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HomeMy WebLinkAboutAgenda Report - March 18, 1998 (62)CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Professional Services Agreement for Public Education, Marketing and Media Services, Electric Utility MEETING DATE: March 18, 1998 SUBMITTED BY: Electric Utility Director RECOMMENDED ACTION: That the City Council adopt the attached resolution authorizing the City Manager to enter into a professional services agreement with AL&Z Advertising, Inc. for public education, marketing and media services ($60,000 estimate) and to appropriate $137,071 for a multimedia campaign for production, media, optional events and training. BACKGROUND: Although the deregulation of the electric utility industry has been in the works since the early 90s, the majority of the public is unaware of the changes that lie ahead. City of Lodi citizens are being barraged with marketing information from alternative power providers. This has been likened to the long-distance telephone war as customers will likely receive daily mailers and receive evening phone calls from competitors. In anticipation of the competitors' media blitzes, the City of Lodi, as a customer owned utility, must proactively educate the public about the advantages of maintaining their power with the City of Lodi. In order to educate the public, staff members contend that professional services are critical to get across the important message that the customer investment in Lodi's utilities have far reaching implications for the continued excellent quality of life in the community. To accomplish the public education challenge, and to in effect, protect our customers and the City's electric utility assets, it is necessary to retain the professional services from an accomplished marketing company well versed in the fast -paced electric utility deregulation issues. AL&Z Advertising, Inc. is a leading marketing company with such experience in the electric utility industry. Past and present clients of AL&Z include Roseville Electric, Truckee Donner Public Utilities District, City of Alameda Bureau of Electricity, City of La Quinta, City of Palm Springs, City of Palm Desert and the Imperial Irrigation District. In addition, AL&Z was chosen by the California Municipal Utilities Association to design, develop and implement a proactive informational and educational campaign for a coalition of 21 customer -owned utilities, the California Power Network (CalPower). Lodi has had the benefit of being an active participant in the development of this program over the past nine months. AL&Z has prepared a Marketing Plan for Lodi (attached March 10, 1998 document) which details the proposed advertising and education campaign. Included in the Market Plan is a detailed breakdown of the proposed working budget (page 24). It should be noted that the proposed budget includes approximately $108,000 of local media items, $42,000 of possible local production tasks (brochure printing, direct mail printing and bill stuffer printing) and $18,500 for local public relations and event options. The budget is extremely focused on investing the marketing dollars with local vendors, businesses and organizations. AL&Z' approximate $60,000 professional services are incorporated within the working budget. The contract may be terminated by either party with 30 days advance notice. APPROVED H. Dixon Flynn CITY MANAGER 1 Electric Utility Department Date of Meeting: March 18, 1998 munication pg2/2 Current Operating Budget FUNDING: Electric Utility Reserves Estimated Cost: Media $ 108,471 Production 70,100 PR/Event Options 18.500 TOTAL $197,071 These figures include up to $60,000 for AL&Z's professional services. d4ll',�tl Y7 Alan N. Vallow Electric Utility Director Funding Approval: Vicky McAthie, Finance Director Prepared by: Sondra Huff, EU Management Administrator ANV/SHAst c: City Attorney EU Management Administrator JSEMADMINM998%CounciRCommunicationsW31898ccl.wpd 12 March 199 7 C o ? c PA. S E 0 PALM DESERT CAL!f -RNIA 9 2 2 6 0 ......... PHONE .... .... 74`0.779.0 ? i 1 .......... -FAX .---- - - 760 779.01, 08 .........E-MAIL........ www.r�',�.COrR MARKETING PLAN LODI ELECTRIC PREPARED BY AUZ ADVERTISING MARCH 10, 1998 TABLE OF CONTENTS 3/10/98 l . MARKET OVERVIEW SITUATION ANALYSIS TARGET AUDIENCE PROFILE MARKETING OBJECTIVES & STRATEGIES 2. POSITIONING CREATIVE STRATEGY POSITIONING STATEMENT 3. MEDIA INTRODUCTION MEDIA OBJECTIVES MEDIA STRATEGIES 4. PUBLIC RELATIONS OBJECTIVES STRATEGY/TACTICS 5. TACTICS 6. MEDIA PLAN 7. BUDGET 8. TIMING MARKET OVERVIEW SITUATION ANALYSIS TARGET AUDIENCE PROFILE MARKETING OBJECTIVES & STRATEGIES SITUATION ANALYSIS BACKGROUND: The Ca i ornia Gold Rush triggered a migration of residents from the Bay Area though Lodi as they continued on to the Sierra Mountains. Located in the fertile land next to the Mokelumne River, Lodi and its residents prospered by serving traveling miners and working the land. Lodi got its aggricultural start in wheat, then became the "watermelon capital of the world" cnd is Known today for its famous Zinfondel grapes. iN OUR FAVOR: • Lodi residents appreciate the quiet, small-town environ gent and have a rare sense of community and utility loyalty. The 120 of General Fund transfers by Lodi Electric will be very mecningful to residents. • By marketing prior to direct access in Lodi, we will be able to shape opinions proactively, rather than work to retain customers reactively. • Competiticrs have not focused on Lodi with marketing efforts, although residents Have been exposed to communications that spill over from neighboring Sacramento and Stockton, • Lodi Electric's rates are less expensive then PG&E's in Stockton. • Since Lodi's residential customers represent 42°0` of revenues and 87'10 of accounts, the residential -focused campaign we implement will effectively impact a large portion of Lodi's base. OUR CHALLENGES: • The local press has reported on deregulation issues and Lodi Electric's role in the upcoming industry restructuring_ Although coverage has been remarkably unbiased- and both sides of issues have been liven exposure, Lodi residents mcy be aware that Lodi will not offer direct access for some time. • Media vehicles specific to the Lodi area are scarce -- we may need to use less efficient media in order to reach our audience. TARGET AUDIENCE PROFILE MEET OUR CUSTOMERS WHO ARE THEY? As of 1995, The C: of Lodi people per household. Lodi loyalty and appreciate their had a population of 54,694 residents have a strong sens closely knit environment. and an average or 2.7 of community pride and 39'10 of Lodi Electric's sales are from residential customers, making up A2% of the utility's revenue. 1 1% of sales come from small commercial/industrial, and 50% come from medium to large CA Still, 87% of Lodi's accounts are residential, and 22 large C/1 make up 200 of Lodi's revenue. The average home sells for $126,300; average monthly rent is $426.00. 