Marketing Water Meters in Chicago

Transcription

1 Marketing Water Meters in Chicago Andrea R.H. Putz & Irene Schild Caminer City of Chicago Department of Water Management Thomas H. Powers, P.E., Commissioner 1

2 Water System Overview Protecting public health & safety 2 Cribs 2 Water Purification Plants Jardine: 1,457 MGD capacity South: 720 MGD capacity 12 Water Pumping Stations 8 Electric, 4 Steam No elevated storage 4,300 Miles of Distribution Mains 47,600 Fire Hydrants 4,400 Miles of Sewer Mains 340,000 Ancillary Sewer Structures Serves City & 125 suburbs (~41% of IL) Serves 5.3 million people

3 Metering Status Year # Metered Accounts 79% of Revenue High-usage accounts # Non-Metered Accounts 21% of Revenue Mostly SF & 2-flats Flat Rate Based on lot size, # fixtures, etc. Metered Rate ($/1,000 gal) , ,088 $ , ,002 $ , ,519 $ ,304 (projected) 294,519 (projected) $2.51

4 MeterSave A novel, hybrid approach to begin metering in a friendly manner and with little opposition. Voluntary, Incentive-based Financial: 7-year guarantee that metered bill will not exceed what the assessed billing rate would have been Conservation: Choice of water conservation tool: indoor kit, outdoor kit, or rain barrel (looking into pilot of a new incentive: water use audit) Information: Get an AMR meter w/leak detection, profile Geographic-based Scheduling is done on a ward by ward basis efficient Participants must pay bills on time Guarantee does not transfer to new property owners Limited to first 20,000 volunteers, annually

5 Benefits of MeterSave Program to the customer Reduced & more frequent bills: avg. volunteer is saving >50%, billed every 2 months Equity for customer: Charges based on actual usage use less, pay less Done at no cost to the customer: Free meter & installation Leak notification from AMR trouble codes No need to gain entry for routine readings to the City of Chicago System efficiency: Easier leak detection within system System accountability: Actual water pumped & consumed keeps with the Chicago Water Agenda Reduce wasted water: Chicago & NE IL may face severe water shortage by 2050 if fail to plan for future (Chgo Metro Agcy for Planning, July 08) to the Region Population Growth: 1 million more water needed Conserve water in advance of climate change: -reduce carbon footprint -use less energy - maintain lake levels 5

6 Installation Contract Data Source Contract - Assumptions Based on prior-metered Midwestern cities Meter experts identified lessons learned Specifications In-house scheduling using on-line calendar Assumes pre-inspection Installations to be tracked using our paperless work order system Call center operation Contract Actual Chicago Data Distribution of meter size Percent indoor vs. vault Distribution of install type Vendor scheduling using online calendar Assumes one-visit install Risks of Contract IEPA SR Loan Funds No guaranteed workload volunteer based No payment for sites visited but not installed (i.e. cancellations or customer repairs required) Have a better idea of minimum # of volunteers

7 Technology Initiatives Achieved in an Accelerated Time-Frame Installation of AMR Meter Paper-heavy workorders Automated, paperless system Interface between work order system & billing/collection system Handheld devices for installers Real-time upload to systems Alternative installation methods compression & crimp fittings (new to workforce in Chicago) Photos of installers on website Billing for Water Usage New bill format Tracks annual cap for 7-yr guarantee Post-Installation QA/QC Post-Cards Testimonials on website Customer Survey Results to date Crew Courtesy 4.95 / 5.00 Work Area Condition 4.85 / 5.00 Scheduled Appointment 98% On Time? 96% Uniformed? 89% Wearing I.D. Badge? 98% Explained Work? 99%

8 How can customers request a meter? MeterSave.org website Website allows for scheduling of water meter installation! Automated Phone System 311 Call Center

9 How do we market the program? Two main population segments: Save water, green Save money seniors on fixed incomes in empty homes Marketing provided the framework for IT and Operational changes Make volunteering, scheduling and installation easy, minimally disruptive & user friendly Barebones budget 20,000 limit annually can t be too successful!

10 How do we market the program? What works: Letters to seniors & neighbors of volunteers Encouraging word of mouth Annual Consumer Confidence Report Budget (rate increase) Bills & bill inserts s to City & sisteragency employees Community Meetings Radio Advertising What did not work: Targeted/demographic newspaper ads Sporting & mall events

11 Seniors Want different information sources Information in writing not on internet Trust friends & Aldermanic opinions Highly motivated Fixed income want savings Often 1-2 people in large home Easy scheduling Home during the day Security/safety an issue Installer photos on website Sent direct mailing letter to all 50,000 seniors receiving sewer exemption 8.8% response rate 5.4% install rate Results - Of all 13,580 installs: 20% are seniors 8,054 (59%) provided addresses, but only 909 are from seniors

12 Testimonials by Neighborhood on the website

13 Marketing: Neighborhood Ambassador

14 Marketing: Consumer Confidence Report

15 Avg. MeterSave Volunteers per day Effect of Non- Metered Billing non-metered bill mailing waiting list converts to eligible list Events Dates Peak Daily Volunteers Senior Letter mailing Jul Newspaper articles re: budget Oct Non-metered billing Nov-11 to current Consumer Confidence Report Jun Consumer Confidence Report Jun Series in Sun Times Oct Mayor's Budget Address, Newspaper Articles Water Quality Report 2011 Water Quality Report Sun Times series Senior Letters 0

16 Avg. % Savings # to ever hit cap Avg. Savings over time 100% Avg. % Savings # to ever hit 7-yr 'cap' * % 200 *Note: customer may hit cap in 1st year but not the 2nd year, however still included in this count Only 2.5% have hit the cap! % 0 10/14/09 5/2/10 11/18/10 6/6/11 12/23/11 7/10/12

17 Conclusions The word is spreading! Almost 21,000 volunteers to date People are saving money! Avg. savings is over 50% to date People are saving water! Customers say they pay more attention to their water use Effect of the economy people are looking for ways to save money however, no $ for a professional marketing campaign Huge IT and Operational changes were needed to make the process fast & effective Over 13,580 meters installed so far; goal for 2012 is 10,000 more! Work culture change - paperless, automated, website driven

18 Questions & Answers 11

19 2012 Budget Rate Increase 25% water rate increase - January 2012 Cost of 1,000 gallons of water $2.01 in 2011 $2.51 in 2012 Sewer rate increased from 86% to 89% of water rate Seniors retain exemption