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CC 2015-03-10_10b Status Report_Water Conservation ProgramMEMORANDUM TO: CITY COUNCIL FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR GEOFF ENGLISH, PUBLIC WORKS DIRECTOR SUBJECT: CONSIDERATION OF STATUS REPORT AND COUNCIL DIRECTION ON THE CITY'S WATER CONSERVATION PROGRAM DATE: MARCH 10, 2015 RECOMMENDATION: It is recommended that the City Council receive the status report for the City's Water Conservation Program and provide direction. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The Water Conservation program is designed to achieve the City's water conservation goals by 2020, which provides an implementation period of 5.5 years. Total expenditures previously projected for this period are as follows: Program Turf Removal Program Washing Machine Rebates Smart Irrigation Controller Program Landscape Irrigation Retrofit Plumbing Retrofit Program System Water Loss Mitigation City Landscape Irrigation Water Survey Program Public Education Campaign Total FY 2014-15 $60,000 $8,000 $8,000 $6,000 $52,050 $25,000 $40,000 $20,000 $100,000 $319,050 Total $330,000 $44,000 $44,000 $33,000 $286,275 $100,000 $200,000 $110,000 $410,000 $1.,557,275 The approved budget was reduced from $100,000 to $70,000 annually the first two years for public education and then projected to decrease it to $50,000 -$60,000 annually. System water loss mitigation is programmed over a four-year period and the City drought tolerant landscape improvements over a 5-year period. Total expenditures were projected to ·be $319,050. The program is funded from the following projected revenues: Existing Water Mitigation Fee Funds Future Projected Water Mitigation Fee Revenue Annual Funds Programmed in Water Fund for Conservation Funding Available from Expiration of OCSD Water Purchase Agreement Total $190,000 $275,000 $275,000 $825,000 $1,565,000 Item 10.b. - Page 1 CITY COUNCIL CONSIDERATION OF STATUS REPORT FOR THE CITY'S WATER CONSERVATION PROGRAM MARCH 10, 2015 PAGE2 The program continues to result in a substantial commitment of staff resources. However, addressing water supply is one of the City's priorities identified in the Critical Needs Action Plan. BACKGROUND: The City's long-term water supply was identified as a significant issue during development of the City's 2001 General Plan Update and over the years the City has completed several major studies for water supply alternatives. At the August 12, 2008 meeting, the City Council approved a Resolution declaring a "severely restricted water supply condition." Mandatory conservation measures were enacted. These measures were later made permanent in 2010. Meanwhile, the City's water conservation program and tiered rate structure were expanded. In 2009, low groundwater levels and high chloride concentrations from water quality tests of one of the sentry wells located along the coast gave indications of incipit seawater intrusion. At the November 10, 2009 meeting, the City Council adopted an Interim Urgency Ordinance establishing a development moratorium. The moratorium was extended at the December 8, 2009 and April 13, 2010 meetings. The moratorium later expired in 2010. The State of California also enacted the Water Conservation Act of 2009, which required a reduction of 20% in per capita water use by the year 2020. On January 17, 2014, Governor Brown issued a proclamation declaring a Drought State of Emergency for the State of California. Local urban water suppliers and municipalities are called upon to implement their local water shortage contingency plans immediately in order to avoid or forestall outright restrictions that could become necessary later in the drought season. Additionally, a statewide water conservation campaign calls on Californians to reduce their water usage by 20 percent. Local water agencies are also required to update their legally required urban and agricultural water management plans to help prepare for extended drought conditions. The City's plan is up to date and is required to be updated again in 2015. At the June 10, 2014 City Council meeting, staff presented comprehensive strategies to address the City's long-term water supply needs. The primary objectives of the recommendations were to address long-term projected water demand through increased water conservation measures, to protect existing water supply by pursuing initial studies for a project that will use recycled water to prevent seawater intrusion, and to coordinate with neighboring jurisdictions to manage the overall water supply in the most effective manner possible. The City Council approved all the recommendations except proposed funding for a water conservation public education program. Consideration of this program was deferred and staff was requested