06/08/2005 - Packet n Completeness Review
for Boards, Commissions
and Committee Records
CITY OF TIGARD
Intergovernmental Water Board
Name of Board, Commission or Committee
-:n , 8, a oo,5
Date of Meeting
To the best of my knowledge this is the complete meeting packet. I was not the meeting
organizer nor did I attend the meeting; I am simply the employee preparing the paper
record for archiving. This record came from Greer Gaston's office in the Public Works
Building.
Kristie Peerman
Print Name
Signature
,/6Z
Date
Intergovernmental Water Board Meeting
Serving Tigard, King City, Durham and Unincorporated Area
AGENDA
Wednesday,June 8, 2005
5:30 p.m.
1. Call to Order,Roll Call and Introductions
Motion to call meeting to order,staff to take roll call.
2. Approval of Minutes—May 11,2004
Motion from Board for minute approval.
3. Discussion on Electrical Service Providers
• Oregon Electricity Board, Electric Cooperative—Shantu Shah (5 minutes)
• Portland General Electric
4. Long Term Water Supply Update—Dennis Koellermeier(20 minutes)
S. Informational Items—Dennis Koellermeier
Items will be discussed briefly if time allows—otherwise printed info. Will be distributed.
6. Public Comments
Call for any comments from public.
7. Non Agenda Items
Call for non-agenda items from Board.
8. Next Meeting- Wednesday,July 13,2005, 5:30 p.m. — Water Auditorium
9. Adjournment—Approximate Time 7.00 p.m.
Motion for adjournment.
A light dinner will be provided.
Executive Session: The Intergovernmental Water Board may go into Executive Session under the provisions of ORS
192.660(1)(d), (e), 69&(h)to discuss labor relations,real property transactions,current and pending litigation
issues and to consider records that are exempt by law from public inspection. All discussions within this session are
confidential;therefore nothing from this meeting maybe disclosed by those present. Representatives of the news
media are allowed to attend this session,but must not disclose any information discussed during this session.
Intergovernmental Water Board
Meeting Minutes
May 11, 2005
Members Present: Patrick Carroll, Dick Winn, Tom Woodruff, and Norm Penner
Members Absent: Bill Scheiderich
Staff Present: Dennis Koellermeier, Tom Imdieke and Twila Willson
Visitors: Tom VanderPlaat and Henrietta Cochrun
1. Call to Order, Roll Call and Introductions
Commissioner Patrick Carroll called the meeting to order at 5:38 p.m.
2. Approval of Minutes—March 9, 2005
Commissioner Dick Winn motioned to approve the minutes, Commissioner Patrick Carroll
seconded the motion, and the vote was unanimous to approve the March 9, 2005, minutes.
Introductions were made of the new board member, Commissioner Tom Woodruff, the
council representative from the City of Tigard.
3. Tualatin River Integrated Water Resource Plan (Hagg Lake Dam Raise)— Tom
VanderPlaat
Dennis Koellermeier introduced Tom VanderPlaat, the Clean Water Services
representative in charge of the Hagg Lake Dam Raise Project, and explained that the
timing of the project is such that a decision needs to be made about re-upping Tigard's
involvement in the project. This is Tigard's fourth year working on the project.
Mr. VanderPlaat made a PowerPoint presentation and explained the various options that
are being examined; staff distributed a printed copy of the presentation. Highlights of the
presentation included the following points:
• Alternative options to the 40 ft. dam raise did not look favorable
• The Scoggins Dam raise still appears to be the best project
• Water level change has minimal impact
• Perimeter road for bikes would need to be relocated and so would recreational
facilities, i.e., boat ramps, picnic facilities, etc.
• Dam raise project would be connected with the refill improvements to create
reliability of refill, such as a raw water pipeline-pump back during winter months
and/or Sain Creek Tunnel
• Spring Hill Pumping Station is divided into two sections operated by Clean Water
Services (CWS) and Tualatin Valley Irrigation. Tualatin Valley Irrigation only uses
Intergovernmental Water Board May 11,2005
DRAFT
1
their pumps during the summer months and it may be proposed to use their pumps
during the winter months for pump back as an option
• Tunnel alternative study shows that it will not fill the lake to adequate levels
• Preferred proposal is the 40 ft, raise of Scoggins Dam with the raw water pipeline
pump back
• $200m price to build the dam
• Tigard is now 19-20% owner on that. 20mgd, piping to Tigard extra. Tigard's total
cost $100-180m. Most expensive option for Tigard.
