SMART ME UP! TAGUNGSBAND HOW TO BECOME AND HOW TO STAY A SMART CITY, AND DOES THIS IMPROVE QUALITY OF LIFE?

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Manfred SCHRENK, Vasily V. POPOVICH, Peter ZEILE, Pietro ELISEI, Clemens BEYER (Eds.)

SMART ME UP!

HOW TO BECOME AND HOW TO STAY A SMART CITY, AND DOES THIS IMPROVE QUALITY OF LIFE?

22-24 JUNE 2016, HAMBURG, GERMANY

PROCEEDINGS TAGUNGSBAND

of the 21

^st

International Conference on Urban Planning, Regional Development and Information Society

A co-operation of

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REAL CORP 2016. Smart Me Up!

How to become and how to stay a Smart City, and does this improve quality of life?

Proceedings of

21^st International Conference on Urban Planning, Regional Development and Information Society

Beiträge zur

21. internationalen Konferenz zu Stadtplanung, Regionalentwicklung und Informationsgesellschaft

Edited by

Manfred SCHRENK, Vasily V. POPOVICH, Peter ZEILE, Pietro ELISEI, Clemens BEYER Vienna, 2016

CD-ROM-Edition ISBN: 978-3-9504173-0-2 Print-Edition ISBN: 978-3-9504173-1-9

Im Selbstverlag des Vereins

CORP – Competence Center of Urban and Regional Planning Kompetenzzentrum für Stadtplanung und Regionalentwicklung

Klosterneuburger Straße 121/36, 1200 Wien, Österreich office@corp.at, http://www.corp.at

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TEAM

Manfred SCHRENK Clemens BEYER Kai-Uwe KRAUSE

Peter ZEILE

Wolfgang W. WASSERBURGER

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Editors – Herausgeber:

DI Manfred SCHRENK, President CORP – Competence Center of Urban and Regional Planning, Vienna, Austria Prof. Dr. Vasily V. POPOVICH, SPIIRAS, St. Petersburg, Russia

Dr.-Ing. Peter ZEILE, TU Kaiserslautern, Kaiserslautern, Germany Dr.-Ing. Pietro ELISEI, URBASOFIA, Bucharest, Romania

Dipl.-Ing. Clemens BEYER, CEIT Research Network, Vienna, Austria

Publisher – Medieninhaber und Verleger:

CORP – Competence Center of Urban and Regional Planning Kompetenzzentrum für Stadtplanung und Regionalentwicklung Klosterneuburger Straße 121/36, 1200 Vienna, Austria

office@corp.at, http://www.corp.at

CD-ROM Edition: ISBN 978-3-9504173-0-2 Print Edition: ISBN 978-3-9504173-1-9

Contributions by the authors reflect their own findings, views and opinions which may not necessarily be consistent with the views and opinions of the editors.

Die Arbeiten geben die Erkenntnisse und Ansichten des jeweiligen Autors wieder und müssen nicht mit den Ansichten der Herausgeber übereinstimmen.

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REAL CORP 2016 Proceedings – Tagungsband Inhaltsverzeichnis –Table of Contents

Table of contents – Inhaltsverzeichnis:

PREFACE ... 5

Manfred Schrenk

(Un)Plugging Smart Cities with Urban Transformations ... 15

Igor Calzada

A Pilot Experiment on Affective Multiple Biosensory Mapping for Possible Application to Visual Resource Analysis and Smart Urban Landscape Design ... 29

Zheng Chen, Sebastian Schulz, Xiaofan He, Yifan Chen

A Spatial Microsimulation Model for the Estimation of Heat Demand in Hamburg ... 39

M. Esteban Muñoz H.

A Study on the Lifestyles and Daily Activities of Informal Settlers in Inner Kabul City ... 47

Sofia Sahab, Toshiyuki Kaneda

A Suite of Novel EO-Based Products in Support of Urban Green Planning ... 57

Mattia Marconcini, Annekatrin Metz

Air-Based Mobile Urban Sensing – Copters as Sensor Carriers in Smart Cities... 67

Benjamin Allbach, Patrick Leiner

Altern im urbanen Umfeld dargestellt an ausgewählten Beispielgebieten von Graz ... 79

Josef Gspurning, Julia Kügele

An Approach to Adapt the Paradigm of Integral Planning to Urban Development ... 99

Karsten Rexroth, Petra von Both

Behaviour Analysis of Interdependent Critical Infrastructure Components upon Failure ... 107

Pradeep Burla, Christine Lindner, Dirk Vallée

Belgrade: Smart Solutions for the Climate Change Challenges? ... 117

Aleksandra Stupar, Aleksandra Djukic, Jelena Maric

Brownfields Information Brocker ... 125

Karel Charvat, Sarmite Barvika,Tomas Mildorf

Can the Integration of Environmental Dimension Make Smart a Metropolitan Context? An Argument about Planning in the Recently Established Metropolitan City of Cagliari and Natura 2000 Network ... 137

Ignazio Cannas, Daniela Ruggeri

City Lab Lisbon – Development of a Smart Roadmap for the City of the Future ... 151

Marielisa Padilla, Tom Hawxwell, Willi Wendt

Communal Companies Merging as Smart Approach: Kikinda Town in Serbia Case Study ... 161

Danilo S. Furundžiü, Dijana Jakšiü-Kiurski, Ivana Petroviü

Comparing Automated Methods for Identifying Areas of Critical Heat Demand in Urban Space ... 171

Hannes Seller

Computing Residential Heat Demand in Urban Space using QGIS. A Case Study for Shumen, Bulgaria ... 179

Ivan Dochev

Creative Capital for Smart Solutions: Toward a Liveable City ... 189

Sanja Simeunþeviü Raduloviü, Aleksandra Stupar

Crowd Delivery als neues Lieferkonzept zur Stärkung des „Lokalen Marktplatzes“ ... 197