52'/Q are owner occupied with 44% are renter occjpied. WHAT DO THEY DO FOR FUN? Residents of Loi tae avantage of many community based events with emphasis on outdoor activities such as symphony orchestra concerts and county fairs, including Lodi Grape Fesital and Harvest Fair. Known today for its famous Zinfandel grape, the Lodi area is California's leading varietal producer of premium Zinfandel wines. ARE THEY AWARE OF DEREGULATION? Lodi Electric customers Have hearda aut the upcoming electric utility industry deregulation but are unclear about the specifics and how it will impact them personally. Lodi residents express interest in information about deregulation so their are prepared to make informed decisions in the Future. Regardless of their knowledge base, Lodi residents are extremely supportive of their local utility and admit being willing to pay a premium to keep the provider local. MARKETING OBJECTIVES & STRATEGIES MARKETING OBJECTIVES: • To educate Lodi Electric customers about deregulation and the benefits of having their own local, community -owned utility. ADVERTISING OBJECTIVES: During the campaign period, among Lodi residents: • Increase top -of -mind awareness of Lodi Electric as a community -owned utility that provides low rates, local service, reliable power and quick restoration in the event of outages. • Increase customer loyalty to Lodi Electric. • Decrease customer interest in shopping around for alternate electric companies. • Solidify Lodi Electric's role as a local, community choice. • Increase skepticism about competitors savings claims. ADVERTISING STRATEGY: TARGET AUDIENCE REALITIES Ai h percentage oF residents work in nein boring cities where competitor marketing is underway. IMPLICATIONS FOR ADVERTISING Loi must be orthrig t and pro- active with communciations to this audience. Although Lodi's open access date is Lodi must explain deregulation's undecided residents may assume that various timelines, reinforce their "choice" will be available March 31 st, '98. own benefits and services and prove that Digger is not necessarily better. Lodi's customers value the small-town, neighborly way of life. Lodi's residents are environmentally conscious and may express interest in "green" energy options. Lodi should highlight their "local" angle with real stories that emphasize their community support. Lodi should investigate "green" energy offerings. P POSITIONING CREATIVE STRATEGY P051TIONING RECOMMENDATION CREATIVE STRATEGY LODI ELECTRIC BRAND PRODUCTS. Lo i E ectric provi es local residents and businesses with reliable, quality, affordable electricity. As a public power utility, Lodi Electric employs local residents, supports local events and reports to local boards and city councils. SITUATION: Electric industry deregulation has received a significant amount or press over the past eight months. Oriainally planned to take effect January 1 st, 1998, the actual date of investor- owned utilitydirectaccess has been delayed to March 31 st due to power Exchance and ISO soi:twere complications. This direct access dote does not affect publicly owned utilities such ::s Lodi Electric (whose date has not yet been determined). Lodi Electric customers understand deregulation, even though it may not affect them immediately. Informing local customers about the upcoming changes, the benefits of having a publicly owned and operated utility and the commitment of Lodi to the community will be increasingly important as communications from energy marketers proliferate. OBJECTIVES: • Develop and maintain a brand identiiy for Lodi Electric. • Inform customers about Lo li's offerings, services and history. • Educate customers about the upcoming deregulation changes. • Explain truth behind other utility's savings claims. POSITIONING STATEMENT: Lodi Electric is t e electric uti ity that combines a loyalty to the community with a commitment to low rates to help make Lodi a better place to five and work. TARGET MARKET. Resi entia customers who live in Lodi but may work either in Lodi or outslide of the area. KEY COMMUNICATION POINT: I should continue to support my community and stick with what's local. SUPPORT: • Lodi Electric offers affordable rates which are below neighboring investor-owned utility rates. • Lodi Electric donates 121/6 of revenue to the city's General Fund to support local police,-irerren, community octivities and areas. • Lodi Electric employs your Friends and neighbors. • Lodi has a history or reliability. BRAND PERSONALITY: Dependable, Competent, Resourceful. POSITIONING Lodi Electric is the electric utility that combines a loyalty to the community with a commitment to low rates to help make Lodi a better place to live and work. X MEDIA INTRODUCTION MEDIA OBJECTIVES MEDIA STRATEGIES 10 INTRODUCTION OUR CHALLENGE: Planning me is or the Lodi market poses a challenge since there are few media vehicles that. concentrate specifically on Lodi. With this in mind, we recommend a two-pronged approach involving: A deregulation advertising campaign to educate and build brand awareness. A public relations/event campaign to spotlight Lodi's Electric's community focus. EFFICIENCY CONSIDERATIONS: Lodi Electric's customers are comprised of a stable population of year-round homeowners, many of whom are affluent retirees who are very likely to read the local paper and welch local cable N stations. We will Focus on the Lodi resident who is effectively reached by targeted. community medic., such as print, radio, outdoor and cable N. In fact, this audience will be most receptive to Lodi Electric's points of differentiation (community Focus, local service, tradition of relicbility and low rates). OUR RESULTS: Our reco;nrnencled medic plan would use a com%ination of print, cable N, direct mail and outdoor to promote Lodi Electric and explain deregulation. MEDIA OBJECTIVES TARGET AUDIENCE: According to the most recent statistics available from The California Department of Finance, Lodi's population as of January, 1997 was 50,812_ Analysis of 1990 census data (the most recent available) indicates the population in 1990 was 51,874. This represents a modest 5'0 increase. Although the City does not track demographic breakdowns within its population base from year to year, our research indicates a signiftcant number of retirees in the Lodi area CIS well as a growing number of younger professionals with families from more urban areas of Northern California . DEMOGRAPHICALLY: Adults aged 25-54 (core); 5,d+, (secondary); HHI: $50 -$75,000 (core), S25,00C+ (secondary). PSYCHOGRAPHICALLY; Year-round residents including affluent retirees, middle -class white - and blue-collar Frofessionals and service workers. This group has owned their family homes in the Lodi area or at least ten years. GEOGRAPHY: Concentrate advertising efforts directly in Lodi as much as possible (or utilize vehicles that are read/watched/listened to by Lodi residents). TIMING: Launch the deregulation educational campaign in early May, 1998, and sustain activity at relatively high levels for at least 6-8 months. The public relations work will slightly precede the advertising launch and will support the campaign through its duration. RATIONALE: • Increase the concentration of media during the campaign's launch period to create top of mind awareness about electrical deregulation in the marketplace and reinforce Lodi Electric's important role in the community. • Flight media during the campaign to maintain consistent awareness levels cosi-effectively. By focusing spot TV into concentrated blitzes with short, periodic hiatuses, the audience will think that Lodi Electric has a continuous presence. These efficient hiatuses will allow us to re -direct saved dollars. • Image building print and outdoor will 6e used on a regular basis throughout the campaign. COMMUNICATION GOAL Maximize frequency against the target. 12 MEDIA STRATEGIES (Iii ORDER OF PRIORITY) 1. PRINT - NEWSPAPER AND MAGAZINE RATIONALE: • Newspaper is a traditional media vehicle +hat will be an integral part of our media plan. • Print reaches a more educated, affluent consumer who enjoys collecting information and making his/her own decisions. • A few publications are available to reach the target audience. • Print provides the additional space necessary to explain Lodi Electric's benefits and offerings. • Residents spend time with their publicatlons, ensuring that our message is recd. PLACEMENT: • Depending on the publication, we can secure targeted placement of print ads to recck specific groups. (example/ Sports for men, Lifestyle for women, etc.) • We can negotiate placement on the right-hand page opposite editorial or adiccant to energy-related columns for increased efficiency. ADDED VALUE: • Publications often offer quantitative research or direct mail opportunities to their important advertisers. • Print media vehicles often participate as media partners for events in exchange for advertising contracts. EXAMPLES OF PRINT VEHICLES WE RECOMMEND INCLUDE: • The Loi News Sentine • The Stockton Record - (Sunday Lodi Lode Section) 2. CABLE TELEVISION RATIONALE: Since Sacramento area stations and network affiliates would be cost prohibitive and extremely wasteful to reach the Lodi resident on a regular basis, we recommend cable N as an efficient option. With the freriven we are recommending Lodi Electric will react, 96.3" of all households and 87 a of all Adults 35+. Cable W can be as broad or as targeted as our message requires, and delivers all the benefits of broadcast television: Provides an engaging, active medium for our messages. • Incorporates the invo11vin combination of sound and sight. Allows us to select specific programming to target our audience. • Provides a professional, legitimate venue for our communications. ADDED VALUE• • We will take advontca e of free added value opportunities such as public service announcements (PSAs', news interviews, 6ill6oar8s, etc. as they increase overall frequency and promote top -of -mind awareness. EXAMPLES OF TV STATIONS/CABLE COMPANIES WE RECOMMEND INCLUDE: • Medic One serves the Loi market. 13 A brocd "-uy wish particular emphasis on network programming on CNN, Fox, Discovery, ESPN The Weather Chcnnei, Liretirre, A&E, and other sports programming/promotional opportunities. Selective use o� broadcast TV, e.g. news broadcasts on Sacramento Channel 3, and Reno Chennef 8 could be considered on a very selective basis. I DIRECT MAIL RATIONALE: • Direct mail provides an opportunity to explain deregulation in detail. With the hopes that customers will spend extended time with the piece. • Direct mail allows for extremelyefficient targeting of the customer base (zip code, customer code, spending leveletc.). • Direct mail provides an opportunity to explain the benefits and services of Lodi Electric to customers. EXAMPLES OF DIRECT MAIL WE RECOMMEND INCLUDE: • Brochures, newsletters, postcards, bill stu, ers, etc. 4. OUTDOOR RATIONALE: • Provides geographic flexibility, allowing us to target specific areas. Builds consumer awareness with mass reach. • Supports the print, radio and cable N efforts. • Reaches the residents that drive to work each day. TYPES OF OUTDOOR: • Billboards on freeway and street locations in and around Lodi. OUTDOOR COMPANIES WE WOULD RECOMMEND INCLUDE: • Outdoor Systems • Valley Outdoor Advertising 14 PUBLIC RELATIONS OBJECTIVE STRATEGY 15 PUBLIC RELATIONS OBJECTIVE/STRATEGY OBJECTIVE: To dovetailwith our advertisin strategy of focusing on service and commitment to `he locai community, the primary goal oour recommended public relations campaign is to heighten awareness of Lodi Electric through 6i9k visibility support of community activities. This will illustrate the difference between a public and private utility while informing the pu6iic of Lodi Electric's important role as an integral part of their communiIt will also show the public that they Have ownership in their utility and that it is vital to ;e - well being of the city to continue to support it. STRATEGY: PHASE ONE: • Development and distribution of unique and creative press kits that will dovetail with the images established in the advertising campaign. Kits will include background information on Lodi Electric, an overview of deregulation and 'now it will affect customers, biographies of key personnel, rate comparisons, answers to frequently asked questions, and calendars of events sponsored by/supported by Lodi Electric. • Distribution of opinion pieces to key local media. • Suggestion to The Lodi News Sentinef that a key Lodi Electric employee write a periodic deregulation column. A colorful newsletter distributed quarterly to customers can be targeted by zip code or other variables to provide information about deregulation, Lodi Electric s s activities, etc. Each issue can contain helpful hints on understanding the upcoming changes, conserving energy, getting involved locally and enjoying the Lodi environment. PHASE TWO - Sponsorship or a series of community events in the Lodi area. For maximum impact, focus on activities for families with children as well as seniors. Examples include: • Exploration of sponsorship opportunities at the annual Lodi Grape Festival. • Development of mutually benetuial activities with the wineries, grape growers, etc. • Sponsoring a youth mural project with energy/ conservation themes through local schools and local civic group�s such as The Lodi Arts Commission and The Rotary Club. • Working with local li6rcries as a collection site For a public book donation drive/Friends of The Library Programs. • Sponsorship of an Earth Day cleanup project in April (Keep America Beautiful Montn) with tree/seed giveaways ( in cooperation with major growers in Lodi area) • Celebration of Public Power Week within the community with a local "Power Breakfast" Pancake Morning. • Youth fingerprinting/lD day with local police department/service clubs_ • Media tie ins with cable networks such as USA Network, Lifetime and A&E nefworks (currently, a promotion and accompanying contest supporting the oroactcast of a new production d Moby Dick on USA network is available to local advertisers- a great educational promotion with schools). Event Sponsorship such as the Electric Light Parade in December, Field and Fair Day, Concert series at Hutchins St. Square, and others. Lodi Electric can tie in with existing events and/or seek community public/private sector partners such as The Lodi Parks and Recreation Department, The Cham6er of Commerce, The Arts Commission, The Rotary Club, Lions Club, etc. to create new ones. 16 RECOMMENDED CAMPAIGN TACTICS m RECOMMENDED CAMPAIGN TACTICS As a member of the California Power Network, Lodi Electric will benefit from the croup's development of print, radio, N, outdoor, media relations and collateral materials. By using these existing materials in combination with some new Lodi Electric -specific materials, we will I e able to keep our production dollars at a minimum and maximize our media budget`s efficiency. For Lodi Electric, we recommend a mixture of: Public Information/Media Relations artd Traditional Marketing/Advertising If our budget allows, we will also extend our communications with employee -specific projects. Our public information/media relations program has already begun to inform customers about deregulation by using the print and broadcast news. In addition to providing the media and local community with a consistent and accurate source of information, this program will also provide positive editorial support to assist Lodi Electric in educating and retaining their existing customers. Part of the public relations work will stem from the work currentlyclone for the CalPower campaign, while other projects will be developed for use in Lodi alone. 2. This public information campaign will lay the groundwork for traditional marketing and advertising. The advertising and printed pieces developed for this portion of the prcgram will share a common "look and feel." Some of the ads for use in Lodi will come fram the CclPower campaign, and others will be developed specifically for the utility. By integrating a mix of existing ads and new work, we will keep production dollars to a minimum. The following pages outline each selected tactic in order of priority and lists estimated costs for public in ormation activities and advertising. Please note that actual media time/space and printing costs will follow. 18 RECOMMENDED TACTICS In order of priority Category: Traditional Advertising Tactic: Newspaper Advertising Customers will turn to the news press for in ormation on deregelation. Newspaper ads can build brand identity and provide detailed information, as well as support any media relations work we do within the publication. We recommend a combination of existing CalPower newspaper advertising and custom Lodi ads for the local press. Rationale: Upscale, educate adults read newspapers daily or on Sundays anci appreriafe }he iLime!y; Aormative nature or its civertising. Tactic: Brochure An information -rich brochure explaining the benefits of a public power utility like Lodi Electric and the facts about deregulation as it applies to Lodi Electric customers will be a valuable part of this plcn'We can adapt the CalPower brochure to include 1-2 panels of Lodi - specific information so that the piece will be tailored For the Lodi market. The brochure will encourage customers to call the utility with questions or comments and will share the "look and Feel" of the general CalPower campaign. Rationale: A rac lure gives us the opportunity to be copy -intensive, since people tend to spend more time with a printed piece than any other type of marketing. Tactic: Direct Mail A unique direct mail campaign can be an ideal medium to promote a contest, sweepstakes or giveaway specifically to your customers_ For example, we could giveaway a "free year of electricity" to one public power customer as a way to focus attention on the CalPower message and the collateral materials. This way, customers will be more likaly to spend time with our materials. Rationale: Direct, mail provides an efficient way to target Lodi Electric customers. This medium is perfect for delivering specific messages cost effectively_ The print nature of this medium also encourages people to spend more time with the piece than they would with a broadcast (N/radio) tactic. Tactic: Out -of -Home Out -of -Home media in Lodi includes: Billboards - permanent bulletins, 30 -sheet posters panels, and eight -sheet poster panels Rationale: Eac�t�iese vehicles will allow us to reach customers, promote brand awareness/recognition and provide deregulation information. 19 Tactic: Bill Stuffers By inserting vivid, engaging bill stuffers that share the overall campaign's "look cnd feel:' we will compound the exposure of our messages to customers. These bill stuffers can reinforce our key messages. Rationale: AA t�Fbiil stuff ers have a low rate of readership among customers, if we create pieces that are dramatically colored and interesting, we will be able to take advantage of the most cost- effective vehicle... their own electricity bill. Tactic: Cable TV Cable N commercials, produced 'or CalPower and tagged with the Lodi Electric logo, will give us the ability to target our audience by selecting specific programming. For example, we can develop an NBA basketball sponsorship (tar etina men) or air commercials on Lifetime (for women). The 60-secand commercials available trough CalPower will eliminate oramatic ciroduction costs from this media selection_ Rationale: Te Sion is engaging, emotional, intrusive and impactful. We will be able to achieve high levels of awareness and reach large groups quickly with this medium. Catecorv: Media Relations Tactic: Press Releases, Distribution and Monitoring As a CalPower participant, Lodi Electric will benefit from the compre ensive press kit and press releases created, distributed and monitored b AL&Z. As Lodi Electric particiFates in lcal events and promotions, we can develop press releases to complement the CalPower effort. Rationale: By proactively forwarding releases to the press, Lodi E€ectric will have an active hand in. atteeing the stories that their customers recd in the newspapers. The third -party obfeeiviy associated With newspapers will lend further credibility to our perspectives. Tactic: Opinion Piece Again, as a CalPower participant, Lodi Electric will benefit from the opinion pied written and distributed by ALSZ at no incremental cost. Most likely, this opinion piece will promote the results of the deregulation impact study being conducted on behalf of CalPower. Rationale: Our r chances of having Lodi's community focused weekly paper, The Lodi News- Sentinel, pick up and run the opinion piece are strong. The legitimacy and credibility created by this kind of successful editorial are extremely valuable. Category: Events Tactic: Grape Festival and Harvest Fair (September) This is the largest annual event in Lodi. it is held September 1 -20 and is equivalent to a county fair in nature. There are over 350 600ths and annual attendance of approximately 100,000 people. It's mission is to promote the agricultural products of San Joaquin County. The Festival strives to present outstanding, family oriented exhibits that not only entertain but educate. It also serves as an important venue for non-profit organization fundraising with well over $100,000 raised each year. This year will mark the 61 st year of the Festival. 20 Suggested Lodi Electric involvement: • Sponsorship of "Discovering Science", a new exhibit area to be added to the Festival in 1998_ It will be a professionally organized and themed exhibit and will utilize the work 01- local flocal school children as well as adults. There will an electricity area within this exhioit. • Sponsorship of The Kids Zone with children's' art and recycling center • Sponsorship of the Safetyfand area (with local Fire/police/school bus scfety demos, etc.) • Sponsorships of stages, grape stomps, etc. - The Grape Festival organizers will custom design a sponsorship package for the Lodi EUD Tactic: Chamber of Commerce "Street Faires" (Mair and October) These twice yearly annual events are presented by the Lodi Chamber or Commerce on the 1st Sunday of May and October. With over 30,000 people in attendcnce and 700 vendors 'hese arts/craft/antique events are extremely populcr with local residents_ These Fairs serve as a major fund-raiser For The Lodi Chamber of Commerce. Suggested Lodi Electric involvement: • Have a presence at the events with a themed booth reflecting, For example the history of electricity. A contest can be organized (prize of free electricity for 6 months?), agiveawcys to attract public's attention, create stronger presence and ,positive feeling in the community • Co-sponsorship role in printing/production/distribution of official event brochures. • Co-sponsorship role in paid print /cable TV advertising schedule. • Other Chamber of Commerce joint opportunities where available. Tactic: Joint Promotions with Lodi Department of Parks and Recreation (Year Round) The Lodi Department of Parks and Recreation has a very important and highly visible role in the community. its' programs attract thousands of spectators and participants annually. Softball tournaments, swim meets, boat races, car shows and many, many other events and activities are held annually. it would be extremely beneficial for Loud Electric to be more involved as a recognized sponsor of some of these events and programs. Suggested Lodi Electric involvement: • Sponsorship/matching Funds/scholarships for after-school program in less affluent areas where Families want the services but are unable to pay the $3 per childper day. s Sponsorship of Perlks and Rec. sponsored Easter Egg Hunts - provide all materials fcr hunt f$1,000) • Sponsorship of League in Youth Baseball and Soccer program ($ 125 per team, 24 teams in league; $3,000) • Recognition of placement of new light poles and standards along Youth Park area path (three 20' standards, $4,500) Tactic: Support Of Senior Citizen Programs Seniors comprise a large and influential segment of Lodi's population. Therefore, it would be extremely worthwhile For Lodi Electric to get involved in various programs designed For Seniors. Suggested Lodi Electric involvement: • Support of Therapeutic Wellness Swimming Program at the Senior Center at Hutchins Street Square 11 • Promote Lodi Electric services that could be or` special interest to seniors such as speciai Medical rates, the Medical Shut-off Notification Program, Third Party Notific--tion Service, and special rates for SSI and SSP recipients. • Support of Adult Day Care Program at Senior Program Tactic: Samuel Salas Park Scoreboard Sponsorship Tne new Samuel Sclas Park is the premier park in Lodi. It lectures four new sports fields - 3 baseball, and one softball- The park will host youth as well as adult teams. An estimated 8C- 100,000 people will visit the park eacn year. Four new scoreboards need to be purchased and sponsored by advertising revenue. Pepsi has already expressed interest in sponsorship. Codi Electic can sponsor one of these boards. An added benefit for Lodi EUD is that the Scoreboards are visible from the street. The boosters of the Boys and Girls Club of Lodi is heading up this sponsorship search. Suggested Lodi Electric involvement: • Five years sponsorship of Board (see media plan for cast breakdown) • Scoreboard acts as an advertising "billboard" with room for message from Lodi Electric. Tactic: Joint Promotions with Lodi Arts Commission The Lodi Arts Commission puts on a number of events and programs throughout the year that attract families as well as seniors to downtown Lodi's Hutchins Street Square. Having o role in the cultural heart of Lodi can be a very beneficial way for Lodi Electric to create awareness or its role in the community. The recent downtown revitalization provides a wonderful backdrop for any number of worthwhile events. Suggested Lodi Electric involvement: • Co-sponsorship of Friday Night Live, Cabaret Concert Series • Support of Lodi Symphony, programs at Lodi Art Center Tactic: Programs Support -The Friends of the Lodi Library The Friends of the Library operate one of the few all -volunteer adult literary programs in Northern California. Over fifty tutors are active in this worthwhile program on a yearly basis. The Friends also support on after school tutoring program for children, corputer training, children's' reading program, and a nook delivery program for shut -ins all at no charge. They have tremendous need for financial support of their programs, which are all underfunded. Suggested Lodi Electric involvement: • Provide all art supplies for children's program • Join forces with area schools, Parks and Recreation Department, Scroptomists, Rotary Club to present a City wide spelling bee, arecdathon", or other book/reading related event to raise funds For the Friends of the Library Programs_ • Join with -Media One Cable TV to take advantage of cable network opportunities (for example USA Network is currently presenting a new adaptation of Moby Dick. Books and posters are available for local community promotions). Tactic: Parade of Lights December) This event is sponsored by the City of Lodi in cooperation with the Lodi Downtown Business Association. Now in its third year, this event has proven to be extremely popular with Lodi residents. It is held on the 1 st weekend in December. Suggested Lodi Electric involvement • Continue the tradition of a Lodi Electric themed goat spon3or3hip l 22 Host a not chocolate and cockles "thank ycu" reception for Moat decoration and ocrace volunteers. Use of footage from parade on Cable TV to promote Lodi Electric community involvement Tactic: Cable Television Promotions (Quarterly) As an advertiser on TCI cable, Lodi Electric can take advcntcge of promotional packages connected to various special broadcasts or holiday/annual promotions on cable networks. Examples oft such promotions are outlined below. We recommend that Lodi Electric participate in four of these promotions per year - are every quarter. Examples: Ben Franklin's Birthday (January, 1999) Ben Franklin, the father of electricity, will celebrate his birthday in January. A unique promotion can be developed around this to commemorate the event and his incredible scientific contributions in conjunction with local schools. This is a great opportunity to give historicalperspective to electricity. It can be done in conjunction with The History Cncrrnei and/or The Family Channal for added exposure. Suggested Promotional Elements: • Poster coloring contest for area schoolchildren (work to be displayed at Lodi E'ectric or other location TBD) • Ben Franklin look-alike contest • Cooperation with public library Ener Fair (March, 1999) Lalli Electric can sponsor an Energy Fair at the Lodi Senior Center. This could include a laser show, solar cook -out, exercise/water aerobics (creates energy in people!), and other activities. It can also involve a resentation of science projects/experiments with an energy theme in cooperation with local scheels, service organizations (Judges From the Senior Center, Chamber of Commerce, and Lodi Electric) Suggested Promotional Elements: • Promotional spots on Discovery Channel, A&E, The Lecrning Channel' . The `ocus would be programming with inventions ana inventors as the theme. • Community Programming taping and airing of the events. • Giveaways from the Utility and the Networks Other Promotional Ideas: Shark Wee ( Discovery Channel -Summer), Breast Cancer Awareness (ASE -Fail), and World Cup Soccer (Galavision-Spring) are other popular Cable Television "events" that can be developed into community promotions targeted to specific demographic groups. Tactic: On Hold Communication Service Even if we decide not to include radio time in our communications plan, the CalPower radio commercials can be used while customers hold on the line at Lodi Electric. Tactic: Community Events Public Power Week, 4th of July Celebration at Lodi Lake, Lodi Youth Commission Teenlead Program, Labor Day Weekend Field and Fair Day, Power Pancake Breakfast, High School Career Day, etc. These events would further support Lodi Electric in the community at a low out-of-pocket cost. 23 TASK Working et: LODI BUDGET BREAKDOWN THROUGH 6/30/99 Media: $8,000 Estimate` Lodi News Sentinei Newspaper Space 2x1mo For ' 4 months $22,200 Sfoc<ton Record Newspaper Space 1 x/mo for i 4 months $11,347 Media One Cable N Time/ Promotions 14 months $33,350 Sillboard Space -Valley Outdoor Advert. 14 months S23,380 Scics Park'Scorebocrd Sponsorship over 5 years 5 5,000 Oiom'-er of Commerce Newsletter auererly {5) 3 3,900 Cnember of Commerce Anr.ucl Cirectary 1 x per year $ 1,84 4 Scoreboard Sponsorship over 5 years S 5,0100 Contingency `und: 3 2.A-40 Media Subtotal: $108,471 Production: Estimate' Crecting Lodi-spccific Print Ads (3) $8,000 Customizing Newspaper Ads (6) $3,CC0 Customizing N Snots (2) $1,600 Custamizing/Printing 3il1boar„ ?asters 02 x 2 concepts) 510,000 Customizing Brcanure, 'Direct Mail, 3iil Stuffers $4,000 On -Hold Radio Customization: $1,500 Brochure Printing (50,OCC) $20,000 Direct Moil Printing (50,000) S10,000 Production Subtotal: $70,100 P!t Event Ootions (includes sponsorship/materials) Estimate` Grape Festiva $5r000 C of C Street Faires 1,2) 52,500 Parks and Recrectior. Coop events $5,000 Senior Citizen Prograrns/Events 52,000 Arts Commission Events S2,000 Friends of the Liarary 51,000 Parade of Lights $1.000 Total: $197,071 Additional Recommended Task: Resea Estimates are based on current availabfe knowledge and may change as the plan develops. These amounts esrp mennt t- ai--_ us some working totals, not final figures. ?,4 TIMING/NEXT STEPS MARCID APPROVE WORKING BUDGET APPROVE MARKETING PLAN CONDUCT BENCHMARK STUDY ISSUE/APPROVE PRODUCTION QUOTES APRIL RESERVE MEDIA SPACE/TIME CUSTOMIZE CALPOWER PRINT CUSTOMIZE RADIO DEVELOP LODI-SPECIFIC PRINT CONTINUE WITH PR CUSTOMIZE OUTDOOR WORK CUSTOMIZE TV SPOTS MAY BEGIN EVENTS SCHEDULE LAUNCH OUTDOOR WORK LAUNCH DIRECT MAIL/BROCHURES LAUNCH PRINT AND TV JUNE -APRIL AD AND EVENT CAMPAIGN CONTINUES APRIL CONDUCT CLOSING BENCHMARK STUDY 25 ' AL&Z Advertising Thank you for considering AL&Z Advertising, Inc., as a marketing partner to 7 s O o t Lodi Electric. As the advertising agency selected by California's municipal C ` P AS E 0 utilities to create and implement a multi -media communications and media relations campaign, we are excited to be able to share our experience in ALM DESERT order to Delp your customers see you in a whole new light. CAt;'0RNIA 9 2 2 5 0 ....... PHONE. ...... 