollar of value added.
Loss of gas tax revenues from new vehicle fuel economy standards
ENERGY EFFICIENCY MEASURES
WILL HAVE SIGNIFICANT IMPACT
• State and Federal measures to improve resource
efficiency will translate into lower resource use and
lower revenues under current charging approaches.
SOURCE: 1. MEETING WITH DSDW 24TH AUGUST, 2010
2. SEMCOG, 2010 HAPPOLD CONSULTING
NOTE: CONSUMPTION ANALYSIS CALCULATED BASED ON COMPOUND ANNUAL GROWTH RATES IN-PROGRESS: DECEMBER 22, 2010

B. DECREASING DENSITY INCREASES THE BURDEN OF INF. PROVISION
LOWER DENSITY INCREASES OPEX DETROIT COMPARISON
• Evidence from Germany shows that as population density decreases the cost of • Across most of Detroit and the wider region, density is already low and, in many cases, is falling
infrastructure provision (in this case, water network) increases rapidly. further as families move out across
• Once the population density goes below 28 persons per acres, the rate of increase in • Since 1970, regional population levels have increased only slightly whereas the size of the
cost accelerates very rapidly. infrastructure networks to has increased significantly to serve the new suburban areas
• The distribution of population density in Detroit in 2005 by Transport Area Zone (TAZ) is shown
in the figure below.
Inhabitant‐specific length of water network
7.66
50% of TAZs in Detroit
6.56
are below 63.9
5.47 persons per acre
(yards/inhabitant)
4.37
3.28
2.19
1.09
Population Density – Persons per Acre
SOURCE: 1. SCHILLER 2002; 2, SEMCOG AND HC ANALYSIS HAPPOLD CONSULTING

B. TRANSPORTATION INDICATIVE OF RESOURCE USE PROFILE
Drove
alone DETROIT’S TRANSPORTATION
• Approximately 69% of the population of Detroit use cars as their
primary mode
• Less than 9% using public transportation
Carpooled/
Vanpooled
Public Detroit has a higher gasoline
Transportation Other Worked at
Walked Means home
consumption than other cities of
similar density.
Detroit To‐work Transportation Modes Breakdown (Ages 16+)
HAPPOLD CONSULTING
SOURCE: SEMCOG, COMMUNITY PROFILES (HTTP://WWW.SEMCOG.ORG/DATA/APPS/COMPROF/PROFILE.CFM?CPID=5) IN-PROGRESS: DECEMBER 22, 2010
5.2

B. RESOURCE INEFFICIENCY
DETROIT IS RESOURCE‐
INEFFICIENT
• Water leakage
• Little recycling
• Sewage discharges into Detroit river
Urban density and • No big picture understanding of resource use in the
transportation‐related city, and thus no coordinated plan for increasing
energy consumption efficiencies and addressing these issues holistically.
Nuclear ‐ 16.5%
Natural Gas ‐ 1.4%
Oil ‐ 0.2%
Renewables ‐ 1.4%
Nuclear
Natural Gas
Oil
Renewables
Coal
Coal ‐ 80.5%
62 124 185 247 309 371 494 618 741

Urban density inhabitants per acre
Source: Kirby, A. (2008) Kick the habit: Source: Detroit Edison's Fuel Mix, 2009
“A UN Guide to Climate Neutrality”. (UNEP) HAPPOLD CONSULTING

C. HIGH SERVICE EXPECTATIONS
DETROIT REGION HAS HIGH SERVICE EXPECTIONS
• These expectations are in many cases not centrally mandated but have built up over
time to become fixed elements of practice with a decisive role in decision making..
Users expect full Service providers

service under all design to meet High Fixed Costs
conditions These standards
Current Implied Level of Service Infrastructure Implications

• 24/7/365 service • Significant Infrastructure (supply and distribution)
• Constant water pressure in place to meet rare peaks (e.g.10-20 cooling days a year)
• Power on demand • Large sections of network required to serve few outlying
• All locations served elements
• All routes maintained • New investment triggered by non-critical issues
• No congestion on highways (e.g. Road widening to tackle ‘congestion’)
• Highest environmental standards met • Significant investment required to meet rising environmental
standards
Disproportionate effort required to maintain top 5-10% of current service level

HAPPOLD CONSULTING

D. INFLEXIBLE SYSTEMS NOT CONFIGURED FOR DECLINE
DWSD Regional Potable Water Network MONOLITHIC SYSTEMS
• Detroit’s infrastructures are characterized by large‐
scale, non‐modular systems.
• These systems are designed to meet high demands and
were built to accommodate growing demand in future
(e.g. City Potable water supply has the capacity to
serve 5 storey flatted dwellings across much of the
Detroit City area rather than the single family houses).
• The configuration of these systems means that
removing one element can result in system failure or
loss of service to a large (inhabited) area.
• Very few opportunities for paring back the primary
(supply and transmission networks/freeways).
Example – Potable Water Supply:
There are just 5 Water treatment plants for 3.75m
people.
These plants have a 1.4b gallon actual capacity but
only supply approximately 662m gallons on a daily
basis.
However, despite this underutilization, it is not
possible to take any of these plants or the major
transmission pipelines off‐line1.
Source: 1. Meeting with DWSD, 7th October 2010 HAPPOLD CONSULTING


E. SYSTEMS NOT FISCALLY CONFIGURED FOR DECLINE
INFRASTRUCTURE AND
TRANSPORTATION FUNDING
MECHANISMS ARE CONFIGURED
TO SUPPORT GROWTH, NOT
DECLINE
City Revenues are mainly generated taxes, sales and
service charges (70%)
Example: Roads
Road funding depends on level of car usage, but
trends in:
Declining travel
Increased vehicle efficiency
Mean:
Declining gas tax revenues going to road
funding
= high fixed costs to meet from lower tax base1
Current Major City Revenue Sources