Linda Dörrzapf, Martin Berger, Gert Breitfuss, Elias Remele

Das Konzept der quattromodalen Knoten ... 207

Georg Hauger, Monika Wanjek, Claudia Berkowitsch, Sarah Pfoser, Oliver Schauer, Lisa-Maria Putz, Reinhold Schodl, Sandra Eitler, Matthias Prandtstetter, Karin Markvica

Defining Smart Cities: a Relative and Dynamic Approach ... 213

Luigi Mundula, Sabrina Auci, Donatella Vignani

Die smarte Vision auf den Boden bringen ... 223

Ernst Rainer, Martin Grabner, Oliver Konrad

EmoCyclingConcept – Smart and Safe Mobility – Workshop ... 237

Dennis J. Groß, Peter Zeile

Enriching the 3D City Model for the Simulation of Urban Heat Demand ... 243

M. Esteban Muñoz H., Ivan Dochev, Hannes Seller, Irene Peters

Environment and Social Audit for Smart City Planning Perspective in India... 249

Bikram Kumar Dutta, Sanhita Bandyopadhyay

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REAL CORP 2016 Proceedings – Tagungsband Inhaltsverzeichnis – Table of Contents

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SMART ME UP!

Experiences from a Living Lab Trialling a Mobile Participation Platform ... 263

Sarah-Kristin Thiel, Peter Fröhlich, Andreas Sackl

Fernerkundungsgestütze Wärmeverlustdetektion von Dachflächen als Beitrag zur Energieeffizienzsteigerung von

Stadträumen – Ergebnisse einer Fallstudie in Graz/Österreich ... 273

Wolfgang Sulzer, Katharina Kern, Christian Bauer, Reinhold Lazar, Martin Mudri, Winfried Ganster

Floating Architecture and Structures – an Answer to the Global Changes ... 287

Horst Stopp, Peter Strangfeld, Anna Malakhova

Fühl die Stadt – Methoden zur Erfassung subjektiver Wahrnehmung ... 295

Linda Dörrzapf, Martin Berger, Fabian Dorner, Hartmut Dumke, Lisa Reinhart, Gloria Watzinger, Stefan Leichtfried

GIS Application for Improving Housing Conditions in Substandard Roma Settlements in Serbia ... 305

Ljiljana Živkoviü

Hiking Trip Selection Based On Reachability By Public Transport ... 317

Stefan Wagner, Gerhard Navratil, Hans Fiby

How to stay a Smart City? Inspiration from a Place-Based Spatial Policy in Ghent – Working Together with Local, Smart Citizens ... 333

Ann Pisman, Peter Vervoort

Human’s Digital Space in a Digital City ... 343

Vasily Popovich, Leonid Borodkin, Manfred Schrenk

Identifikation geschlechterspezifischer Mobilitätsbarrieren anhand einer drittvariablengestützten

Mobilitätsverhaltensanalyse ... 349

Christine Lindner, Daniel Horn, Conny Louen

Informationstechnologie unter Erreichbarkeit – intelligentes Transportsystem: eine Studie für den Stadtverkehr in

Istanbul ... 369

Bilge Ulusay Alpay

Innovative Approaches to Urban Data Management using Emerging Technologies ... 375

Jens Dambruch, Andreas Stein, Veneta Ivanova

Integrative Secondary Education Programmes and Research in Smart Cities Context ... 385

Momir Tabakovic, Darya Bululukova, Harald Wahl

Intelligent Development Research on Job-Housing Space in Chinese Metropolitan Area under the Background of Rapid Urbanization ... 391

Sicheng Wang, Yingxia Yun, Zhong Sun

Interaction with Interconnected Data in Participatory Processes ... 401

Lars Schütz, Dirk Helbig, Korinna Bade, Matthias Pietsch, Andreas Nürnberger, Andreas Richter

Korneuburg 2036 – eine Stadt plant sich selbst. Die Frage nach Langfristigkeit und Verlässlichkeit in der kooperativen Stadtentwicklung ... 411

Elisabeth Schauppenlehner-Kloyber, Johannes Huemer

Local Agenda 21 Plus Josefstadt: Smart Projects to Share Space, Talents, Knowledge, Objects and much more ... 423

Petra Hirschler, Sibylla Zech

Low Tech Solution for Smart Cities – Optimization Tool CityCalc for Solar Urban Design ... 431

Roman Smutny, Doris Österreicher, Stefan Sattler, Martin Treberspurg, Kurt Battisti, Markus Gratzl, Ernst Rainer, Heimo Staller

Mapping Conflicts in the Development of Smart Cities: the Experience of Using Q Methodology for Smart Gusu Project, Suzhou, China ... 437

Joon Sik Kim

Mischung: Possible! Impulses for Mixed Use and Flexible Capacities in Contemprary Densely Built Urban Areas ... 447

Silvia Forlati, Christian Peer

Mit Potenzialanalysen die richtigen Verwaltungsdienstleistungen digitalisieren ... 455

Fais Al-Anbari, Sven Hauenstein

Model-based Planning for a Sustainable Urban Development ... 463

Sebastian Ebertshäuser, Petra von Both

Modelling Microclimates in the Smart City: a Campus Case Study on Natural Ventilation ... 473

Olaf Schroth, Quan Ju

Modernisierung im sozialen Wohnbau – wie dabei Smart Mobility unterstützt wird ... 481

Eva Favry

Open-Innovation- und Living-Lab-Ansätze in der Praxis der Stadtentwicklung – Herausforderungen, Dilemmas und Chancen ... 491

Barbara Hammerl, Remko Berkhout, Elisabeth Oswald

Participative Foresight for Smarter Cities: From Vision Seeds to the Development of Scenarios ... 501