to provide more detail on what the program would Item 10.b. - Page 2 CITY COUNCIL CONSIDERATION OF STATUS REPORT FOR THE CITY'S WATER CONSERVATION PROGRAM MARCH 10, 2015 PAGE3 entail. Some concerns were also expressed regarding the proposed cost for the program. In addition, it was emphasized that the water supply recommendations were designed to address future projected demand under normal weather and supply conditions and any project aimed at preventing seawater intrusion could take up to 10 years to implement. Therefore, an extended drought would likely cause problems for the City. As a result, staff was directed to establish a Water Shortage Emergency Plan. On August 26, 2014, the City Council approved the water conservation public education program and authorized the City Manager to execute a consultant services agreement with Verdin Marketing, Inc. to develop and implement the water conservation public education program, and directed staff to prepare a contingency Water Emergency Ordinance that was adopted on February 24, 2015. At that meeting, Council asked staff to return with an update on the City's water conservation public education program. ANALYSIS OF ISSUES: The purpose of the water conservation public education program is threefold: 1. Stabilize projected demand numbers in a future of recurring drought conditions by changing consumer habits that will result in ongoing and reliable demand reductions; 2. Provide a concerted education effort now so that the City is better able to weather current severe drought conditions without having to enact the recently adopted ordinance for emergency water restrictions; and 3. Lead residents and property owners to information about the water conservation programs offered by the City of Arroyo Grande that will provide permanent water use reductions and thus a permanent reduction in the water demand. In order to meet and hopefully exceed the City's required conservation per capita goals, it is important to review the City's water supply portfolio, the significant achievements to date to reduce demand through current conservation programs, and to determine the status of the City's education program. Every consumer that is made aware of City water efficiency programs and other means to reduce demand will result in significantly reduced supply concerns over time. Item 10.b. - Page 3 CITY COUNCIL CONSIDERATION OF STATUS REPORT FOR THE CITY'S WATER CONSERVATION PROGRAM MARCH 10, 2015 PAGE4 Table 1 below shows the current and projected water supply through 2030. Table -1.-cu·rrenfand Projected Water Supply...;. A~re:Feet per Year (AFY) ... -. -·-. Water Supply Sources 2010 2015 2020 2025 2030 Groundwater-Santa 1,323 1,323 1,323 1,323 1,323 Maria Groundwater Basin Groundwater-Pismo 80 200 200 200 200 Formation 1 County of San Luis Obispo 2,290 2,290 2,290 2,290 2,290 Lopez Reservoir Project Oceano Community Services District 2 100 TOTAL 3,793 3,813 3,813 3,813 3,813 1 Assumes 80 AFY of groundwater from Well No. 9, 80 AFY from Well No. 10, and 40 AFY from Well No. 11 will be available as a reliable source of supply from 2015 through 2030. 2 Assumes that the remaining three years of the five year contract of 100 AFY with OCSD will be utilized in 2012, 2013 and 2014. Overview of Growth Projections According to the Census, Arroyo Grande grew 10.2 percent between 1990 and 2000 and 8.8 percent between 2000 (15,851) and 2010 (17,252). The California Department of Finance provides more updated population data and shows that the City decreased its population by 0.5% between 2013 and 2014 (17,415 to 17,334). Current estimates by the San Luis Obispo Council of Governments (SLOCOG) in their 2040 Regional Growth Forecast (August 2011) project the City's population to be approximately 18,407 residents by 2020, based upon an annual growth rate of 0.72%. The City's 2001 General Plan estimates that a buildout population of 20,000 will be reached by 2023. Given that the City has not experienced a continuous 1% growth rate as estimated in the General Plan, buildout will likely be later than 2023. Item 10.b. - Page 4 It e m 1 0 . b . - P a g e 5 It e m 1 0 . b . - P a g e 6 ., CITY COUNCIL CONSIDERATION OF STATUS REPORT FOR THE CITY'S WATER CONSERVATION PROGRAM MARCH 10, 2015 PAGE7 The Plumbing Retrofit Program replaces old, high water-use fixtures for residential units built prior to 1992. All parts and labor required for the retrofit are provided free of charge. The retrofit includes replacing the following fixtures: • Toilets-replace with ultra low-flow 1.6 gallons per flush (as of January 1, 2014 the requirement is 1.28 gallons per flush). Cost is $235-$290 per toilet. • Indoor Faucets -install aerators designed for 2.0 gallons per minute. Cost is $5 per faucet. • Showerheads-replace with 2.5 