HomeMy WebLinkAbout12 Public Outreach Program Agenda Item #
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Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: February 10, 2006
Subject: Public outreach program
Why this matter is before the Board: This matter involves establishing a public outreach
program for 2006. Since communication with our customers inevitably involves matters of
policy and strategic goals it is important that the Board discuss the matter and provide
overall direction.
History: In the past the District has made various efforts to inform our customers about
important issues. We have used a quarterly newsletter, single purpose letters, paid
notices in the news media, and television spots.
Newsletters: We have used newsletters for several years. We have not always held to a
quarterly schedule and we have not always used the newsletter to communicate our most
important issues. The newsletter has been effectively used to describe the District's water
and energy conservation services and various customer billing options, such as the equal
payment plan. But the newsletter can do more.
Single purpose letters: We have used letters to customers to describe a specific issue,
such as a rate increase. But we have done so rarely.
Paid notice in news media: We have paid for space in local newspapers to describe an
issue, such as the Broadband business plan or a proposed budget and rate increase. We
use paid notices to inform the community of public hearings.
Television spots: We have used television spots to identify ourselves to our customers and
let them know of our commitment to serve the community. The message here has been
general in nature, and cannot provide detail due to the nature of a brief television
announcement.
More recently it has been suggested that the District adopt a more aggressive public
outreach program. The Board adopted resolution 2005-26 entitled Establishing a Public
Outreach Policy. That policy, a copy of which is attached, commits the District to
describing changes in water and electric rates, among other matters. Since we have just
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recently increased our monthly water and electric rates we should now take time to
communicate with our customers.
Also recently we have looked at a publication of the American Water Works Association
entitled Avoiding Rate Shock: Making the Case for Water Rates. I provided a copy of this
publication to each director. Attached is the Executive Summary of that publication with its
four findings and its recommendations. Essentially, it recommends that we communicate
with our customers all year long, year in and year out, about the importance of utility
infrastructure, the cost of providing service and the need for adequate, fair, cost-based
rates. It recommends that we talk about successful projects that solve problems or
improve service. There is also the need to communicate about billing services,
conservation services and the overall role of the utility in the community.
New information:
We have had a conversation about rates during the budget process. There was a concern
about increasing rates. I believe rate increases will be needed in the years to come. The
rate increases can be modest. We need to talk to our customers about rates. I would like
to develop a complete and fairly detailed schedule of customer communication. The
Board's input is critical since the program would be talking about important big picture
issues.
The AWWA publication suggests that we make sure we know our customers' values and
concerns. It has been several years since we conducted a customer opinion survey. I
think it is time to do so. I can envision a customer communication program having the
following elements:
1. A customer survey
2. A schedule of newsletter topics
3. A schedule of single topic letters to customers
4. A schedule of news print and television identity pieces
5. A schedule of specific interest group meetings based on the work plan for 2006
I will have a draft of such a communication plan at the workshop on Wednesday evening
and invite the Board to discuss it and provide some direction so I can refine it and present
it to you at the next meeting as an action item.
2
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Resolution No. 2005 - 26
Establishing a Public Outreach Policy
WHEREAS the District has determined it is necessary to adopt a policy setting forth a
procedure for initiating public contact when matters of community interest are being
considered; and
WHEREAS the District worked with a local organization to craft the policy; and
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
TRUCKEE DONNER PUBLIC UTILITY DISTRICT that:
The General Manager shall establish procedures to ensure adherence to this policy on the
part of District employees:
Public Outreach Policy
Policy Statement
It is the policy of the District to promote open communication with the customers of the
District on issues of importance appearing on the agenda of the Board of Directors. To
further this policy there is hereby established a process by which the District shall initiate
contact informing the community of important issues that are appearing before the Board of
Directors. This outreach shall occur early enough to permit thorough discussion of the
issue prior to the Board taking formal action.
