HomeMy WebLinkAboutAgenda Report - December 16, 2015 C-11AGENDA ITEM elm //
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizing the City Manager to Execute a Professional Services
Agreement for Lodi Electric Utility Strategic Planning Consulting and Facilitation
with Hometown Connections International, LLC, of Lakewood, Colorado
($104,000)
MEETING DATE: December 16, 2015
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute a
Professional Services Agreement for Lodi Electric Utility Strategic
Planning Consulting and Facilitation with Hometown Connections
International, LLC, of Lakewood, Colorado in an amount not to
exceed $104,000.
BACKGROUND INFORMATION: The Lodi Electric Utility (LEU) recently completed an Organization
Checkup with Hometown Connections International, LLC, the utility
services subsidiary of the American Public Power Association.
Hometown Connections consultants met with City staff from various departments to access the health of
the utility, relative to public power benchmarks, in the following areas:
➢ Customer Service — satisfaction, service and interests
➢ Community Outreach and Communications — how information is conveyed/gathered between utility
and customers, role of the utility in the community and media relations
➢ Utility Programs — the range and relevance of programming designed around the needs of all or
segments of utility customers
➢ Power Supply and Risk Management — ability to provide long-term, reliable energy with minimum
price volatility
➢ Distribution Operations — planning and operations for system reliability and efficiency
➢ Employee Safety — training and performance
➢ Governance — decision making responsibilities and relationships
➢ Strategic Planning — strategic planning, goals and resources
➢ Rates — policies and performance
➢ Administration, Accounting and Finance — budgeting, reserves, costs and earnings
➢ Technology — use of technology to run the utility and better serve customers
➢ Human Resources — skills needed to perform the above organizational functions, staffing levels and
labor agreements
The results of the Organizational Checkup will be used as a starting point for a strategic planning process
that would include input from the City Council as well as the LEU customer -owners. Given the familiarity
that Hometown Connections has with LEU as a result of the Organizational Checkup, staff recommends
utilizing Hometown Connections for strategic planning and facilitation services. Their proposal includes a
APPROVED: '
Step en Schwabau ' Manager
Adopt Resolution Authorizing the City Manager to Execute a Professional Services Agreement for Lodi Electric Utility Strategic
Planning Consulting and Facilitation with Hometown Connections International, LLC, of Lakewood, Colorado ($104,000)
December 16, 2015
Page 2 of 2
customer engagement service performed by Hometown's market research partner, GreatBlue Research.
See the attached proposals for more details relating to the strategic planning, facilitation and customer
engagement services.
FISCAL IMPACT: Funding will be absorbed within existing appropriations.
FUNDING AVAILABLE: Included in FY2015/16 Budget Account No. 50060001.72450.
-� k��_ I -
Jordan Ayers
Deputy City Manager/Internal Service Director
Elizabeth -A. Kirkley
Electric Utility Director
EAK/lst
AGREEMENT FOR PROFESSIONAL SERVICES
ARTICLE 1
PARTIES AND PURPOSE
Section 1.1 Parties
THIS AGREEMENT is entered into on 20 by and between the
CITY OF LODI, a municipal corporation (hereinafter "CITY"), and HOMETOWN
CONNECTIONS INTERNATIONAL, LLC (hereinafter "CONTRACTOR").
Section 1.2 Purpose
CITY selected the CONTRACTOR to provide the services required in
accordance with attached Scope of Services, Exhibit A, attached and incorporated by
this reference.
CITY wishes to enter into an agreement with CONTRACTOR for Lodi Electric
Utility Strategic Planning (hereinafter "Project") as set forth in the Scope of Services
attached here as Exhibit A. CONTRACTOR acknowledges that it is qualified to provide
such services to CITY.
ARTICLE 2
SCOPE OF SERVICES
Section 2.1 Scope of Services
CONTRACTOR, for the benefit and at the direction of CITY, shall perform the
Scope of Services as set forth in Exhibit A.
Section 2.2 Time For Commencement and Completion of Work
CONTRACTOR shall commence work pursuant to this Agreement, upon receipt
of a written notice to proceed from CITY or on the date set forth in Section 2.6,
whichever occurs first, and shall perform all services diligently and complete work under
this Agreement based on a mutually agreed upon timeline or as otherwise designated in
the Scope of Services.
CONTRACTOR shall submit to CITY such reports, diagrams, drawings and other
work products as may be designated in the Scope of Services.
CONTRACTOR shall not be responsible for delays caused by the failure of CITY
staff to provide required data or review documents within the appropriate time frames.
The review time by CITY and any other agencies involved in the project shall not be
counted against CONTRACTOR's contract performance period. Also, any delays due to
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weather, vandalism, acts of God, etc., shall not be counted. CONTRACTOR shall
remain in contact with reviewing agencies and make all efforts to review and return all
comments.
Section 2.3 Meetings
CONTRACTOR shall attend meetings as may be set forth in the Scope of
Services.