• Third amendment will be $500,000 more for Tigard
• Some of the smaller partners (Sherwood) are starting to talk about stepping out of
the project
• The partner involvement will determine the cost for the remaining partners
Mr. Koellermeier was unsure how to advise the board to proceed. He stated that Tigard
was starting to gain assets in the pipeline project. Portland cannot be considered a
reliable water source from past experience. Taking water in bits and pieces from multiple
sources would also be expensive.
The board discussed the Willamette River as an option and the fact that public acceptance
would be critical. Tigard could comfortably have Willamette River water in three years time.
Tigard's 20% partnership with the JWC dam raise would provide a 50 year need.
Willamette River would also satisfy the 50 year need however the Willamette River would
be considerably less expensive.
Mr. Koellermeier stated that a decision would need to be made in the near future about
recommitting Tigard's involvement for another two years in this project.
4. Regional Water Consortium Plan Update, Board Recommendations
Mr. Koellermeier gave a brief overview as follow-up from the Regional Water Consortium
Plan presentation that Lorna Stickel made to the board several months ago. He reminded
them that each member of the consortium must vote on the amendment. He noted that
there still remains to be ownership challenges and pipeline issues; however, adequate
water is available. Staff recommendation was to approve the amendment.
Commissioner Dick Winn motioned to approve the amendment, Commissioner Norm
Penner seconded the motion and the board voted unanimous to approve.
5. Water Rate Increase Discussion
Tom Imdieke, Acting Finance Director opened the water rate increase discussion with an
update of the water rate model. He distributed a handout of his PowerPoint presentation.
Water rate increases were changed several years ago to take place in October, following
the heavier summer peak periods and making it easier for water customers to handle.
The original model called for higher percentages of rate increases, but by making water
line upgrades at the same time that capital improvement projects for street improvements
are made ( i.e., Gaarde St.), the money will be more wisely used.
Intergovernmental Water Board May 11,2005
DRAFT
2
The newly revised rate model increases would not have the dramatic changes in increases
and percentage drops that the previous model had. It would be more consistent, but with
lower percentage rate changes, thus creating a smoother arc for increased rates and is
considered good political thinking/strategy.
Staff Recommendations are to approve the three year package of 7% increases per year.
The Public Works Department has made budget recommendations to the Tigard City
Council with assumptions for approval of the 7% rate increase included in those budget
recommendations; however the budget proposals could be changed.
Commissioner Dick Winn motioned to approve the 7% proposed rate increase, Commissioner
Norm Penner seconded the motion, and the vote was unanimous to accept the motion.
6. Long Term Water Supply Update— Dennis Koellermeier
Mr. Koellermeier stated he would be able to go public very soon on the Portland contract.
The City of Portland is trying to negotiate the cryptosporidium issue and their mayor is trying
to get Portland classified as exempt. The professional manager's group representatives
from the wholesale agencies have let it be known they do not agree with Portland's view and
Mr. Koellermeier does not think the EPA will agree to the exemption.
The Lake Oswego negotiation issues have been heard by their city council. Their growth
issues and water needs for the future have been looked at and it was shown by staff that
they have what they need, in fact, more than they need. Their water rights will not all be
used and this move would help Tigard and Lake Oswego. The infrastructure currently is
set to deliver 9mgd. Pipeline improvements are being reviewed.
Mr. Koellermeier announced Richard Sattler's resignation as the Water Quality and Supply
Supervisor; he will be working with the City of Hillsboro. Tigard will need to move for
replacement of his duties quickly as summer is historically the busiest time.
7. Informational Items— Dennis Koellermeier
Nothing additional was presented.
8. Public Comments
Henrietta Cochrun made it known that she was in favor of using the Willamette River and
Wilsonville water.
9. Non Agenda Items
10. Next Meeting - Wednesday, June 8, 2005, 5:30 p.m. — Water Auditorium
11. Adjournment—Approximate Time 7:00 p.m.
The meeting adjourned at 7:30 p.m.