Vicente Carabias-Hütter, Tobias Kuehn, Alexander Sokolov, Harry Spiess

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REAL CORP 2016 Proceedings – Tagungsband Inhaltsverzeichnis – Table of Contents Planning of Smart Government of Belgrade ... 509

Eva Vaništa Lazareviü, Marija Cvetkoviü, Uroš Stojadinoviü

Portable Streets: Smart Urban Solution... 515

Rania El Messeidy

Putting Life to Smart City Project Portfolios (The Role of Innovation in Smart Cities) ... 521

Stefan Fazekas

Rationale of Smart High-rise Regulations ... 531

Hao Zhang

Raumerfassung und Raumwahrnehmung – aktuelle Techniken und potenzielle Einsatzgebiete in der Raumplanung ... 541

Steffen Folz, Daniel Broschart, Peter Zeile

Semantic Medical Care in Smart Cities... 551

Alexander Vodyaho, Nataly Zhukova, Maxim Lapaev, Andrey Koltavskiy

Semantic Platform for Building Coherent Net of Smart Services ... 561

Alexander Vodyaho, Nataly Zhukova, Maxim Kolchin, Maxim Lapaev

“Sidewalk” as a Realm of Users’ Interactions: Simulating Pedestrians’ Densities at a Commercial Street in Cairo City ... 569

Hussam E. M. Magdy, Masahiro Shohmitsu, Toshiyuki Kaneda

Smart Cities or Smart About Cities ... 579

Judith Ryser

Smart Cities: a Policy Tool for City Efficiency? ... 589

Luigi Mundula, Sabrina Auci

Smart City – Smart Design? Die Auswirkung digitaler Medien auf die Stadtgestalt ... 599

Philipp Strohm

Smart Data for Smart Government – a Show Case from Abu Dhabi Distribution Company ... 609

Rim Meziani

Smart Energy Supply Conception for the Urban Development Area of Aspern Seestadt (Vienna) ... 615

Ursula Mollay, Barbara Saringer-Bory, Christof Schremmer, Sebastian Möller

Smart Governance, the Backbone of Smart Planning. A new Strategic Plan for the Cluj-Napoca Metropolitan Area ... 625

Pietro Elisei, Sabina-Maria Dimitriu, Radu-Matei Cocheci

Smart Government in Wien ... 633

Gerhard Hartmann

Smart Planning: Different Participation Methods for Evaluating Spatial Attractiveness ... 643

Christian Mueller, Ulrike Klein, Angela Hof

Smart Sustainable E-Solutions for Implementation and Enforcement of Smart Cities in India ... 653

Sandeep Kumar Raut, Papiya Bandyopadhyay Raut

Smart Urban Simulation Tools for Planning Decision Support Need Smart Data and Smart Data Gathering Methods ... 659

Ernst Gebetsroither-Geringer, Wolfgang Loibl, Mario Köstl, Jan Peters-Anders

Stadtentwicklung im Untergrund. Skizzen aus der Schweiz ... 667

Alexander Ruch

Stand der Weiterentwicklung und Umsetzung des Standards XPlanung in Deutschland ... 679

Kai-Uwe Krause, Robert Krätschmer, Joachim Benner

Stresstest städtischer Infrastrukturen – ein Experiment zur Wahrnehmung des Alters im öffentlichen Raum ... 689

Sven Beyel, Johann Wilhelm, Christian Mueller, Peter Zeile, Ulrike Klein

Success Factors of Participatory Processes in Urban Development ... 699

Marianne Steiner

Technology-supported Citizens Participation in Taiwan ... 709

Ken-Ping Shen

The Concept of Situation Centers for Smart Cities ... 719

Oksana Smirnova, Tatiana Popovich

The Influences of User Generated "Big Data" on Urban Development ... 727

Mai Mahmoud, Dina Taha

The Pivotal Role of Public Transport in Designing the Integration of Mobility Services and in Operating MaaS Offer: the Concept of Shared Mobility Centre and the Experience of Arezzo ... 737

Giorgio Ambrosino, John D Nelson, Saverio Gini

Track me if you plan – Aufzeichnung urbaner Aktivitätsmuster mittels Smartphonetracking ... 749

Lisa Provo, Steffen Folz, Kerstin Kopal, Peter Zeile

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REAL CORP 2016 Proceedings – Tagungsband Inhaltsverzeichnis – Table of Contents

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REAL CORP 2016:

SMART ME UP!

Unobtrusive, Seductive and Profound? The Silent Transformation of Mobility in the Region of Stuttgart ... 759

Manuel Heckel

URBIS Decision Support for Integrated Urban Governance ... 769

David Ludlow, Katerina Jupova

Virtual 3D City Model Support for Energy Demand Simulations on City Level – The CityGML Energy Extension ... 777

Joachim Benner, Andreas Geiger, Karl-Heinz Häfele

Web Data Extraction Systems versus Research Collaboration in Sustainable Planning for Housing: Smart Governance Takes It All ... 787

Valerie Dewaelheyns, Isabelle Loris, Thérèse Steenberghen

Why Geospatial Linked Open Data for Smart Mobility? ... 803

Anuja Dangol; Valerie Dewaelheyns, Thérèse Steenberghen

Zusammenhänge zwischen der Basisinnovation der Informations- und Kommunikationstechnologien und der räumlich- funktionalen Entwicklung der europäischen Stadt ... 821

Juliane Ribbeck

A Critical Deconstruction of the Concept of Transit Oriented Development (TOD) ... 829

Dorina Pojani, Dominic Stead

Auf dem Weg zur digitalen Stadt – Aufbau der digitalen Planungsinfrastruktur Hamburg ... 835

Birgit Augstein, Frank Raser

City Information Modelling – Potenziale für eine intelligente Stadtplanung ... 843

