PUBLIC RELATIONS CAMPAIGN TO SELL RATE INCREASE PRESENTED BY: NAEEM QURESHI, PE Minnesota Rural Water Association Water and Wastewater Technical Conference March 4, 2020 @SambatekInc Sambatek, Inc. 12800 Whitewater Drive Minnetonka, MN 55343 612-360-7448
PRESENTATION OUTLINE 1. Infrastructure Needs 2. Decreasing Demand/Revenue 3. Rate Escalation 4. Public Relation Approach 2
INFRASTRUCTURE NEEDS 240,000 MAIN $655 BILLION – 1.7 TRILLION GALLONS MINNESOTA RATED BREAKS ANNUALLY NEXT 20 YEARS – OF TREATED WATER WATER SYSTEMS AS C-. (EPA) (EPA) LOST (EPA) (MN ASCE REPORT) 80% RESPONDENTS FEDERAL FUNDING RATED “RENEWAL HAS DECREASED REPLACEMENT OF MOST OF THE FROM $16 BILLION AGING REVENUE WILL IN 1976 TO $4.3 INFRASTRUCTURE COME FROM BILLION IN 2014. AS HIGHER HIGHER RATES. PRIORITY. 3
Water Quality Challenges / Unfounded Mandates 4 Risk and Resilience Assessment & Emergency Response Plans
DECREASING DEMANDS/REVENUE Madison, WI saved more than 1 billion gallons in the last decade. – 300,000 daily $100 rebate replaced 17,000 toilets Statewide residential use is 52 GPCD versus DNR goal of 75 GPCD. In Minnesota 75 million gallons saved in 2017 5
Eden Prairie 160 Total Per Capita/Per Day (Gallons) 140 120 100 80 60 40 20 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YEAR 6
Rochester Public Utilities 180 Total Per Capita/Per Day (Gallons) 160 140 120 100 80 60 40 20 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YEAR 7
Wages for low and middle income population are stagnant. Housing and Healthcare costs are increasing rapidly ahead of inflation. RATES Low income household spend 9.7% of disposable income for water and sewer services. AFFORDIBILITY Low income household work 9.5 hours at minimum wage to pay for water and sewer services. Conveying low income residents the importance of water and sewer services is key. 8
Water receives less than 5% of Federal Funds compared to other major infrastructure categories. RATES Average Rate increase 5.5% annually in the last decade. ESCALATION Median household bill for water and sewer increased from $44 in 2006 to $77 in 2016. – 75% increase. Source: Journal AWWA Article 9
Rubin Journal AWWA April 2018 10
ELECTRONICS: LESS UTILITY VISIBILITY 1. Most bills are paid online. 2. Meters are read remotely – less interaction and visibility of Utility staff. 3. Customers contact Utility only when there is an issue. 4. Nobody calls to thank the Utility for quality water supply. 5. Water and Sewer services are taken for granted. 11
SIMPLIFY YOUR MESSAGE 1. Rates are in 100 cubic feet or 1,000 gallons 2. Most customers don’t understand what is received for the money 3. Enhance customer understanding by going to units of 100 gallon or one gallon. 4. Example of Utility Manager 5. Base fee and consumption 12
STUDY, SHARE, AND CERTIFY 1. Conduct a rate study to show costs 2. Highlight facts on the website 3. Show Certification and exams needed to operate the system 4. Show standards that are being met 5. When press highlights containments in ppb. Show ppb is one penny in 10 million 6. Stress Quality (Treatment Processes) 13
1) Water Fill Station 2) Invite the elected officials Public a.Safety of your drinking water is our highest priority Relations 3) Ask people how to pay for the improvements Approach 4) Communicate Trust a.Reveal and Relate b.Bridge the gap between perception and reality c.Engage in emotions d.Recognize opinions e.Avoid just the facts 14
Public Relations Approach DISPLAY AT WATER FOUNTAINS This water meets 92 Federal Standards. • Tell your story Exams and certifications are required – Craft the beginning of water system operators to ensure – Introduce the vision – Bring the story home water quality. • Convey Quality – Leverage frequently asked questions 15
Imagine a day without water Display at the Utility building CONVEY Comparing water cost details IMPORTANCE Average American uses 64,240 gallons of water OF WATER annually. If drinking water and soda pop cost equally the water bill will increase 10,000%. 350 Children in attendance Cold Spring, MN annual Use interactive station to create children’s water festival student interest 16
(2019) 17
PRESENTATIONS TO CIVIC OUTREACH TO SCHOOLS AND VISITING SCHOOLS ESPECIALLY CLUBS LOCAL CHAMBER OF COLLEGES MIDDLE AND HIGH SCHOOL IS COMMERCE IMPORTANT RE-ENGAGE WATER PLANT TOURS WITH VISITOR DISPLAY AT WATER WATER FILL STATION INTERACTIVE DISPLAYS ARE PLANT ESSENTIAL 18
COMMUNICATE Use social media, websites • and software application for mobile devices to convey message. Establish customer focus • groups for customer perception of water. On the ground signage is • effective to communicate 19
WATER Toot your own horn Develop, repore and Promote drinking Offer high school PROFESSIONAL: No news is not good invite members of water during school students to shadow news the media visits you UNSUNG HEROS OF OUR SOCIETY Provide opportunity Promote events on 70% are willing to for community social media pay more for good service quality water 20
COMMUNICATE THE WORK BY STAFF 21
COMMUNICATE Write a story about a day in the life of a certified operator. Issue a press release showing water use trends and past achievements like: Mile of pipe replaced Number of watermain breaks fixed and cost 22
Water grows Water jobs and connects us opportunity CONVEY IMPORTANCE OF WATER Water keeps Water us safe and sustains our healthy environment 23
No drinking No flushing WATER IS No brushing DELIVERED 24/7 No shower, laundry or dishwashing WITHOUT No putting out fires WATER: No watering lawns and gardens Increased risk of water borne diseases 24
QUESTIONS Naeem Qureshi, PE Client Service Manager Sambatek, Inc. 12800 Whitewater Drive Minnetonka, MN 55343 612-360-7448
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