gallons per minute. Cost is $13 per showerhead. • Pressure Regulator -inspect and adjust or install new regulator not to exceed 80 pounds per square inch (psi). Cost is $135 for a new pressure regulator. This program is voluntary; however, in February 2005 the City Council adopted an ordinance implementing a mandatory plumbing retrofit program upon the change of ownership of any real property. The seller must retrofit the property's plumbing fixtures to meet the criteria of low-water use. Staff estimates that his program saves 7.5 AFY of water. The goal is to retrofit 150 homes per year. The Cash for Grass Rebate Program provides a financial incentive for homeowners and businesses to remove existing turf and replace it with a less water-intensive landscape. The goal of the program is to encourage a permanent reduction in the amount of water used for landscaping. In 2014, the City increased the rebate payment from $0.50 to $1.00 per square foot of turf removed, and the minimum amount of turf to be removed was increased from 250 to 500 square feet with a maximum amount of eligible turf removal capped at 5,000 square feet. To date, 196 turf removal projects have been completed removing 232,252 square feet (5.33 acres) of grass. Staff estimates that this program saves 3.3 AFY of water. The Water Efficient Washing Machine Rebate Program provides a rebate of $200 (increased in 2014 from $150) for CEE Tier 3 washers. On average, a high-efficiency washer uses 20% less energy and 35% less water than regular washers, which can save up to 5,250 gallons per year per household. To date, 119 rebates have been issued. Staff estimates that 0.8 AFY of water is saved with this program. The goal is to replace 40 washers per year. On February 10, 2015 the City Council removed the local purchasing requirement for the Water Efficient Washing Machine Rebate Program. The Smart Irrigation Controller and Sensor Program provides an irrigation audit with recommendations for system improvements and a smart controller with weather-based sensor technology to replace older controllers for residential properties. The City pays up to $300 for a new controller per residence. The City contracts with Sprinkler King, Inc. to conduct the water audits and provide the controllers to qualifying participants. To date, 79 water audits have been performed with new controllers installed. The Item 10.b. - Page 7 CITY COUNCIL CONSIDERATION OF STATUS REPORT FOR THE CITY'S WATER CONSERVATION PROGRAM MARCH 10, 2015 PAGES estimated water savings is 0.9 AFY with this program. The goal is to achieve 20 installations per year. Since 2009, the City has contributed to Large Area Irrigation Retrofits for commercial, institutional and homeowner association (HOA) water users. To date, the City, with the -assistance of Sprinkler King, Inc., have retrofitted the following properties: • Oak Park Blvd Landscaping • Vista Del Mar HOA • Woodland Pocket Park • Wildwood Ranch HOA • Strother Park • Five Cities Center • St. Patrick's School • Kmart Center • Sunrise Terrace Mobil Home Park • Cemetery District • Paulding School • Rancho Grande Park • Ocean View School It is estimated that 17.39 AFY is saved from the Strother Park, Paulding School, Ocean View School, Cemetery District and Rancho Grande Park retrofits (audits for determining post-project water savings have not been completed for the other properties). The goal is to contact other large commercial, institutional and HOA water users to encourage participation in the program. The Landscape Irrigation Retrofit Program includes retrofitting outdated spray heads and drip emitters for existing residences. Sprinkler King, Inc. has conducted 79 residential irrigation audits for the City and provided information on the average sized landscape retrofit. This includes replacing 25 sprinkler heads with MP rotators and/or drip irrigation emitters. The estimated water savings is 30% per retrofit. The cost for an average residential irrigation retrofit using MP rotators and emitters, less labor and tax costs, is $200. The estimated water savings is 0.8 AFY. The goal is to achieve 20 installations per year. On February 10, 2015 the City Council approved combining the Smart Irrigation Controller Program and the Landscape Irrigation Retrofit Program for a total maximum rebate of $500. The System Water Loss Mitigation Project has been programmed to include a leak detection survey of the City's water distribution system. Approximately seven percent (7%) of the water produced or delivered to the City is lost through leaks, inaccurate water meters or other unaccounted for water loss. Most water distribution systems have typical water losses of between 5% and 1 0%. Staff believes that through a comprehensive leak detection survey and repair of