Section 2.4 Staffing
CONTRACTOR acknowledges that CITY has relied on CONTRACTOR's
capabilities and on the qualifications of CONTRACTOR's principals and staff as
identified in its proposal to CITY. The Scope of Services shall be performed by
CONTRACTOR, unless agreed to otherwise by CITY in writing. CITY shall be notified
by CONTRACTOR of any change of Project Manager and CITY is granted the right of
approval of all original, additional and replacement personnel at CITY's sole discretion
and shall be notified by CONTRACTOR of any changes of CONTRACTOR's project staff
prior to any change.
CONTRACTOR represents it is prepared to and can perform all services within
the Scope of Services (Exhibit A) and is prepared to and can perform all services
specified therein. CONTRACTOR represents that it has, or will have at the time this
Agreement is executed, all licenses, permits, qualifications, insurance and approvals of
whatsoever nature are legally required for CONTRACTOR to practice its profession, and
that CONTRACTOR shall, at its own cost and expense, keep in effect during the life of
this Agreement all such licenses, permits, qualifications, insurance and approvals, and
shall indemnify, defend and hold harmless CITY against any costs associated with such
licenses, permits, qualifications, insurance and approvals which may be imposed against
CITY under this Agreement.
Section 2.5 Subcontracts
With the exception of Great Blue Research, Inc., for the services described in
Exhibit A, CONTRACTOR shall not enter into any subcontract with any other party for
purposes of providing any work or services covered by this Agreement, unless prior
written approval of City is obtained.
Section 2.6 Term
The term of this Agreement commences on January 1, 2016 and terminates
upon the completion of the Scope of Services or on December 31, 2016, whichever
occurs first.
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ARTICLE 3
COMPENSATION
Section 3.1 Compensation
CONTRACTOR's compensation for all work under this Agreement shall conform
to the provisions of the Fee Proposal, attached hereto as Exhibit B and incorporated by
this reference.
CONTRACTOR shall not undertake any work beyond the scope of this
Agreement unless such additional work is approved in advance and in writing by CITY.
Section 3.2 Method _ofPayment
CONTRACTOR shall submit invoices for completed work on a monthly basis, or
as otherwise agreed, providing, without limitation, details as to amount of hours,
individual performing said work, hourly rate, and indicating to what aspect of the Scope
of Services said work is attributable. CONTRACTOR's compensation for all work under
this Agreement shall not exceed the amount of the Fee Proposal.
Section 3.3 Costs
The Fee Proposal shall include all reimbursable costs required for the
performance of the Scope of Services. Payment of additional reimbursable costs
considered to be over and above those inherent in the original Scope of Services shall
be approved in advanced and in writing, by CITY.
Section 3.4 Auditing
CITY reserves the right to periodically audit all charges made by CONTRACTOR
to CITY for services under this Agreement. Upon request, CONTRACTOR agrees to
furnish CITY, or a designated representative, with necessary information and assistance
needed to conduct such an audit.
CONTRACTOR agrees that CITY or its delegate will have the right to review,
obtain and copy all records pertaining to performance of this Agreement.
CONTRACTOR agrees to provide CITY or its delegate with any relevant information
requested and shall permit CITY or its delegate access to its premises, upon reasonable
notice, during normal business hours for the purpose of interviewing employees and
inspecting and copying such books, records, accounts, and other material that may be
relevant to a matter under investigation for the purpose of determining compliance with
this requirement. CONTRACTOR further agrees to maintain such records for a period of
three (3) years after final payment under this Agreement.
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ARTICLE 4
MISCELLANEOUS PROVISIONS
Section 4.1 Nondiscrimination
In performing services under this Agreement, CONTRACTOR shall not
discriminate in the employment of its employees or in the engagement of any sub
CONTRACTOR on the basis of race, color, religion, sex, sexual orientation, marital
status, national origin, ancestry, age, or any other criteria prohibited by law.
Section 4.2 ADA Compliance
In performing services under this Agreement, CONTRACTOR shall comply with
the Americans with Disabilities Act (ADA) of 1990, and all amendments thereto, as well
as all applicable regulations and guidelines issued pursuant to the ADA.
Section 4.3 Indemnification and Responsibility for Damage
CONTRACTOR to the fullest extent permitted by law, shall indemnify and hold
harmless CITY, its elected and appointed officials, directors, officers, employees and
volunteers from and against any claims, damages, losses, and expenses (including
reasonable attorney's fees and costs), arising out of performance of the services to be
performed under this Agreement, provided that any such claim, damage, loss, or
expense is caused by the negligent acts, errors or omissions of CONTRACTOR, any
subcontractor employed directly by CONTRACTOR, anyone directly or indirectly
employed by any of them, or anyone for whose acts they may be liable, except those
injuries or damages arising out of the active negligence, sole negligence, or sole willful
misconduct of the City of Lodi, its elected and appointed officials, directors, officers,
employees and volunteers. CITY may, at its election, conduct the defense or participate
in the defense of any claim related in any way to this indemnification. If CITY chooses at
its own election to conduct its own defense, participate in its own defense, or obtain
independent legal counsel in defense of any claim related to this indemnification,
CONTRACTOR shall pay all of the costs related thereto, including without limitation
reasonable attorney fees and costs. The defense and indemnification obligations
required by this Agreement are undertaken in addition to, and shall not in any way be
limited by the insurance obligations set forth herein.