Intergovernmental Water Board May 11.2005
DRAFT
3
Sign-in Sheet for
Intergovernmental Water Board Meeting
June 8, 2005
Na (Please Print) Do you want to speak to the Board?
1� f�
INVITATION FOR TIGARD TO JOIN OREGON ELECTRICITY BOARD
Good Evening: Chairman, April 19, 2005
I would like to invite one of the Council Members of Tigard as a liaison to represent
interests of all Tigard customers to join the Oregon Electricity Board, Electric
Cooperative I have formed to provide a low rate electric power than Portland General
Electric Company supplies now. I have talked with BPA on this issue and received
documents about lower rate power supply contract beginning 2006 and beyond. Principal
advantages of Electric Coop areal) No controls by Oregon Public Utility Commission, 2)
Low-rate financing, 3)low-rate power, 4) each consumer is an owner and a ratepayer., 5)
local control. Electric coops have been successful all over the USA.
It has to have two major elements to get the BPA power: 1) Customers as members of
electric coop and 2) Distribution network.
I have talked to some commercial customers who have shown interest in receiving the
low rate power. Residential customers would also benefit with BPA power and would
offset as much as half of their water bill each month depending upon the usage of water
and electricity.
If Tigard joins OEB, Tigard water could be renamed as Tigard Water and Electricity.
Once we have the Tigard Water customers join OEB, we would begin negotiating a
purchase of PGE distribution network in Tigard to provide its customers BPA power. If
PGE comes up with a reasonable purchase price we will negotiate with the National
Electric Coop Finance Corporation to provide low interest financing to purchase PGE
distribution lines.
I would repeat this process of expanding of OEB membership with other water boards
and cities and suburban areas in PGE territory. Each of the other entities like Tigard
would have representation on OEB board.
OEB is a not-for-profit electric cooperative with a certain number of employees either
rehired from PGE distribution lines crew managing respective territory of PGE that joins
OEB or from outside PGE territory with similar experience.
I am a registered Professional Electrical Engineer and I have a long management
experience of electric power generation, transmission, distribution, and maintenance as
well as design, and construction for large public and private utilities in India and USA
which I would like to offer as a Chair of OEB.
To become a member of OEB Tigard water would pay a one-time small membership due
for each customer which would be returned as a discount in lower electric rates.
Shantu Shah, Chair, Oregon electricity Board, 6637 SW 88th Pl, Portland (PH: 245-1722)
Q°RTL,,^,O Dan Saltzman,Commissioner
Q
CITY OF Morteza Anoushiravani, P.E.,Administrator
0 1 120 SW 51h Avenue
Z PORTLAND, OREGON Portland, Oregon 97204
Information(503)823-7404
gam' Fax(503)823-6133
s, BUREAU OF WATER WORKS TDD(503)823-6868
June 8, 2005
Dennis Koellermeier
City of Tigard
13125 SW Hall Blvd.
Tigard, OR 97223
Dear Dennis:
As provided for in Section 7 of the 25-year Water Sales Agreement between the City of
Tigard as Purchaser and the City of Portland,
"In consideration of the agreement of the City to provide a firm supply of surplus
water, Purchaser agrees to maintain its level of purchases for the term of this
agreement so as not to diminish the ratio of City water used to the total water
used by Purchaser,"
Your purchase ratio (comparison of Portland water purchases to total water purchases)
for the fiscal year ending June 30,2004 was 53.5%. This is lower than the minimum
purchase requirement of 62% that was set in the March 7,1997 letter of agreement.
Because the 2003-04 purchase ratio was lower than the requirement, payment of
$304,522 is due before 07/01/05. Please send payment to the attention of Jerri
Widner, Accounting Supervisor.
The guaranteed purchase ratio for City of Tigard will continue at 62% for FY 2004-05.
If you have any questions concerning these computations, please contact Anne Conway
at 503-823-7468.