identified water loss locations, a 2% reduction to the City's water system loss is attainable. A 2% reduction in water loss will generate a water savings of approximately 12.4 AFY. A Request for Proposals is being prepared for distribution to secure a contractor to conduct the leak detection survey. Item 10.b. - Page 8 CITY COUNCIL CONSIDERATION OF STATUS REPORT FOR THE CITY'S WATER CONSERVATION PROGRAM MARCH 10, 2015 PAGE9 The Citv-owned Property Landscape Irrigation Retrofit Program provides funding for a comprehensive effort to reduce water use at City parks and landscape areas. This program involves turf removal and irrigation retrofit projects. Turf removal areas are re- landscaped with drought tolerant landscaping. Arroyo Grande in Bloom has been consulted on the re-landscaping designs and final design plans will be reviewed by the Arroyo Grande Parks and Recreation Commission on Wednesday, March 11, 2015. This program is also important because beginning in FY 2014-15, water costs for City parks and landscape areas will be charged to the General Fund. Previously, water costs were borne by the Water Fund. It is estimated that this program generates a water savings of approximately 14 AFY. The Water Use Survey Program involves the use of existing Public Works Utilities Division staff to conduct water use surveys at targeted residential and commercial properties. Funding for this program is programmed to hire a temporary employee to back-fill the duties of one current Utilities Division employee. During the five and one- half year program, staffs goal will be to contact all of our water system customers to arrange for a Water Use Survey. However, the high use customers will be targeted first. Following the Water Use Survey, customers will be referred to existing water conservation programs and other necessary corrections that will help the customer reduce water use. It is estimated that this program will generate water savings of approximately 2.5 AFY in addition to increasing participation in other incentive programs. Public Works staff is preparing the water audit survey tools and will begin full implementation of this program during the summer of 2015. The Public Education Program includes a consultant team under contract with Verdin Marketing, Inc. with both the City and the City of Pismo Beach to design an extensive public education marketing campaign for a far reaching water conservation education program. The estimated total water savings is approximately 23 AFY. Staff distributed a Request for Qualifications on June 19, 2014 to local public relations and marketing firms for development of the water conservation public education program. Responses were received from three firms. Following interviews, a review committee recommended contracting with Verdin Marketing, Inc., which the City Council approved on August 26, 2014. The program has been developed and is being implemented jointly with the City of Pismo Beach as they have incentives consistent with those recently approved by the City Council. Included as Attachments 1 and 2 is Verdin's summary of accomplishments and schedule to date. It is important to clarify that the purpose of the public education program is to help meet water conservation goals to address the City's long-term future projected water demand. It is not simply designed to educate the public about the immediate need to conserve water due to the drought. The intent of this program is to: 1) promote incentives offered by the City to assist residents in changing water related equipment and appliances that Item 10.b. - Page 9 CITY COUNCIL CONSIDERATION OF STATUS REPORT FOR THE CITY'S WATER CONSERVATION PROGRAM MARCH 10, 2015 PAGE10 will make permanent reductions in water use; 2) modify ongoing behaviors to use less water during normal daily activities; and 3) provide education on how water savings can be best achieved. Therefore, while the program is anticipated to be most intensive the first two ·years, some level of ongoing effort will need to be maintained in order to continue to achieve the water savings on a permanent basis through modified behavior by consistently reinforcing the information. Projected Water Savings: ltexpected. that the City will save a total of 124 AFY by 2020 through implementation of the various water conservation programs. Implementation Strategies The City's Water Conservation Team meets regularly to implement the work program. Staff monitors the programs and provides updates to the City Manager and Council. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 1. Receive and file the status report for the City's Water Conservation Program; 2. Receive the status report and modify any of the programs; or 3. Receive the status report and provide staff other direction. ADVANTAGES: Conservation efforts are the most cost effective option to address water needs and are within the City's control to proceed. It is programmed to work in addition to the Northern Cities Management Area (NCMA) work program that is designed to protect the groundwater supply and ensure the City will have access to its full allocation in the future of this water resource. The comprehensive water conservation strategy provides a feasible alternative to meet both demand and State requirements. Lastly, it can be fully funded without rate increases. DISADVANTAGES: Ongoing water conservation programs require ongoing costs. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, March 5, 2015. The Agenda and staff report were posted on the City's website on Friday, March 6, 2015. No public comments were received. Attachments: 1. Verdin Summary of Work 2. Verdin schedule Item 10.b. - Page 10 fflf®DUD W®rr@TIITD ATIACHMENT 1 Arrovo Grande/Pismo Beach Water Consenauon SUMMARY PER SCOPE OF WORK SEPTEMBER 2014 -FEBRUARY 2015 SUBMITTED -2/25/15 INTRODUCTION In July 2014, Verdin participated in a competitive bid process and was selected as the firm to work with the Cities of Arroyo Grande and Pismo Beach on Water Conservation Outreach, to raise awareness of the drought and the efforts to secure a long-term water supply, and provide information on retrofit programs and ways residents could conserve. The plan was presented to the Arroyo Grande City Council on August 26, 2014, and was approved by a vote of 5-0. On September 2, 2014 the plan was presented to the Pismo Beach City Council and was also approved by a vote of 5-0. INITIAL RESEARCH Working under direction of the Cities of Arroyo Grande and Pismo Beach, on September 10, 2014, Verdin started work on a community phone survey. Collaboratively, a targeted list of questions was developed to gauge public perception on water conservation and current conservation behaviors in order to set a baseline on awareness and attitudes of local residents. The survey also would act as a test of messaging and determine residents' preferred means of communication. The original plan was to begin the survey on October 17 and have a final report by December 19. After several rounds of drafts and adjustments to the timeline to push the launch of the survey until mid-November 2014, Pismo Beach asked Verdin to look into the costs of cancelling the survey. On October 2 3, Verdin put together a timeline for an online survey and the phone survey was officially cancelled by both Cities. Much of the work on the phone survey transferred over to the questions for the online survey and messaging was developed and added to the survey. The two Cities looked over the questions and made edits and the final version was developed and opened for public response on November 12. In order to attract survey participants, an email list was purchased, the Cities added links to their respective websites and Channel 20, flyers were developed and distributed, and Facebook ads and a landing page were created. The survey closed on December 10 and results were analyzed and a written report was distributed to the Cities on January 5. The majority of the respondents were over 45, from Arroyo Grande, and verdin* a vision for your brand 3580 Sacramento Dr. #110, San Luis Obispo, CA 93401 t 805/54119005 f 805/54119007 verdinmarketingocom Item 10.b. - Page 11 jl is lb Vl?©ITITD W®!JcillTIOlJ lived in the area more than 10 years. Most respondents were aware of the current mandatory conservation measures and were also doing some to a lot of conservation and willing to do more. Respondents were split in their knowledge about the Cities conservation programs and most had not taken advantage of any of the programs. Respondents believed that the most effective way to encourage conservation was to offer a combination of financial rebates and mandates and show them different methods they can use to conserve. The majority of the respondents preferred to receive their news via the internet, followed by TV and Social Media. Most of the respondents were on social media, the most popular form being Facebook followed by Pinterest and lnstagram. BRAND DEVELOPMENT While the Online Survey was active, Verdin began the process of developing a brand for the water conservation campaign. Verdin brainstormed potential names and developed some initial sketches showing how these names could become logos for the campaign. These sketches were presented to both Cities at a joint meeting on November 18, 2014. At this meeting, the sketches/potential campaign names were discussed and one (Think H20) was chosen. This concept was then developed into three logo options that were presented to both Cities on December 18, 2014. At this meeting, a logo and color palette was chosen. Verdin made final revisions and sent the final logo to both Cities on January 5, 2015. The Cities met on January 7 and the final logo was approved. Verdin completed the final files and created a brand identity on January 12. rrN.KA .. 