Section 4.4 No Personal Liability
Neither the City Council, nor any other officer or authorized assistant or agent or
City employee shall be personally responsible for any liability arising under this
Agreement.
4
Section 4.5 Responsibility of CITY
CITY shall not be held responsible for the care or protection of any material or
parts of the work described in the Scope of Services prior to final acceptance by CITY,
except as expressly provided herein.
Section 4.6 Insurance Requirements for CONTRACTOR
CONTRACTOR shall take out and maintain during the life of this Agreement,
insurance coverage as set forth in Exhibit C attached hereto and incorporated by this
reference.
Section 4.7 Successors and Assigns
CITY and CONTRACTOR each bind themselves, their partners, successors,
assigns, and legal representatives to this Agreement without the written consent of the
others. CONTRACTOR shall not assign or transfer any interest in this Agreement
without the prior written consent of CITY. Consent to any such transfer shall be at the
sole discretion of CITY.
Section 4.8 Notices
Any notice required to be given by the terms of this Agreement shall be in writing
signed by an authorized representative of the sender and shall be deemed to have been
given when the same is personally served or upon receipt by express or overnight
delivery, postage prepaid, or three (3) days from the time of mailing if sent by first class
or certified mail, postage prepaid, addressed to the respective parties as follows:
To CITY: City of Lodi
221 West Pine Street
P.O. Box 3006
Lodi, CA 95241-1910
Attn: Elizabeth A. Kirkley, Electric Utility Director
To CONTRACTOR: Hometown Connections International, LLC
12081 West Alameda Parkway, #464
Lakewood, CO 80028
Attn: Tim Blodgett, President and CEO
Section 4.9 Cooperation of CITY
CITY shall cooperate fully and in a timely manner in providing relevant
information it has at its disposal relevant to the Scope of Services.
Section 4.10 CONTRACTOR is Not an Employee of CITY
CONTRACTOR agrees that in undertaking the duties to be performed under this
Agreement, it shall act as an independent contractor for and on behalf of CITY and not
an employee of CITY. CITY shall not direct the work and means for accomplishment of
5
the services and work to be performed hereunder. CITY, however, retains the right to
require that work performed by CONTRACTOR meet specific standards without regard
to the manner and means of accomplishment thereof.
Section 4.11 Termination
CITY may terminate this Agreement, with or without cause, by giving
CONTRACTOR at least ten (10) days written notice. Where phases are anticipated
within the Scope of Services, at which an intermediate decision is required concerning
whether to proceed further, CITY may terminate at the conclusion of any such phase.
Upon termination, CONTRACTOR shall be entitled to payment as set forth in the
attached Exhibit B to the extent that the work has been performed. Upon termination,
CONTRACTOR shall immediately suspend all work on the Project and deliver any
documents or work in progress to CITY. However, CITY shall assume no liability for
costs, expenses or lost profits resulting from services not completed or for contracts
entered into by CONTRACTOR with third parties in reliance upon this Agreement.
Section 4.12 Confidentiality
CONTRACTOR agrees to maintain confidentiality of all work and work products
produced under this Agreement, except to the extent otherwise required by law or
permitted in writing by CITY. CITY agrees to maintain confidentiality of any documents
owned by CONTRACTOR and clearly marked by CONTRACTOR as "Confidential" or
"Proprietary", except to the extent otherwise required by law or permitted in writing by
CONTRACTOR. CONTRACTOR acknowledges that CITY is subject to the California
Public Records Act.
Section 4.13 Applicable Law, Jurisdiction, Severabiiity, and Attorney's Fees
This Agreement shall be governed by the laws of the State of California.
Jurisdiction of litigation arising from this Agreement shall be venued with the San
Joaquin County Superior Court. If any part of this Agreement is found to conflict with
applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict
with said laws, but the remainder of this Agreement shall be in force and effect. In the
event any dispute between the parties arises under or regarding this Agreement, the
prevailing party in any litigation of the dispute shall be entitled to reasonable attorney's
fees from the party who does not prevail as determined by the San Joaquin County
Superior Court.
2.1
Section 4.14 City Business License Requirement
CONTRACTOR acknowledges that Lodi Municipal Code Section 3.01.020
requires CONTRACTOR to have a city business license and CONTRACTOR agrees to
secure such license and pay the appropriate fees prior to performing any work
hereunder.
Section 4.15 Captions
The captions of the sections and subsections of this Agreement are for
convenience only and shall not be deemed to be relevant in resolving any question or
interpretation or intent hereunder.
Section 4.16 Integration and Modification
This Agreement represents the
entire understanding of CITY and
CONTRACTOR as to those matters contained herein. No prior oral or written
understanding shall be of any force or effect with respect to those matters covered
hereunder. This Agreement may not be modified or altered except in writing, signed by
both parties.
Section 4.17 Contract Terms Prevail
All exhibits and this Agreement are intended to be construed as a single
document. Should any inconsistency occur between the specific terms of this
Agreement and the attached exhibits, the terms of this Agreement shall prevail.
Section 4.18 Severability
The invalidity in whole or in part of any provision of this Agreement shall not void
or affect the validity of any other provision of this Agreement.