Source: 1. SEMCOG, 2010; Meeting with DPW, 8th October 2010

E. MANAGEMENT/DELIVERY STRUCTURES NOT ALIGNED TO NEEDS
• DELIVERY STRUCTURES NOT OPTIMIZED TO NEEDS
• LACK OF COORDINATION/COOPERATION BETWEEN AGENCIES EXACERBATES PROBLEM
NON‐OPTIMIZED DELIVERY STRUCTURES: IMPACT
• Organizational scale and remit not always aligned to scale and configuration • Non‐optimized delivery structures mean that:
of service requirement (monolithic provision does not provide • Organizations are not able to meet service requirements
differentiated agencies specialized towards large scale or community efficiently
infrastructure) • Key staffing and investment decisions are not made objectively
• Structure of control/ownership does not give sufficient independence to on the basis of true cost of service
management in operational, staffing and financial decision making • Regulatory burdens are not matched by corresponding resources
• Structure of ownership/control can impose additional regulatory burdens to meet them
• Inadequate/politicized regulatory structures impose unfunded regulatory • Insufficient resources to support investment
burdens
• Agencies unable to access public/private funding to maintain and invest in
infrastructure
IMPACT
LACK OF COORDINATION
• Deficiencies in coordination mean that:
• Strong regional coordination frameworks are not for most major service
areas • Planning is often unable to capture potential synergies or
address potential conflicts between different agencies and
• Lack of asset registers – lack of shared information on network location,
infrastructure types
condition and capacity
• Potential cost savings from joint working remain unrealized
• Agencies rarely plan jointly for infrastructure investment and do not always
plan on the basis of common demand/city development forecasts • Additional costs incurred when poorly maintained infrastructure
from one agency prevents access or does damage to
• Agencies do not routinely coordinate maintenance and do not coordinate
infrastructure belonging to another
disinvestment decisions
HAPPOLD CONSULTING

F. LOWER REVENUES
REVENUES ARE FALLING
Revenue deficit is growing.
Unless the structure of
revenue raising changes, • Revenues are achieved via a combination of user charges and
standard charges, sometimes placing an additional burden on those
even growth in population wishing to set up a new home – with the possibility of thereby
may be insufficient to meet reducing municipal property tax incomes
fiscal needs
• With prices capped – reinvestment will fall off rapidly accelerating
POPULATION decline in effective infrastructure capacity
INFRASTRUCTURE
• Given current regulatory and legal revenue raising structure, sales
REINVESTMENT and charges are insufficient to meet needs ($1.5 billion transport
REVENUE investment shortfall1)
From Bindu


F. HIGH COST BURDEN
X
DETROIT CITY AVERAGE TRANSPORT EXAMPLE
HOUSEHOLD INCOME 2000‐2008: An average Detroit household spends 32% of the average household
income on transport . When compared with other mid west cities such
The percentage change is negative (‐0.34% )when compared to
as Chicago, Minneapolis and Cleveland, average Detroit household
increase of 15% in CPI; the corresponding US average change in
spend on public transport is low while vehicular expense is high. This
income and CPI is 24% and 25% respectively
potentially indicates non increase in DDOT fares set against high auto
insurance rates in the city .
The percentage spend on public transport
in Detroit is very low while the spend on
other vehicular expenses(insurance
+maintenance) is very high
Average average
transport transport
spend as % spend as % of
of average average
Average household household
household income income us$
Expenditure US$
on Transport
US $


COST OF TYPICAL BASKET OF SERVICES
19% OF THE AVERAGE HOUSEHOLD
EXPENDITURE IN DETROIT IS ON
TRANSPORTATION; HIGHEST IN THE
REGION AND ABOVE THE MIDWEST
AVERAGE (17%)


F. HIGH CHARGES LEAD TO HIGHER NON-PAYMENT
REVENUE SHORTFALL
• Faced by rising utility and transportation bills many
consumers are unable or unwilling to pay.
• Detroit city accounts for high proportion of non‐payers
• Agencies often lack power to:
• collect arrears
• Cut off services to non‐payers
• Examples:
• DDOT loses $6M to $9M in uncollected fees
• 30% of solid waste revenue is uncollected by DPW
Consumers Energy Uncollectables DTE Energy total uncollectable expenses
Source: 1. SEMCOG, 2010, 2. McKinsey – various reports HAPPOLD CONSULTING


G. SYSTEMS AGEING AND NEED SIGNIFICANT REINVESTMENT
Water Networks
Date of renewal • Central city networks and transmission lines are already 80‐100 years old .
• Pipes laid during the post WW II boom can be expected to last approximately 75 years
• Therefore much of the Detroit City water network will be reaching the end of its
functional life in the next few decades
• Treatment and pumping plant has a life of between 25 to 40 years depending on
maintenance regime and plant type while the structures have longer lives of 50 ‐70
years. Plants from 1930s in urgent need of renewal
Sewerage Networks
• Pipes are a combination of pre & post WW II with a life of between 75 and 100 years.
• The result is a sewerage network that will be reaching the end of its functional life in the
next few decades. Environmental non‐compliance increases need for investment
Power Networks
• Distribution networks have a life of between 35 to 40 years for the network. Seasonal
storm damage and lack of maintenance will shorten the average life span for the
network.
ICT Network
• The life span of underground cables is approximately 25 ‐50 years. This varies greatly
depending on protection systems, soil type, maintenance, etc.
• The original copper wire system is not anticipated to have begun deterioration but has
most likely reached the end of its functional life technologically. Copper theft increases
network degradation.
• Optical fiber networks have been installed in key areas
NOTE: The diagram illustrates the investments required for
systems as they reach the end of their functional lives.
Distribution networks require constant and increasing maintenance.
Other assets (buildings, structures, plant, etc.) require replacement
at the end of their functional lives. These can vary from cycles of 15
to 70 years depending on maintenance regime and asset type
HAPPOLD CONSULTING

G. INSUFFICIENT INVESTMENT BEING MADE IN REGIONAL INFRASTRUCTURE
Regional Transportation Funding Shortfall Declining Pavement conditions 2004‐2009 (SE Michigan)
REVENUE SHORTFALL
• Significant shortfalls in revenue are becoming apparent
Revenue across a wide range of infrastructures.
Shortfall $1.5b
per year
Transportation • Revenue shortfalls translate directly into reduced
Needs $2.8b funding for:
per year
– Routine maintenance
Available – Major occasional maintenance
Revenue
$11.3b per year
– New investment
• Lower investment levels are reflected in the declining
condition of many infrastructures
DWSD Sewerage Investment Shortfall Increasing cost of pavement management (SE Michigan) • Poor condition reduces level of service
• Poor condition increases running costs through:
$2.35
– Frequent failure/emergency repair
billion
– Damage to other infrastructures
– Increased legal costs related to accident claims/
non‐compliance fines
$996
million
Eligible Eligible Loan

Needs Needs Funding
After Available
HAPPOLD CONSULTING
Inflation IN-PROGRESS: DECEMBER 22, 2010