Definition of important issues
Important issues are those that involve changes in monthly water and electric user
charges, changes in connection fees, changes in facilities fees, and changes in regulations
covering new and retrofit residential and commercial construction. Changes in monthly
water and electric user charges or changes in connection fees shall normally occur as part
of the Board budget discussion prior to adoption of the annual budget. Changes in facility
fees shall normally occur as part of the five year Water/Electric Master Plan review or when
the local General Plans are revised. Facility fee increases due to inflation, not resulting
from TDPUD Master Plan or local General Plan review, shall be discussed as part of the
Board budget sessions prior to adoption of the annual budget. Other issues will arise from
time to time that are difficult to enumerate in this policy statement. Such issues shall be
considered as important issues falling under the purview of this policy based on a review by
the General Manager of the circumstances involved and the persons who may be impacted
by adoption of the proposed action. Additionally, the Board of Directors may, by action at a
Board meeting, determine that an issue coming before it is an important issue falling under
the purview of this policy.
1 Resolution 2005-26
Method of public communication
The method of initial communication to the public will vary based on the kind of issue being
discussed.
With respect to the consideration of changes of the water and electric monthly user charge
a notice shall be printed on the utility bill going to customers of the District and a display ad
notice shall be placed in a newspaper of general circulation in the District. These changes
are generally associated with preparation and adoption of the District's annual budget
With respect to the consideration of changes in water and electric connection charges or
facilities fees(usually associated with adoption of the District's annual budget)or changes
in regulations covering new and retrofit residential and commercial construction, a notice
shall be sent by fax or e-mail to the office of the Contractors Association of Truckee Tahoe
With respect to other important issues so designated by the General Manager or the Board
of Directors, the method of initial communication shall be determined on a case by case
basis.
Other types of communication
To the extent practical the office of General Manager shall maintain on the District's Web
page a description of the important issues that are scheduled to be considered by the
Board of Directors during the next six months. The Web page description shall briefly
define the nature of the issue and sufficient general background information to allow
members of the public to decide whether the issue should be followed more closely.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held
within the District on the seventh day of September, 2005 by the following roll call vote:
AYES: Directors Aguera, Hemig, Sutton, Taylor and Thomason
NOES: None
ABSENT: None
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
J. Ron Hemig, President
ATTEST:
Peter L. Holzmeister, District Clerk
2 Resolution 2005-26
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There is a growing recognition in the United The study drew upon background research,
States and elsewhere that the condition of case studies, and in-depth interviews with
our vital water infrastructure needs serious stakeholders, along with lessons learned from
attention in many places. The pipes, pumps, the project team's experience working on rate
and treatment facilities that are critical to cases and strategic communications campaigns.
delivering a clean, adequate supply of pota- The team was aided in this effort by a knowl-
ble water to our communities are central to edgeable and experienced Workgroup of utility
our quality of life, the protection of public staff from nine geographically and demographi-
health and safety, and a thriving economy. cally diverse organizations.
The burden of paying for construction, oper-
ation and maintenance of these facilities "Utility Ctdit xuwlysrs has mooed Leyond a
falls mainly on customers of the systems, 'point-in-time mudysis of current debt service
and those costs are rising—dramatically in coverage and rates com.ioared t ratepayem' in-
some areas. come levels and rates in neighboring communi-
ties. Because a variety of factors may affect
The Water Utility Council(WCJC)of the American fixxancirtg options at the kxwt level, the adent of
Water Works Association (AWWA)t sponsored a utitzttis ability to implement strategies and
this study to provide a better understanding of policies that addivss'xts unique characteristics
how water utilities might make a good case to and alloui it to finance needed_prnjects becomes
their decision-making bodies, customers, and a differentiating fiaetor."
other stakeholders about the need for sustain- -James Wieraken,
able local financing of water infrastructure im- Ilireetor,-Btandarri $ Poars Cretlt
provements, operations, and maintenance. Market Servives
- 1. AW W.A is an international nonprofit scientific and educatinnat society dedicated to the improvement of drinking water quality
and supply.Its more than 57,000 members represent the fill spectrum of the drinking water community:treatment plant op-
erators and managers,scientists,environmentalists,manufacturers,academicians,regulators,and others who hold genuine in-
terest in water supply and public health.Membership includes more than 4,700 utilities that supply water to roughly 180 million
people in North America.The AWWA Water Utility Council(WUC)provides strategic direction and guidance for the legisla-
tive and regulatory affairs agenda of the Association.