Sincerely,
Morteza Anoushiravani
Administrator
Attachments
C: Anne Conway
Jerri Widner
:lit .1-7gUa1 0 p p o r I u n i I y l;mproyer
i
OFFICE OF THE GOVERNOR PROCLAMATION
STATE OF OREGON
WHEREAS: Water consumption is at its highest during the summer months,a time of year when our rainfall is at its
lowest. This results in demands that double or triple wintertime demands and is the reason why water
facilities are sized to meet peak summer demand; and
WHEREAS: Many water providers in Oregon this year will be closely managing their available water supplies,
particularly those more dependant on winter snow pack, which is low in most parts of the state; and
WHEREAS: Because of increasing demands for water supplies by agriculture, municipal water providers,domestic
use, and in stream uses,the competition for water resources becomes even more important during dryer
years;and
WHEREAS: Learning how to use water more efficiently now will play a key role in meeting future water needs and
could both extend the life of currently developed water systems as well as delay major water-related
infrastructure costs;and
WHEREAS: Cost effective water conservation fosters the responsible use of natural and manmade resources and is an
important means to meet current and future water demands and is also a tool that our individual customers
recognize and support; and
WHEREAS: Increasing the awareness of the citizens of Oregon to the importance of conserving municipal water
supplies is beneficial to all of the users that benefit from being provided potable water supplies,
particularly during the drier summer months when supplies are most in demand.
NOW,
THEREFORE: 1, Theodore R. Kulongoski,Governor of the State of Oregon, hereby proclaim June, 2005 to be
WATER CONSERVATION MONTH
In Oregon and encourage all Oregonians to join in this observance.
IN WITNESS WHEREOF, I hereunto set my hand and
cause the Great Seal of the State of Oregon to be affixed.
Done at the Capitol in the City of Salem in the State of
Oregon on this day, May 10, 2005.
A*4;
f
1
Theodore R. Kulongoski, Governor
Bill Bradbury, Secretary of State
G10NA1 �9
7'
S CO
WORKSHOP AGENDA
June 1, 2005
Portland Building, Room C, 2"d floor
The Value of Drinking Water Workshop: A Positive Brand for
Municipal Water and the Regional Water Providers Consortium
By John Ruetten, Resource Trends Inc.
5:30-6:30 pm Buffet dinner and social time
6:30 pm Workshop Begins
A. Why are we talking about marketing?
B. Foundation for marketing issues
C. The language of negative branding
D. Opportunities
a. Articulating a municipal trust and
positive brand
b. Local and regional branding programs
c. Enhancing and expanding the customer
service relationship
E. Discussion of local and regional issues for
our individual entities and the Consortium
8:30 pm Workshop Ends
John Ruetten website: www.ResourceTrends.com
Value on Tap website: www.valueontap.com
Sample BrandNalues for Municipal Water
Southern California Value on Tap Workshops
The values noted below are stated in form of commitments made by the utility. Meeting these
commitments articulates what we want customers to expect from us and our product.
We (the sponsoring utility) are committed to......
General
■ Being the primary advocate for water reliability and quality in our community
■ Sound planning and appropriate investment in water reliability and quality
■ Being the trusted water experts
■ Increasing quality of life for our customers
■ Developing and maintaining a 21" century water system
Water Service Reliability
■ 100%reliable water service
• Drought proof water supply and water service
Water Quality
• Water quality improvement— No degradation of water quality
■ A water system that protects public health
■ Helping customers make good decisions related to supplemental purification of their water
• Keeping up on the latest information related to municipal water quality—Being an expert
■ Knowing the quality of the water that is entering the specific customer's home orfacility
Water Pressure
• Adequate and consistent water pressure at the inlet to the home or business
■ Fire protection
■ Helping customers resolve water pressure problems internal to their plumbing
Water Affordability and Rates
• Ensuring that the community invests appropriately and wisely in water service
■ Predictable rates—No unexpected or large jumps in water rates
■ Not wasting water and implementing valuable water use efficiency programs
Customer Service and Billing
• Understanding and meeting the needs of specific customers
• Accurate billing
• Making it easy for customers to pay their bill and resolve billing problems
■ Arriving on a service call when we said we would.
• Not handing off the customer to another person when they call in with a problem
■ Resolving customer problems quickly and efficiently
■ Being receptive to the customer's point of view—Listening to the customer
■ Checking other customer needs during a service call
Communications and Decision Making
■ Simple, meaningful communications that relate to core values and commitments
• Treating key audiences and rate payers like customers and investors, not students
■ A collaborative communication and decision making style
■ Proactive disclosure that reaches affected customers
Utility Identity — "Source of Information, Quality and Value"
Resource Trends,Inc. 2005
Value on Tap
Phoenix Area Workshop—5/11/05
Comments on the NPR Washington DC Case Study
The following documents the comments from the workshop participants related to the branding
points made during a National Public Radio program reporting on the lead contamination issue in
Washington DC. These points address how municipal water and the utility can and are being
branded.