H. DISINVESTMENT/DELAYED INVESTMENT ALREADY OCCURRING
(Re)investment shortfalls = Disinvestment
Maintenance/Service Deficit Democratic Deficit Lack of Coordination

• Decisions to withdraw maintenance often not
• Sections of infrastructure are no longer • Decisions to delay maintenance are often made
at middle management/operational level co‐ordinated between agencies
maintained adequately
rather than strategically at senior management
• Unmaintained infrastructure deteriorates rapidly level in an Agency. • Unilateral disinvestment by one Agency can damage
and will become unusable • In this context, there is or reduce access to infrastructure or hamper
• Service levels deteriorate • No consultation on disinvestment with key operation
• ‘Delayed maintenance becomes bill which stakeholders
cannot be paid’ • No public explanation for (de)prioritization • Example:
decisions DT steam lines starting to leak through lack of
• Example: • Maintenance that does occur is often in
maintenance. Leaking steam damages new optical
Sidewalk repair bill has risen from $1bn to response to complaints local priorities rather
than larger plan fiber lines recently laid by AT&T
$2.2bn through delay
• This situation results in significant suspicion
of service providers by citizens and reduces public
acceptance of need/rationale for change


EMERGING PICTURE OF CONDITION OF CITY SYSTEMS
Border Crossing
International
TRAFFIC LIGHTS INDICATE
CHALLENGES FACED BY EACH
SYSTEM
D
DRAFT: Drawn from interviews with key agencies and reports Emerging
Prepared by SEMCOG and Infrastructure agencies. Problems HAPPOLD CONSULTING
5. 3 POTENTIAL MEASURES
HAPPOLD CONSULTING

THE SPECTRUM OF POTENTIAL MEASURES
• Current trends without intervention point towards a steady decline in regional population and employment and therefore infrastructure
demand.
• This situation has brought a fiscal crisis in the funding of infrastructure which has already led to large scale disinvestment, rising
charges and unmet service obligations. Left alone, this situation will continue to get worse:
There are nine categories of potential measures which can be adopted to counter these trends:
1 Change level of service provided
2 Raise direct revenues from provision of infrastructure services
3 Increase efficiency of service provision
4 Develop synergies between networks
5 Optimize delivery models
6 Increase efficiency of resource use
7 Bring new users – Economic and population growth
8 Realign networks size/capacity
9 Use excess capacity to serve external markets HAPPOLD CONSULTING


1 – CHANGE LEVEL OF SERVICE
DISPROPORTIONATE EFFORT REQUIRED TO MAINTAIN TOP 5‐10% OF CURRENT SERVICE LEVEL
Changed Future Level of Service Infrastructure Implications
• 24/7/365 service maintained ‐ but at lower level – e.g.: • Lower operating cost – reduced frequency/standard services can be provided at lower cost:
• Reduced water pressure for some communities • Require lower staffing levels
(within safe limits for system integrity) • Use less energy/resource
• Reduced frequency of transit services in some areas
• Trash collected regularly but from community collection points • Infrequently used peak supply capacity can be taken out of use:
– not every house • Capital intensive equipment can be sold/not purchased
• Maintenance fees for idle equipment avoided
• Not all peak demands met – e.g.:
• Occasional power brown outs for non‐critical users at peak periods • Non‐essential/marginal investment avoided –e.g.:
• Peak hour transit services operating at 100%+ capacity • No need to invest in road capacity upgrade projects designed to ameliorate limited
• Some highway congestion experienced during peak hours peak hour congestion
• No need to invest in additional measures purely to meet imperfectly framed
• Renegotiate environmental and safety standards to allow fundamental regulatory requirements
compliance to be achieved more efficiently
NOTE: POTENTIAL IMPACT
• Not all service levels can be changed easily. Within reason, the • Significant reduction in investment and operating
following standards will need to be maintained or increased within cost for proportionally smaller social disbenefit
the coming 20 years (although must be subject to relative efficacy
analysis).
– Safety (e.g. Vehicle maintenance standards)
– Public Health (e.g. Potable water quality)
– Environmental protection (e.g. Waste water discharge)
Source: SEMCOG, 2010 HAPPOLD CONSULTING

2 - RAISING REVENUE
RAISING PRICES IMPROVING COLLECTION
• Raising prices for services where demand/willingness to pay is not unduly price • Changing payment methods and collection powers can improve ability to collect
sensitive will have the direct impact of raising revenues. revenues for many infrastructure service providers as well as reduce costs associated
• Some utilities have identified the opportunity to raise prices without breaching US with revenue collection. Key examples already under investigation include:
average charges for the services that they provide. – Improving powers to collect revenue from persistent non‐payers for DWSD
– Introduction of a flexible smartcard payment system for DDOT transit system
users which will reduce free‐riding and cost of payment processing (see
examples below from London and Hong Kong)
HAPPOLD CONSULTING
Source: 1. SEMCOG, 2010; Black & Veatch 2009/2010 Water/Wastewater Rate Survey of 50 largest cities (by IN-PROGRESS: DECEMBER 22, 2010
population) in US, American Communities Survey, HC analysis

2 - RAISING REVENUE – CHANGING LEGISLATION
CHANGING UNDERLYING LEGISLATION CHANGING REVENUE FORMULAS / REGULATORS
• The current implications of property tax legislation (1978 Headlee Amendment and • Where appropriate, current revenue formulas and regulatory regimes should be
1994 School Finance Reform – Proposal A) mean that tax revenues will not recover changed in order to:
even if property values/number of property owners does increase. – Reflect true cost of service provision by the infrastructure agency and allow for
• Changes in legislation will require well prepared lobbying campaigns at state level updating of charges and formulas within a timeframe that reflects changing
and will take 5‐10 years to achieve success. external parameters which influence that cost. Where poorer customers /
essential services face difficulties in meeting true cost charges, support to them
to meet these bills should be separate and explicit rather than implied in a
below true cost service price.
– Incentivize efficient management of systems rather than size of network or
scale of resource use.
– Ensure that new requirements are funded: any additional increase in service
standard or extent of coverage required by regulation must be matched by clear
definition of the mechanisms by which these additional obligations will be
funded.
HAPPOLD CONSULTING
Source: 1. SEMCOG, 2010; HC Analysis (graphic)

