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HomeMy WebLinkAboutCAO 03-18DICKERING city Report to Executive Committee Report Number: CAO 03-18 Date: May 7, 2018 From: Tony Prevedel Chief Administrative Officer Subject: Proposal — Community Engagement on Economic Impact & Employment — 407 Corridor - File: D-1100 Recommendation: 1. That Proof Inc. be retained as a consultant in the amount of $150,000 as per the Purchasing Policy, Section 10.03 (c), to undertake the Community Engagement on Economic Impact & Employment — 407 Corridor; 2. That the total gross project cost of $150,000.00 (HST included) be approved; 3. That Council authorize the Director, Finance & Treasurer to finance the total net project cost of $150,000 as follows: a. The sum of $58,704 to be funded by a transfer from the Development Charges — Administration Studies Reserve Fund; b. The sum of $91,296 to be funded by a transfer from the Seaton Application Fee Reserve; 4. That a copy of this report be forwarded to the Region of Durham and Transport Canada; and 5. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: For the past 18 months, staff have been working closely with several prospects with the goal of attracting high paying jobs to the Pickering Innovation Corridor (Seaton employment lands) and to increase the commercial and industrial property tax base. In these discussions, each potential business asked what is the timeline for an airport to be sited in Pickering. In December 2017, staff included a provision for community engagement as part of the Economic Impact & Employment — 407 Corridor in the Development Charges Study. Following the 2018 Budget meeting, staff approached Proof Inc. (formerly Environics Communications) to obtain a proposal that would see the development of a comprehensive communications and community outreach strategy that would be grounded in hard data specific to Pickering. The goal of the engagement program is to gather detailed information from residents and businesses and provide them with the information they need to develop an informed opinion. CAO 03-18 May 7, 2018 Subject: Proposal — Community Engagement on Economic Impact & Employment Page 2 In accordance with Purchasing Policy 10.03 (c), the Manager may obtain the services of a particular consultant selected by the initiating Director without going through a competitive process. Where the funds are available in the approved budget and the project or annual cost of a consulting or professional service assignment is expected to be above $50,000.00, this is subject to the additional approval of Council. Staff are recommending Council approval of the fee proposal dated April 11, 2018 submitted by Proof Inc. in the amount of $150,000.00 (including HST). Financial Implications: The consulting study cost is being funded from two non property tax sources: development charges and Seaton Application Fees revenue. There will be no cost to the Pickering taxpayers. Discussion: Council supports the acquisition of employment lands in the Pickering Innovation Corridor The future Pickering airport site is situated adjacent to the Pickering Innovation Corridor. Located on both sides of Highway 407 between the Hamlet of Green River to the west and Sideline 16 to the east, the total length of the corridor spans nearly seven kilometers. The majority of the employment lands are located on the north side of Highway 407 with a smaller portion south of Highway 407. In addition, there is one large block of lands situated in the northwest quadrant of the corridor. Separated into 3 development phases, the total acreage of the corridor is approximately 800 acres, of which there is approximately 200 acres in phase 1. In 2016, the City of Pickering began the process of purchasing phase 1 employment lands directly from the Province (Infrastructure Ontario). This initiative was triggered as a result of the numerous unsolicited enquiries the City's Economic Development Office received from large multinational companies who were interested in relocating to the Pickering Innovation Corridor. Business location or relocation decisions involve millions of dollars and are based on various economic and social factors. Businesses operate in a competitive environment and business location decisions are rooted in achieving either a competitive or cost advantage. The high cost of location or relocation is offset by anticipated higher profits at the new site. Locating near an airport provides businesses with a competitive advantage from a supply chain and/or marketing perspective. Decision makers were reluctant to make any final decision on a relocation of their business without knowing the outcome of the Federal Government's decision on the Pickering airport. Staff were able to not only negotiate the purchase of 28 acres directly from the province, but also an option agreement on the balance of the phase 1 lands (approx. 172 acres). As of April 2018, the City has conditionally sold the majority of the phase 1 employment lands to 4 separate proponents. Following the October 10, 2017 Council Meeting, staff recommended the need to undertake a community engagement exercise on the economic impact & employment for the Highway 407 Corridor. It was important to communicate to the residents and businesses of Pickering and abroad the economic potential of the Corridor. To date, the City has secured four significant CAO 03-18 May 7, 2018 Subject: Proposal — Community Engagement on Economic Impact & Employment Page 3 investments for the Innovation Corridor, with negotiations ongoing with other potential multinational firms. Council supports the development of an airport in Pickering, subject to the results of the Aviation Sector Study On October 10, 2017, Council supported the motion of the development of an airport in Pickering, subject to the results of the Aviation Sector Study. The Aviation Sector Study is being executed through Transport Canada. The motion was a part of the Amazon HQ2 bid which focused on attracting multinational firms like Amazon to the Pickering Innovation Corridor. Over 40 years ago, Transport Canada expropriated lands in Pickering for a secondary airport in the Greater Toronto Area (GTA). At the time, there was not an immediate need for a reliever airport in the GTA. However, since 1972, Toronto Pearson has grown to over 47 million passengers per annum, has stimulated the economic growth for the second largest employment zone in Canada, and has now come to the realization that in order to handle future air traffic demands, that an efficient airport network system within the GTA is necessary, including a future reliever airport in Pickering. Included as part of the 2018 Development Charges Study, the scope of work was set out to engage residents and businesses in order for the City and its leadership to better understand the potential economic and social impacts on the community. There is a real need to ensure that any work done is grounded in data in order to assist the stakeholders in making informed and impactful decisions. Proof Inc. is one of Canada's leading communications agencies. It has been recognized multiple times as Canada's top agency by the International Association of Business Communicators (IABC), and its campaigns have also won many awards for its broad and diverse array of clients. Proof Inc.'s parent company, Environics, is renowned as Canada's premier marketing analytics company, and it has a long standing professional relationship with the City of Pickering. Since 2015, Environics has provided the City with meaningful data insights which has positively influenced marketing efforts for City events and programs. In April 2018, the City's Communication and Economic Development staff reached out to Proof Inc. for a proposal on the Community Engagement Strategy and a game plan for the City to underpin the community engagement exercise with meaningful data. Proof Inc. will be able to partner with its sister organizations Environics Research Group and Environics Analytics to develop a comprehensive, data -grounded, community engagement strategy that will ultimately provide the City with a 360 degree analysis of the situation, which will aid in key economic development decision making. There is no other agency in Canada that offers a comparable integrated model of communications driven by data analytics. CAO 03-18 May 7, 2018 Subject: Proposal — Community Engagement on Economic Impact & Employment Page 4 Attachments: 1. Proof Inc. Proposal for the City of Pickering Prepared By: Mark Guinto, Manager, Business Development & Public Affairs Stan Karwowski CPA, MBA Director, Finance & Treasurer FJ:SK Prepared By: Fiaz Jadoon Ec.D., CEcD, MPM Manager, Economic Development & Strategic Projects Recommended for the consideration of Pickering City Council Tony Prevedel, P. Eng. Chief Administrative Officer 2 � zvle) proof AS< BETTER QUES IONS' P CKER1NG Submitted by: Proof Inc. 900-33 Bloor Street East Toronto, ON M4W 3H1 416-920-9000 Key Contacts: Saro Khatchadourian Skhatchadourian@getproof.com 416-969-2828 Mark Gamache Mgamache@getproof.com 416-969-2670 APRIL 11, 2018 NT'UC- 162= G All levels of government across Canada are focused on generating economic growth, fostering innovation, and addressing the country's infrastructure deficit. Based on an initial reading of the current situation, the construction of an airport in the 407 corridor is a way to address each of those issues in a way that will benefit the city and the broader region. However, before any such project can begin, there is a clear need for the City of Pickering and its leadership to better understand how such a project will affect residents, businesses and community groups in the City of Pickering. There is also a need to ensure that any decision is ultimately grounded in data that reflects the real economic and social impact of the project. TI lF APPROACH 3 In order to determine the ultimate social and economic impacts of an airport in Pickering, we have recommended that three key actions be taken. First, conduct research on existing public sentiment surrounding the issue of an airport in Pickering. This will include information on the public's attitude toward an airport (e.g., quality of life concerns, environmental perceptions), the perception of an airport's impact on the regional economy, and an understanding of how people have gathered information on the potential for an airport in Pickering. Next, engage a trusted, third -party subject matter expert to provide insight on the real costs and benefits of an airport. This will provide the City with the critical information it needs to analyze and determine how an airport wilt affect the lives of its residents. Finally, execute a comprehensive community engagement program that will gather more detailed information from stakeholders and provide them with the information they need to develop an informed opinion. BUT WHY PROOF? It's not just because of expertise, enthusiasm and experience of successfully running dozens of comprehensive, integrated research and community engagement programs (see Appendix for detailed case study). More notably, it's because we already know how to work together. The Environics family boasts and longstanding professional relationship with the City of Pickering and its various departments. Multiple practices from within the Environics family have advised several departments within the City of Pickering, such as Culture and Recreation. This project will seek to leverage that already established working relationship to maximize efficiency and focus on delivering results. What's more, our preliminary meetings and discussions with City of Pickering Staff, including reaching out with public relations counsel surrounding recent media articles, mean having an excellent grasp of the situation on the ground and we're ready to hit the ground running. 11 Page Below you will find an overview of our expertise relating to the talents that will be needed to successfully execute the community engagement campaign mentioned above. 5TRA`. SIC COMMUNIS A T IONS FLAMING We lead and deliver 360 -degree strategic integrated communications plans to help uncover and solve organizational challenges and drive change in behaviour and perceptions by: • Influencing the conversation • Creating performance content and high -impact multi -channel programs • Leveraging integrated capabilities across paid, earned, shared and owned media Our approach involves six stages below: Situation analysis Recognizing that an organization's communications objectives must support its business objectives, we start by asking key questions: Where are we now? Who is our audience and what do they currently think/feel/do? What is our current understanding of the competitive landscape? Our long-term relationship with (and proximity to) ERG, allows us to dig into all forms of qualitative and quantitative research where a deeper understanding of the opinions, values and habits of Ontarians is required. The cornerstone of Proof's own thought leadership program, the CanTrust Index, is driven by the data and insights collected by ERG. Similarly, our sister company Environics Analytics provides insights on geodemographic and social values, and public segmentation. If we have a person's postal code, we already know a lot about them! For example, two years ago when we were tasked with launching EQ Bank - a new completely digital way of banking - we worked with Environics Analytics to achieve a deep understanding of the new bank's target customer segments in Toronto and Vancouver and leveraged these insights to communicate with each segment in a way that made sense to them. Our ability to work successfully with both of our sister firms has been bolstered in recent years with the development of considerable in-house research capabilities through the hiring of experts in data analytics and measurement. Objective -setting At this stage, we define our desired future state by determining "Where do we want to be?" as well as key performance indicators (KPIs) that will allow us to measure our impact and determine what we want our target audiences to think, feel and do. Understanding our main objective and KPIs focuses our efforts and allows us to measure our programs effectively. 21 Page Strategic development After we have determined "Where we are" and "Where we want to be," we can begin to answer the question "How do we, get there?" Our audience -first approach considers brand and business objectives to develop a strategic framework to guide integrated planning. We examine positioning (brand, product, message), sequence (i.e., the decision-making process), communications plan, creative concept/idea, integration and the client's ability to resource and implement. Finally, we take into account such factors as public opinion, legislative process, stakeholder relations and Question Period positioning. Examples of the tools and frameworks used: persona development, audience journey mapping, marketing funnel, communication strategy framework and ecosystem planning. We also collaborate with our affiliated companies, as needed, including ERG, Environics Analytics and Proof Experiences. Finally, we can plan and execute integrated programs with our clients' other agencies and partners, playing lead or supporting roles. Tactical development Now, we are ready to develop detailed plans for implementing the strategy. The question we ask: How exactly do we get there? At this stage, we define such elements as the marketing mix, creative concept, channel mix and content plan and make sure they all connect effectively. We bring the right mix of diverse talent and skills to the task from our Technology, Corporate and Financial, Consumer, Health Sciences, Digital Services, Creative, and Government Relations practices. By defining at the outset a client's parameters and boundaries, we ensure our teams develop tactics to create positive change. During this stage, we continue to collaborate with our affiliated companies, as needed. Measurement We view measurement not as a final step tracking only performance, but as a means of reducing uncertainty in the decision-making process, intertwined with the development of strategy and execution of tactics. When establishing objectives, we identify what success looks like - thinking about the outcomes we aim to achieve for our client. At this time, we identify what indicators would demonstrate that such a change is occurring and establish a process for efficiently collecting that data. These are our key performance indicators. We consider reporting and administration an essential contributor to our service mandate and leverage our learnings to modify and refine programs, connecting measurement to planning in a continuous loop. The depths of data can run deep; there is always more information to be found. However, not everything that can be counted counts. It is our role to ensure that the decision -makers are not lost in a sea of data, but that they have the right information and the right analysis in front of them at the time they need it. 31Page .i[LE TIONS Any significant change management, problem -solving and issues management exercise requires a thoughtful approach that balances the need to change with the input of diverse stakeholders - and recognizes the risks white creating the conditions for success. inform 1 consult 1 involve 1 collaborate 1 engage Our stakeholder engagement framework helps gather the information needed to make informed decisions, while laying the groundwork for future changes. We use an inform 1 consult 1 involve 1 collaborate 1 engage model, and elements of our public consultation solutions may include research (using, for example, focus groups, surveys, interviews, virtual discussion or written exercises), message development and communication (including consultation facilitation) through various channels (such as media relations, social or videos), GR/public policy counsel (addressing economic and political realities) and events (for example, town hall meetings, street intercepts, advertisements, etc.). Proof blends communications experience and savvy with a keen understanding of the public policy process, from church basement meetings to Cabinet Office deliberations, with public consultation experience ranging from small neighbourhood projects to one of the largest province -wide consultations in Ontario (Ontario Speaks, a consultation on constitutional change in 1998). The starting point of our work is to establish a clear understanding of the client's goal. From there, we establish how public consultation outcomes will support or endanger that goal. In some cases, there are regulatory or legal requirements defining how consultations can occur, and the goal is to ensure they are not subject to legal proceedings. In other cases, the goal is to maximize the opportunity for important stakeholders to have input into relevant discussions and decisions. Understanding and segmenting the audiences We have employed a wide variety of tools and approaches to reach and consult the public, including websites, e-mail, social media, town hall meetings, household mailings, surveys, street intercepts, advertisements, broadcasts and media relations. Understanding the audiences being consulted is a critical element of public consultation programs. Our sister company ERG has conducted numerous market segmentation studies, offering the services of a dedicated team of data scientists who provide deep expertise in analyzing survey data and applying specialized analysis techniques, including segmentation, when appropriate. ERG has spent decades collecting demographic information on Canadians and providing analysis to help clients and audiences understand their target groups in specific and intimate ways. The firm's library of demographic, geographic and psychographic information has furnished its founder - Michael Adams - with copious information from which he has authored several top-selling books about demographic patterns in Canada and the US. Titles that are based on ERG's deep understanding of segments include: • Sex in the Snow: Canadian Social Values at the end of the Millennium • Fire and Ice: The United States, Canada and the Myth of Converging Values 4IPage • Stayin' Alive: How Canadian Baby Boomers Will Work, Play and Find Meaning in the Second Half of their Adult Lives • Unlikely Utopia: The Surprising Triumph of Canadian Pluralism The approaches to understanding demographics, trends and patterns explored in these texts underpin ERG's work. As part of an ad hoc proprietary study or in robust syndicated data sets, the team gets the importance of demographics and the clues they provide to understanding the values and experiences motivating a group of people to hold a belief or change a behaviour. ERG's Social Values research is one of the industry's most powerful marketing and decision- making tools for business, government and the non-profit sector. This set of research tools identifies motivations and relationships to brands, products, services, causes, policies and political positions. Organizations around the world use this approach to understand consumers, build marketing programs, define social policy and establish human resource programs. Facilitation Within ERG, designing, facilitating and analyzing qualitative exercises - like group discussions and individual interviews - are a core competency. The team's experience, combined with industry -sanctioned guidelines for effective facilitation, has led to the creation and adherence to best practices in the field. ERG's experts leverage their extensive knowledge when engaging, recruiting and activating stakeholders in qualitative exercises to ensure the feedback collected is meaningful, relevant and actionable. Its experienced facilitators each have over 1,000 professional hours of discussion moderation, including large and small groups, one-on-one in-depth interviews, in-person and virtual discussion sessions. The team is also experienced in the design and execution of traditional and innovative discussion exercises - including written and visual - that optimize participant feedback and STAKEHOLDER/COM ..iN Our integrated approach Proof takes a strategic approach to reach the right influencers and stakeholders. Our team defines stakeholder relations as the practice of forging mutually beneficial connections with third -party groups and individuals who have a `stake' in a common interest, and we excel at finding the intersection of needs and goals among wide varieties of independent and inter- dependent stakeholders and partners. Developing close relationships with key stakeholders doesn't happen overnight. We have an integrated approach to developing plans that align with strategic direction. Clients who have benefitted from our expertise in engaging stakeholders include The National Capital Commission, Metrolinx, Toronto Hydro, York Region, Region of Durham, City of Toronto, Canadian Electricity Association and many others. One example of multi -stakeholder engagement we created is a campaign focused on opioid addiction that involved a 5JPage pharmaceutical company, patient advocacy group, regulators and physicians - many of whom we identified, recruited and managed. Within one month, the site attracted 2,000 unique, highly engaged users on average spending almost four minutes on the site, viewing four pages per session. Collaborations and partnerships We work with clients to create "win-win" collaborations and partnerships that raise profiles, advance shared aims and build credibility. This starts with understanding of what drives trust and influences action among target audiences, and then seeking organizations that can help accelerate these outcomes. The process continues with ensuring that partners and collaborations align with client values and reputations. Whether with media, bloggers, academics, celebrities, associations, experts or popular online voices, we identify, connect and build meaningful relationships with influencers who amplify clients' messages and make them relevant to target audiences to drive real results. We achieve these goals with creatively designed and executed programs. For Kijiji, our team developed an oversized inflatable pit filled with 65,000 colourful balls. The target was college and university students on five campuses who were invited to dive in and search for the sliver balls - the ticket to great prizes, all bought on Kijiji. The activation was part of the larger "Thrill of the Hunt" Kijiji campaign targeted at millennials, who, our research showed, love to uncover good deals. Social and traditional media amplification included a GIF photo booth that let students choose from four background themes - beach, basketball, Canadiana and video gamer. Ultimately a successful and engaging event! For the past three years, our team has supported the Kids See Free program offered by Loblaw Companies Limited (LCL) that provides children ages four to 10 with free frames valued up to $49 with single vision polycarbonate 'kids safe' lenses. In addition to traditional media relations, we raise awareness for the program via targeted and strategic influencer partnerships. By identifying influencers with whom the program would resonate (e.g., parents), we collaborate with them to create strong social content that educates readers about the importance of children's eye health. Community engagement Many integrated programs involve community engagement, national event tours and peer-to- peer engagement to change behaviours. For many years, our work with SAFE KIDS Canada required us to consult and engage with a wide variety of community-based safety organizations (e.g. hospitals, first responders, service clubs, etc.), a major consumer products company and their retail channel to create and disseminate awareness information specifically aimed at encouraging behaviour change - from seat belts to helmets to pool safety. The ultimate metric was a measurable drop in preventable injuries and deaths. Similar approaches are applied in our work with Electrical Safety Authority (ESA), where we focus on educating Ontarians about electrical safety, both at home and in the workplace. For ESA, we created tailored programs from Home Show speaker panels reaching consumers undertaking home renovation projects to informative port -a -potty signage directed at dump truck drivers working around powerlines on construction sites. Understanding the diversity of 6IPage ESA's stakeholders and tailoring our messages to their needs and interests has allowed us to change behaviour in a significant and measureable way. Issues/Reputation Management Proof has deep experience in managing complex issues. We specialize in preparing spokespeople to answer tough questions and communicate effectively. We mobilize allies and stakeholders to ensure outside opinions are brought forward at the right time and place, and our proprietary online monitoring tools keep our finger on the pulse of digital platforms. We have supported clients through all manner of crises, including labour disruptions, product recalls, data breaches, natural disasters, executive departures, workplace crime and terrorism, among others. P F'S ACCOMPLISHMEN E S• As a relative of Environics Research, it's not surprising that we're eager to measure our success and achievements. Here are some of the accomplishments we think would be relevant to the City of Pickering. Client and Employee Retention Out of all of our accomplishments, we are proudest of our unmatched client and employee retention. In an industry known for high rates of employee churn, Proof has bucked the trend and we regularly celebrate five-, 10-, 15- and most recently, 20 -year employee anniversaries! In turn, this has created the type of account -team stability that clients love! Our teams become deeply entrenched and engaged in their clients' businesses and issues, and bring vast knowledge and institutional memory that often outlasts our day to day contacts. As a result, Proof is proud that the majority of our clients have been with us for five years or more, and clients like Smith School of Business at Queen's, Investors Group and The Globe and Mail have been with us for 15-20 years! We view ourselves not as suppliers, but as extensions of our clients' marketing and communications departments. Corporate Social Responsibility Corporate Social Responsibility (CSR) and Sustainability have been at the core of our business operations since the company's inception in 1994. Our first Corporate Social Responsibility Report (http: / /bit.ly/ 1O0jalx) on our recent activities and commitments, both locally and globally, shares the pillars of our plan and the results of our actions. It's been a team effort, involving the enthusiastic participation and leadership of many people on our team who have embraced this spirit of responsibility. The concept of the triple bottom line (the success of our company, our team members and our community) has always guided our thinking and the records show our company has done well by doing right. Despite economic and business pressures, our commitment to upholding our values and investing in our staff and community will always remain a priority. 71 Page Awards, Honours Et Achievements We love the look of the plaques and trophies that line our walls, but get an even bigger thrill about what they stand for: creativity, impact, results, community service, environmental responsibility, workplace excellence. Some examples: • More than 230 peer -adjudicated awards for marketing and communications. Bestowing organizations include International Association of Business Communicators, Canadian Public Relations Society, Canadian Marketing Association and International Academy of Digital Arts and Sciences ("Webby Awards"); • The Bobbie Resnick Philanthropy Award from CPRS; • Three Guinness World Records for inspired feats and stunts on behalf of clients; • Numerous awards for Best Workplace from the Great Places to Work Institute, including #1 in 2010, and most recently as the program has grown, #13 for 2016. We have also been lauded multiple times by GPWI as a top employer for women, including a #6 ranking in 2016. • Carbon neutrality since 2008, certified by Pembina Institute. WORNNG oGETH As with any relationship, it is important that there is mutual trust and a collaborative approach between Proof and the City of Pickering in order to achieve success. Fortunately, there is already a strong foundation of trust between the Environics family and the City of Pickering stemming from a longstanding professional relationship. However, it's worth still noting that we find that our most successful client engagements are ones where the client and agency are a seamless team. As a reminder, we aim to create that environment by doing the following: • Investing time to really understand each client's business. That means independent desk research and reading, field visits, meeting a broad cross-section of client personnel, and training. • Remembering that we are in the service business. That means returning calls quickly, coming to meetings prepared, always thinking ahead and taking the time to understand how each client likes to work together. • Obsessing over results. In the City of Pickering's case, this would mean adopting the ultimate goal of highlighting the economic benefits of infrastructure development in the Highway 407 corridor. • Constantly challenging ourselves to do better. This means taking time away from the client "task of the day" to pause, step back and dream together about how we can achieve more. In our opinion, a dream client is one who: • Invests in a smooth onboarding process, including providing a broad picture of the organization; • Provides timely and accurate information; 81 Page • Provides feedback - both positive and on opportunities where programs can be improved; and • Works together with the agency to develop program goals. At the heart of the client -agency relationship is the ability to work together in a respectful and ethical manner. To do this, Proof works with clients from the outset to create and identify controls and processes that are meaningful for them, such as: • Weekly status reports and work -back schedules; • Scheduled check-in calls (often weekly or bi-weekly); • Budget updates; • Quarterly review meetings; • Key Performance Indicators; • Ongoing reporting; and • Sharefiles and online tools to allow client review and approvals. 9IPage APPENDIX; TH\AELINE E :DST Research Summer 2018 $80,000 • Polling Pickering Residents • Analysis • Insights • Results Community Engagement Fall 2018 to Winter 2019 - $60,000 • Message Development • Stakeholder Engagement • Media Relations Government Relations • Coordination and engagement with select elected officials Grand Total Fall 201.8 to Winter 2019 $10,000 $150,000 "incl. HST 101Page APPENDIX: ST iJ DY Ontario Tire Stewardship Showcases: Strategic advice and counsel, reputation management, stakeholder relations Et consultation, media relations, event planning/management, experiential marketing, digital communications Et social media, advertising, writing Ft production services. 1. Issue/Challenge Ontario Tire Stewardship (OTS), established in accordance with the Waste Diversion Act of 2002 and set-up by Waste Diversion Ontario (WDO), has been a Proof client since 2009. Our initial mandate with OTS was to generate awareness and acceptance from the community at large and affected stakeholders for the Used Tires Program - a province -wide initiative to collect and recycle the more than 12 million used on -road and off-road tires that come from vehicles annually. The primary goal was to provide Ontarians with a clear understanding of the initiative and the impact it would have on them, and the province, immediately and in the foreseeable future. In 2011-2012, the additional goal of increasing consumer awareness of the importance of tire maintenance was added to our mandate because this prolongs the life of tires and therefore reduces the number of scrap tires every year. Objectives: Supporting Launch • Develop and distribute educational program materials for registered tire collectors and point-of-sale (POS) materials for consumers. Targets: 800+ POS packages distributed to newly registered program collectors; 80,000+ POS consumer brochures distributed to Ontario residents at retail locations. • Reach communities across Ontario through targeted media relations and newspaper advertisements to educate consumers. Target: Reach more than 75 communities. • Ensure media coverage aligned with campaign messaging and demonstrated the benefits of the program's responsible system for managing used tires. Target: 75% of coverage includes OTS program key messaging. Objectives: Subsequent Years • Build a social media platform to ensure consistent online and offline conversation from the industry. Target: 75 quality followers within three months. • Create a new, consumer facing brand and a direct vehicle to interact with audiences to educate them on OTS's mandate. Target: Experiential team to reach 50 locations and 10,000 drivers. • Educate stakeholders on the life cycle of a tire, demonstrating new tire -derived products that are now available since the introduction of the program. Target: 25% of media coverage includes the name of a tire -derived product manufacturer; five case studies to demonstrate impact. 111 Page Challenges: • Perception that this was a new tax: The Tire Stewardship Fee had the potential to appear to be a new "tax on tires" because the program requires manufacturers and first importers of tires to pay $5.84 per passenger tire to OTS to manage the program — a cost that in most cases is passed on to consumers. We managed this by highlighting that this is an industry -funded program; that consumers would no longer be charged a tire disposal fee when getting rid of old tires; and that they can return as many as four tires per person to collectors across the province, with no obligation to buy new tires. • Significant benefits not tangible: Some key benefits from this initiative (e.g., the environment and innovation) will take time and are not immediately tangible to stakeholders. By highlighting the removal of the tire disposal fee traditionally charged to consumers and the guarantee that old tires would be responsibly re -used immediately, we mitigated this challenge by showcasing immediate, tangible benefits. Later we were able to showcase tire -derived products in real life settings. • Impact of other Stewardship Programs: Stewardship programs in Ontario have been under increased scrutiny by stakeholders. To help manage this, we have created an open and transparent model of communications, posting detailed information on the OTS website, proactively sending information to media and creating an ongoing dialogue with the other Stewardship programs and stakeholder groups. II. Strategic Approach • Research: At the outset, we immersed ourselves in the history of tire recycling fees in Ontario, and the roll-out of similar programs across Canada. We learned that the biggest objection among consumers was the notion of a new "tax" and that there would be intense scrutiny on how this "tax" would be used. We spoke to many stakeholders (e.g. program administrators, retailers, haulers, collectors) to understand potential allies as well as critics and the "hot -buttons" of each group, and enlisted a technical tire expert to review materials and provide guidance on key issues. We commissioned polling to identify if messages were likely to be understood and resonate. This research continues today. • Analysis: From our research, we knew that we required custom materials and messaging for each of the target groups white maintaining clear overarching themes as a rationale for the program. It was crucial to convey not only the long-term benefits of the program to Ontario, but also the immediate benefits to Ontarians. • Communication: We designed a fully -integrated and multi -tiered, multi -channel communications program aimed at educating key stakeholders across various platforms. Stakeholder communication continues today. • Evaluation: We were regularly required to report on progress towards measurable objectives, and adapted and revised programs on an ongoing basis to maximize return on investment. This process continues today. Strategies: Our overarching strategy was as follows: 121 Page • Raise awareness of the problem: 12 million scrap tires are accumulated in Ontario every year. They are typically exported to the U.S. for burning in cement kilns or stockpiled in unsightly, dangerous dumps with little oversight and the risk of fires similar to that which occurred in Hagersvilte, Ontario in 1990. • Introduce the solution: a regulated, transparent program that ensures tires are recycled here in Ontario, creating a market for new tire -derived products that will create jobs, boost the economy and help the environment. A key part of the solution was demonstrating that all fees collected would be directly used to fund program delivery and research and development into tire -derived products -- not paid to the government. We also highlighted the fact that even if retailers passed along stewardship fees to consumers at point of purchase, the removal of fees traditionally charged for used tire disposal would result in little to no net increase in out-of-pocket expenses to the consumer. • Engage tikeminded groups to help tell our story: As the program grew from simply tire collection to showcasing the lifecycle of tire recycling, we knew it would be important to have advocates who could help share our story. A number of multi-year programs were developed to support this. 111. Solution To engage our target audiences we created the following solutions (most of which continue today) • Key Message Development: Key messages were the foundation of all communications tools and were reviewed regularly to ensure alignment with program objectives. Messages were particularly important due to the need to simplify and make memorable what is a complex program. • Point of Sate Materials: POS materials were developed and distributed to registered program collectors, haulers and processors to provide program education to them and their audiences. • Media Relations: We conducted targeted, themed, media relations to a comprehensive media target map, including even the most remote areas of Ontario touched by the program. • Community Engagement: We created and mobilized a summer team (RethinkTires Roadtrip) -- brand ambassadors that travelled across Ontario educating drivers on maintaining their tires and demonstrating products made from recycled tires. • Digital Communications: We created and provided content to the @rethinktires Twitter handle, Facebook community, blog and YouTube channel. • Community Collection Activities: Working with likeminded organizations such as Ontario Automotive Recyclers and CAA, we promoted special collection events to raise awareness of OTS and the importance of tire maintenance and recycling in towns across Ontario. • Community engagement: From design challenges with students to a community renewal fund to help support communities wishing to use recycled tire products, our team helps to manage and support these programs from end to end. 13 1 Page • Advertising: We provided strategic advice on the creation and placement of advertising to supplement other communications tactics and inform broad audiences. • Case Studies: The team worked with RED grant recipients and community grant recipients to create case studies that brought the impact of OTS to life. • Trade Stakeholder Program: We brokered relationships with key groups and regularly participated in tradeshows to promote tire maintenance and recycled tire products. IV. Results The results of this campaign have exceeded alt measurable objectives: • More than 1,000 packages were distributed to newly registered program collectors; 100,000 consumer brochures were distributed • More than 130 communities were reached. Media impressions have grown from nine million in the first year to more than 20 million in 2014. A 2014 survey showed that 50 per cent of Ontarians know that there is a tire recycling program • OTS program messages were included in 84 per cent of media coverage • There were 80 Twitter followers at the end of trial period and the program has continued with more than 300 quality followers within a year. Engagement levels continue to rise with an engagement rate of more than 23 per cent with our followers • The summer team visited more than 60 locations in 2015 and had one-on-one interactions with thousands of Ontario drivers • Since the promotion of recycled tire products manufacturers began, at least 40 per cent of media coverage includes mention of at least one manufacturer, and 10 case studies have been developed • Since the program's launch, more than 80 million tires have been recycled in Ontario. Ontario Tire Stewardship has a 98 per cent tire diversion rate 141 Page APPENDIX: NO A l HE O I 1 POE- TEAM M ACCOUNT LEADS Saro Khatchadourian Senior Consultant, Government Relations Saro Khatchadourian is a senior communications and public affairs professional having who possesses significant experience in senior roles within several federal and provincial political offices, both in government and in Opposition. Prior to joining the Government Relations team at Environics, Saro was the Senior Communications Officer in the Office of the Leader of Her Majesty's Official Opposition, where he was responsible for media relations and issues management as well as serving as a spokesperson for Opposition caucus members. Prior to that role, Saro held a number of senior communication and advisory roles to cabinet ministers in Harper Government, including in the areas of economic development (particularly in Ontario), immigration, and foreign affairs. In his role as Director of Communications