• Utilities are not our protectors
• Utilities are sneaky, slippery, dishonest and secretive
• The water industry (utilities) resists higher standards for water quality and safety
• Money and politics are more important than health
• Utilities practice reckless management of water quality
• Utilities do not plan well and don't know how to get the appropriate investment
• Utilities do not treat customers as individuals and they do not know the quality of water
going to a specific home or customer
• The water is toxic, contains poisons
• Us/Them feeling— Utilities values are different than ours
• No communication ethics — Don't really have to reach the customers,just meet the
communication regulations
• Chlorine is bad
• Old or outdated filtration forces us to use more chlorine, or forces the use of chlorine
• Utilities are not protecting children and pregnant women
• Most water systems are old/outdated —Not state of the art and ineffective
• Regulations are not enough to create trust, and don't create the value the public wants
• Journalists are the protectors
• Regulations are heavily influenced by politics
• People should be drinking more bottled water
• Water utilities use band aids to fix problems— Using a witches brew of chemicals
• Reckless approach
• Incompetent and reckless, don't care
• The "water industry" will cut deals to keep cost low —This compromises water quality
• Politicians and government are afraid to do the right thing—To worried about their political
careers
Resource Trends, Inc. 2005
Value onMW
"A Positive Brand for Municipal Water"
Regional Water Providers Consortium
June 1, 2005
Resource Trends,Inc.
"Marketing Environmental Enhancement"
Topics
• Motivations for Marketing and Value on Tap
Challenges, Problems j
• Important Marketing Principles
• NPR Report— Negative Branding
• Insights and Opportunities - =
Regional and Local
• Discussion of Regional and Local Issues
• Challenges and The Good News
Resource Trends,Inc.
1
Why Marketing?
• We are Competing for Community Dollars
. Starbucks, Internet,Cable, Dining Out........
. Subject to Representative Government
• Perceptions of Tap Water and Government '
. Tap Water Not Fit to Drink-Government Organizations Inefficient
• Utilities Not Taking Advantage of Product Uniqueness
• Municipal Water is Like No Other Product
. Impacts Positioning with Respect to Bottled Water and POU Treatment
• Local Utilities Going ItAlone to Build Positive Perceptions
Fragmented Industry, Little Economy of Scale
IQL
. Negative Branding From National Events and News YAM
a
•
Utility Behavior
. Regulatory and Public Education Focus
liesource Trends,Inc. ,
/ vg o,u 710 - CJ q
2004 California Workshops
. 5 Workshops Over 6 Months
. A Collaborative Journey
. 13 Participating Agencies
Water Wholesalers, Retailers—Large and Small
. Workshop Themes
• Key Marketing Principles
• Developing a Sample Brand for Municipal Water
• Relationships Between Wholesalers and Retailers
. Building the Brand—Strategy and Tactics
• Next Steps and Recommendations Collaborate, Innovate!
. Deliverables
• Workshop Notes
• Sample Brand
. Executive Summary Document
• Recommendations/Next Steps
Resource Trends,Inc. ,
2
How Did We Lose the Trust
(70 Years of Change)
• Depression, Post War-The Great Society
• Government Creating Value, Investing in Major Assets
• Conquering the Frontier
• Vietnam-Watergate
Trust in Government Eroding
• Evolution of Marketing
• Competition Forces Improvement-Company Survival at Stake
• Better Value, Better Communications
• People Trust Competition
• Information Age
• Changing Expectations-Access to Information
• More Information, More Accurate?
• Health
• Addressing the Toxic World, Workforce Health, Health of the Home
• Lifestyle
• Busy Lives—Sound Bytes Rule
Resource Trends,Inc. s
Key MarketinT.Principles
• Treating Audiences Like Investors
• Values, Motivations,Trust
• Perceptions, Branding and Brands
*The Unique Value of Municipal Water
•The Utility Reputation/Brand
3
Our Investors
We Need to Treat Audiences Like Investors, Not Students
Actually Are Our Investors, Shareholders
{ A Condition of the Monopoly
,I Are Our Students When in School
Strategies and Tactics
. Reliability and Quality Come from Planning and Investment
. Focus Communications On Motivations and Actions (Investments)
. Less Information
. Share Information Necessary to Establish a Point of Value
. Need a Meaningful Expression of Return on Investment
Resource Trends,Inc.