2~ WEBSITE Once the Logo and Brand Standards were nearing completion, Verdin began the development process for the website. A sitemap and web recommendations were completed and approved on December 18, 2014 and an intake session between the Verdin team and the Cities occurred on January 7, 2015. During this meeting, information was gathered as to what the Cities desired for the website both visually and from a content standpoint. An expedited timeline was developed and the process of building the website began on January 8. Verdin began creating content and designing the look and structure of the site. This information was sent to the Cities and approved on January 2 3, then content and development commenced. The website launch is anticipated for the week of March 2. A monthly blog schedule is also currently being developed in order to boost Search Engine Optimization ( SEO) . verdin* a vision for your brand 3580 Sacramento Dr. #110, San Luis Obispo, CA 93401 t 805/54119005 f 8051541/9007 verdinmareteting.com Item 10.b. - Page 12 RlEPORl SOCIAL MEDIA lr [f@ [Jffi] w ® [f@] TI rm Verdin developed a social media strategy and presented to client on December 19, 2014. A Facebook page ( https://www.facebook.com/thinkH20) was created and went livein Decemberto give us the ability to place Face book ads promoting the online survey. Content was created and ran during this time period and the page was updated with branded information in late January, which is when promotion started for the page. A Twitter account ( https://twitter.com/thinkh2onow) was created in February.Verdin has created a content calendar for the months of December, January, February, and March (thus far) including several "boosted posts" on Facebook. Content includes tips, facts, graphs, infographics and articles on water conservation as well as links to rebates and programs offered by the Cities. To date, the Facebook Page has 215 fans and has made over 100,000 impressions on approximately 63,000 different users across all demographics, particularly 18-34 and 55+. Twitter was just launched and we are currently building followers. As the website launches and the campaign grows, this number will increase greatly and is on track to reach the goal of 200 followers by June 2015. COMMUNITY PLEDGE Following Community Based Social Marketing best practices, a Community Pledge was developed in January 2015 per the approved plan and incorporated as a highlight item on the website. Starting with the Mayor and City CounciJ, the community will be encouraged to take the pledge. They can do so on the website, by completing the pledge ( including marking off various water conservation options they will commit to). Once the pledge is completed, users will receive a PDF of a Think H20 Certificate saying they completed the pledge that they can share on social media, save, and print out. Contests will be developed on social media regarding this pledge once the website is launched. BUSINESS OUTREACH A local company ( Mike di Milo with Science Discovery) has been contacted to develop an outreach presentation for local service clubs, chambers of commerce and businesses. The budget has been allocated to include di Milo's company in programs moving forward. Di Milo will create a 20-minute slide program promoting water conservation in residential and business applications. The program will be designed for adult audiences, including Rotary, Kiwanis, homeowner associations, church groups, clubs and others. The topics include the Importance of Water, Local Water Supply Resources, Current Water Use, Water Conservation Options & Incentives, and What You Can Do. Each program will have the same core conservation theme and topics. For each verdin* a vision for your brand 3580 Sacramento Dr. #110, San Luis Obispo, CA 93401 t 805/54119005 f 805154119007 verdinmarketingocom Item 10.b. - Page 13 city in which the program will be presented, a customized set of images will be inserted, giving the program a specific local relevance. COMMUNITY OUTREACH Billing Inserts Billing inserts will begin in the March/ April cycle in both Arroyo Grande and Pismo Beach. Cable Channel20 Slides of the "Rain is Not the Solution" campaign began running in early February 2015. These slides will be switched out monthly with each new campaign. Direct Mail A direct mail piece will be developed and sent in April/May of 2015 to correspond with the beginning of the dry season. Survey results indicated that direct mail was not as valued for regular communications, so the strategy is