Mara Müller, Daniel Broschart, Peter Zeile

Deconstructing Economic, Ecologic and Social Urban Discourses for Innovation Policies ... 851

David Hamers

Envisioning Sustainable Lifestyles in Stockholm’s Urban Development ... 857

Moa Tunström, Lukas Smas, Liisa Perjo

EO-based Smart City Decision Support Services for Integrated Urban Governance: the DECUMANUS Project ... 863

David Ludlow, Maria Lemper, Mattia Marconcini, Philippe Malcorps, Annekatrin Metz

ERP hoch 3: Energieraumplanung entlang von ÖV-Achsen ... 869

Ernst Rainer, Michael Malderle, Michael Eder, Stephan Maier, Hartmut Dumke, Petra Hirschler, Pia Kronberger-Nabielek, Kurt Weninger, Johannes Fischbäck, Sibylla Zech, Rudolf Scheuvens, Michael Narodoslawsky, Hans Schnitzer, Johann Zancanella

Experimenting New Forms of Urban Governance in Vienna ... 875

Joanne Tordy, Max Kintisch, Christof Schremmer

How to become a Sustainable Smart City: the case of Al Quassim Eco-Neighborhood, Saudi Arabia ... 881

Al Jawhara Al Muhanna, Aida Nayer

Initiating a Smart Transportation System: Jeddah City ... 891

Manal Al Deweik, Aida Nayer

Interactive Visualisation of Statistical Data with the CentropeSTATISTICS Cross-Border Geoportal ... 899

Clemens Beyer, Manfred Schrenk

Monitoring von Smart-City-Strategien – Wiens Smart-City-Monitoring-Prozess... 903

Clemens Rainer, Eva Pangerl, Pia Hlava, Ina Homeier

Öffentliche Verkehrsmanagement-Strategien und private Mobilitätsservices: Lösungsinseln in Konkurrenz oder

Synergien durch Kollaboration? ... 909

Stefan Kollarits, Ulrike Brocza

Positioning Urban Labs – a New Form of Smart Governance? ... 919

Lukas Smas, Peter Schmitt, Liisa Perjo, Moa Tunström

Prioritization of Urban Green Infrastructures for Sustainable Urban Planning in Ploiesti, Romania ... 925

Athanasios Alexandru Gavrilidis, Mihai Răzvan Ni܊ă, Diana Andreea Onose, Irina Iulia Năstase, Lavinia Denisa Badiu

Seniorengerechte Kommunikation von Geoinformationen in Nationalparks am Beispiel senTOUR ... 931

Wolfgang W. Wasserburger, Clemens Beyer, Sabine Hennig, Maria Wasserburger

Smart Cities and Standards – the Approach of the Horizon 2020 Project ESPRESSO ... 937

Jan-Philipp Exner, Pietro Elisei

Smart City for Smart People ... 945

Elisabeth Kerschbaum, Thomas Zelger, Hildegund Moetzl

Smart, Green and Inclusive Urban Growth: Visualising Recent Developments in European Cities ... 953

Kersten Nabielek, David Hamers, David Evers

Smart-City-Leitfaden für die Seestadt Aspern Wien ... 959

Clemens Rainer, Ina Homeier

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REAL CORP 2016 Proceedings – Tagungsband Inhaltsverzeichnis – Table of Contents Three Cities – Lyon, Munich, Vienna – will be SMARTER TOGETHER ... 965

Bruno Gaiddon, Julia Girardi, Hans-Martin Neumann, Korinna Thielen, Etienne Vignali, Willi Wendt

Three Decades of Transport Infrastructure Development and Travel Behaviour Change in the Netherlands ... 977

Dena Kasraian, Kees Maat, Bert van Wee

Towards Jeddah Smart City: Assessing People Perception Of Spacious Quality Indicators In Open Spaces ... 983

Aida Nayer, Dina Taha

Understanding Cities and Citizens: Developing Novel Participatory Development Methods and Public Service Concepts.... 991

Marek Vogt, Peter Fröhlich

URBAN LEARNING – Joint Learning towards Integrative Energy Planning in European Cities ... 997

Herbert Hemis, Marko Matosoviü

Urban Planning through Exhibition and Experimentation in Stockholm ... 1003

Peter Schmitt, Lukas Smas, Liisa Perjo, Moa Tunström

Visibility as a Stake for Cities... 1009

Olivier Lefebvre

A Shift from 2D Design Paradigm of the 19^th Century to 3D/CityGML, BIM, 3D Printing and Some of Smarter Cities in Poland ... 1015

Robert Lach, Krzysztof Nawrocki, Boguslaw Zbyszewski, Stasislaw Lessaer, Jan Lessaer, Leszek Sobieraj, Artur Jach

Mobility Patterns and Lifestyles in Vienna – Case Study Liesing ... 1029

Jiannis Kaucic, Stephanie Kirchmayr-Novak, Wolfgang Neugebauer, Joanne Tordy, Christof Schremmer

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reviewed paper

REAL CORP 2016 Proceedings/Tagungsband

22-24 June 2016 – http://www.corp.at ISBN 978-3-9504173-0-2 (CD), 978-3-9504173-1-9 (print)

Editors: Manfred SCHRENK, Vasily V. POPOVICH, Peter ZEILE, Pietro ELISEI, Clemens BEYER

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Communal Companies Merging as Smart Approach: Kikinda Town in Serbia Case Study Danilo S. Furundžiü, Dijana Jakšiü-Kiurski, Ivana Petroviü

(Danilo S. Furundžiü, JP Kikinda, Trg srpskih dobrovoljaca 11, Kikinda, Serbia, dfurundzic@gmail.com) (Dijana Jakšiü-Kiurski, JP Kikinda, Trg srpskih dobrovoljaca 11, Kikinda, Serbia, finansije@jpkikinda.rs)

(Ivana Petroviü, JP Kikinda, Trg srpskih dobrovoljaca 11, Kikinda, Serbia, finansije@jpkikinda.rs)

1 ABSTRACT

The objective of this paper is to show that one of the possible approaches to get smart town is communal companies merging, because such venture improves municipal budget. This paper presents a case study of a new public communal company of Kikinda Town in Serbia. Following Kikinda Municipality description, previous five communal companies and the new one are briefly presented. Five public communal companies duties are merged into the duty of one compound public company named Public Company "Kikinda" (PC Kikinda).