(lid V
Values, Motivations, Trust
• What Are Values?
. Motivations, What You Stand for or What You Care About
. Commitment by a Person or Other Identity-Promises
. Defines Where You Put Your Foot Down-Where You Don't
"We are committed to increasing the number of schools
in the city of Eugene.
• Trust and Support—Clarity and Integrity
Communicate Your Values,Commitments
Constantl Connect Your Values with Your Actions
Decisions, Priorities, Investments
Regulations and Science-Poor Trust Building Tools
• Especially Important for Public Agencies
. Monopoly-Communities Are Our Investors
Resource Trends,Inc. ,
4
What is a Brand?
WWI—
• Any Proper Name is Brand! You Are a Brand!
• A Logo?
• Short Hand for Communicating Motivations, Characteristics
• Importance of the Concept of Brand
• Proper Names(Identities)Always Have Perceptions Attached to Them
• Positive Brands ,}
Ideas of Value, Things that are Appreciated, Counted On
• Negative Brands
• Negative Thoughts or Judgments
Resource Trends,Inc. 9
Perceptions - Being Branded
• People What is the Value of this Product?
• Organizations
What Are Your Motivations?
• Products
• Projects
• Government This water Is No
• Task Forces Fit to Drink
• Partnerships I Don't Trust Y u
• Strategic Plans O
• Recycled Water o
• Desalination
• Tap Water
Water Agencies and Utilities
Resource Trends,Inc. a
5
16 Brands as Perception Assets
• Simple Ideas of Value = Brands
• Volvo = Safe Cars Nn3xAm
• Crest = Cavity-Fighting Toothpaste C~st
• Southwest = Low Cost/ On-Time Airline __AA
souTHWE9 AIRLINES
• Massive Asset!
• Customers Associating Value with You or Your Product
• Coca-Cola Brand worth $30 Billion
• Are We Investing in Perception Assets?
We are Spending Money
Effective?
j' Resource Trends,Inc. „
Richer Branding Experiences
• Has My Size
. Shoes and Shirts
• High Quality Products— Long Lasting
. Socks and Shirts
• Has Brands I Like
Nordstrom Label Products
• Won't Have to Ask for Service NORDSTROM
• No Hassle Returns
• I Will Feel Important
• Relationship with Sales Person
• Send Off
• Pleasant Environment
Music, Restrooms,Cleanliness.....
• Will Be More Expensive
srexsucxs co
Resource Trends,Inc. „
6
A Unique Advantage
Private Companies Spend Big $ to Be Perceived as Unique
Municipal Water is Already a Unique Product
Benefit of Being a Monopoly
Have We Been Confident in the Value of Our Uniqueness?
Comparisons to Bottled Water
Attitude Toward POU Treatment Trends
Comparison to the Price of Other Services
Utilities Own this Category of Value
Resource Trends,Inc. „
The Uti I i ty Brand
Source of Information, Quality and Value!
Not Regulations!
Not the Physical Source of the Water!
Resource Trends,Inc. „
7
Exercise in Negative Branding
National Public Radio Report
April 2004
r � Perceptions of....
fV'
` Water Utilities
Water Industry
Regulations
nn C/
V-
V The Landscape of Negative Brands
. Related to Ethics, Motivations,Values
. Government- Inefficient, Monopoly, No Competition
. Utilities Lumped Together
. All Bad If One is Bad
l
No Communication Ethics
• Disclosure- What They Disclose and When
• Don't Care About Actually Reaching the Affected Parties?