2 - RAISING REVENUE: AFFORDABILITY
TOO HIGH?
• Measures to raise revenue will backfire if they increase the burden
on Detroit residents and businesses to a point beyond their ability
to pay or to a point where Detroit’s competitive position nationally,
or internationally, is significantly eroded.
Prices are in many respects are already beyond limit:
• Many infrastructure costs are high by comparison with rest of US
• Cost burden falls more heavily on those with low incomes by
comparison with rest of US
• System is not progressive – even greater impact on the vulnerable
• There has been an approx. 35% rise in the consumer cost of
electricity in Detroit over the last five years
• The Utility Users tax is also at the maximum 5% rate permitted by
the State of Michigan
• Given falling income levels, there is a risk of increasing non‐
payment. Between 2000 and 2008, in southeast Michigan:
– Income in the region declined 16.1%
– Housing cost as a percent of income increased 18.1%
– Utility cost as a percent of income increased 21.2%1
HAPPOLD CONSULTING
SOURCE: 1. Memphis light, Gas and Water Division, 2010 Utility Bill Comparisons for IN-PROGRESS: DECEMBER 22, 2010
Selected U.S. Cities, HC analysis

3 – EFFICIENCY: ECONOMIC EFFICIENCY IS IMPORTANT IMMEDIATELY
S‐T: M‐T: L‐T: EFFICIENCY HELPS.....
Deficit gap Surplus Back to
• Further reviews of organizational efficiency will be important in to
Reduction widening deficit ensure that the highest possible level of service can be delivered for
the resources available. Building on the current work being
undertaken by McKinsey for key city departments, this will require a
focus on:
– Organizational structures
– Operational systems and approaches
– Labour practices and regulations
Revenue
.....BUT CANNOT SOLVE THE PROBLEM
• Whilst this is a necessity in the short to medium term, it is not
sustainable in the long term
Expenditure • If the current population and employment trajectories are realized,
then any current savings will require further efficiencies in the near
future
• We therefore see a scenario whereby efficiencies may have to be
introduced periodically to address any future deficits
• Efficiencies will only address the expenditure side but future
revenues are also challenging
• As the city authorities have exhausted many of their options in
relation to increasing service charges and taxation, efficiency
savings will only solve a small part of the fiscal issues
• Look at alternative delivery models over the long‐term
TIME
HAPPOLD CONSULTING

4 – SYNERGY: ORGANIZATION AND PLANNING
• THERE IS CONSIDERABLE SCOPE FOR GREATER COORDINATION BETWEEN AGENCIES
• THIS WILL NEED TO BE ON A CENTRALLY COORDINATED AND PEER TO PEER BASIS
ORGANIZATION/MANAGEMENT IMPACT
• Establishment/ Development of Regional Infrastructure Councils/ • Organizations of this type can:
Authorities (e.g. Regional Transportation Authority) with the power to: • Maintain clearer picture of key issues facing a service area and
– Convene all key agencies organizations involved in delivery of a broad raise awareness at high level for these
service area (e.g. Transportation, energy, water, logistics) • Ensure that investment is aligned to strategy
– Represent service area at State and National level • Ensure that operations as managed as cost effectively as
– Prepare and implement coordinated strategies/plans possible
– Secure and administer funding for key joint projects
– Enforce coordination of operations (even for private sector operators)
– Enforce coordination of implementation
PLANNING IMPACT
• SEMCOG has already made progress in the direction of coordinated strategic • Planning of this type can:
investment plans based on: • Align infrastructure strategy with core regional economic growth
– Shared forecast for growth and economic transformation and social trends
– Agreement on spatial pattern of development • Ensure coordination between all types of infrastructure
– Agreement on pattern of primary infrastructures • Ensure integration of infrastructure into urban panning, design
– Agreement on key areas of interface/synergy and community development
HAPPOLD CONSULTING

4 – SYNERGY: OPERATIONS AND INVESTMENT
• GREATER COORDINATION MUST FEED THROUGH INTO MORE EFFECTIVE JOINT ACTION
• THIS MUST BE SEEN AT BOTH OPERATIONAL AND INVESTMENT LEVEL
OPERATIONS IMPACT
• Shared sales/ revenue collection – e.g.: • Operational approaches of this type can:
• Joint ticketing for different transit modes/operators • Raise revenues
• Bundled Utility services • Reduce operational costs
• Common bill payment locations/terminals • Reduce capital investment costs
• Shared purchasing/organization – e.g.:
• Joint procurement for s
• Shared assets/facilities – e.g.:
• Shared maintenance depots
• Combined utility corridors
IMPACT
INVESTMENT AND MAINTENANCE
• Investment approaches of this type can:
• Coordinated maintenance programs:
• Reduce costs
• Ensuring that maintenance locations are shared
• Reduce disruption and wasted investment
• Aligning timing of maintenance programs
• Improve access to external funding:
• Shared investment in new infrastructure:
• Shared risk/ alternative finance sources
• Shared facilitiess and rights of way
• Potential access to additional federal funding
HAPPOLD CONSULTING
5.3 Potential
Potential Measures
Measures
4 SYNERGY - INTERCONNECTIVITY OF SYSTEMS PRESENTS OPPORTUNITIES
•The interconnectivity of systems
diagram provides a simplified
version of the systems and
processes within the City of
Detroit in order to highlight key
opportunities for synergies.
•Additional opportunities for

further efficiency and synergies
between the energy, water and
waste streams can be realized
through rationalizing the location
of land uses (e.g. locating uses
that require high levels of heating
adjacent to heat generation
Smart Systems: facilities).
Real‐time demand
monitoring and •Example: Use of natural
management systems to establish green
infrastructure at more sustainable
fiscal costs, Re-established
ecosystem services at high levels,
and provide opportunities for
urban agriculture, urban drainage
and eco-recreation.” (see
AECOM)
HAPPOLD CONSULTING

4 SYNERGY - INTERCONNECTIVITY OF SYSTEMS - OPPORTUNITIES
Use Opportunities Possible Barriers
Transport ¾Reduce reliance on oil as primary fuel source for public transit system. ¾Funding availability and structure.