760 7/79.0. 1 1 ....- - -..per............ As we investigated creative ways to accomplish your goals, we identified several communications challenges facing public power utilities as restructuring nears. These include: 750 779.0108 e ...... f -MAIL•........ www ALZ.com 0 Educating customers about the fundamental differences between Investor - Owned Utilities (IOUs) and Consumer -Owned Utilities (COUs). Educating customers about what to expect in light or the upcoming changes in the electric utility industry with a marketing effort that will supplement the state's multi-million dollar campaign. Retaining current customers amidst the certain onslaught of aggressive marketing tactics by IOUs, out-ol•-state proviclers, independent energy providers and power marketers. We are confident that you will find AL&Z to be the most qualified firm to provide you with superior service. in addition to being a top quality, highly awarded agency with a track record of delivering results, AL&Z has: e Developed a thorough understanding of the electric utility industry, its key players and its main issues, and can "hit the ground running." e Built a career in successfully communicating to diverse groups and bringing persuasive clarity to confusing marketing issues. e Developed a proven system for managing a process involving multiple utility decision -maskers. e Spoken at various electric utility industry conferences, including the American Public Power Association annual conference and CEO roundtable. e Tracked industry news on a daily basis with custom Internet searches, targeted usenet subscriptions and subscriptions to The Sacramento See, The Lodi News Sentinel and The Stockton Record. Relevant news and legislature is circulated throughout the office to keep account members current. EXECUTIVE SUMMARY AL&Z Advertising, Inc. was established in January, 1993, and quickly earned a reputation for award-winning creative and successful strategic marketing services. We offer clients a diverse range of services including: • Marketing and advertising plan development • informationcl and educational campaign creation • Market research and concept testing • integrated multi -media advertising campaign planning • Media research, planning and purchasing • Public relations planning and management • Direct mail campaign creation • Package design and corporate identity implementation • Web site strategy, development and hosting By founding AL&Z Advertising in 1993, principals Danny Amato and Nez Sesi came together as a highly awarded creative director, a strong strategic thinker, and a successful venture capitalist to create one of the fastest growing advertising agencies in Southern California. As a team, they have led AL&Z to Between 100% and 300% growth each year. Today, our 15 staffers create fresh, distinctive, intelligent and effective advertising thet you'll come to recognize as our trademark. In the four yecrs since opening, AL&Z has won more than 80 local Addy Awards, Regionci Addy Awards and Best -of -Shaws, and we have receives! national recognition for the high recall rates garnered by our print work. AL&Z has successfully planned, designed and implemented campaigns for municipal, state and government clients, including work for consumer -owned utilities. Our approach is forward -thinking, multi -cultural, and validated by positive results. Our in-depth understanding of the issues and challenges facing these organizations has allowed us to help clients present ideas and proposals up through city councils and governing boards. AL&Z CAPABILITIES STRATEGIC MARKETING For a campaign to be successful, the plan must be comprised of two key elements: (1) The Right Message, and' (2) The Right Media. One without the other is often useless, and one created in a vacuum from the other is risky. Unless bofh message and media are conceptualized and executed in concert, we risk alienating the desired audience. As such, we have taken a holistic approach to COUs' issues; We have investigated the industry, examined the situation, spoken with leaders, anal analyzed the competition in order to recommend a direction grounded in strategy. This strategy will now be applied to the entire campaign, from media choices throM creative concept. By making AL&Z a partner in the entire process, you'll have an agency that shares in your commitment to the results. PRINT BROADCAST & INTERACTIVE CREATIVE We've won many awards for our creative, but more importantly, our work gets results. Our creative spans print, broadcast, radio, direct mail, outdocr, Internet and interactive. We will work to create a meaningful brand identity that will be instantly recognizable across varioustypes of vehicles. This increases the individual impressions your message has on the desired audience and increases the efficiency of your marketing dollars. Our print experience includes traditional newspaper and magazine advertising, custom inserts, retail and high tech catalogdesign and production, brochure and collateral development, direct mai{ and point-of- purchase signage and display. Our work with electronic or broadcast creative includes infomercials, TV, radio, digital animation, modeling, effects, photo manipulation and off-line non-linear editing: Depending on the budget for the campaign, we will evaluate all of these options for the program. MEDIA An efficient med'sa Ian is a rare combination of creativity, insight, and frugality. AL&Z cra s plans that invest the right amount, in the right places, alt the right time, to influence the audience with a frequency that motivates action or affects perception. We routinely save our clients thousands of dollars a year by efficient and strategic media planning and purchasing. Pre -Buy Media Research. AL&Z-s in-house research tools help us gather detailed information on the target audience and potential media vehicles before we compile a media plan. A software system called TAPSCANTm allows us to gather market intelligence through a program called QualiTap®, providing access to qualitative research from Scarborough, Media Audit, MRI or Simmons, including information such as income, education, occupation, credit card usage, purchasing habits, household possessions and travel. This information can be broken down by zip code or county and merged with 3 broadcast and newspaper ratings to produce reports listing the media that reach the target audience most efficiently. Media Planning And Purchasing. Once AUZ has a solid understanding of the marketing objectives and the target audience, we access media vehicle data to determine the best mix for the campaign. First, AUZ uses TAPSCANO and TvSCAN TM, the most complete system For planning, scheduling and posting radio, N and cable buys. TAPSCANO and MCANT"" give us access to current Arbitron and Nielsen ratings respectively, and provide lists of available programming in seconds. With these tools, for example, AL&Z can profile a selected station's dayparts in an hour -by -hour report, to