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The key findings of this research will not be
news to utilities who have routinely and consis-
tently "done the right thing" by communicating _R ax o me,We of;
with their stakeholders and keeping up with
local funding needs. The findings and recom- 3 Check and re-check your budget and rate
mendations are summarized as follows: calculations.
4 Take timing of other events (e.g., elections,
increases in other rates or taxes) into con-
sideration and navigate around them.
* Adequately fund and staff communication
efforts; assign responsibility and establish
accountability,
a Know your customers—understand their A Avoid "rate management by crisis" by
attitudes and values through internal and thinking long-term and starting today.
external surveys and other research. a Adopt a comprehensive process for plan-
X, Clearly explain the benefits of water ser- ning and implementing a rate increase.
vice and increased spending on infrastruc-
ture through simple, graphics-focused :
presentations, personalized to the neighbor- Firwmqj� Hfing gr�ctic,� laP.
r,
hood level. iffect lon,,Pr
* Localize messages in alignment with com-
munity priorities. Rec=l rnenda";Oos:
* Participate in local and regional water pol-
icy development. 4 Distinguish water charges clearly from
other portions of the bill,
2 Communicate and coordinate with any
other utilities for which you provide billing,
rlut'eaph �iroorwn buoids �he cmsllinNity n;,,cessary `a
both to (1) control cumulative increases on
d, �herr,finl ratepayers and (2) coordinate communica-
tv a`cps- 01
tions campaigns.
PAnonarendifions: a Build outreach requirements into combined
billing agreements.
* Formulate consistent messages, based on
a Include enough detail for the average rate-
an understanding of customer perceptions,
and repeat them often. payer to determine how the bill was computed.
A* Develop and implement an ongoing strafe-
smooth
more frequent billing intervals to
gic communications plan. out impacts on ratepayers and
make budgeting easier,
49 Involve employees and decision-makers as ambassadors." a Consider special rate structures and fee
0
options.
'A Don't make comparisons between water
rates and "discretionarg., A Use multiple tools and approaches to make
y" spending (e.
cable television). sure rates are equitable, defensible, and
affordable.
$J Celebrate and publicize successful pr ejects,
including—and perhaps particularly—
underground infrastructure projects.
2 AVOIDING RATE SHOCK MAKING THE CASE FOR WATER RATES
......................
Many AWWA mzmber utilities already are im- Finally, this report includes examples of tools
plementing some or all of these recemmenda- used by utilities for the successful implementa-
tions. Many, we know, are not. it is the tope of tion of rate increases in their communities. The
the W(T(I and the research team that the find- `Avoiding Rate Shock" Toolkit in Appendix B fin-
ings and recommendations herein will provide eludes examples of brochures, fact sheets, news-
tseful support and guidance for utilities that letters, presentations, and other materials that
have found it difficult to successfully build sup- utilities can customize to their own local circum-
Port for necessary rate increases. stances. Foriust as "all politics is local,"so are all
Figure ES-1 is a recommended sequence for rate increase programs. Paying attention to local
planning and implementing a rate increase pro- circumstances and thinking through the develop-
1gram, based on a synthesis of best practices and ment and delivery of appropriate messages is a
lessons learned from utilities that contributed theme that echoes throughout the report,
to this study.
Information Revenue Yes Ra#e
requirements,rate ccep� increase Ra#e Cotrircrunication
inputs options&Impac#s able?; campaign adoption< to customers
1 2 3 4 5to8 9tttlt
Typical Timeline(months)
i
Figure ES-1 Recommended typical rate increase sequence(summary)
A detailed version of this graphic is provided under Finding#3(page 23)in the body of this report.
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AMERICAN WATER WORKS ASSOCIATION 3 >a