¾Realign transit network to relate to ridership. ¾Collaboration between transit operators to create an efficient network based on ridership.
¾Use energy efficient and low emission transportation methods (e.g. LRT, fuel efficient ¾Location of network due to unknown population shifts.
vehicles, etc.)
ICT / Telecommunications ¾Expansion and renewal of network. ¾Funding availability and structure.
¾Coordination between telecommunications providers.
¾Location of network due to unknown population shifts.
Electricity ¾Create a more sustainable and efficient energy mix which can significantly reduce CO2 ¾The current governance structure makes changes and collaboration difficult.
emissions for the City of Detroit. ¾Funding availability and structure.
¾Move towards the use of renewable energy sources such as solar pv, waste ¾Location of network due to unknown population shifts.
incineration, wind and anaerobic digestion ¾Current grid structure lacks flexibility and resilience and is unable to cope with intermittent
¾Use community energy schemes which incorporate renewable energy sources to serve energy sources.
low density areas can reduce transmission losses and create a more efficient ‘core’
system.
Heating / Hot Water ¾Use renewable energy sources such as solar thermal, waste incineration and anaerobic ¾The current governance structure makes changes and collaboration difficult.
digestion to generate heat. ¾Funding availability and structure.
¾Use community energy schemes which incorporate renewable energy sources. ¾Location of network due to unknown population shifts.
Community heating networks would serve to increase efficiencies of the system while ¾Additional infrastructure would be required.
reducing cost to the consumer.
Cooling ¾Use treated water to serve cooling towers for commercial cooling facilities which will ¾The current governance structure makes changes and collaboration difficult.
reduce the amount of potable water generation and associated energy required for the ¾Funding availability and structure.
city. ¾Location of network due to unknown population shifts.
¾Use community energy schemes which incorporate renewable energy sources. ¾Additional infrastructure would be required.
Community cooling networks would serve to increase efficiencies of the system while
reducing cost to the consumer.
Potable / Non‐Potable Water ¾Use treated water for irrigation, fire water and other non‐potable uses which will ¾Funding availability and structure.
reduce the amount of potable water generation and associated energy required for the ¾Location of network due to unknown population shifts.
city. ¾Additional infrastructure would be required.
¾Use greywater recycling within buildings to reduce potable water requirements. ¾Water saving measures may be seen as low priority given high levels of water availability.
Food ¾Encourage urban agriculture within the city which will provide an affordable food ¾The current governance structure makes collaboration difficult.
source for residents. ¾Funding availability and structure.
¾Urban agriculture will help to provide a closed loop cycle for many of the waste
streams generated by city processes.
HAPPOLD CONSULTING

4 SYNERGY - CASE STUDY – INDUSTRIAL SYMBIOSIS
Kalundborg Industrial Symbiosis – Process and Resource Schematic2

KALUNDBORG ECO‐INDUSTRIAL COMPLEX,
DENMARK
• Local economies can contribute significantly to helping a city to
achieve a circular metabolism through industrial symbiosis – the
connecting of the wastes and inputs of various businesses and
industries1.
• The most notable example is that of Kalundborg eco-industrial plant

(Denmark), where symbiotic relationships between a power plant, an
oil refinery, a pharmaceutical company, a plaster board manufacturer
and the Kalundborg municipality have been established.1
• These relationships have led to a significant reduction in the material

and energy throughput involved in the operations of the industries
without hindering their production or expansion. 2
• The symbiosis also has many associated environmental benefits,

such as reduced resource demand and reduced pollutant emissions
(nearly 60% reduction in SO2).1
• Closed loop economies have considerable benefits for the

environment, the economy and the industries involved.1
• The schematic illustrates the extents of the relationships, showing the

resource paths between industries.2
SOURCES: 1. Beatley. T, 2000. Green Urbanism: Learning from European Cities 2. Ehrenfeld. J.R. et al, 2000. Industrial symbiosis: the
legacy of Kalundborg.
HAPPOLD CONSULTING

5 – OPTIMIZE DELIVERY MODELS
• AN APPROPRIATE ORGANIZATIONAL STRUCTURE IS ESSENTIAL TO THE COST EFFECTIVE DELIVERY OF SERVICE
• OVER THE MEDIUM TERM, DETROIT MUST PLAN FOR SIGNIFICANT TRANSITION OF DELIVERY MODELS
PRINCIPLES/CHARACTERISTICS FOR STRONG DELIVERY STRUCTURE POTENTIAL APPROACHES
• Clear / objective regulatory framework; • Strengthen and de‐politicize key regulatory bodies. Ensure that
• Clear rules and service standards set on objective, collaborative basis regulatory bodies’ remit matches that of the infrastructure service
• Objective dispute resolution – guided by long term considerations providers.
• Economy of scale: • Ensure Independent delivery agencies :
• Sufficient scale to use network assets and staffing efficiently • Control over pricing, commercial operational and investment
decisions within regulatory framework
• Strong internal capacity:
• Control over personnel decisions and employment conditions
• Access to high quality staff and advanced industry knowledge/
systems • Devolve service provision to most appropriate organizational type and
scale:
• Clear control over key assets:
• Large scale supply and transmission undertaken
• Sufficient control of key network and supply assets to ensure
• Distribution and operation of distributed supply/generation
• Operational Freedom
undertaken by wider range of smaller scale groups oriented to
• Commercial freedom and incentives local market if appropriate
• Capacity to raise funding proportionate to future investment needs: • Establish mechanisms permitting private provision/public private
• Recognition of true cost of service provision and allowance made for partnership for:
raising finance through appropriate balance of state and private • Service delivery
sources
• Design construction delivery and operation/maintenance of key
facilities/assets
HAPPOLD CONSULTING

6 - RESOURCE EFFICIENCY
• DETROIT DOES NOT HAVE A COMBINED PICTURE OF IT’S OVERALL RESOURCE USAGE FOOTPRINT:
• UNLIKE MANY US CITIES, THERE IS NO ENERGY USAGE BALANCE/ GREEN HOUSE GAS EMISSIONS AUDIT FOR DETROIT (NEXT ENERGY)
• Detroit is not configured for resource efficiency: IMPACT
Current Situation
– Large housing units at low density – very high space heating and • Detroiters face high bills for utility and transport in part because their built

potentially cooling loads forms and city layout require high usage
– DTE generates over 90% of power from non‐renewable resources (DTE)
– Water consumption at 179 gallons/head/day across the whole Detroit • Detroit’s emissions likely to be high by US standards
region is very high by international standards (DWSD figures) • (further research required)
– Over 90% of transportation is fossil fuel dependent – sprawl requires
long commute lengths
SHORT TERM IMPACT
Potential Measures
• Detroit has big opportunities for efficiency savings: • Lower user bills but decreased revenues to Utilities

