WRF #4455 Rate Approval Process Communication Strategy and Toolkit August 31, 2016

Transcription

1 WRF #4455 Rate Approval Process Communication Strategy and Toolkit August 31, 2016 No part of this presentation may be copied, reproduced, or otherwise utilized without permission.

2 Jonathan Cuppett Research Manager Water Research Foundation Rick Giardina Raftelis Financial Consultants

3 The Project Water Research Foundation Rate Approval Process Communication Strategy and Toolkit Objective Identify and develop communication strategies, specific messages, and tools that can be used to gain support during their rate approval process

4 The Research Team Principal Investigators Other Team Members

5 The Scope of the Research Efforts 1. Research literature related to the rate approval process 2. Conduct a survey of local governments 3. Facilitate interviews, webinars, and workshops 4. Develop framework for messaging and communication 5. Create toolkit to support successful communications

6 Survey of Local Governments Board leaders and staff Last adjustment request (size, outcome) Last adjustment approval (size) Adjustment processes (who, what, how) Adjustment communication messages Perceptions of effectiveness

7 Survey Sampling and Response Chief Administrative Officers Matched surveys sent 5,750 (4,439 cities; 1,311 counties) Surveys returned Chief Elected Officials 5,750 (4,439 cities; 1,311 counties) 2, from local governments that manage and set rates for water utilities 1, Matched sets from same local government 202 Survey was administered by ICMA from May through August 2014 Analysis conducted by the UNC Environmental Finance Center in

8 Most respondents reported that rate increases were approved when requested

9 % of Response And they reported receiving what they asked for Most got what they asked for! % of Rate Increase Request Approved (when a single request was made) n=804

10 Are utilities getting the rate increases that they need? The rate increase that was proposed was: n=1,349

11 Ten Tips to Having Higher Rates Approved (what statistically worked for >1,000 utilities) 1. Ask for more 2. Build trust between board and staff 3. Use experienced staff to oversee process 4. Use a third party to present rate adjustment request 5. Include information about capital needs 6. Describe the impact of the rate increase on assets 7. Link rate requests to long-term plan 8. Describe the impact to the customers in a clear manner 9. Get the public involved 10.Comparisons help

12 Scope of the research efforts 1. Research literature related to the rate approval process 2. Conduct a survey of local governments 3. Facilitate interviews, webinars, and workshops 4. Develop framework for messaging and communication 5. Create toolkit to support successful communications

13 Focused interview participants Tualatin Valley Water District Mohawk Valley Water Authority Denver Water Middlesex Water Co. Los Angeles Dept. of Water & Power Oklahoma City Water Utilities Trust City of Johnson City Water & Sewer Dept. Charlotte- Mecklenburg Utilities El Paso Water Utilities Tampa Bay Water

14 Lessons learned by board members and utility management 1. 1 Focus on the need for the rate increase 2. 2 Focus on the value and resiliency of the system 3. 3 Focus on customer service 4. 4 Make communications continuous and consistent 5. 5 Build trust and confidence in the utility 6. 6 Focus on community involvement and visibility 7. 7 Build strong relationships with the board 8. 8 Governance can be factor in rate case success

15 Lessons Learned Workshop 3 Themes 1. Focus communication on your rate need/risk and tie it to community values 2. Share your rate-related guiding principles 3. Use good, basic communication strategies

16 Scope of the research efforts 1. Research literature related to the rate approval process 2. Conduct a survey of local governments 3. Facilitate interviews, webinars, and workshops 4. Develop framework for messaging and communication 5. Create toolkit to support successful communications

17 Communication Toolkit Summary of basic rate communication guidelines Long-term communication strategy checklist List of information to share with governing boards Examples of messages that resonate Dashboard communication tool Interactive guide for using the toolkit

18 Communication Tools: Objectives Support your ability to: A. Identify the need for and benefit/consequences of rate change B. Meet the special needs of Governing Board members C. Connect the need with a community value D. Build trust and understanding

19 A: Identify the key needbenefit/consequence based themes Examples: Need - Replace aging infrastructure Benefit - reduction in pipe breaks, traffic jams, water outages Need- Additional future water resources Consequence significant future water rationing during drought conditions Need - Maintain financial viability Benefit - high bond rating Need - Treatment plant upgrades Consequence - inability to meet new and revised regulatory requirements

20 A: Identify the key needbenefit/consequence based themes

21 B: Meet the special needs of governing board members Plan ahead for the challenges inherent to communicating with policymakers Build collaborative relationships with policymakers Share metrics that matter in layers Tell a rate story Build community-wide utility trust and understanding

22 B: Meet the special needs of governing board members

23 #C: Connect with community values Tips: Articulate and share guiding principles Identify critical audience segments Identify value connectors

24 #C: Connect with community values

25 #D: Build trust & understanding Use ongoing communication that focuses on: Visibility, Transparency, Community Involvement Make communication on-going Articulate utility wide efficiencies Focus on customer service Be visible and involved Share rate setting guidelines

26 #D: Build trust & understanding

27 Key Takeaways 1. No silver bullet Success comes with repetition, perseverance, and persistence 2. Focus communication efforts on needs and values, rather than the rate increase itself 3. Trust plays a huge role in successful rate adoption 4. General communication guidelines and tips can help along the way

28 4455 Resource Access

29

30 Overview Video

31 Final Report and Toolkit

32 Rate Case Visualization Tool

33 Webcast

34 Rate Restructure Communication Workshop Albuquerque Bernalillo County Water Utility Authority Austin Water Denver Water Eastern Municipal Water District Raftelis Financial Consultants

35 Current and Upcoming Finance Projects Identifying and Evaluating Opportunities for Reducing Variability of Utility Revenues Customer Assistance Programs for Multi-Family Residential and Other Hard to Reach Customers New and Emerging Capital Providers for Infrastructure Funding 2018 RFPs Challenges and Practical Approaches to Water Reuse Pricing Trends And Best Practices Of Water And Wastewater Capacity And Connection Charges And Transactions Alternative Project Delivery Performance Evaluation and Decision Support Tool for Water and Wastewater Capital Projects Incentives For Green Infrastructure On Private Property: Lessons Learned

36 Thank You Comments or questions, please contact: For more information visit: