BACKGROUND: Virginia’s fast-growing Hampton Roads region (population 2 million) is surrounded by...
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BACKGROUND: • Virginia’s fast-growing Hampton Roads region (population 2 million) is surrounded by water – rivers, bays, harbors – and has the highest need to deal with choke points, especially at two tunnel crossings on the Elizabeth River. The preliminary estimate to construct a new tunnel, as well as improve the existing tunnels and a nearby highway, exceeded $2 billion. Funding of this magnitude was not available without a creative solution. • In 2012, VDOT found the answer through one of Virginia’s first Public-Private Transportation Act (PPTA) partnerships with Elizabeth River Crossings LLC (ERC). • ERC would design, construct, finance, operate and maintain the improved facilities. Improvements would include a new tunnel and repair of the two existing tunnels, plus repairs to a nearby highway. In exchange, the VDOT contract allowed ERC to charge tolls on the tunnels for 58 years. As there is literally no space for traditional tollbooths, all tolling would have be electronic, requiring tunnel users to have an E-ZPass transponder. • With only some remote tolling facilities, the Hampton Roads market had little experience with tolling and, consequently, few E-ZPass holders. 1 Hampton Roads E-ZPass Campaign 7a) Issues/Crisis Management Communication ‘AGAINST ALL ODDS’ Bridges, Tunnels and Traffic Choke Points Everywhere
BACKGROUND: Virginia’s fast-growing Hampton Roads region (population 2 million) is surrounded by water – rivers, bays, harbors – and has the highest need
BACKGROUND: Virginias fast-growing Hampton Roads region
(population 2 million) is surrounded by water rivers, bays, harbors
and has the highest need to deal with choke points, especially at
two tunnel crossings on the Elizabeth River. The preliminary
estimate to construct a new tunnel, as well as improve the existing
tunnels and a nearby highway, exceeded $2 billion. Funding of this
magnitude was not available without a creative solution. In 2012,
VDOT found the answer through one of Virginias first Public-Private
Transportation Act (PPTA) partnerships with Elizabeth River
Crossings LLC (ERC). ERC would design, construct, finance, operate
and maintain the improved facilities. Improvements would include a
new tunnel and repair of the two existing tunnels, plus repairs to
a nearby highway. In exchange, the VDOT contract allowed ERC to
charge tolls on the tunnels for 58 years. As there is literally no
space for traditional tollbooths, all tolling would have be
electronic, requiring tunnel users to have an E-ZPass transponder.
With only some remote tolling facilities, the Hampton Roads market
had little experience with tolling and, consequently, few E-ZPass
holders. 1 Hampton Roads E-ZPass Campaign 7a) Issues/Crisis
Management Communication Bridges, Tunnels and Traffic Choke Points
Everywhere
Slide 2
THE CRISIS UNFOLDS The GOOD: In 2012, VDOT orchestrated a
public-private partnership (P3) contract with Elizabeth River
Crossings LLC. The deal called for toll collections, starting in
July 2013, to finance the new tunnels and other improvements. The
BAD: The Hampton Roads market had limited experience with tolling.
The two existing tunnels were not tolled. When tolls were announced
to fund this improvement project, residents and businesses,
especially in the city of Portsmouth, immediately reacted. Strong
opposition formed. News media covered the escalating story. The
city of Portsmouth sued VDOT to stop the tolls on the tunnels as
tolling would have a relatively greater impact on its residents and
businesses compared to those in the city of Norfolk, located on the
opposite side of the tunnels. Media coverage was strongly negative
about the tolling plan. The city of Portsmouth won the local court
battle. The circuit court judge declared the tolls
unconstitutional, saying the Virginia General Assembly exceeded its
authority by delegating to VDOT "unfettered power" to set the toll
rates "without any real or meaningful parameters. No tolling meant
VDOT would have to cover the debt and fund the planned tolls.