to the Minister of State for Foreign Affairs and Consular, Saro provided crisis communications support for international phenomena such as the Ebola crisis, Gaza conflict, and numerous natural disasters. Before earning a Masters degree in Political Management from Carleton University, Saro graduated with an Honours Bachelor of Arts in Political Science from the University of Toronto, where he also spent time conducting research at the National University of Singapore. Mark Gamache Senior Consultant, Public Relations Mark Gamache has a background in developing and executing comprehensive stakeholder consultation programs for the Alberta Electric System Operator based in Calgary, and has an enduring passion for delivering exceptional strategic communications programs founded in research and executed with creativity. After moving to Toronto, he worked in both the Corporate and Consumer practice groups at the Toronto office of a large national firm. There, his clients included Ford Motor Company of Canada, Enbridge, Shred -it, Burns Et Wilcox and Elections Ontario. Since joining Environics as a Senior Consultant in the Toronto office, Mark has served clients such as Smith School of Business at Queen's, Electrical Safety Authority, and theOntario Association of Architects among others. Mark holds a Bachelor of Arts (English) from Mount Allison University in Sackville, N.B. and a Bachelor of Public Relations from Mount Saint Vincent University in Halifax, N.S. In his spare time he volunteers for the CIBC Run for the Cure planning committee where he is responsible for site logistics. 151 Page SUPPORT TEAM Nader Shureih Consultant, Public Sector Et Education Environics Analytics With over 15 years of experience as a marketer, market research professional and academic, Nader Shureih serves as a Consultant in EA's packaged goods, automotive, public sector and not-for-profit practice. In his current role, Nader works with clients across the public sector, helping local, provincial and federal departments and agencies better understand, serve and communicate with their constituents. Prior to joining EA, he taught market research at the post -secondary level, managed market research for Service Canada and held management positions with companies in the creative services and packaged goods sectors. Nader's academic background includes earning a Bachelor of Arts degree in mass communications from Carleton University. Curtis Brown Senior Research Associate Environics Research Group Curtis has more than a decade of experience in the market research industry and has conducted dozens of studies during this time. His responsibilities include project management, budgeting, questionnaire design, survey and sampling design, report preparations and client presentations. Curtis has a great deal of experience leading insightful qualitative and quantitative research projects on behalf of a wide range of public, private and not-for-profit sector clients, including many studies conducted on behalf of municipal governments. This includes many custom studies conducted on behalf of municipal governments in Alberta, Ontario and Manitoba, as well as Environics' bi-annual Focus GTA study. A former journalist who wrote extensively about civic politics, Curtis applies his knowledge of civic affairs and processes to research assignments conducted on behalf of municipal governments. Curtis is a graduate of the University of Regina School of Journalism and also holds a Master of Arts in Political Studies from the University of Manitoba. Melody Gaukel Senior Vice President Communicating messages in clear, compelling ways that resonate with wide stakeholder bases is part of what makes Melody quickly become a part of any client team. Melody's varied experience covers many facets - account and team management, strategic planning, media relations, stakeholder campaigns and crisis 8t issues management. Her career spans both the B2B and B2C spaces, which allows her to apply many best practices to enable client success. 161 Page Melody specializes in working with clients with broad stakeholder audiences to develop integrated programs marrying different disciplines in marketing and communications to deliver exceptional results. Often her clients are in highly regulated environments, which require a deep understanding of governments and policy implications. Melody currently manages Canadian Welding Bureau, Ontario Tire Stewardship, FRHI (Fairmont Hotels St Resorts), and Call2Recycle, among others. Her experience working with clients through issues situations includes preparing and managing regulatory or legal decisions, employee accidents, product recalls and technology security breaches. Prior to joining Environics, Melody had led such accounts as IBM Canada, ConAgra Foods Canada, Georgia Pacific Canada, Direct Energy and City of Toronto's Better Building Partnership, supporting such activities as new consumer product launches, consumer and stakeholder engagement programs, media relations and thought leadership campaigns. Melody's career also includes work with the Hydrogenics Corporation, Microsoft Canada, Canadian Hydrogen and Fuel Cell Association. Greg MacEachern Senior Vice President, Government & Public Affairs Greg MacEachern is Senior Vice President of Government Relations at Environics Communications, working with clients with complex stakeholder challenges such as the Canadian Welding Bureau, The Canadian Association of Fire Chiefs, `Namgis First Nation, Ontario Tire Stewardship, Canadian Blood Services, Society of Composers, Authors Ft Music Publishers of Canada (SOCAN) and Canadian Water Network, among others. Previously Greg held a number of positions in the public sector including: executive assistant to the Honourable Belinda Stronach, MP; director of communications for the Office of the President of the Treasury Board; director of parliamentary affairs for the Office of the Minister of Fisheries and Oceans; and intergovernmental affairs coordinator for the Office of the Mayor in Halifax Regional Municipality. He also has national experience working in media relations and logistics for federal election campaigns, and has worked with national, regional, and business media in Canada, as well as the Parliamentary Press Gallery in Ottawa. 171 Page