Section 4.19 Ownershio of Documents
All documents, photographs, reports, analyses, audits, computer media, or other
material documents or data, and working papers, whether or not in final form, which
have been obtained or prepared under this Agreement, shall be deemed the property of
CITY. Upon CITY's request, CONTRACTOR shall allow CITY to inspect all such
documents during CONTRACTOR's regular business hours. Upon termination or
completion of services under this Agreement, all information collected, work product and
documents shall be delivered by CONTRACTOR to CITY within ten (10) calendar days.
CITY agrees to indemnify, defend and hold CONTRACTOR harmless from any
liability resulting from CITY's use of such documents for any purpose other than the
purpose for which they were intended.
Section 4.20 Authority
The undersigned hereby represent and warrant that they are authorized by the
parties to execute this Agreement.
Section 4.21 Federal Transit Funding Conditions
❑ If the box at left is checked, the Federal Transit Funding conditions attached as
Exhibit D apply to this Agreement. In the event of a conflict between the terms of this
Agreement or any of its other exhibits, and the Federal Transit Funding Conditions, the
Federal Transit Funding Conditions will control.
IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this
Agreement as of the date first above written.
ATTEST:
JENNIFER M. FERRAIOLO
City Clerk
APPROVED AS TO FORM:
JANICE D. MAGDICH, City Attorney
By:
CITY OF LODI, a municipal corporation
STEPHEN SCHWABAUER
City Manager
Hometown Connections International, LLC
By:
Name
Title:
Tim Blodgett
President and CEO
Attachments:
Exhibit A - Scope of Services
Exhibit B - Fee Proposal
Exhibit C - Insurance Requirements
Exhibit D - Federal Transit Funding Conditions (if applicable)
Funding Source: 50060001.72450
(Business Unit & Account No.)
Doc ID:
CA: Rev.12.2015
8
Exhibit A — Scope of Work
Proposal to Lodi Electric for
Strate , is Planning Consulting and Facilitation
HOMETOWN CONNECTIONS ROLE
The role of Hometown Connections to Lodi Electric is primarily that of training and facilitation. Although we provide
observations and input based on our industry knowledge and experience, Hometown Connections is not, and should not be an
expert on the conditions, priorities and needs of Lodi Electric and its customers. Our main value in the strategic planning process
is training and facilitation of boards and staff on how to effectively utilize a strategic planning process. We facilitate the
implementation of this process by leading our clients through the deliberation, prioritization and ultimately development of a
strategic plan. This facilitation begins with broad conversations among the governing board and staff, and focuses efforts on key
priorities, goals and finally action items, including the development and tracking of projects by working closely with the team
leaders. We have found through experience that an outside trainer/facilitator with industry knowledge can add tremendous value
enabling all staff members to participate and be productive in this process.
STRATEGIC PLANNING PROCESS
There are many approaches to strategic planning. While terminology, number of steps, etc. may differ, most share similar traits
and similar progression, starting with a broad exercise of discovery and discussion, development of key issues and strategies,
prioritization and focus on key desired outcomes and the creation of an action plan to support those outcomes.
Reach Understanding''
r and Alignment around
External Environment
Strengths and Weaknesses
111
Where wewantto be inthefuture
1
I
L Crucial issue5/Chalenges
\`
j
Va I u es Proposition
Stakeholders
Create integrated Akan
of strategies
l'. Prioritize those
strategies
f Build specific goals
and actions
r
Hometown Connections
, 1...a t .;K.,
Hometown Connections has synthesized what we believe are the most relevant components from among several strategic
planning methodologies from both the for-profit and non-profit worlds (see chart below). Throughout the development of our
own methodology, we have placed a premium on simplicity, flexibility and logic. We have seen more than one strategic
planning process stalled because of the complexity and/or inflexibility of the process used. Additionally, we believe that in
public power certain values must be embraced by the utility in order to successfully implement a strategic plan. Specifically, the
strategic planning process must be:
➢ Open and transparent: Process, decisions and priorities should be shared broadly with staff and the community.
➢ Inclusive: Opportunities for inclusion should exist for stakeholders and interested citizens
➢ Empowering: Employees at all levels should understand how the strategic plan affects thein, and be encouraged to align
their own work closely with those strategic priorities.
Page 1
➢ Iterative: A strategic plan starts to become outdated the moment it is finished. As conditions internal and external to the
utility change, the plan should adapt.
➢ Values -Driven: Public power is a reflection of community values
Hometown Connections- Strategic Planning Process
0ELIVEOIN& VALUE TO PU91ir POWER
TEAMS APPROACH TO STRATEGIC PLANNING
Based on our experiences with other APPA members, we recommend a two -team approach to the development and execution of
a strategic plan.
The first team, the Advisory Team, would be comprised of the Utility Director and Lodi Electric board members. Comprised of
governing board members and supported by the Director, this team serves as the voice of the community Lodi Electric serves and
of Lodi Electric's customers. This team would be responsible for setting major policy direction, removing road blocks, reviewing
and approving the strategic plan along the way. Depending on the goals identified through the strategic planning process, this
team may also have responsibility for specific policy or governing level action items.