PC Kikinda services are more efficient, less costly and provide better quality. Also, the entire business and public funds spending are more transparent. Kikinda Municipality public expenses in recent years are displayed by tables and diagrams. The expenses analysis approves that communal restructuring has improved the Municipality budget.

The restructuring of public utilities services carried out has improved Kikinda Municipality economic capacity and has allowed different allocation of budgetary resources. This is an essential prerequisite for the Municipality of Kikinda future economic and social development towards a smart town.

Keywords: communal, company, Kikinda (Serbia), merging, town

2 SMART TOWN CONCEPT 2.1 Urbanism challenges

Contemporary urbanism should investigate general issues and functions, while ignoring particulars and singularities. Link of scholastic and real facts induces synthesis. If synergy is a creation of a whole which is greater than the simple sum of its parts, than simultaneous combination of theoretical research and practical experiments produces synergy. Renowned urban planner Kevin Lynch, in his "A Theory of Good City Form"

(1981), distinguishes five characteristics of a city: vitality, sense, fitness, access, control.

Modern urban planning has to include and apply knowledge of other academic and pragmatic disciplines, such as systems theory, project management, economics and investment, real estate appraisal, ICT (Information Communication Technology). Urban design essential task is creation of functional, aesthetic, economic, social and environmental elements.

2.2 Smart city concept

History of urban development is long and complex. Famous historian Lewis Mumford, in the last chapter

"Retrospect and Prospect" of his unsurpassed masterpiece "The City in History" (1961), could not have foreseen "smart city". Visionary Mumford urges for an "organic city" where not only nature has a balance with technology, but also culture prospers by technical innovations.

Sintagma "smart city", and its alternative “intelligent city” or “digital city”, appears in the 1990s when ICT infrastructures raised within cities (Townsend, 2014). Planning and design of cities relates to information and communication technology, such as telegraph and tabulator were a century ago, and cellular networks and cloud computing are today. New technology impact on cities infrastructure spreads to economy, society and public institutions. Avant-garde architects, devoted to urbanism, ambitiously create cities for a smart, mobile, internet future.

There are many definitions of the term "smart city" (Albino et al., 2015). Harrison et al. (2010) declare that smart city is "a city connecting the physical infrastructure, the IT infrastructure, the social infrastructure, and the business infrastructure to leverage the collective intelligence of the city." In the same manner, Bakici et al. (2012) argue: "Smart city as a high-tech intensive and advanced city that connects people, information and city elements using new technologies in order to create a sustainable, greener city, competitive and innovative commerce, and an increased life quality".

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Communal Companies Merging as Smart Approach: Kikinda Town in Serbia Case Study

The smart city has smart components and related urban features (Lombardi et al., 2012). These 6 components are: economy, people, governance, mobility, environment, living. Related 6 urban features, respectively, are:

industry, education, democracy, infrastructure, sustainability, quality.

2.3 Smart town circumstance

There is no standard, internationally accepted – criterion for difference between town and city. Traditionally, the settlement size is the criterion for distinction. A town is a smaller dwelling place than a city. But the criterion may also be of administrative significance, or economic importance of a settlement.

Eminent architect and town planner Constantinos Doxiadis, in his "Ekistics" (1968), proposes a classification of human settlements by size. Such a classification enables discussions of various anthropological phenomenona, like life quality and others. According to Doxiadis' (1976) settlement hierarchy, town and city are distinguished by citizens. Town (over 20 000 population) is not as large as a city (over 75 000 population).

The authors of this paper think that, analogous to smart city (Harrison et al., 2010; Bakici et al., 2012), town can be determined as smart when financing of a society and infrastructure provides economic growth, life quality and sustainable development. Modern municipal stakeholders and public utilities managers recognize the importance of a smart town momentum.

In many countries of Europe, an important question is: How to become a smart town? There are diverse approaches to achieve smartness. The hypothesis of this paper is that merging of communal companies is one of the possible approaches to becoming a smart town, if that merger improves the municipal budget. In the following, a communal merging effect is studied of the case of a new compound public company of Kikinda town in Serbia.

3 SERBIA IN TRANSITION

The process of transition in Eastern Europe (EE) starts after the fall of the Berlin Wall (1989), when fundamental political and economic changes occurred at the same time. Multiparty political systems, with democratic institutions, replaced the communist system. The market becomes the principal mechanism for the distribution of resources, products and properties. The majority of EE states accesses gradually to the European Union (EU).

The transition of Serbia represents an unusual, complex, slow and delayed process. Causes of delay are internal (Yougoslavia decomposition, military conflicts) and external (international sanctions, NATO bombing) (Uvalic, 2010). A satisfactory outcome of Serbia's transition requires legal harmonisation, innovative strategies (institutions, administration, agriculture, industry, research and development) and EU financial assistance.

Experiences of EU member states that previously passed through the accession process to the EU are very important (Young, 2013). Local government duties are public procurements, communal services, rural development, employment reduction, social policy, energy efficiency, and environment protection.

Communal services improvement encompasses actions transparency, greater competition, services regulation, and state subvention minimization.

The public sector reform is a key determinant of transition in Serbia (Veselinoviü, 2014). At the present time, in spite of all the years spent on the transition process, there remain many state companies (Table 1).