determine the times of the day when a specific target audience is watching or listening. This information allows AUZ to negotiate shrewdly, purchasing only the specific hours needed to reach the audience most effectively. AUZ has implemented this procedure For our inland Empire clients, and will extend pre -negotiated AL&Z volume discounts to our clients as appropriate. MultiMediaTM is a pro$ram that helps AUZ compute reach, frequency and complete cost analysis for N, cable, radio and newspaper vehicles, individually or as a combined media mix, and displays all the data on a single page for easy comparisons. Finally, AL&Z then uses TAPCONNECT TM, a revolutionary on-line network that enables us to communicate and transfer information to the selected media vehicles over the Internet. The result is unprecedented efficiency and accuracy, and allows a station to transfer avails and rates directly into our media buyer's computer. This way we get answers and connect with media reps without the delay and frustration of playing prone tag all day. Post -Buy Analysis. Both TAPSCANO and TvSCANr' include reconciliation pro rams that help AUZ generate post -buy summary reports for each station or fgor the buy as a whole. AUZ will also include spot rotation summaries, break -averaging information and day -of -the -week and quarter-hour posting. Should the actual schedule deviate in any way from the approved plan, AL&Z will negofiiate on behalf .of our clients for makegoods or credits. Plan affidavits and post -buy reports are forwarded regularly to our clients. COMPETITIVE TRACKING AL&Z understands that to know the competition is to service the client. We will make it a priority to track competitive marketing activity, spending levels, strategic directions and industry moves. For clients, we provide quarterly reports and make predictions on future action, incorporating this knowledge into every aspect of our work on the account. 14 CORPORATE ID AL&Zesigns o$os and craFts corporate identity packages including collateral design for the group. To arrive at this new logo, we draft a creative briefing document that includes all of the attributes and messages we hope to invey with this new image. We give the art team color preferences, image als and usage information so that they develop a set of new logo options t match our needs. We present several rounds of options or revisions until we arrive at the logo that is approved. PUBLIC RELATIONS AL&Z will harness -the power of third -party editorial by planning a strctegic public relations program_ The plans will be designed to dovetail with existing marketing activities and include: • Moderation of initial message workshops to identify key themes for • communication across the board • Development and distribution of press materials and kits • Writing of all press releases • Concepting, production, editing and distribution of video news releases • Media training for spokespeople • Planning of editorial tours for key personnel • Identification of legislative testimonial placement • Management of all media relations and story follow-up • Coordination of press conferences • Planning and management of community events TECHNOLOGY AL&Z's commitment to technology is realized by a cutting-edge art department, including high-encFMacintosh workstations (each with substantial RAM and"acceleration) that work together with color scanners, large -format B&W laser printers, calor -calibrated 21" monitors, and large - format color thermal wax transfer laser printers. In addition to the art department, AL&Z has installed two state-of-the-art digital, video editing bays, capable of providing Full, non-linear editing and production for all multi -media and broadcast projects. With our Media 100 s stem, it' is possible to transfer digital information created for print material directly to video or CD-ROM across the network, seamlessly and quickly. INTERNET SERVICES S ould we determine that this campaign warrants a new Web presence, ALTs Internet and information technology services can offer customized solutions that are on target with current communications strategies. At this stage, it seems that Web activity mai be more useful to municipal utilities from a customer service point of view, offering service interactive information and scheduling, account balances, energy saving tips, etc. In this case, we would coli upon our strategic alliance with Science Applications International Corporation (SAIL) to offer access to network, database and security engineering services from a firm responsible for setting standards in secure on-line communications and commerce. Based in San Diego and international in scope, SAIC is the largest employee -owned technology firm in the United States. Our combined services include: • We6 Site Design, Construction, and Maintenance. • Web Strategy Development, Site Promotion, and Visitor Tracking and Analysis. • Web Server Hosting and Bandwidth Management. • Network and Security Design and Engineering. • Database Management. • CGI, JAVA, ACTIVE X and HTML Programming. • Internet Firewalls and Encryption. • Intranet. • Extranet. • Electronic Mail. As listed above, AL&Z can create an intranet network between participating utilities for the expedited exchange and dissemination of information. if this is of interest, we can discuss this option in fvrther detail. 2 ALU TEAM MEMBERS AL&Z's 15 staffers each serve on several accounts, depending on the size and scope of the project. The AL&Z team assigned to this account is made up of the some team that manages the activity of California's municipal utilities. This deregulation platoon includes. JODI BEASLEY ACCOUNT SUPERVISOR LEAD PROJECT MANAGER Jo i wFunction as the main point person for the Loi account and will manage all aspects of the project. She will represent the client's interests to the agency, and will make recommendations on behalf of the agency to the client. Jodi will brief the creative, media and production departments on all projects, will manage the process internally and will present all work to the client. Jodi has also been the key account contact for California's municipal utilities, and understands achieve success with a large group of participants. Jodi joined AL&Z in 1995 to oversee all Agency accounts and manage business development. As Account Supervisor, Jodi also manages research assignments, plans and implements public relations programs and spearheads new business pitches. Prior to AL&Z, Jodi was an Account Executive with J. Walter Thompson in San Francisco, working on a team of more than 70 people on the Sprint Telecommunications account. Jodi handled strategic and creative direction for the brand's residential, business and international divisions, managing a 5120 million annual budget. Jodi also lived in Santa Fe, NM, working at Hine & Cross Associates as an Account Supervisor. There she managed all account activity on projects inclvding Coors, Kraft General Foods, Fi-Bar, and Blue Sky Natural Soda. Jodi holds a B.S. in Journalism from the Medill School of Journalism at Northwestern University, and is a graduate of the American Association of Advertising Agencies program in Advanced Advertising Studies. DEBORAH GODLEY MEDIA DIRECTOR De orch will research, present and purchase strategic multi -media plans across print, outdoor, radio and TV. She will negotiate on behalf of the client and will serve as the pointperson for all media representatives. Once a buy is placed, Deborah will monitor its run for accuracy and will reconcile the purchase with post -buy affidavits. As our Media Director, Deborah uses Tapscan software to access Arbitron and Net data in order to plan media buys most effectively. It is not unusual for Deborah to save clients tens of thousands of dollars through her savvy negotiations. 