The second team, the Implementation Team, would be comprised of senior staff responsible for developing and implementing the
strategic plan. The Implementation Team will often act in support of the Advisory Team, providing operational, financial and
customer service information, as well as other insights as needed for the Advisory Team to act with appropriate and current
information.
We have had a great deal of success with this approach as both board and staff have ownership of the process and results.
Page 2
HOMETOWN CONNECTIONS STAFF
Tim Blodgett, President and CEO would be the primary on this project, managing the overall project as well as the Advisory
Team. Joining Hometown Connections in 1998, Mr. Blodgett has extensive strategic planning facilitation expertise and in
particular brings a great deal of governance board facilitation experience.
Bill Smart, Senior VP Business Development is the second staff member on this project and will manage the Implementation
Team. Mr. Smart has a long history in the utility sector having been with Hometown Connections since 1998 and Public Service
of Colorado prior to that.
Mr. Blodgett and Mr. Smart would work in close coordination on the project, with Mr. Blodgett managing the Advisory Team
and Mr. Smart the Implementation Team.
DURATION AND SCOPE
This proposal contains three strategic planning site visits over an estimated duration of 5 months (which is highly dependent on
Lodi Electric staff's ability to dedicate time to the process). Each of these meetings would include time with the advisory and
implementation teams. The scope of these meetings is as follows:
Page 3
Advisory Meeting ='/z day evening session of Day 1. The purpose of this meeting will
be for the Advisory Team to understand and approve the process as well as define the
objectives, deliverables, and timeline for the Implementation Team. Additionally the
Advisory Team will go through an initial discussion of the key issues facing the utility
from the board's perspective. This meeting will result in an initial list of board priority
o
areas, as well as clear Implementation Team objectives and timing to complete along
with a date for the next Advisory Team meeting. This meeting will be followed by an
Implementation Team Meeting.
Implementation Meeting = 1 and '/2 day session. Day 2 would be Strategic Planning
v�
Process training for all Implementation Team participants and a rollout of the Advisory
Team's expectations initial priority areas. Day 3 morning would include a process of
identifying deliverables, responsible parties, and a start on the work at hand. This
meeting will result in an understanding of the overall process, objectives and timeline to
complete. Also identified will be the next meeting's deliverables, the responsible parties,
and a date for the next meeting.
Implementation Meeting = 1 and '/2 day session plus 1 day of travel. Day 1 will begin
with the responsible parties presenting their assigned deliverables to the team. The team
will work as a group to complete other tasks, will prepare and present an update to the
Advisory Team, and by meeting's end, assign deliverables for the next meeting. This
3
meeting will result in an update to the Advisory Team the evening of Day 2, the
completion of certain deliverables, the assignment of new deliverables, the responsible
arties, and the timeline to complete along with a date for the next meetin .
'e
Advisory Meeting ='/2 day evening session plus 1 day of travel. Day 2 evening meeting
�7
will overlap an Implementation Team's meeting. This meeting will begin with an update
from the Implementation Team on the work completed to date. The meeting will
conclude with updated Implementation Team deliverables and timelines for completion
along with the establishment of the next Advisory Team meeting. Assumes travel out
the momin of d4y 3.
Implementation Meeting = 1 and %2 day session plus 1 day of travel. Day 1 will begin
e
with the responsible parties presenting their assigned deliverables to the team. The team
1
will work as a group to complete remaining tasks and will prepare and present its final
work to the Advisory Team. This meeting will result in the completion of the project
objectives and deliverables assigned and a presentation to the Advisory Team the
Page 3
Hometown will include for this project a total of 4 days for off-site support and assistance by Hometown staff to the Advisory
and Implementation Teams. We have also included an additional 6 days of optional onsite support in event additional onsite
support is required.
CUSTOMER ENGAGEMENT
This proposal also contains a customer engagement service performed by Hometown's market research partner, GreatBlue
Research. The customer engagement proposal, attached to this proposal, includes both quantitative (telephone) and qualitative
(focus goup) research. GreatBlue Research will complete 800 telephone surveys of Lodi's residential customers. It will also
conduct 2 focus groups of no more than 12 participants in each group. See the attached Hometown/GreatBlue Research proposal
for more details relating to the customer engagement service.
Page 4
eveningof Day 2.
Advisory Meeting ='/x day evening session plus 1 day of travel. Day 2 evening meeting
will overlain an Implementation Team's meeting. This meeting will begin with a
presentation of the Implementation Team's final work. The Advisory Team will then
determine the need for future projects and if any, define the objectives, deliverables, and
timeline for the Implementation Team. Assumes travel out the mominp, of day 3.
Hometown will include for this project a total of 4 days for off-site support and assistance by Hometown staff to the Advisory
and Implementation Teams. We have also included an additional 6 days of optional onsite support in event additional onsite
support is required.
CUSTOMER ENGAGEMENT
This proposal also contains a customer engagement service performed by Hometown's market research partner, GreatBlue
Research. The customer engagement proposal, attached to this proposal, includes both quantitative (telephone) and qualitative
(focus goup) research. GreatBlue Research will complete 800 telephone surveys of Lodi's residential customers. It will also
conduct 2 focus groups of no more than 12 participants in each group. See the attached Hometown/GreatBlue Research proposal
for more details relating to the customer engagement service.