– For example – home efficiency programmes could reduce energy • Significant investment by users and utilities – not possible without external
consumption by up to 35% (Next Energy) assistance (next energy)
• Efficiencies will be pushed on Detroit via external legislation
– E.g. Public Acct 295 (15% renewables by 2020)
LONG TERM IMPACT
• But external funding may also be available
• Decreased resource use requires lower capacity systems to meet regional
needs leading to lower capital investment and opex
HAPPOLD CONSULTING

7 – GROWTH: MUST ACCOUNT FOR A RANGE OF FUTURE SCENARIOS
WE MUST PLAN FOR POTENTIAL VARIATION… ...BUT GROWTH MAY BE INSUFFICIENT
• New growth will raise demand and improve utilization and revenue across a wide • Population growth may help, but could experience continued infrastructure
range of infrastructures under provision due to reinvestment lag even if growth in population and
• The chosen economic growth strategy and its relative success in implementation revenue are strong
will have major implication for population and infrastructure demand • External funding will still be required for new capital expenditure for required
• New industry growth may require different infrastructure or capital investment in additional infrastructure, and should be timely
current infrastructure.
Population (max growth scenario)
High population growth
Infrastructure capacity
Low population growth
Revenue
Potential Infrastructure Shortfall
Population (Millions)
Potential Range
1.1m
0.7m
Historical Forecast Scenarios
HAPPOLD CONSULTING
SOURCE: SEMCOG, 2010 PAVEMENT ANALYSIS

8 - NETWORK REALIGNMENT: DECOMMISSIONING?
DETROIT WILL NOT REQUIRE ALL OF THE INFRASTRUCTURE THAT IS CURRENTLY IN PLACE
Schematic Utility Network Example Areas
Key:
Distribution
Transmission
Generation
Occupied Buildings
Historic/Design Current Trend

• Loop + Trunk transmission network • Significant reduction in demand • Slowly declining population remains
• Loops set to serve fully populated areas • Loops kept open for tiny demands widely scattered
with capacity for growth • Generation Plant/ transmission network • Occasional new development
• Generation plant/transmission and working working at low capacity HAPPOLD CONSULTING
• Revenues not sufficient to maintain
sized for peak demand and future growth IN-PROGRESS: DECEMBER 22, 2010
current network levels or plant capacity

8 - NETWORK REALIGNMENT: DECOMMISSIONING?
NETWORK TRENDS POTENTIAL MEASURES FISCAL IMPLICATIONS
• Maintaining full loop/circuit is often the most cost
DISTRIBUTION NETWORKS effective ‐ but requires continuous maintenance cycle
• For partially depopulated areas, options:
• Maintain full distribution loop/circuit • By‐pass lines/Partial decommissioning is expensive –
• Add by‐pass lines to decrease size of loop generally more cost effective to retain existing
networks in place
• In abandoned areas, options: • Leaving unmaintained networks to deteriorate in place
• Leave network in place unused (note: this is is often the lowest cost option – but asset will devalue
not mothballing since deterioration will be rapidly and may represent a hazard.
hard to halt)
• Remove pipes/circuits and associated • Removing pipes/circuits is expensive – generally more
equipment for scrap/re‐use cost effective to leave in place unmaintained – unless
there are specific safety issues
TRANSMISSION/PRIMARY NETWORK
• Transmission/trunk route networks serve multiple areas – • Most cost effective to maintain and upgrade primary
very hard to decommission without disrupting key transmission/trunk networks in place
services for large groups of users. It will remain a core
City duty to maintain and strengthen primary network
SUPPLY/GENERATION • Demolition and site remediation has significant costs
• For surplus capacity: associated with it and is only viable where land costs
• Demolition is possible but must be are at a premium and the site can be put to a higher
accompanied by site remediation. value added use (less common in Detroit market).
• Mothballing (‘stand‐by’) of less used or more polluting
capacity is possible but only where sufficient redundancy • ‘Mothballing’ is potentially viable but will only apply
exists. for a few types of infrastructure
HAPPOLD CONSULTING
Potential Measures
8 – NETWORK REALIGNMENT: NEIGHBORHOOD OPTIONS
FISCAL SITUATION MEANS IT WILL NOT BE POSSIBLE TO MAINTAIN CURRENT SERVICE LEVELS IN ALL AREAS
A. RURALIZATION ISSUES
CONCENTRATE ON CORRIDORS • Breaks implied level of service
• City provides trunk infrastructure: highways, guarantee to long term existing
transit, utility backbone, public services buildings residents
to high standard only along key corridors • Relies on strong local community
organization to take
COMMUNITY AREAS: responsibility for operation and
• Lower/no level of service provided by city outside management of their areas
the corridors (roads not cleared or maintained) • Cost saving may be lower than
• Lower charges taxes and/or portion of revenue expected
provided to local community group • ’Rural’ communities may
• Management responsibility given to local become barrier to future urban
groupings with freedom to provide services locally resurgence
to locally agreed standard
B. COSYING UP / CONCENTRATION ISSUES
CONCENTRATE ON CORRIDORS • Must be planned at scale
• City provides trunk infrastructure and concentrates
• Will place expectation that people
investment in infrastructure and services at compact
move within a 10 year period
nodes where full service can be provided affordably
(TOD) • Will require significant transitional
• New nodes will act as centres for new population funding
CURRENT TRENDS growth as well as consolidation of existing
• Remaining inhabited houses widely distributed. communities
• Slow population decline/ change but remaining • New types of infrastructure (e.g. LRT) required to
residents unwilling unable to relocate serve new types of needs and lifestyles at the nodes
• Large length of infrastructure network relative to
population COMMUNITY AREAS:
• Revenues insufficient to maintain current service • External areas gradually left vacant as natural zones HAPPOLD CONSULTING
levels and infrastructure capacity IN-PROGRESS: DECEMBER 22, 2010
or as opportunity sites for new areas

8 – NETWORK ALIGNMENT: NEIGHBORHOOD OPTIONS
A. RURAL COMMUNITIES B. URBAN NODES
– City manages core infrastructure and services – City manages urban node areas to current urban
along major routes service levels
– Community manages land, local infrastructure – City Park Service or equivalent manages
and local services depopulated zones as leisure/recreation areas
HAPPOLD CONSULTING