7 Prior to AL&Z, Deborah was the Marketing Director for The La Quinta Arts Foundation, where she handled media and supervised design andproduction of all advertising. Prior to this position, Deborah had her own marketing and advertising consulting firm in Los Angeles, Utopian Marketing Group, and brought to the table marketin advertising and public relations experience from San Frcncisco, New York and Dallas. De6oreh hold's a B.A. in English Literature from Leicester University, Leicester, England, and a Masters in Urban Studies and Economics, also from Leicester University. As AL&Z's director of public relations, Jolaine Co—Wins brings a diversify of public relations, corporate and media experience to the account. Jolaine will plan and implement all public information activities for the account, including media relations and media skills training for spokespersons. Jolaine is also the ke public relations staffer for the California municipal utilities, and has been �ollowing the situation as it develops in Lodi. Jolaine has managed and implemented statewide, issue -oriented campaigns for a variety of clients, including those relating to: • Public Transit • Flood Control • Traffic Safety • Healthcare a Municipal Water Supply and Purity A former newspaper reporter and editor, she was a communications staff member of a Fortune 100 company, and an account supervisor and director for an international public relations agency. An accredited business communicator (ABC), Jolaine specializes in communications management, speaker training and media relations for private and public sector organizations. She's conducted training for too management of AT&T Wireless Services, The National Hi hway Traffic Safety Administration, Vision Service Plan, Raley's, Merry HealZrlare, and hcs trained speakers for three statewide ballot campaigns. Jolaine holds a B.S. degree from the School of Journalism at the University of Colorado, Boulder. DANNY AMATO CREATIVE DIRECTOR PRINCIPAL Danny will nction as the lead creative officer on the account, and will be responsible for concept direction and creative team management. Danny will be available for creative presentations on an as -needed basis. As one of the founders of AL&Z. in 1993, Danny's role as Creative Director shcwcases his ability to consistently translate a strategy or positioning statement into visual design --in record time. An expert on the Macintosh, Danny uses today's technology to speed the work through production. Danny has become one or' the most awarded creatives in the Southern Califomia's Inland Empire. His 85 local and regional Addies and countless print awards, including 2 Inland Empire Gold Ad Awards, are a testament to his distinctive work. Danny graduated in 1984 from the La Jolla Academy or' Advertising Arts in San Diego. Danny manages a team of art directors including: • Bernie Muehr, Senior Art Director Bernie has strong backgrounds in print and broadcast creative design, and is fluent in Adobe AfterEffects, Electric Image, Form Z, Photoshop, illustrator and Quark software programs. Bernie holds a B.F.A. in Design from the University of Iowa. • Diane Niemann, Art Director Prior to joining AL&Z, Diane spent 14 years inggraphic design and advertising for Northern and Southern Calitomian companies including Foote, Cone & Belding{ SF, 1, Walter Thompson/SF and McKesson Corporation. Diane is fluent in Photoshop, Illustrator and Quark and Adobe AfterEffects, and she holds a S.F.A. in Visual Communications from California State University at Long Beach. 9 SELECTED CLIENT LIST AL&Z has amassed an extensive base of client experience, rcnging from municipal and state organizations to heafthcare groups. Our accounts spcn the nation, from San Diego, California, to Ypsilanti, Michigan. Listed below is a partial listing of our client experience to date, as it is relevant to this type of campaign. Municioal and State Organizations Ca Power (California's Municipal Utilities Association) City of Alameda Bureau of Electricity City of La Quinta City of Palm Desert City of Palm Springs Imperial Irrigation District New Mexico Department of Economic Development Palm Springs Convention and Visitors' Bureau Palm Springs Film Festival Roseville Electric Truckee Donner Public Utilities District RetaillFinancial Harris' Department Stores Hemet Federal Savings & Loan Association Palm Springs Savings Bank Sesi Lincoln/Mercury Healthcare Desert Hospital Desert Hospital Foundation Inland Empire Health Plan ProCare Tower Health Industrial Richmond Technology, Inc. U.S. Filter HHossoit�ali Embassy Hotel & Theatre Hotel St. Francis, Santa Fe, NM Hyatt Regency Suites Hyatt Grand Champions Resort Sheraton Hotel, Anaheim, CA 10 RESOLUTION NO. 98-51 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE PROFESSIONAL SERVICES AGREEMENT WITH AL&Z ADVERTISING, INC. FOR PUBLIC EDUCATION, MARKETING AND MEDIA SERVICES FOR ELECTRIC UTILITY AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT BE IT RESOLVED, that the Lodi City Council does hereby approve the Professional Services Agreement with AL&Z Advertising, Inc. for Public Education, Marketing and Media Services for Electric Utility; and BE IT FURTHER RESOLVED, that the City Manager is hereby authorized and directed to execute the Professional Services Agreement on behalf of the City of Lodi. Dated: March 18, 1998 1 hereby certify that Resolution No. 98-51 was passed and adopted by the City Council of the City of Lodi in a regular meeting held March 18, 1998 by the following vote: AYES: Council Members - Johnson, Land, Mann and Sieglock (Mayor) NOES: Council Members - None ABSENT: Council Members - None ABSTAIN: Council Members - Pennino ALICE M. REIMCHE City Clerk 98-51 14:30 DLJNC-PN AND PESOC -> 2dFj- 33.3 b,--Vj'.7 DUNCAN, DUNCAN &ASSOCIATES, INC. P.O. BOX 1066 WOODBRIDGE, CA 95258-1066 (209)334-6717 FAX # (209) 334-2521 FACSIMILE MSSAGE DA. I , E., TO, — CAWTANY: FROM: vo RE: NtWBER OF PAGES (INCLLTDING7 THIS PAGE)- SFND TO FAX 4: :ffv-r- NO. 864 pal T— f] If there are any questions or problems with this transmission, please contact the undersigned at (209) 334-6717, C,OMAMNTS,- /4 , �4k 4,— OF SENDER mAp-le-1998 14:09 209 334+2521 P.Oi Hai' 18/ru 14: -') DU C1*4 AND ASSOC -� .209 333 60? NU. 864 p-1' 14ARCH 12, 1996 FROM: RAYMOND J LOETUS 609 WINDSOR DR. LODI, CA. 95240 (209) 369-4520 RE; SUGGE51IONS TO THE UTILITY DEPT. OF NODI REALIZING THAT WE ARE FACED WITH DEREGULATION, WE OF LODI HAVE TO PREPARE FOR STRONG COMPETITION IN ORDER TO HOLD TEE LODI PEOPLE AS GAS AND ELECTRIC CUSTOMERS. AS I SEB IT NOW, AND IN TETE FUTURE,THE UTILITIES DEPT. WILL 13E FACED WITH UPGRADING MAI~IY DARTS OF THE 01 -DOR PART OF TOWN, AS WELL A5 PLANNING FOR NEW SCHOOLS, REDOING OLD LINE SYSTEMS, (WHICH IS IN DIRE NEED) AND ALSO MORE UNDERGROUND LINES. I SUGGEST THAT THEY DO NGT SPEND $200,000.00 ON ADVERTISING, BUT INSTEAD KEEP THE PROFIT FROM THE DEPT. (WHICiI IN THE PAST HAS BEEN MKLLIONS) IN I.TS OWN FUND �7"LPsT__�R._�� s .WC7kr. ._,_: . „.. . TO KEEP THE LODI PEOPLE IN THE SYSTEM, GIVE THEM A 10$ CREDIT ON THEIR BILLS + THE 2 1/2% STATE MANDATE. WE WILL HAVE LARGE COMPANIES OFFERING GREAT DEALS, WHICH SOME PEOPLE WILL GIVE THOUGHT TO. WE COULD LOSE 'THE;M. WE SHOULD HAVE A WELL DEFINED ENGINEERING PLAN TO PROVE OUR PLANT TO THE CITY COUNCIL WHICH WILL .INCLUDE THREE NEW MEMBERS. THIS WILL BE A GOOD TIME TO EXPLAIN AND GET THEM ON OU14 SIDE. TIME CITY OF LODI HAS BBEN USING THE PROFIT FROM THE UTILIT`[ DEPT. (WHIG -4 IS 2 t0 3 MILaLION A YEAR AS A SLUSH FUND. WE WE ALSO HAVE; A NEW CITY ENGINEER. HE CJ N ALSO BE HELPFUL. I THINK NOW IS THE TIME TO ACT, BEFORE THE BIO COMPANIES MOVE IN. S INCERVLY , YOUR FRIEND LODI RE81DENT SINCE 1936 a 4r -&O IIAR-18-1998 14:10 209 334+2521 P.02