Page 4
Hometown Connections*
DELIVERING VALUE TO PUBLIC POWER
greatb ,_ie
November 20, 2015
Elizabeth Kirkley
Lodi Electric Utility
Electric Utility Director
1331 S Ham Lane
Lodi, CA 95242
Dear Elizabeth:
Hometown Connections, with its research partner GreatBlue Research, Inc,, is pleased to present this
Proposal to conduct a market research study on behalf of Lodi Electric Utility to measure satisfaction levels
among their residential and commercial and industrial customers. This feedback will assist Lodi Electric
Utility in better understanding customer satisfaction, providing required feedback to the City Council, and
other drivers to provide Lodi Electric Utility with a strategic roadmap for success.
Hometown Connections and GreatBlue have teamed together on public power market research to create a
culture of "clients first" to help public power utilities think beyond today and anticipate the needs and
expectation of their customers. We consider our clients to be our partners and serving their needs to be
paramount—standing behind our research is one way we assist our clients in meeting their stakeholder
obligations. GreatBlue has a long experience with public power. As experts in both qualitative and
quantitative research methodologies, they have the competencies and experience to design, implement and
successfully complete this effort.
Please find our comprehensive Proposal for your consideration. I would be happy to answer additional
questions and to assist Lodi Electric Utility in moving its market research efforts forward.
Best,
ME=
Tim Blodgett
Chief Executive Officer
Horne'own Connections International
Michael J. Vigeant
Chief, Executive Officer
GreatBlue Research, Inc,
www.HometowiiConnections.com vv:n��.(:ar ;c !E3i�ieReserarch.corn
Customer Satisfaction Study
Prepared Exclusively For:
This offer is valid until December 18, 2016
The information contained in this document is proprietary and confidential to GreatBlue Research and is not for external review or disclosure.
No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying
and recording, for any purpose without the express written permission of GreatBlue. Notwithstanding, a reasonable number of copies may be
made for the recipient's internal evaluation purposes only.
Janice Ma dich
Subject: FW: GreatBlue Research Follow -Up
From: Michael Vigeant <m'v eatblueresearch.com>
Date: December 8, 2015 at 4:24:03 PM PST
To: Elizabeth Kirkley <ekirkley a lodi.og_vv>
Subject: GreatBlue Research Follow -Up
Dear Liz,
As CEO of GreatBlue Research, please accept this email as my permission to attach our
previously submitted proposal to your PSA with the understanding that our proposal will also
become part of public record.
Should you have any additional questions or needs, please do not hesitate to contact me directly.
In the meantime, kindly confirm a safe receipt of this email and thank you for the opportunity to
propose our services along with the Hometown Connections team!
Best
Michael Vigeant
Michael J. Vigeant Chief Executive Officer
GreatBlue Research, Inc.
Office :: 860-740-4000
Mobile :: 860-306-6135
Web:: Great13 lue Research. corn
About GreatBlue. GreatBlue provides reliable. actionable research and analytics to help organizations identif;-, address and
improve their offerings to key constituents. With more than 35 years of experience in diverse markets. GreatBlue effectively
yokes this knowledge to correlate general attitudes and perceptions Nviih behavioral trends to provide our clients with a roadmap
for success;
0
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Table of Contents
................................
PACE 4.
About GreatBlue
�3Ac�E r�
Project Overview
NAGE 7
Research Methodology
Implementation Plan
PAGE 10
Engagement Team Ll
PAGI 1
Representative Client Roster
PA(] f 1
Project Fee
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Y1CC)t:is CI �)IJbi c.. �)C.,�N�: I" C:OrYIn ilai�lrlc s Ir I-ouCAY1 rt_, k;iF r search.
About Hometown Connections
Hometown Connections is the utility services subsidiary of the American Public Power Association, offering
public power utilities guidance and access to quality products/services from a trusted entity with public
power's best interests in mind. Hometown Connections personnel provide consulting support in the areas of
organization assessment, strategic planning, business planning, market research, governance development,
and staffing. Hometown Connections is a resource to APPA members large and small, providing discounted
pricing on technology, services, and other solutions from industry-leading companies. The products and
services offered through Hometown Connections include the full range of advanced grid solutions, as well as
financial and organizational management tools and consulting.
About GreatBlue Research, Inc.
With more than 35 years of experience in diverse markets, GreatBlue effectively harnesses our knowledge of
diverse methodologies to encapsulate general attitudes and perceptions within our clients' populations.
GreatBlue has conducted thousands of research studies. Our history provides us with a unique perspective
to effectively meet our clients research needs. We have the experience to design, implement, and
successfully complete studies of any scale and methodology.
Research Methodologies
GreatBlue's core competencies leverage both quantitative and qualitative research methodologies including:
Telephone Surveys
1
Digital Surveys Focus Groups lig-Depth Interviews
Market Research :: Proposal Pagel 4
As in any research project, our goal is to work in the most effective way possible in order to ensure the
integrity of the data we capture. In order to achieve this goal, GreatBlue employs computer-aided
interviewing platforms for both telephone -based and online research studies resulting in a controlled
environment with statistically reliable data.
