Getting the Biggest “Bang” for your Buck – Value Driven CIP Planning, Reporting, and Tracking Framework

DPU maintains and operates approximately 1,580 miles of water transmission and distribution mains, approximately 1,620 miles sanitary sewer mains, 415 (water and sewer) pump stations, and 11 storage tanks. DPU serves a population of approximately 441,000 with approximately 131,000 water customer accounts and approximately 129,000 sanitary sewer customer accounts. DPU has instituted a robust Asset Management Program to implement a unified and consolidated Departmental Strategy, improve the CIP project implementation process, and enhance education, communication, and collaboration among all stakeholders. As part of the asset management program, DPU has previously adopted a business case approach to CIP planning and reporting that focuses on assessing the long-term service level and cost implications, incorporates triple bottom line evaluation, provides a sound understanding of true life-cycle costs and strengthens long-term financial decision making.

Like most water and sanitary sewer utilities around the nation, rehabilitation and/or replacement of aging infrastructure is a top priority for the City of Virginia Beach, Department of Public Utilities (DPU). DPU is currently mandated to be in compliance with the regional Consent Order and is also in the process of implementing a mandatory, multi-year, rehabilitation plan. Additionally, each year DPU program and project managers are required to plan the budget for their upcoming six-year Capital Improvement Program (CIP). As a result, CIP Program and Project Managers are being asked to balance/manage numerous other critical tasks (design, construction, and implementation of CIP Projects) in addition to effective CIP Planning. With an industry “new-normal” of having to do more with less, organizations are having to reevaluate their existing processes in an effort to gain efficiencies in cost as well as project manager productivity to efficiently and effectively administer their respective CIP Programs.

The objective of this initiative is to develop a centralized and automated Capital Improvement Program (CIP) Planning, Tracking, Reporting and Management framework with dynamic system capabilities such as workflow notifications, seamless rollups and validations, and on-demand reporting thus enabling efficient and effective CIP planning and decision making. All DPU CIP Project Managers will have access to this capital information framework for creating, updating, maintaining, approving, tracking, and reporting capital funding requirements and plans for all capital projects. This effort is expected to improve the various CIP Planning processes and result in significant efficiencies in staff productivity and cost savings.

With a capital budget of 240 million, and with over 200 ongoing capital projects (design, construction, roadway and storm water co ordination projects etc.), DPU adopted and implemented a collaborative CIP planning and tracking framework as part of this management initiative. As part of this effort, all associated processes have been established, necessary information management systems have been aligned, and all project managers have been trained to successfully implement and apply this methodology. This framework was used by DPU in the current annual CIP planning, reporting, and management cycle.

This paper will describe the centralized and collaborative CIP planning, tracking, and reporting approach developed and adopted by DPU. Significant benefits have been achieved by incorporating pre-established standardized capital business cases framework, leveraging existing technology, and training project managers to manage CIP projects using this approach for City-owned, operated, and maintained water and sanitary sewer system assets.

Additionally, the presentation will also present the benefits of this adopted and implemented framework-achieving and managing a higher level of performance and improved efficiency by increasing the overall productivity by eliminating numerous coordination issues, manual and repetitive tasks, reducing the subjectivity to CIP planning, and significantly decreasing review time. This approach was implemented for FY 2015 CIP Planning effort that was recently completed. As a result of this centralized and collaborative approach the following efficiencies were achieved:

Each CIP Program Manager spent approximately 25 % to 30% less time in this year’s CIP Planning effort compared to previous years.

Each CIP Project Manager spent approximately 35% to 40% less time in this year’s CIP Planning effort compared to previous years.

With approximately ten (10) program managers and twenty (20) project managers, the collective time savings as a result of this effort is significant.

Time saving efficiencies has enabled DPU project managers to dedicate the time saved to other time sensitive, value driven critical CIP priori ties/projects such as design, construction, and implementation of Capital projects. Depending on the size and complexity of CIP Programs, significant time efficiencies can be potentially gained by other organizations as well.

Finally, a change management approach identifies all requirements, including systems and resource dependencies of capital program planning, reporting and management and makes them accessible to key stakeholders at DPU.