COMPANY TYPE Companies Employees Companies controlled by the Privatization Agency 600 100 000 Large public and state companies 50 110 000

Local public companies 650 70 000

TOTAL 1300 280 000 Table 1: State and public companies in Serbia (2012). (Compiled by the authors, source: Arsiü, 2012)

Local public companies (LPC), which are 50% companies (and 25% employees) of total (Table 1), differ not only in size, but also in market conditions which are natural monopolies (water supply and sewerage), non commercial services (parks, street cleaning), or commercial services (market maintenance, parking).

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Among LPC, the most important are local public communal companies, which employ circa 80% of the total number of employees in LPC (Arsiü, 2012). The usual problems of LPC companies are weak management, low efficiency, nonprofit prices (heating, public transport), and local budget substantial subsidies.

4 KIKINDA – TOWN AND MUNICIPALITY IN SERBIA 4.1 Kikinda location and data

Kikinda is a town (Figure 1) and a municipality (Figure 2) located in the Banat district, in Vojvodina - autonomous province of Serbia. Kikinda Town and 9 villages in its surrounding constitute Kikinda Municipality (Table 2). The town of Kikinda, with circa 38000 population, is the economic and social centre of North Banat.

Figure 1: Kikinda Town in Serbia (Redrawn, source: Jovanoviü, 2015)

Figure 2: Kikinda Municipality map (Redrawn, source: JPKZS, 2015)

Total area 783 km²

Agricultural area (2013) 70 538 ha

Population (2011) 59 453

Number of population per 1 km²(2011) 76 Population average age (2011) 42.4

Natural increase per 1.000 inhabitants (2014) – 6.8 Number of employees (2014) 13 679

Table 2: Kikinda Municipality essential data (Compiled by the authors, source: SORS, 2014)

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4.2 Infrastructure and economy

Kikinda, established as a modern settlement in the 18th century, is a well planned town (Ilijašev, 2002) with wide streets orthogonally laid, a central square, city hall, churches, public edifices, market, et cetera. Town urban infrastructure is basically founded for the flow of people, goods, water, energy, and information.

Regional roads connect Kikinda with adjacent towns and villages in Vojvodina. Kikinda is 10 km from the Romanian border, 65 km from Hungarian border, and 130 km from Belgrade, the capital. The town is connected by rail with the Romanian border, with Subotica, and with Belgrade via Zrenjanin. There is a dock for waterway industrial transport by Danube – Tisa – Danube Canal passing through Kikinda Municipality.

Banat's fertile farmland ensured successful agriculture (wheat, sunflower seeds, soybean, fruit and vegetables) and existence of natural raw materials (oil, gas, quality clay) provided the development of industry (oil derivates, metal tools, chemical products, tiles and bricks) in the 1980s, before Yugoslavia broke down. Both agriculture and industry were devastated almost completely during the transition process which was long lasting and not finished in Serbia yet.

The present economy crisis, however, does not change Kikinda investment opportunities. Fertile land, natural raw materials, location near borders, road and rail connections, an urbanised town, existing infrastructure and agricultural and industrial traditions offer a favorable combination for investors. Nowadays Kikinda offers brownfield and greenfield investment locations (CKIK, 2016), which are private propriety and others owned by the Municipality of Kikinda.

4.3 Communal problems

Communal services are related to urban infrastructure and have direct influence on the living standard of the inhabitants. The contemporary economy crisis deteriorates the already inefficient transition process in Serbia. The crisis amplifies communal problems common to many of Serbia's towns, especially in recent time. Poor running of utility services has an unfavorable impact on economic progress in general.

There were many public communal companies in Kikinda Municipality. These companies had similar obstacles. Typical problems of the utility company were: excessive company size, weak management, employees inadequate qualifications, technological obsolescence, political parties interference, irrational consumption, accumulated loss, considerable dependence on municipal budget, lack of own funds for large investments.

Kikinda communal problems are increased over the last years and effective solution finding becomes more complicated. Bearing in mind existing problems, Kikinda public communal companies ask for comprehensive reform as soon as possible. The reform aim is utility services amelioration and development.

Also, the reform of communal companies is very important for towns people and local businesses.

5 COMMUNAL MERGING IN KIKINDA 5.1 Historical background

The modern history of Kikinda starts with the Habsburg Monarchy in the second half of the 18th century (Ilijašev, 2002). Communal infrastructure development in Kikinda is influenced by a variety of natural, historical, economic and social circumstances (Gedl, 2013).

After the First World War (WW I), a new geopolitical division of Europe took place. The Yugoslavia Kingdom establishment was soon succeeded by an economic crisis. As a result of that crisis, Kikinda communal infrastructure advancement was lagging. Regular supply of healthy drinking water, storm water drainage and wastewater treatment appear as the main communal obstacles. Street and road construction and urban infrastructure develop more slowly than expected.

After the Second World War (WW II), the Yugoslavia Republic constitution founds a socialist state ruled by the communist party. The transition of the political system from capitalism to socialism involved the complete nationalisation of many goods (land, resources, industries, etc.) and state planning and control of the national economy. As a result of private property abolition, the entire communal infrastructure in Kikinda town and municipality became the property of the state and the local government.

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In the last quarter of the century (1990-2015), when disintegration of Yugoslavia occurred and the Serbia Republic is established, Kikinda communal infrastructure was chiefly split into component elements.

5.2 Communal companies history

Kikinda public communal companies' history (Figure 3) shows changes over time. Name of each company, (in Fig. 3 intentionally translated from Serbian into English), ilustrates clearly communal activity.

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Three communal companies (Town Park & Nursery Garden, Town Company for Water Distribution and Garbage Collection, Town Housing Company), established after WW II, are merged (1952) into one company (Town Communal Institution). This single company (Town Communal Institution) later (1974) is not only enlarged with another company (Communal Company "Sewerage") established earlier (1971), but it is also renamed (Communal Company "October 6th").