In addition to our in-house quantitative capabilities, GreatBlue has in-house focus group facilities and access
to a nationwide network of professional suites to meet your needs, regardless of geography.
Study Types
Our research methodologies enable the design and implementation of studies that seek to identify, assess
and explain key perceptions, satisfaction levels, trends and other indicators that matter to our clients' specific
business needs.
Those studies, regardless of the methodology used to capture the requisite data or address the target group,
often include understanding one or more of the following primary end points:
lip 10
Awareness Mirkcat Perception and Marketing Operational
Studies Assessments Satisfaction effectiveness efficiency
Understanding and Applying the Collected Data
The outcome is statistically reliable data with thoughtful, concise insight into how the findings answer the
study objective(s). All GreatBlue projects include unlimited presentations and optional training for
management and staff.
Data Presentations
Analysis and Training
Market Research :: Proposal Page/ 5
Project Overview
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To effectively capture unbiased customer satisfaction levels, research should be
employed to gather an unfiltered view of their mindset and rationale. This data
set, then, can be used to build an understanding of customer opinions and
perceptions to enable Lodi Electric Utility ("Lodi") to foster relationships that
are based on empirical evidence.
As we consider the primary goals for this study, a significant amount of
planning takes place to ensure well designed research instruments and
methodologies are considered to ensure the end goals can be supported with
statistically reliable - and indeed unbiased, data collection efforts.
Approach
Understanding current satisfaction levels of both Residential and Commercial and Industrial customers
serviced on a daily basis helps to strategically guide the improvement of the organization and its product and
service offerings. Well designed research instruments are a critical component in obtaining accurate and
statistically significant data to drive those efforts. To that end, this Proposal contains suggested areas of
investigation to ensure Lodi has the necessary information required to better understand their customers and
provide City Council with the information required. GreatBlue understands currently, select customers have
voiced strong, negative opinions of the utility, publicly. A statistically significant set of data will be collected,
representative of Lodi's entire customer base and while overall satisfaction with Lodi will be the critical goal of
these research efforts, GreatBlue will collect data as shown,
Areas of Investigation
Within the adopted methodology, GreatBlue will aim to measure the satisfaction, awareness, perception, and
demographics from the desired respondent base. Suggested areas for investigation for the customer study
may include, but are not limited to, the following:
• Satisfaction with products and services offered
• Perception and awareness of community involvement
• Perception of customer service provided
• Awareness of marketing and advertising communications
• Overall opinions of the "General Fund Transfer"
• Drivers and barriers to engaging
• Overall influence of the "Citizens Against Lodi" social media efforts
• Demographics
The actual areas of investigation will be further detailed and new survey instruments drafted upon a definitive agreement:
Market Researcr :: Proposal Page/ 6
Research Methodobgy
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Telephone Interviews 3 Focus Groups
Telephone -based Interviews
Hometown Connections and GreatBlue believe a telephone survey methodology will provide the opportunity
to gather the highest quality data given the desired customer demographic. A telephone survey
methodology allows for the collection of both quantitative and qualitative data from the respondent base
while while maximizing the response rate and eliminating self-selection often found in digital surveys.
Moreover, this methodology is better suited if the Client seeks to base strategic decisions on the findings
where data integrity is paramount. Respondents have the opportunity to interact anonymously with the
researcher conducting the telephone interview and the ability to provide their feedback immediately.
Telephone surveys allow for a deeper dive along with the ability to uncover more comprehensive feedback
while the individual is engaged and communicating.
GreatBlue suggests communicating with Lodi customers before the survey effort begins to educate them on
the process and encourage participation, These communications will increase the participation rates we
receive over the duration of the study. Given our experience, this survey will take up to three weeks to
successfully field.
Focus Croups
GreatBlue believes utilizing a qualitative focus group methodology will provide the opportunity to gather the
highest quality data among Lodi's Residential and Commercial and Industrial customer base. This approach
works well when clients desire comprehensive data sets and are seeking long and short term planning
feedback. Focus groups provide the opportunity to get respondents in a room and conduct a deep dive of
their feedback and opinions.
GreatBlue suggested conducting one focus group among your Residential customers and one focus group
among Commercial and Industrial customers to assure comprehensive feedback is received from a variety of
customers. GreatBlue will work closely with Lodi to finalize stakeholder qualifications for the each group.
Market Reseaia, :: Proposal Page/ 7
mplementation Plan
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GreatBlue works collaboratively with all clients throughout the entire research process to ensure the best
possible results. GreatBlue delivers actionable research recommendations based on organizational realities.
The following work plan outlines the process our Project Team follows:
Project Leadership
Learn Design Collect (Analyze (Report
Quality Assurance
Project Initiation Meeting :: Communication is a critical component in any successful program. GreatBlue
always begins with an initial "kick-off" meeting among all project personnel to discuss overall approach and
to formalize project execution and reporting.
Instrument Design :: GreatBlue's project team will develop the study instrument and provide for client review,
input and approval.