Utility Has No Values of Their Own
. Just Follow Regulations, Independent of Ramifications
. Utility Doesn't Know the Quality of the Water Entering My Home
. Protecting the Specific Customer Versus Customers as a Group
Resource Trends,Inc. 16
8
The Landscape of Negative Brands
Water Utilities Aren't Our Advocates
. Water Utilities Fight Higher Standards
. Because They Create Cost and Public Relations Issues
. Easier to Not Fight the Rates Battle
. Problems with Action Levels
. Relationship to Value and Public Health
. Old Water Systems -Outdated Methods
. "Same Methods as Biblical Times"
. Chlorine is Bad
. Combines to Form Cancer Causing Compounds
• Reckless Approach to Addressing Contaminants
. Witches Brew of Chemicals
Resource Trends,Inc. „
Insi hts and_Opportunities
9
f,
So What's Wrong Here?
We Have a Unique and Valuable Product
We Own the Category of Value — Metro Water
What Have We Learned?
Resource Trends,Inc L9
AValue on Tap Insights
• Still Unclear on the Meaningful Value of Our Product
• Water Reliability and Quality Statements
Water Service RellabiUty
"We are committed to a highly reliable water system. This means that we will offer full
water
service during normal drought patterns and major Infrastructure maintenance. It also means
that we will quickly restore and maintain basic water services during natural disasters or other
emergencies."
What's My Return on Investment?
Water Ouality
"We are committed to constantly Improving water quality. This means that we are diligent In
ensuring that water quality Isn't being degraded by new contaminants, and that we are
constantly Increasing our knowledoe on improving the water we deliver to our customers. We
are also committed to using modern and efficient water testing and treatment technologies"
Resource Trends,Inc. »
10
Value on Tap Insights
• We Aren't Clear on Our Specific Utility Brands
• We Haven't Developed the Simple/Regional Brand
2-3 Key Messages,This Is All People Can Absorb, or Will Remember
• Regionally Fragmented on Multiple Levels
• Major Messages, Customer Support, Key Relationships .
• Little Economy of Scale—This is a Major Issue!
• Not Taking Advantage of Customer/Service Provider Relationship
• Tremendous Access to Customers
• Are We Building Brand? Have We Defined the Desired Perceptions?
• Need to Work on Regional Inter-Agency Relationships
. Strategy and Basic Logistics
Resource Trends,Inc.
_V4 �V .14 L-Z
Regional Opportunities
• Consortium Opportunity!
• Develop the Regional Brand—A Family of Agencies
• Key Messages and Brand Building Logistics
• Sound Planning +Appropriate Investment = Reliability a
•
Develop Customer Service Template
• Building the Brand—Integrated with Regional Brand
• Best Practices—Service Calls,Telephone, Billing Template
• Going Beyond the Meter—POU Treatment
• Develop Inter-Agency Relationship Template
. Better if We Have the Umbrella Brand—Common Objective
Resource Trends,Inc. „
11
Water Utility Opportunities
• Building Trust and a Strong Brand
• Clarity of Organizational Commitments
• Vision
• Corporate Communication Standards, Disciplines
• Specific Value and Communication Tools
• Discussing Water Reliability
• Creating Water Quality Confidences„�,
• Turning Conflict and Opposition into Assets I
• Ensuring a Good Policy Decision
Enhancing Customer Service
Going Beyond the Meter—Quality"At the Tap”
Best Practices
Brand Building During Every Customer Interaction
Resource Trends,Inc. „
Re ional Local Issues
. Unique Watershed Issues
. Major Investment Needs
. Water for People and the Environment
. Water Quality Issues f
. Public Perception Issues? ! R.
. Mixed Messages? U
. Inter-Agency Relationships 0
Are We Motivated to Change?
1.2
Challenges
We Think That It's Just Communications
. It's Who You Are,and What You Stand For
. Your Core Strategies,Actions-Your Value!
. Different Agencies/Utilities Have Different Ethics!
Clear Understanding of Marketing Principles
Communications/Value Strategy Not Top Priority
Main Difference Between Private Companies and Public Agencies
Haven't Had to Make it a Top Priority
Culture Change
Not Complicated, But Not Easy
. Requires Clarity, Commitment, Diligence
Resource Trends,Inc. 25
The Good News
• We Can Fix This
We Have a Unique and Valuable Product to
We Own the Category of Value
We Have Smart, Committed People
• Need to Be Motivated —Top Priority!
• More Regional Cooperation, Less Competition
Need Collaborative Regional Processes- Help Each Other
• Diligence
Good Brands Are Built Over Time - Utilities Have Time!
Resource Trends,Inc. M
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