One company (Town Communal Institution), it should be remarked, worked for 22 years (1952-1974). If enlargement (Communal Company "Sewerage") and renaming (Communal Company "October 6th") are ignored, it can be noticed that one basic company (Town Communal Institution – Communal Company

"October 6th") worked for 37 years (1952-1989). Previous facts indicate that later splitting (Figure 3) of communal companies (1990-2012) is not business necessity, but it is a result of other circumstances, mainly political, happening during transition in Kikinda.

In two years (1989-1990), the existing company (Communal Company "October 6th") split into 7 companies (Public Communal Company “October 6th”, State Owned Company “Nursery Garden”, State Owned Company “Energetics”, State Owned Company “Our Flat”, State Owned Company “Builder”, Fund for Construction Land, Public Housing Company). Except company “October 6th”, which keeps the predecessor activity explained by origin (Figure 3), the other 6 companies' names in English describe their main communal tasks. These 7 companies are changing name or/and activity in the next years (2001, 2005, 2007, 2010, 2012).

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5.3 Five companies replaced

On the base of long time (1989-2014) experience, Kikinda residents' common opinion is that communal companies splitting (Figure 3) did not bring any improvement. Available communal resources use is not reasonable, utility services are not efficient, works quality is not sufficient, services prices are too high.

Companies are not sustainably organised. Therefore, they are considerably dependent on municipal subsides.

Local government cannot provide investment capital for large infrastructure projects important for the community.

Unfavorable communal circumstances, explained above, inspire and encourage radical reform of utilities services in Kikinda. As communal companies splitting produces worse results in the case of Kikinda, it is obvious that communal reform should be: merging of companies.

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Figure 4: Kikinda communal services merging (2015). (Compiled by the authors)

After utilities services substantial analyses, managed by the first author of this paper and lasting few months, it has been decided to reform public communal services in Kikinda and to apply an organising structure adopted after several iterations and required calculations. Activities of five communal companies (Public Utility Company "October 6th", Public Company for Town Greenery and Market, Pubic Company for Construction and Development, Municipal Agency for Housing, Public Agency for Agriculture and Small Businesses) are merged into the activity of one compound company (Public Company "Kikinda") (Figure 4).

Communal services, being split into 5 companies, merging into 1 compound company join together real estates, resources, equipment, staff, knowledge, management. For example, 5 administrative divisions, one in each of 5 companies, are substituted with 1 division, in 1 company. It is obvious that such merging provides transparent business, reduces expenses and contributes to a municipal budget improvement.

Merging of communal companies reduces the number of necessary employees and some of them lose their job. During the transition process, needless administrative working places were opened in the public sector in order to solve the unemployment problem. Unproductive administration was considerably developed using the municipal budget. That reduced investing into agriculture, or industry. Frequently incompetent personnel was employed under the influence of political parties. From that stand point, communal merging only uncovers artificial employment hidden inside the public sector and supported by the whole society.

5.4 New company established (PC Kikinda)

Communal activities are activities of service or production character (ZKD, 2011), which serve to satisfy basic needs of the population in the town and surrounding area. Local government defines scope, quality and continuity of communal activities, and control of prices. A public company (ZJP, 2014) can perform communal activities, which are financed from sales of services income, or from the municipal budget.

The Public Company for Communal Infrastructure and Services "Kikinda", with its shorter name: PC Kinkinda (Figure 5), is established at the end of 2014 (OAJPK, 2014) and the statute is enacted (SJPK, 2014). PC Kikinda is not the legal successor of any of the previous 5 companies (Figure 4), which started liquidation.

PC Kikinda is created by applying a systems approach (Kerzner, 2009) and project management (PMBOK, 2013). The mission of PC Kikinda is to perform compound communal services, sustainable technologically and economically. The company is divided into sectors, services, and departments (Figure 5). A lower number of employees is carrying out the job of the five merged companies.

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6 MERGING ECONOMIC ECHO 6.1 Companies list and notation

With the aim to simplify and to brief analysis of economic echo caused by communal merging in Kikinda, overview list of companies and its units is presented in Table 3, where key words and symbols associated are also given. Sign of asterisk (*) denotes company entirely financed by the municipal budget. Average official exchange rate (NBS, 2016) is used for conversion of dinar [RSD] into euro [€].

# COMPANY NAME Key word SYMBOL

1 Public Communal Company "October 6th" October PC1 2 Public Company for Town Greenery and Marketplace Greenery PC2 3 Public Company for Construction and Development* Construction* PC3 4 Municipal Agency for Housing* Housing* PC4 5 Public Agency for Agriculture and Small Business* Agriculture* PC5 3-5 Three companies* (PC3, PC4, PC5) Three*PC 3PC 1-5 Five companies (PC1, PC2, …, PC5) Five PC 5PC

Public Company "Kikinda" – PC Kikinda Kikinda PCK

Table 3: Kikinda communal companies list (name, key word, symbol). (Asterisk * denotes budget dependence entirely)

6.2 Costs non comparability

Five communal public companies merging feasibility can be estimated by comparison costs of these five companies (5PC) and PC Kikinda (PCK). As a matter of fact, cost is one of the key economical factors for each company. The cost has a crucial impact on business success and company development.

Unfortunately, cost comparison of relevant companies (5PC and PCK) is not possible in reliable and trustful manner. This costs non comparability is because relevant companies financial statements are not done in a single way and meaningful comparison of costs is impossible.

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6.3 Cash outflow

Cash is the basis of every business. Without information on cash flow, a company cannot adequately make business decisions. In view of the fact that costs comparison of merged companies (5PC) and compound company (PCK) is not possible, cash outflows are analyzed in this paper. In order to evaluate feasibility of communal companies merging, available cash outflows before and after merging are compared.