9 - EXPORTS: ATTRACT NEW INDUSTRIES TO DETROIT
US sectors employment impact – average wages and multiplier effect
CAPACITY TO ATTRACT NEW
Sales needed for every 1000 direct and indirect INDUSTRY
jobs (Millions of US$)
Targeting industries which utilize key resources, of which
300
Rubber &
sectors which create higher there is excess capacity in Detroit, could be effective in
plastics paid direct and indirect jobs addressing the fiscal concerns of Detroit’s infrastructure
systems as well as generate jobs.
250
Passenger
transportation Particular industries can generate differing levels of value
200 and jobs to the economy. Utilities and Water Transportation
Wholesale Insurance sectors with higher paid jobs impact
trade both present opportunities to generate higher paid jobs and
Coal agents &
mining
as well as high jobs multiplier impact a higher number of jobs relative to other industries such as
brokers
Metallic Tobacco
150 Petroleum Electrical Petroleum tourism based industries.
Hotels & ore mining
& gas machinery refining &
lodging
Printing
Utilities
Automobiles products
Blast Currently ‘green’ industries (renewables based) and ‘blue’
100
Education
furnaces & industries (water‐based) are areas of interest to Detroit.
Retail Primary
Textiles basic steel Chemicals
metals
Agricultur Real
50 e Lumber &
Pipelines sectors with high
Food & beverage
estate Water Automobile
wool processing jobs multiplier
Eating Health
& Communicationsrental &
drinking Legal Retail banking transportation
parking impact
0 places
50 150 250 350 450 550 650 750
Employment multiplier - number of indirect jobs

created for every 100 jobs in sector Utilities & resources offer opportunities to utilize excess
capacity and resources, to generate higher paid jobs &
high jobs multiplier impact
Source: August 2003, Josh Bivens, Updated Employment Multiplier
for the US economy‐A working Paper, Economic Policy Institute; HC HAPPOLD CONSULTING
analysis IN-PROGRESS: DECEMBER 22, 2010

9 – EXPORTS: USE EXCESS INFRASTRUCTURE TO SERVE EXTERNAL MARKETS
SYSTEM Opportunities Impediments Overall
Potential EXCESS CAPACITY HAS VALUE IF
ELECTRICITY Excess generation Competition from MARKETS OUTSIDE DETROIT CAN
capacity may be Canada BE FOUND
available Cost to supply
WATER Excess capacity available Great Lakes Compact • An alternative to network reduction/mothballing to
match regional economic activity may be to view
does surplus infrastructure or resource capacity as a
potentially valuable export to users from outside the
WASTE Waste to energy Requires investment to
region.
processing possible set up
and/or recycling • Some systems may not be readily ‘exported’ while
LOGISTICS & Potential to use for Requires investment to others such as water may be restricted by regulation.
Pricing and competitiveness with other providers may
FREIGHT (heavy rail throughput / logistics set up also affect the potential of such measures.
and maritime) hub not just internal use
• This approach has the advantages of:
– Maintaining higher network capacity for future use
ROAD May be part of ‐ (taking full advantage of capital investment by
integrated logistics hub previous generations/ administrations)
Help generate new – Boosting overall revenue base and regional GDP
revenues – Creating additional employment both directly
within infrastructure companies themselves and in
NON‐MOTORIZED n/a n/a supporting activities
PUBLIC TRANSIT n/a n/a
Significant Number of Some HAPPOLD CONSULTING

impediments impediments Good potential
impediments IN-PROGRESS: DECEMBER 22, 2010
6.0 – TRANSFORMATIONAL IDEAS
6.1 EMERGING TRANSFORMATIONAL IDEAS
6.2 PHASE 2A AND NEXT STEPS
HAPPOLD CONSULTING
6.1 Emerging Transformational Ideas

LONG TERM APPROACHES
• EFFECTIVE, DECENTLY FUNDED INFRASTRUCTURE ALIGNED TO THE CITY’S NEEDS WILL BE CRITICAL FOR DETROIT’S RESURGENCE
• GETTING THERE WILL REQUIRE BOTH A CHANGE OF THINKING AND NEW APPROACHES
THINKING DIFFERENTLY – NEW PARADIGMS FOR DETROIT EMERGING APPROACHES

• Reset Understanding of City Economic and Population Growth Trajectory: • Identify and maintain/build the grid of primary infrastructures that will
• Growth is possible support Detroit’s new economic trajectory. Focus on those
• But must be based on broader economic diversification infrastructures which:
• This will need a diverse, entrepreneurial population. There is space • Will make Detroit globally competitive
for both Detroiters and new arrivals • Support its key communities
• Fiscal Reset: • Built new organizational models for planning and delivery which:
• Clear understanding of Detroit and SE Michigan’s current and future • Embeds coordinated strategic planning between infrastructures
fiscal capacity • Supports objective decision making and prioritization
• Infrastructure service standards and systems must be reset to reflect • Supports focused efficient delivery
sustainable fiscal capacity • Establish new legislative and funding basis for infrastructure which:
• Recognise the need to maintain national and global competitiveness • Reflects fiscal capacity
as well as local equity
• Incentivizes efficient management rather than network growth
• Coordination: or excessive natural resource use
• Understanding of the linkages between systems
• Joint working between city and region
• Joint working between different providers
HAPPOLD CONSULTING
l1
Slide 273
l1 Need to change footers for some sections b/c don't fit categories
lholford, 10/1/2010
6.1 Emerging Transformational Ideas

SHORT-TERM POTENTIAL
• IN THE SHORT TERM, DETROIT MUST ACKNOWLEDGE THE FULL EXTENT OF THE INFRASTRUCTURE CHALLENGE
• AND START ACTING IMMEDIATELY
RECOGNIZING CURRENT CONSTRAINTS EARLY WINS
• In the short term, declining employment and population will remain facts: • Efficiency measures within individual organizations
• The severity of the current down turn mean that recovery will not be • Raising prices/improving revenue collection where there is scope to do
instant even for more optimistic 20 year growth scenarios so without damaging competitiveness
• Demand and revenues will continue to fall: • Enhanced coordination between existing infrastructure planners, funders
• Fiscal base as defined by the current taxation/charging system will and providers utilizing existing organizational and inter‐organizational
continue to shrink frameworks
• Real demand for infrastructure services will continue to shrink • Exploit possibility for temporary uses to raise demand:
• Legislative, Regulatory and Organizational Frameworks will not change • Vacant land for temporary uses
quickly: • Alternative uses for surplus capacity
• Change will take consideration, consultation and persuasion • Pilot New Approaches. Use limited investment funding and available
• Needs at least 5 year timeframe federal funding to support new economic initiatives and efficiencies:
• Woodward Corridor – LRT
• Commuter rail/high speed to Ann Arbor
• Pilot logistics area
• BRT lines on Gratiot
LONG TERM INITIATIVES WHICH SHOULD BE STARTED EARLY:
• Initiating changes to the legislative and regulatory framework through consultation, consensus building and preparation of draft legislation
• Raising public awareness of infrastructure and true cost of service
• Changing consumer expectations of service and consumer behaviour to improve efficiency HAPPOLD CONSULTING
6.2 Phase 2A and Next Steps

