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INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
CITIES FOR A STRONG AMERICA SUMMIT
AND
2005 URBAN WATER SUMMIT
Hyatt Hotel
Albuquerque, New Mexico
September 30 – October 1, 2005
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
The value of water is situational.
It can have no value, a negative value or a high value.
Your water utility is expected to provide reliability and quality
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
Why communicate at all? After all, you have a monopoly?
Research indicates that informed consumers are:
• Less likely to complain about perceived billing errors
• Less likely to complain about taste & odor problems
• More likely to be satisfied with utility performance
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water Your customers do not need to be educated about the
value of water per se.
As their water rates increase – and they will – your customers need to understand what they are paying for:
Greater reliability
Improved safety
Improved taste
Meeting or besting all health standards
Responsible fiscal management
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
How much are customers willing to pay?
One pint of bottled water at a baseball game, a local airport or a county fair sells for as much as $4* within spitting distance of a drinking fountain. People are paying for peace of mind.
*Believe it or not, that is $10 million per acre-foot.
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
Where are the costs in providing bottled water?
Acquisition
Treatment
Storage
Transportation
80% or more of consumersIn the West, Southwest andSoutheast regularly drinkeither bottled water or homefiltered water.
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water These are the same costs incurred by your own
utility. Acquisition – Treatment – Storage – Transportation.
We just haven’t done as good a job as the bottled water industry has in convincing people of value added to water.
Why not? Because they have one additional huge cost – Marketing – that few cities incur.
Communicating is marketing.
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
The vast majority of the costs of producing and selling a bottle of water are marketing and packaging. Example: The “sports tip” on small bottles of water costs about 10 cents purchased in bulk. The water inside the bottle costs much less than one penny to acquire, treat and fill. The lesson is an old advertising maxim – sell the sizzle and not the bacon.
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
Case Study: Long Beach, California
Long Beach has embarked on a long-term project to produce commercial quantities of desalted seawater for public consumption. This project will be costly, but is supported by the community because they believe it will lead to greater reliability and better quality.
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Long Beach Water SupplyLong Beach Water Supply
GroundwaterGroundwater38%38%
ConservationConservation14%14%
RecycledRecycled6%6%
MWDMWD42%42%
GroundwaterGroundwater33%33%
ConservationConservation15%15%
RecycledRecycled12%12%
MWDMWD30%30%
DesalinationDesalination10%10%
20042004 20102010
Conjunctive Use
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
$0.00$0.00
$10.00$10.00
$20.00$20.00
$30.00$30.00
$40.00$40.00
$50.00$50.00
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Comparison of Monthly Water Bills Comparison of Monthly Water Bills for Single Family Residences in South Bay Regionfor Single Family Residences in South Bay Region
Among Lowest Water Rates in South Bay Region
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
-10%
-5%
0%
5%
10%
15%
20%
1997 2004
Consumer Price Index
Average Water Bill
Water Rate Water Rate Affordability Affordability
IndicatorIndicator
Long Beach has also done a good job marketing the affordability of desalinated water.
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Phase 3:Phase 3: Full-scale Demonstration Plant
Phase 2:Phase 2: Prototype (Haynes) 300,000 g/d300,000 g/d
Jan
‘96
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Jan
‘97
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Jan
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Jan
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Jan
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Jan
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Jan
‘07
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9,000 g/d9,000 g/dPhase 1:Phase 1: Pilot-scale Research
Authorization
CurrentCurrentAppropriations
Funding Agreement
9.4 mg/d9.4 mg/dConstructionConstruction
Pre-constructionPre-construction
Start-upStart-up
FederalPartnership
Long Beach Water DepartmentLong Beach Water Department Three-phase Project ScheduleThree-phase Project Schedule
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Long Beach’s Goal?:
Diversify their water portfolio to minimize risk
Improve Water Quality
Benchmark the cost of “new” water against other sources
Communicating the Value of Water
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
What are your goals for improved communication? (The “why,” not the “how”)
Fewer customer complaints
Less resistance to required rate hikes
Use of utility as profit center
Greater cooperation to conserve
Fill in the blank _________________
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
What is the first thing that comes to mind to communicate with your customers
?
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
Did you think bill stuffers or web pages
?
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water Quality communications enlist a host of
activities and some professional help.
People want real people to answer the telephone at the agency
People generally do not read bill stuffers
More than 85 percent of the information people know about your agency or city came from the media. The media generally does not report that your agency met all water demands last month.
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
The media will report that you did not meet all demands last month or that you were cited by a local or state health department.
Result: When people do hear of your agency from someone other than you or the agency, it is usually negative information. You cannot combat that with bill stuffers and web pages.
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
Quality communications means:
Identifying an audience and keying your message to that audience
Diversifying the mediums used for your message
Being consistent Having emergency communications
plans in place The customer comes first
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water Quality communications also means:
Communicating the bad with the good
Maintain political awareness
The customer comes first
Providing educational opportunities for those who want to take advantage
Educating members of the media
Training agency spokespeople.
The customer comes first.
INDEPENDENT ENVIRONMENTAL ENGINEERS, SCIENTISTS AND CONSULTANTS
Communicating the Value of Water
And finally, a cliché worth remembering:
We never know the value of water until the well runs dry!