BEFORE MERGING:

Five companies (5PC) 2014 (state)

AFTER MERGING:

PC Kikinda (PCK) 2016 (plan)

DIFFERENCE:

(5PC–PCK)

OUTFLOW Cash [million €]

Share [%]

Cash [million €]

Share [%]

Cash [million €]

Operating activities 5.410 73 2.119 86 3.291 Investing activities 1.838 25 0.358 14 1.480 Financial activities 0.162 2 0 0 0.162

TOTAL 7.410 100 2.477 100 4.933

Table 4: Cash outflow of Five companies (5PC) & PC Kikinda (PCK). (Compiled by the authors, sources: BSP, 2014; PPJPK, 2015)

In Table 4, the cash outflow of the five companies (5PC) – in the time before merging and with available data for 2014 (BSP, 2014), is compared with the cash outflow of the compound company (PCK) – in the time after merging and with available planned data for 2016 (PPJPK, 2015).

As it can be seen (Table 4), Five companies (5PC) realized total outflow (€7.410×10⁶) is lower, for respectable difference (€4.433×10⁶), than PC Kikinda (PCK) planned total outflow (€2.477×10⁶). In other words, outflow difference (5PC–PCK) presents remarkable 67% of outflow (5PC) before merging. Operating activities outflow reduction produces that difference. After merging, lower operating activities outflow provides fund for investing activities.

BEFORE MERGING:

Five companies (5PC) 2014 (state)

AFTER MERGING:

PC Kikinda (PCK) 2016 (plan)

DIFFERENCE:

(5PC–PCK)

OUTFLOW Cash

[million €]

Cash [million €]

Employees' expenses 2.249 1.392 0.857 Supplies & services 2.854 0.581 2.273

Table 5: Part of cash outflow comparison of Five companies & PC Kikinda. (Compiled by the authors, sources: BSP, 2014; PPJPK, 2015)

In Table 5, five companies (5PC) cash outflow part in time before merging (BSP, 2014), is compared with compound company (PCK) cash outflow part in time after merging (PPJPK, 2015). Presented outflow part includes employees' expenses and supplies & services expenses (Table 5).

Number of employees after merging is decreased by circa 30%. Because of that, and in accordance with Table 5, employees' expenses (€2.249×10⁶) before merging are decreased (€1.392×10⁶) after merging, what makes a significant difference (€0.857×10⁶). Supplies and services expenses before merging (€2.854×10⁶) are also decreased (€0.581×10⁶) after merging, what makes very significant difference (€2.273×10⁶).

Both Table 1 and Table 2 indicate indisputably that five communal public companies (5PC) merging into one compound communal public company (PCK) is ecomically approved in Kikinda case. Financial savings realized already create space for improving Kikinda's municipal budget.

In addition to finances, the new PC Kikinda establishment through the merging process, managed with a systems approach (Kerzner, 2009), enables the layout of a modern company with a matrix structural organization (PMBOK, 2013) and corporative management of utility services and other business.

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6.4 Municipal budget relaxation

16.396 17.505 18.666 17.228

15.101 12.143 15.480

2.483 2.736 3.756 2.876 1.802 2.545 4.963

0 5 10 15 20

2008 2009 2010 2011 2012 2013 2014

[year]

[million €]

Budget

Kikinda Municipality

Investments &

Maintenance

Figure 6: Kikinda municipal budget (2008-2014). (Compiled by the authors, source: ZRBOK, 2014)

BEFORE MERGING

Year: 2008 2009 2010 2011 2012 2013 2014 BUDGET [million €] 15.480 12.143 15.101 17.228 18.666 17.505 16.396 Investments & maintenance [million €] 4.963 2.545 1.802 2.876 3.756 2.736 2.483

Share [%] 32 21 12 17 20 16 15

Table 6: Kikinda municipal budget and investments with maintenance (2008-2014). (Compiled by the authors, source: BSP, 2014)

Kikinda municipal budget and investments & maintenance recent history (2008–2014) (Figure 6, Table 6) reveals that budget increase is not accompanied with adequate investments increase. In the observed period (2008–2014), for which it can be easely calculated (Table 6), annual average share of investments and maintenance is only 19% of the budget. It is obvious that during the observed years, the budget surplus is not used for investments (developing purpose), but rather for current expenses (consuming purpose).

BEFORE MERGING AFTER

# BUDGET Year: 2008 2009 2010 2011 2012 2013 2014 2015 2016 1 Municipal [million €] 15.480 12.143 15.101 17.228 18.666 17.505 16.396 20.645 18.996 2 Three*PC [million €] 5.939 3.533 3.153 4.313 5.110 4.374 4.218 2.049 1.191

3 Share [%] 38 29 21 25 27 25 26 10 6

Table 7: Kikinda municipal budget and three* companies (before and after merging). (1 – Municipal budget costs; 2 – Three^*PC total costs in budget; 3 – Participation in budget). (Compiled by the authors, source: ZRBOK, 2014; PPJPK, 2015)

Municipal budget and three* companies (3PC, Table 3) expenses are jointly presented (Table 7). Before merging, 3PC are completely financed from the Municipal budget. After merging, however, 3PC activities are fully melted into PCK and are not any more financed from the Municipal budget.

7 CONCLUSIONS

Public Company "Kikinda", established through merging five communal company activities, has reduced immediately utilities expenses and contributed to municipal budget.

Kikinda communal companies merging presented is, as the authors believe, pioneer venture in Serbia these days. Results achieved promote Kikinda merging case as a template useful for towns of similar size.

Nowadays economy is a chief key of a successful urban planning. Communal services merging can be considered as one possible path towards smart town creation.

8 ACKNOWLEDGEMENT

The authors are grateful to Dipl.-Ing.Arch. Dragana Ivaniš for her generous help in the realization of six figures in this paper.

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