Draft ODCC Vision - AOLS Presentation (Brian... · Overall Vision •The Ontario Digital Cadastre...

Current State Presented to AOLS AGM

February 26, 2014

Not intended to be a solicitation or offering for the purchase, sale or the investment in any of the potential securities discussed

Board Composition/Staff

• Current Board • Bruce Baker, Chair and President • Jeff Buisman, Director, AOLS rep. • Gavin Lawrence, Director • Blain Martin, Non-voting member

• New Board Members • Barry Clarke, Director • Terry Dietz, Director

• Past Board Members • Crystal Cranch • Izaak de Rijcke • Julia Meldrum • Art Leitch

2014-02-26 Presentation to AOLS AGM

• Current Staff (part-time) • Brian Maloney

• Past Consultant • David Brubacher

Note: Board members have made significant contributions personally and with staff time

Overall Vision

• The Ontario Digital Cadastre Corporation (ODCC) is a Land Surveyor owned and operated company that exists to create and maintain a province-wide cadastre, together with a survey records index and related data repository. We are in the business of discovering opportunities for surveyor’s data that will generate immediate and ongoing revenue from traditional and non-traditional clients, ultimately leading to the emergence of our cadastre. We also provide centralized intellectual property, licensing and contract management to surveyors and related industries.

• ODCC has the knowledge, skill and authority to create and deliver a digital cadastre. We are responding to a need that is not presently satisfied; namely, providing fair and wide-ranging access to, protection of, and maintenance of the cadastral fabric of Ontario, with pricing and licensing that is attractive to all potential users, all while honouring the significant intellectual property held by individual surveyors. Surveyors have a long-standing historical professional credibility and establishing a digital cadastre fits perfectly within our public protection mandate and preserves and expands the role that surveyors play in society.


Vision Statement

• We are the authoritative source of knowledge on the spatial extent of property rights, restrictions and responsibilities, delivering sustainable social, economic and cultural benefits

Tag Line

Your one-stop property extents information source for Ontario


Mission/Objective

• Develop and maintain the first spatially accurate Ontario-wide cadastre

• Create and maintain a province-wide survey record index

• Increase the real and perceived value of surveying and cadastral products and services • Provide access to surveyor’s information in convenient and innovative forms

• Engage all surveyors in Ontario to deliver new products and services


Values/Principles

• Protect the public interest (provision of transparent and reliable information for reasonable fees)

• Honour intellectual property

• Build trust and collaboration with clients and suppliers

• Build value for all members

• Build knowledge and capacity for members to ensure skills availability


Our Suppliers

• Use members where possible

• Provide value add products and do not compete with member firms (note value add could include consolidation of products/services to meet larger needs)

• Revenue completely redistributed to members with sufficient retained earnings for ODCC to keep it sustainable

• Equitable distribution of work to members respecting local knowledge and records where possible

• Work with members to develop new clients and services (i.e. help extend member capabilities)


Our Clients

• Meet the needs of clients that cannot easily go to a single survey firm for solutions (e.g. clients requiring access to information across broad geographic areas in Ontario)

• Look for new products and services that have not been met by the traditional products and services provided by surveyors

• Services provided with integrity and transparency

• Clients can range from all levels of government to industry (no limitations other than as noted in the suppliers restrictions)


The Strategy

• Leverage existing products and services of members • Build the MPAC relationship as a key first adopter client allowing ODCC to

grow products and services which can then be offered to others • Keep ODCC lean and effective (i.e. very limited staff) and rely on member

services where possible • Retain IP and licensing where possible to ensure long term sustainability • Slow growth and limited marketing at the outset ensuring ability to deliver

as promised • Use alternative delivery mechanism where members cannot deliver (e.g.

no members in a particular geographic area, no high accuracy cadastre available)

• Establish a relationship with Teranet


The Digital Cadastre

• Comprehensive coverage of the province with varying accuracy that is described by individual point/boundary metadata allowing systems and users to understand relationships of positions to boundaries – continually improving accuracy

• Short-term is a surrogate for ownership extents; long term provides extent knowledge of all rights and restrictions impacting real property

• Based on a modern common described referencing system

• Allows users a variety of services ranging from low accuracy (like today’s Ontario ParcelTM) queries (e.g. distance to property; polygon overlays) to higher accuracy queries (e.g. distance to property line)

• Provides transactional (low cost) services to higher costs subscription based services

• Meets all uses requiring knowledge of property extents (e.g. proximity alerts for equipment, distance to nearest fire hydrant, distance to services)


Ultimately becomes more important than survey plans!