Meanwhile, ERC began construction. The Commonwealth of Virginia was
now on the hook for more than $1 billion of debt. VDOT took the
case to the Virginia Supreme Court. The high court expedited the
case, but it was not clear when a ruling would be made. If VDOT
won, tolling would begin as soon as possible. However, few
residents in the region had E-ZPass transponders, and no one was
about to get an E-ZPass with so many unknowns. On Oct. 31, 2013,
the Virginia Supreme Court ruled the tolls were legal. But wait,
theres more The UGLY: A new governor was elected five days later,
on Nov. 5, 2013. He immediately pledged to eliminate, reduce or
delay tolling on the two facilities. Again, no one was about to
obtain an E-ZPass with so many unknowns. Meanwhile, construction
continued, and VDOTs financial liability grew along with the public
criticism. 2
Slide 3
Final Decision: In early December 2013, the governor- elect
dropped his call to eliminate tolling. VDOT saw mounting liability
to its P3 partner. Tolling was set to begin on Feb. 1, 2014. The
Impossible Task: In the face of public disappointment and continued
active public protesting, VDOTs was tasked with getting: 75,000
75,000 new transponders issued and activated in 45 days - by Feb 1,
2014. 3 FINALLY, A GREEN LIGHT ALONG WITH AN IMPOSSIBLE TASK THE
ENVIRONMENT: Here are some of the scores of stories and articles
that appeared from mid-2013 through May 2014: Images advance
automatically TV news story day tolls began Stories focus on the
personal impact of the tolls, not the benefits of a new tunnel
Negative coverage was routine Legal case is only one of the
conflicts For several months, TV station has done Toll Patrol
stories
Slide 4
VDOT developed a creative strategic plan to tackle this issue
Phase I: Advance the Benefits of the Project Strategy: With tolling
ruled legal and the tolling start date up in the air, focus on
information and education about the tunnel improvements, related
community benefits and construction, which had already started Key
Messages: Why improvements are needed; whats included; details
surrounding the initial construction work to minimize commuter
impact; community benefits Outreach: Mostly media and stakeholder
relations, community and business briefings, and traffic radio
report underwriting Timing: Conducted until a firm tolling start
date is announced - from the first announcement about the P3
arrangement through the public outcry over tolling up to the final
Virginia Supreme Court decision and actions by the governor-elect
Phase II: Focus On E-ZPass Transponders Strategy: Once the tolling
start date is set, hyper-focused on advancing E-ZPass accounts Key
Messages: All-electronic tolling starts Feb. 1, 2014. You will need
an E-ZPass. Heres how and where to obtain E-ZPass transponders.
Outreach: Paid advertising targeting primary tunnel users in
Norfolk and Portsmouth Promotions radio remotes and appearances on
local feature programs Retail distribution - VDOT opened two new
E-ZPass customer-service centers to issue E-ZPass transponders and
recruited dozens of local retailers to serve as additional
distribution points for the On-the-Go self-serve E- ZPass kit
Timing: To begin after the final green light on tolling is
announced. Given 2013 holiday advertising clutter and consumer
distraction, the media ad campaign could not launch until Jan. 1,
2014. There would be fewer than 30 days before tolling began. It
had to work. 4 VDOTs CRISIS MANAGEMENT PLAN VDOTs CRISIS MANAGEMENT
PLAN VDOT Crafted a Two-Phase Crisis Management Plan
Slide 5
TV: Primarily a Cable buy, three versions produced directing
consumers to the website, phone or retail locations. PRINT:
Newspaper strip ads, small space and display ads in major and
community newspapers OUTDOOR: Traditional billboards/digital
billboards, plus printed banners placed at tunnel entrances, and
electronic messaging. STRAIGHT-FORWARD CREATIVE: The effort was
built around clear, consistent messaging across all media vehicles
TV, print, outdoor, highway banners, electronic message boards and
online [slide is animated] 5 Click here when done with TV spot
CLICK TO CONTINUE... ONLINE: Same messaging, using both display ads
and dynamic search, to appear when and where targeted consumers go
online and built custom landing page
Slide 6
23 Community Events and 6 three-hour live radio remotes took
place: Media Plan designed to cost-effectively deliver over 40
million impressions in three month period, running before and after
the February 1 st start of tolling. MEDIA AND PUBLIC RELATIONS:
APPROACH: Be visible across the typical day of a tunnel
user/commuter. Use paid media as well as highly visible public
relations activities. [Slide is animated slight delay] 6 CLICK TO
CONTINUE... Six times VDOT representatives appeared on local talk
shows:
Slide 7
The needed $2 billion to keep Hampton Roads moving was not
avail- able. VDOTs answer was a public-private partnership (P3)
with Elizabeth River Crossings LLC. This financing arrangement not
only made the project possible, it advanced P3s as a viable future
solution for other road improvements across the Hampton Roads
region and the Commonwealth of Virginia. If this P3 failed, the
commonwealth would be responsible for $1 billion in new debt and
P3s would face a more difficult road ahead. This project brought
tremendous economic development benefits to the region, which were
the key message points in Phase I of VDOTs communication outreach
efforts: More than $1 billion in construction to be built by local
companies More than 500 project-direct jobs More than 1,000 jobs in
the community with related industries and suppliers Over 100
permanent facilities, maintenance and operations jobs Overall
results: VDOT met and exceeded its goals and objectives. Today
all-electronic tolling is in place and is operating smoothly on the
two tunnels. The tunnel improvements and new tunnel construction
are proceeding smoothly. VDOTs crisis-communications plan helped
redirect the community conversation with measurable results. In a
pre- and post-campaign survey, the number of mentions of tolling
fell by 40 percent and the number of mentions of E-ZPass increased
by 83 percent. Now the entire project is out of the news. 7
Objective #1: Make This Overall Initiative Successful, Help Direct
the Community Conversation Market Survey: What Have You Heard?