to implement just one mailer ( possibly a magnet), at a critical time to remind residents and encourage conservation. School Outreach TBD. This is scheduled to begin in March/ April. A current idea running is hosting and promoting a video contest for stude.nts 51 h grade and older in order to get them excited about water conservation. OUTREACH TO VISITORS With approval of the Cities, Verdin is in the process of discussing conservation support with hotels and BIDs/Chambers to determine the best way to get information to visitors. This program will be further developed in March 2015. PUBLIC RELATIONS A public relations schedule has been developed scheduling press releases at the optimum times for information to be distributed. The first round of press releases will coincide with the launch of the website in early March, in order to have a concrete place to send the press. Subsequent press releases will follow during the dry season highlighting milestones in conservation, ideas and tips for saving water and keeping the media aware of the Cities' progress. verdin* a vision for your brand 3580 Sacramento Dr. 11110, San Luis Obispo, CA 93401 t 805/541/9005 f 805/541/9007 verdinmarketing.com Item 10.b. - Page 14 Stage Coach Express Article ~l:J@\~~ uu o lflfu no W®ffCQJTI!IO An article was written by Verdin for AG's upcoming citywide newsletter, The Stage Coach Express. This article has been developed into the website's first blog posting. INSTALLATION MARKETING Verdin has been in communication with the City of Pismo Beach regarding hanging a banner on Price Street beginning in March 2015. Costs/budget to do so is currently being looked into, as a similar measure may be taken in Arroyo Grande. ADVERTISING Once the brand development was completed, Verdin began the first round of advertising in late January. The message for this first campaign was "Rain is Not the Solution," and was implemented on Facebook. Slides with this same message were featured on Channel 20, an ad printed in the Coast News ran on 2 I 19 and Pandora radio advertising also began. The ads are currently performing well and statistics will be available once the campaign is complete on February 2 7. These statistics will be used to determine the direction of the March campaign. An additional Adwords campaign, targeted digital ads, and Regal Cinema advertising will be added to the mediums used in March NEXT STEPS Along with launching the website, in this next month Verdin will be working on developing a new campaign focusing on driving traffic to the website and bringing a greater awareness to water conservation and rebates/regulations that the Cities offer. Our first step will be promoting the community pledge showcasing City Council and encouraging community members to take the pledge and share with friends via social media, videos and photos. Advertising will also be expanded both digitally and traditionally and installation-marketing pieces will be further pursued. Verdin will also be completing the business outreach presentation, designing the first round of billing inserts and developing the avenue for outreach to schools and visitors. verdin* a vision for your brand 3580 Sacramento Dr. #110, San Luis Obispo, CA 93401 t 805/54119005 f 805/54119007 verdinmarketing.com Item 10.b. - Page 15 ID)~iiivera1fu)a~ Tiime~~mle {1l~fliltartii~®~ AG/PB WATER CONSERVATION PROGRAM UPDATED: February 27, 2015 ESTIMATED TASK START DATE Initial Research August 2014 Brand Development Website Jan 2015 Social Media Facebook Dec 2014 Twitter Jan 2015 Community Pledge & Installation Marketing March 2015 Business Outreach March 2015 Community Outreach Billing Inserts March 2015 Cable Channel 20 Feb 2015 Direct Mail June 2015 School Outreach March 2015 Outreach to Visitors March 2015 Press Releases March 2015 ATTACHMENT 2 ESTIMATED COMPLETED END DATE Dec 2014 1/9/15 Mar 2015 Sept 2015 Sept 2015 Sept 2015 Sept 2015 Sept 2015 Sept 2015 June 2015 June 2015 Sept 2015 Sept 2015 verdin* a vision for your brand 3580 Sacramento Dr. #110, San Luis Obispo, CA 93401 t 805154119005 f 805154119007 "erdinmar~eting.com Item 10.b. - Page 16 ESTIMATED ESTIMATED TASK COMPLETED BEGIN DATE END DATE Community Events TBD TBD Paid Advertising Digital Advertising Facebook Ads Jan 2015 Sept 2015 Google Adwords March 2015 Sept 2015 Targeted Display Banner Ads March 2015 Sept 2015 Broadcast Advertising Pandora Feb 2015 Sept 2015 Print Advertising The Coast News Feb 2015 Sept 2015 Regal Cinemas Theater Screens April 2015 Sept 2015 This is an estimated timeline. Tasks and dates are subject to change. verdin* a vision for your brand 3580 Sacramento Dr. #110, San luis Obispo, CA 93401 t 805154119005 f 805154119007 "erdnnmarltetingacom J Item 10.b. - Page 17 THIS PAGE INTENTIONALLY LEFT BLANK Item 10.b. - Page 18