Strategically Managing Rate Increases to Fund CSO Controls

1. Strategically Managing Rate Increases to Fund CSO Controls Jodi Perras, Perras & Associates/Clean Stream Team Jim Garrard, City of Indianapolis, Mayor’s Office Margie Smith-Simmons, Indianapolis DPW

2. Structure of a Successful Campaign • public education on infrastructureproblems • demonstrating the benefits of the proposed rate increase • outreach to key stakeholders, and • media activities and events timed to Council action.

3. Public Education on Infrastructure Problems

4. Public Education Program • Public education began in 2000 when Mayor Bart Peterson first took office • Program used photographs and plain language to illustrate city’s water quality problems and infrastructure needs • Program used a variety of communications tools, events and media coverage to explain the problem (www.indycleanstreams.org)

5. 2006 Survey Shows Efforts Paid Off • Three of five adults had heard of drainage programs • One-half had heard of programs related to raw sewage overflow reduction • Three of ten knew of programs to convert septic tanks to sanitary sewers • Lack of awareness was significantly higher (49 percent) among the 18 to 34 age group From 2006 telephone survey of 385 adult residents of Marion County, IN Margin of error was +5 percent

6. Demonstrating the Benefits of the Proposed Rate Increase

7. October 2005 Proposed Rate Increases • Sewer bill for average home- owner using 5,400 gallons: - $9.59 per month in 2005 - $12.38 in 2006- $15.17 in 2007- $17.96 in 2008 • New $2,500/EDU sewer connection fee, paid by developers and properties hooking up to the sewer for the first time. • $1.00/month increase to residential stormwater utility fee, bringing total to $2.25/month per ERU

8. Demonstrating Rate Increase Benefits • Where will the money be spent? • What problems will it solve? • Who will benefit? • Projects on website are searchable by township, council district & project type

9. Campaign Packaging • $400 million sanitary capital program • $35 million in flood control and drainage improvements • Benefits throughout Marion County • Every township & every council district

10. Outreach to Key Stakeholders

11. Targeted Outreach Plan • Identify key stakeholders (large customers, opinion leaders, council members, developers) • Contact each stakeholder through personal meetings or phone calls • Communication tools: • PowerPoint presentation & talking points • Project maps and project lists • 1-page summary of rate proposal • Projected rates for top 20 customers • Rate comparison charts • Newsletter

12. Rate Increase Outreach Team • Primary Team: • Mayor’s staff • DPW leadership & staff • Clean Stream Team • Support Team: • Other City Department heads & staff • Local engineering & construction community Met weekly to monitor public reaction & respond, as needed Equipped with talking points & support materials

13. Comparison with Other Utility Costs

14. Media Activities and Events Timed to Council Action

15. Where People Get Information • Nearly half of adults who had heard of Indianapolis wet-weather programs first became aware of them within the past two years • Longer term awareness was reported by older adults, homeowners, and those with college or more education • Primary Sources of Information: TV (74%), newspapers (62%), and word of mouth from family and friends (47%) • Radio and direct mailings are cited much less frequently (24% and 21% respectively) From 2006 telephone survey of 385 adult residents of Marion County, IN Margin of error was +5 percent

16. Announcement of Rate Increase • Mayor Peterson made announcement outside school with CSO construction in background • Flanked by kids in Clean Streams-Healthy Neighborhoods T-shirts and Council members • Jars of influent/effluent & footage of sewer overflows for TV stations • Same-day meeting with Indianapolis Star editorial board • Same-day meeting with Clean Stream Team Advisory Committee

17. Indianapolis Star Sunday Editorial • City’s only daily newspaper has been a consistent supporter of solving the city’s sewer overflow problem

18. Other Activities • Media events timed to Council action • Neighborhood meetings with lists of planned projects & StreamLine newsletter • Worked behind the scenes to gain acceptance of controversial sewer connection fees • Letters to Editor

19. Op/Ed Support

20. Council Approval • No testimony opposing rate increase at Oct. 20 Public Works Committee hearing. Passed committee unanimously. • Full Council hearing on Oct. 31. Passed on 25-3 vote.

21. Outreach Never Ends • Even after the rate increase is approved, publicize your projects and their benefits • Thank people for their support • Show off projects with tours, groundbreakings and ribbon-cuttings

22. On the Right Track • 62% say city and county efforts to improve the water quality of streams and rivers are successful • Four of five Marion County residents believe the city and county are on the right track and are positively optimistic of future success of efforts to improve water quality • • Indianapolis water and sewer rates are thought to be comparable to other Midwestern cities of the same size From 2006 telephone survey of 385 adult residents of Marion County, IN Margin of error was +5 percent

23. Contact Information • Jodi Perras • Perras & Associates • Phone: 317-407-0148 • Email: perrasjodi@comcast.net