December 2013 Survey TOLLING March 2013 Survey E-ZPass
Slide 8
Before VDOTs public information and education campaign, there
were 128,000 E-ZPass transponders issued in the entire Hampton
Roads market (presumably to people familiar with E-ZPass and who
would use it when they traveled to other markets). It was estimated
that less than 10 percent of this base number were regular
Elizabeth River tunnel travelers. The 45-day goal for the
retail-focused communications effort was 75,000 new transponders by
toll launch Feb. 1, 2014. The following are the measurable results
: The campaign WORKED! 86,000 new transponders were issued by Feb.
1, 2014. The campaign continued, bringing in 144,000 additional
transponders since Feb. 1. Through May 2014, VDOT increased E-ZPass
transponders in the market by 213 percent. 8 Nov. 1, 2013
Pre-campaign E-ZPass Transponders in Hampton Roads Feb. 1, 2014
Tolling Starts From Feb. 1 to May 31, 2014 128,000 214,000 272,000
+86,000 +144,00 0 Objective #2: Get 75,000 New E-ZPass Holders by
Feb. 1, 2014 Measureable Results
Slide 9
If tolls create less congestion at the two Elizabeth River
tunnels, then negative attitudes against tolls could become more
positive. In both morning and afternoon rush periods, a 10 percent
reduction in the traffic volume could help mitigate most of the
severe traffic congestion. A related campaign objective was to
demonstrate this anticipated benefit. Variable pricing would reduce
trips and shift trip times for others. Measurable result: Traffic
volume is approximately 20 percent lower than in 2013. 9 Objective
#3: Demonstrate How Tolling Helps Mitigate Congestion As the
Hampton Roads region had only a couple of other tolled facilities,
there were few E-ZPass holders in the market before this
initiative. Tolling as one of the future funding options for
improvements and new facilities could be easier to introduce if
more people had an E-ZPass. A related campaign objective was to
increase awareness and the likelihood to get an E-ZPass. The
measurable result: Knowledge of how to obtain an E-ZPass increased
by 31 percent and the number of residents who are likely to obtain
an E-ZPass increased by 33 percent. Objective #4: Build Awareness
and Future Demand for E-ZPass Transponders in the Market to Support
the Possibility of Future Tolling on Other Facilities Pre-Campaign
Traffic Counts Post-Campaign Traffic Counts Pre- Campaign 54% 85%
Post- Campaign Know how to obtain an E-ZPass Pre- Campaign 49% 82%
Post- Campaign How likely are you to get an E-ZPass Measureable
Results 13,164,944 15,824,720
Slide 10
1. DONT PANIC: No matter when the odds are seemingly stacked
against you, dont panic. Keep the faith. It is possible to
structure messaging and orchestrate a comprehensive public
information and education program that can accomplish your DOTs
goals and even exceed expectations. 2. KISS: Apply the Keep it
Simple principle to your communications plan. Stay above the fray
dont respond or engage in debate over sensational media coverage
focusing on personal impacts. Stay hyper-focused on your core
messaging advance both positive community impacts and how your DOT
is doing everything to make this work. 3. LEVERAGE YOUR LIMITED
BUDGET: Use your owned DOT media channels as much as possible to
inform and educate motorists on what is happening and what they
need to do DOTs website, 511, electronic messaging boards, banners
and other signage on the actual facilities. 4. CREATE PARTNERSHIPS:
Do not assume your media partners will go the extra mile unless you
specifically ask them to help. Fund special partnerships that
involve events, radio remotes and on- screen interviews on local
lifestyle feature shows. All these extra efforts can make a
difference. If you are advancing a retail action like get your
E-ZPass transponder, make sure you have a strong retail presence in
your own facilities and with partners DMV, local government
administration offices, large and visible retailers, and others. 5.
MAKE IT EASY FOR PEOPLE: Make sure all your outreach includes a
strong and clear call to action. Let everyone know exactly what to
do. Include toll-free phone numbers and create special online
landing pages to make it easy for people to take action. 10 5 Key
Lessons Learned 5 Key Lessons Learned VDOT Communications Divisions
Takeaways From Managing This Crisis