Accomplishments

• ODCC incorporated; Board very active; Business Plan nearing completion incorporating learning to date

• 121 Survey firms are participating

• Co-Op incorporated and getting ready to launch

• Significant progress in building a relationship with MPAC • Property Dimension Reports being delivered province wide (building confidence in the ability of ODCC to

deliver) • Negotiations underway to extend Property Dimension Reports to include deep servicing and addressing • Discussions underway for the delivery of area services (for up to 250,000 parcels) and potential plan provision

service • Early stages of considering maintenance of their parcel fabric (major long term opportunity that could

leapfrog the Digital Cadastre forward)

• Contract established through iLOOKABOUT with the Toronto Real Estate Board to provide notice of pre-registered plans of subdivision

• Lots of Learning!!!!!!!


Learning to Date through pilot projects and potential client conversations • Learning from conversations with potential new clients (e.g. Risk

Management Services, LawPro, municipalities) • Alternatives exist for many of services or benefits are small thereby making

our services price sensitive • Most are looking for comprehensive services (i.e. they need complete

coverage)

• Learning from existing services and pilots • As noted above we need complete coverage therefore requiring alternative

delivery mechanisms if not all surveyors are involved • It takes time, perseverance, and dedicated delivery to gain confidence to have

clients displace existing methods and services • Timeliness of delivery is important for many services


Risks

• Member inability or unwillingness to deliver (mitigate through alternative delivery but could be fatal)

• Surveyors continue to believe their existing products/services represent the only products/services required to meet societies needs

• Inability to attract sufficient participating surveyors (mitigate through alternative delivery but could be fatal)

• Fragmented survey community preventing province-wide delivery of services (could limit some business opportunities)

• Teranet Competition (needs to be addressed over time)

• Inability to attract start-up funding (could result in premature closure)


Financial Forecast Assumptions

• 3 scenarios outlined (current situation, almost guaranteed and Likely)

• Current situation – considers only existing Property Dimension Reports (PDRs) and existing Toronto Real Estate Board contract

• Almost guaranteed adds in servicing and addressing to PDRs

• Possible Scenario also includes: • MPAC Area Improvements (projected over 3 years starting in July) • Provincial Survey Record Index starting in October • Plan Sales to Realtors starting in 2015 • Cadastral Maintenance starting in April 2017

• The Possible scenario includes many projected costs and incomes that need further work to confirm

• No projections are included for utility companies, value added cadastral services, etc. all of which have real possibilities


ODCC Quarterly Profit


($100,000.00)

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

Current Situation

Possible Scenario

Almost Guaranteed

Member Quarterly Direct Income


$0.00

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

$1,600,000.00

$1,800,000.00

Possible Scenario

Almost Guaranteed Current Situation

($500,000.00)

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

Member and ODCC Quarterly Income/Profit


Member Income ODCC Profit

ODCC Retained Earnings


($1,000,000.00)

$0.00

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

$7,000,000.00

Possible Scenario

Current Situation Almost Guaranteed

How do we get there?

• Short term investment to get ODCC operational • Angel Investors • Co-Op Investment • Government Investment?

• Move forward Key initiatives: • MPAC Area Improvement Project • Provincial Survey Record Index • Cadastral Mapping • Survey Plan view/sales through propertylineTM

• Ensure Complete and timely Delivery of Existing & New Services (we need to improve!)

• Successful Pilots! • Live our Vision as previously described


Annual or Lifetime Membership Fees

Member Shares and Non-Member Shares

Bonds and Debentures

Membership Loans

Financing

We plan to finance the Co-Op and Corporation in the

medium term with a $1,000 Membership Loan

Co-Operative Corporation

Medium Term Financing

We are financing the Corporation in the short

term with 30 $5,000 Promissory Notes


Note: An initial offering document has to be prepared and approved by the Financial Services Commission of Ontario before shares can be issued and loans taken – this has yet to take place

99 received to date to date

Why use a Co-Op?