MODELLING THE FUTURE OF DETROIT’S SYSTEMS
In the stages which follow, we will begin to undertake the following tasks:
Analysis
• Deepen the analysis summarized within this report, incorporating data which has yet to
arrive, as and when it does.
• Continue to update the Data Catalogue as new data arrives.
Exploring Future Directions
• The analysis in this report builds towards an understanding of the challenges each of
these systems faces, the severity of each, and the applicability of a range of potential
measures. Conclusions have been drawn as to what the most appropriate measures
might be to address each challenges, and these conclusions will give direction to the
scenario modelling which will be undertaken in the subsequent stage.
• As solutions are evaluated in more detail, and they are deemed ready for modelling, a
parametric modelling process will be initiated, where combinations of solutions can be
run as scenarios, and tested for their suitability as solutions, against a set of parameters
which represent “success”.
• As viable measures begin to emerge, they can be integrated into the whole, and begin
to form the Detroit Works Plan Options, and eventually narrowed down to the Final
Detroit Works Strategic Framework Plan.
HAPPOLD CONSULTING

Policy Audit Topics: City Systems - Infrastructure, Transportation &amp; Sustainability

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IN‐PROGRESS V2 – DECEMBER 22, 2010

2.1 Audit Objectives

 Integrated baseline setting Neigh‐ Regional

2.1 Audit Objectives

2.2 Defining City Systems

2.2 Defining City Systems

2.2 Defining City Systems

2.2 Defining City Systems

Demand Supply Network Operation

2.2 Defining City Systems

Source: 1. SEMCOG, 2010 HAPPOLD CONSULTING

2.2 Defining City Systems

2.3 Detroit Overview

2.3 Detroit Overview

2.3 Fiscal Overview

2.3 Fiscal Overview

2.4 Detroit Systems Overview

Source: 1. SEMCOG, 2010 HAPPOLD CONSULTING

2.4 Detroit Systems Overview

Source: 1. SEMCOG, 2010 HAPPOLD CONSULTING

Overview Governance Resources & Network Planned Projects

NOTE: Where a certain area of analysis listed above is not relevant, or where data was unavailable, an exclusion will be made (see 3.3). HAPPOLD CONSULTING

NOTE: Where a certain area of analysis listed above is not relevant, or where data was unavailable, an exclusion will be made (see 3.3). HAPPOLD CONSULTING

3.2 Data Collection Approach

A COMMON DATA DETROIT AS A CITY SYSTEMS AS

3.2 Data Collection Methods

1 Change level of service provided An overall traffic light assessment Indicates the relative

1. United States and Canada 2. State of Michigan

3. 7-County Region 4. City of Detroit

SOURCE: ESRI / SOM HAPPOLD CONSULTING

3.6 Future Integration

Theme AECOM HAA SOM ICIC HRA Community / Civic

Infrastructure • Open space as drainage • Links between • Links between • Linking resource • Linking investment in • “on the ground” data

Fiscal Sustainability • Links between • Links between new • Efficiencies with • “on the ground” data

4.1 Federal Government’s Vision for the National Transportation Infrastructure

SOURCE Union of Concerned Scientists‐ Illinois Renewable Portfolio Standard Summary HAPPOLD CONSULTING

4.1 Safe Drinking Water Act

Source: United States Environmental Protection Agency HAPPOLD CONSULTING

4.1 Clean Water Act (CWA)

Source: United States Environmental Protection Agency HAPPOLD CONSULTING

4.1 Water Infrastructure Sustainability Policy, EPA, 2010

SOURCE: http://www.dleg.state.mi.us/mpsc/comm/telecom/pa179.pdf HAPPOLD CONSULTING

4.1 Public Act 295

SOURCE: Michigan Public service Commission (http://www.michigan.gov/mpsc/0,1607,7‐159‐16393‐‐‐,00.html, http://www.michigan.gov/mpsc/0,1607,7‐159‐16393_55027‐‐‐,00.html HAPPOLD CONSULTING

SOURCE February 2007, House Fiscal Agency , A guide to 1951 Public Act 51 and Michigan Transportation Funding HAPPOLD CONSULTING

4.1 Transportation 141

SOURCE : Michigan Public Service Commission, http://www.michigan.gov/mpsc/0,1607,7‐159‐52493‐79463‐‐,00.html HAPPOLD CONSULTING

4.1 Public Act 179

Source: Michigan Telecommunications Act (http://www.dleg.state.mi.us/mpsc/comm/telecom/pa179.pdf) HAPPOLD CONSULTING

Map showing Potable Water Network in Detroit

Map showing Potable Water Network in Detroit

Source: DWSD HAPPOLD CONSULTING

Declining water sales

-Need to tighten up referencing of stats

Map showing Sewer Network Expansion in Detroit

Source: http://www.dwsd.org/index.html ; http://www.semcog.org/Water.aspx ; http://www.detroitmi.gov/Departments/tabid/61/Default.aspx HAPPOLD CONSULTING

2030 2040 2050

Source: 1. DWSD; 2003 HAPPOLD CONSULTING

Source: http://www.dwsd.org/about/water/Task_C_UFW.pdf HAPPOLD CONSULTING

SOURCE: 1. DWSD, http://www.dwsd.org/about/water/Task_C_UFW.pdf HAPPOLD CONSULTING

• DWSD Comprehensive Water Masterplan 2004 noted that

• Circle of Blue’s Urban Water Pricing Survey 2010 noted that

• However, in most major cities water use is declining while rates

Policy Audit Topics: City Systems - Infrastructure, Transportation & Sustainability

Policy Audit Topics: City Systems - Infrastructure, Transportation & Sustainability

Integrated baseline setting Neigh‐ Regional