May 20, 2008

Contracting ServicesOverview of solicitation process – Peter Lan

Business OutreachOverview by John Arena

Metropolitan Water DistrictMetropolitan Water Districtof Southern Californiaof Southern California

6 counties; 5,200 Square Miles

18 million people

Regional economy: $927 Billion

Projected growth:

~220,000 people/year

MWD provides about half of

southern California’s supply

Where SouthernWhere SouthernCaliforniaCalifornia

Gets its WaterGets its Water

Where SouthernWhere SouthernCaliforniaCalifornia

Gets its WaterGets its Water

LAKELAKESHASTASHASTALAKELAKESHASTASHASTA

LAKELAKEOROVILLEOROVILLELAKELAKE

OROVILLEOROVILLE

Bay-DeltaBay-DeltaBay-DeltaBay-Delta

STATE WATER STATE WATER PROJECTPROJECT1.2+ MAF1.2+ MAF

STATE WATER STATE WATER PROJECTPROJECT1.2+ MAF1.2+ MAF

LOS ANGELESAQUEDUCTS

0.3 MAF

LOS ANGELESAQUEDUCTS

0.3 MAF

COLORADOCOLORADORIVERRIVER

AQUEDUCTAQUEDUCT500,000+ MAF500,000+ MAF

COLORADOCOLORADORIVERRIVER

AQUEDUCTAQUEDUCT500,000+ MAF500,000+ MAFMETROPOLITANMETROPOLITAN

WATER DISTRICTWATER DISTRICTSERVICE AREASERVICE AREA

METROPOLITANMETROPOLITANWATER DISTRICTWATER DISTRICTSERVICE AREASERVICE AREA

LOCALLOCAL1.5 MAF1.5 MAFLOCALLOCAL1.5 MAF1.5 MAF

Importance of water conservationYears of record dry conditions State’s fragile water supply and delivery

systemNeed for permanent change in the way we

use water

GoalReduce residential water use voluntarily in

Southern California

ObjectivesConsumer behavior change with everyday

water use, particularly outdoorsRebates requested on water-saving devicesDevelop/enhance water conservation ethicStress urgency of message

Audience CharacteristicsResidents of six SoCal counties

Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties

Adults 25-64People with outdoor landscaping and

automatic sprinkler systemsEnglish/Spanish

TimingJuly and August are peak water use monthsApril-June and September-November are the

next highest water use periodsTypical “wet” months are December-March

•Outside water use as estimated by California Urban Water Conservation Council, 2005 Landscape Task Force•Indoor water use as estimated by American Water Works Association, Residential End Users of Water study, 1999

MessagesWe have a problem with our water supplyNeed for permanent changeRebates are available on new technologies

Smart sprinkler controllersPrecision rotating sprinkler headsHigh-efficiency clothes washers

Minimize the amount of turf in your yardMore tips and info on bewaterwise.com

“Time to Get Serious”August-December 2007$3 million budget18 weeks

Spot radio/traffic radioPrint and online

BrushDripHose

“Cut Your Water Use”Media mid-April to early July$1.3 million budget

:10 TV (news & sports programming):60 Radio1/4 Page NewspaperOnline:30 TV PSAs

“Cut Your Water Use”Gives audience a very easy prescriptive way to

save water.Uses extremely simple animation to stand out

on airwaves and make saving water seem easy.

Outdoor Version Indoor Version

Languages

•English•Spanish•Mandarin Chinese•Vietnamese•Korean

Campaign Effectiveness TrackingPre- and post-campaign consumer surveysVisitors to bewaterwise.comRebates issuedRetail water sales at local level (actual sales

vs. projected sales, accounting for weather, population growth)

November 2007 (random digit dialing survey)

Water ShortagesSTATEMENTS YES NO

In the last 3 months, have you heard anything about below average rain fall or potential water shortages?

92% 8%

As a result of this, have you changed anything in the last three months to help conserve more water?

76% 24%

What have you changed?

58%

36%

18%

6%

5%

3%

3%

0%

3%

23%

0% 10% 20% 30% 40% 50% 60% 70%

Time/frequency of watering

Take shorter showers

Turn off water when brushing

Broom instead

Fixed leaks

CA friendly plants

Smart sprinkler controller

Visited website

Don't recall

Other

This is a multiple response question and percentages may exceed 100%.

Awareness of shortages has increased by 5 percent

Changing behavior to conserve has increased 10 percent

Q17: Have you heard anything about below average rainfall or potential water shortages?

Q18: As a results of this, have you changed anything in the last three months to help conserve water?

Q19: What have you changed?

This survey is comprised of two independent samples (one of general public and the second of homeowners) that include some overlap. The sample size for each study is 544 and is distributed across the six-county region according to population. This provides accuracy of +/-5% at a 95% confidence level for the region as a whole. Surveying was conducted in November and early December 2007 by telephone using random digit dialing.

Awareness of New Technologies Awareness of smart sprinkler controllers has decreased for the first time since 2005,

from the high of 38 percent in summer 2007 to 31 percent in winter 2007.

At 50 percent, awareness for dual-flush toilets is unchanged from summer 2007.

Awareness for rotating sprinkler heads is 28 percent, down slightly from 33 percent in summer 2007.

50% 50% 52%

40%

48%

15%

22%24%

31%

38%33%

28%

0%

10%

20%

30%

40%

50%

60%

Winter 2007 Summer 2007 Nov. 2006 Summer 2006 2005

Dual-Flush Toilets Smart Sprinklers Rotating Sprinklers

Q38-40 Now I am going to ask you about a couple of new water saving products. Have you seen or heard anything about…?

Awareness of Rebates Rebate awareness is highest for clothes washers at 48 percent

followed by dual-flush toilets at 20 percent and smart controllers at 7 percent.

Awareness of rebates is essentially unchanged from summer of 2007.

20% 20% 22%

16%

7%10%

6% 4% 5%

48%45%

57%

39%

57%

0%

10%

20%

30%

40%

50%

60%

Winter 2007 Summer 2007 Nov. 2006 Summer 2006 2005

Rebates for Dual-Flush Toilets Rebates for Smart Sprinklers Rebates for Clothes Washers

Q41-43: Now I am going to ask you if you have seen or heard anything about rebates for water saving products. Have you seen or heard anything about…?

Advertising Awareness and Recall-Unaided Advertising awareness continues to increase from the past four studies, rising to 83

percent for the current study.

Question in Nov. 2006 and prior was: Do you recall seeing, or hearing any ads or advertising messages about outdoor water conservation, sprinkler use, or water-wise plants in the past six months?

83%

17%

72%

37%35% 33%

40% 45% 28%

63% 65% 67%

60%55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

June 2003 Nov. 2003 Fall 2005 Summer 2006 Nov. 2006 Summer 2007 Winter 2007

Yes No/Don't know

Q44: Do you recall seeing or hearing advertisements in the last 6 months about the need for water conservation, dry weather, or ways to save water?

Water Supply SummaryWe are in a critical water supply situationWe are already using our reserves to meet

regular demandWater conservation must be a new way of life

Water Use SummaryBetween 30 and 70 percent of a household’s

water use is outside the homePeak water use occurs in July and AugustMost people with automatic sprinkler

systems are overwatering their landscapes

Research SummaryAwareness of need to save water is highAwareness of new technologies is lowPeople say that they have changed their

behavior; what more can they do?

Goal/Objectives SummaryWe want to see consumer behavior change

with everyday water useCash in more rebatesFurther develop a “water conservation ethic”Interested in media plan that includes value-

added elements

Questions?Advertising campaign or MWD-related

(Yvette and Lynn)Solicitation-related (Peter)