• Only way to allow more than 50 shareholders where we limit who can invest (i.e. keeps control with the membership)

• Encourages all surveyors to participate (firms and individual members)

• Benefits are shared by all members on a contribution basis (i.e. not on a share basis) which encourages participation

• Allows a mechanism to provide start up loans to get ODCC operational


Association

Corporation

Co-Operative

Membership

Owned by Elects BoD

Membership

Elects Council

Proposed Governance & Ownership

Governs


Note: Co-Ops distribute earnings based on participation not necessarily on shares

Co-Op & Corporate Governance Vision

Co-Op Resources Shared Resources Corporate Resources

Members

Board of Directors Board of Directors Lawyer

Accountant

Corporate Secretary

Marketing Standards

Client Advisory

Panel

Supplier Advisory

Panel

Operational Staff

Nominations Finance

Operations Member Services

Member Coordinator

General Manager

Strategic Planning


Value Proposition - Surveyors

AOLS

• Ability to increase professional behaviour of members improved research through (province wide SRI, potential improvements to SRD operations, potential plan checking application (similar to Alberta))

• Increased credibility and relevance in society by broader service offerings of members

• Potential offset in funding requirements

Survey Firms

• Access to new product lines and revenues

• Ability to offer services that would not likely be possible on their own

• Decreased costs for research through better survey records index available province wide

• New channels to sell existing survey related information (e.g. MPAC’s propertylineTM)

Surveyors

• Increased control over the usage of boundary information they produce

• Increased credibility and relevance in society through broader service offerings with higher value


Value Proposition - Government

Federal Government • Access to new information that was not previously affordable or

convenient (note: many of their needs can be met by address points so the opportunity will be limited)

Provincial Government • Potential cheaper product than the Ontario ParcelTM • The increased accuracy may benefit a few applications (e.g. MTO during

detailed design) • MNR would enjoy more positive oversight by the AOLS Municipal Government • Increased accuracy of parcel fabric allows them to provide better

information and service to their taxpayers


Value Proposition - Others

MPAC • Lower operational costs

• Increased efficiency through outsourcing (e.g. Property Dimension Reports provide information MPAC needs for valuation without having to capture the information themselves; Move to a services based concept lowers management effort (they get the information without having to manage the people and systems))

• Potential cheaper access to offsetting contracts (e.g. Ontario ParcelTM)

• New e-commerce products and services allows increased revenue • Improved service to their stakeholders through quicker access to

information they need for valuation Real Estate Boards/Companies; Utilities; Etc. • Access to new information that was not previously affordable or

convenient


Association

Operating Expenses

Retained Earnings

Co-Operative

Membership

Dividend

Corporation

Realizing Value

Membership

More services / Lower cost

Suppliers Customers

2014-02-26 27

The Pieces/Relationships (today)


Survey Firms

Provincial Survey Records Index

Digital Cadastre

Property Assessment Fabric

Survey Records Companies (e.g. Land Survey Records Inc.)

Other Services (e.g. PDR)

Provide Database, Web services & alternative fulfillment

Plans

Other Clients

Plans

records

searches

The Path to Success


2013 PDRs, M-Plan, R-

Plans, Vacant Land Condominiums

2014 Initiate Co-Op

and resolve start-up funding

2014 Start MPAC

Area Improvement Project

(balance ODCC books)

2014 Provincial SRI and

Repository

2014 Plan View and Sales

2015 - 16 Pilot Digital Submission

and Integration, Limited Parallel operation to

Ontario Parcel

2017 Maintenance of Digital

Cadastre

Start

Increased skill and knowledge of surveyors to maintain the cadastre resulting in increased respect

What if we don’t succeed?

• Ministry of Government Services & Teranet continue to control surveyor’s core cadastral product line with limited input from surveyors

• New innovative product lines and services are less likely to be developed and benefit surveyors

• Surveyor’s relevance and value to Society declines over time

• Existing investors lose investment


Future (beyond 2017)

• Improved accuracy

• Trusted civic address component

• Broadened rights and restrictions (e.g. zoning) included – broadened relationship with governments

• 3D

• Developer Driven Apps encouraged

• Related data maintained in other fashions (Crowd Sourcing)


Questions At session start:

• Audience Make-up: Do you hold a Certificate of Authorization (Press 1 for yes, 2 for no)

• Do you know where ODCC is heading?

After Presentation:

• Do you now feel you know where ODCC is heading?

• Do you agree with the Vision and Mission?

• Do you agree with the concept of using a Co-Op?

• Are you willing to become a member of the Co-Op?

• Are you in favour of a province-wide Survey Record Index?

• What is your level of confidence we can do this? • A – High • B – Medium • C – Low

• Are you currently an ODCC participant?

• For those that are not: Are you considering participating?


Contact Us

• Bruce Baker e-mail: [email protected]

• Jeff Buisman e-mail: [email protected]

• Gavin Lawrence e-mail: [email protected]

• Barry Clarke e-mail: [email protected]

• Terry Dietz e-mail: [email protected]

• Blain Martin e-mail: [email protected]

• Brian Maloney e-mail: [email protected]


Draft ODCC Vision - AOLS Presentation (Brian... · Overall Vision •The Ontario Digital Cadastre...

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