Programming, Testing and Survey Fielding :: Upon instrument approval, GreatBlue will program the survey
and sample into its computer-aided interviewing platform for comprehensive testing prior to full-scale fielding
and data collection. The platform will operate as the front line for data collection and ensures the information
collected - and used - is accurate and error free. This includes open-ended verbatim responses.
Data Analysis :: Upon completion of fielding, GreatBlue will analyze composite data identifying key findings,
trends, deriving insights, and actionable recommendations (if appropriate). GreatBlue utilizes data analytics
software which is integrated into our computer-aided interview platform ensuring quality, high-end data
analysis.
Reports and Presentations :: GreatBlue provides unlimited study reports and presentations and keeps client
data securely and indefinitely. Our reports are detailed and include easy to read illustrations and narrative
along with key study conclusions and recommendations.
Market Research :: Proposal Page/ 8
Timeline
Below is an estimated timeline for the proposed study. During the Project Initiation Meeting the team can
discuss and agree to a definitive timeline. We are prepared to begin immediately.
Task
Agreement Execution
Project Initiation Meeting
Survey Instrument Design
Study Pre-Tests/Sampling Planning
Full -Scale Survey Fielding
Data Analysis
Final Report Preparation
Report Delivery/Presentation(s)
Project Timeline
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6
0
0 o
Market Research :: Proposal Page/ 9
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Market Research :: Proposal Page/ 9
..........
_... _... -
Engagement Team
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rl xr`.cm'.-nt Tea—, I('a der.
All members of this project team have ample experience working with a variety of professional clients as well
as the methodologies recommended within our proposal:
Project Role
I Public Power Coordinator
Engagement Team Leader
Co -Project Director
............ ................ _................ _.. .
Your GreatBlue Account. Team
Name Corporate Title
Tim Blodgett President & CEO
Michael Vigeant CEO
Seamus McNamee Senior Director, Research
Co -Project Director Nicole Gaona Senior Director, Research
Analytics & Trends Stephen Benoit Research Analyst
Survey Fielding Shawn Kincey Supervisor, Call Center
Organization
Hometown
GreatBlue
GreatBlue
GreatBlue
GreatBlue
GreatBlue
About Michael Vigeant, Engagement Team Leader
With more than 2 decades of market experience, Vigeant is a specialist in the design and implementation of
a wide variety of research methodologies including telephone, mail and digital -based studies, focus groups,
and in-depth professional interviews.
Vigeant empowers the clients he serves with objective, reliable data to maximize operational effectiveness.
Having personally conducted over 500 focus groups in his career for local, state and national organizations in
a host of industries, Vigeant brings a depth of knowledge and experience to each client project engagement.
Based on this experience, Vigeant has been asked to be a guest speaker at conferences in an amalgam of
industries about the use of market research to guide product development, commercialization strategies,
customer and employee communications, how perceptions impact organizations and more.
Between the decades of hardened market experience designing studies and industry -acknowledged thought
leadership, Vigeant and the GreatBlue team are ready and capable to handle today's most complex research
studies.
Market Researcli :: Proposal Pagel 10
Represent,'-.flive11
Client Roster
Below is a sample of the diverse set of clients we've had the honor of helping navigate
their ever changing market landscape over the past 35+ years.
LogistiCare
Solutions
Berkshire
Cas
Comcast
Municipal
Electric
Association
. of MA
McDonalds
United
Illuminating
CT Water
Company
Alabama Rochester Turlock
MunicipalPublic Irrigation
Elec-tric
Association Utilities District
References
Walter Schlink
Rochester Public Utilities
Director of Power Resources/Customer Relations
4000 E. River Road Northeast
Rochester, MN 55906
p. 507.280.1500
e. wschlink@rpu.org
Eric Thornburg
Connecticut Water Company
President & CEO
93 West Main Street
Clinton, CT 06413
p. 860,664.6015
e, ethornburg@ctwater,com
Daniel Dessanti
Northeast Gas Association
Director, Operation Services
20 Waterview Blvd. 4th Floor
Parsippany, NJ 07054
p. 973,265.1900 ext. 216
e. ddessanti@northeastgas.org
Chris Farrell
Berkshire Gas Company
Manager, Corporate Communications
115 Cheshire Road
Pittsfield, MA 01 201-1 803
p. 413.445.0312
e. cfarrell@berkshiregas.com
Market Research :: Proposal Page/ 12
Pro'ect Pee
I
-c.lo V are [he prOfQC,t llc s ass C1��1.:C::c `,,vlih C)i�c nc: iviGluall t ulady'�ypC and sample SIZC:
I. Quantitative Research / Schedule of Costs' (Select One)
No. Item/Description
1 600 Completed Residential Customer Telephone Surveys
2 800 Completed Residential Customer Telephone Surveys
3 1,000 Completed Residential Customer Telephone Surveys
II. Qualitative Research / Schedule of Costs
No. Item/Description
1 Facility Feet (Per Group)
2 Services Fee3, s (Per Group)
3 Participant Incentive Fee4 (Per Group)
4 Number of Focus Groups
Amount
$18,750
$25,000
$31,250
Amount I
$750
$5,1001
$900 1,
21
Program Fee $13,500
II. Total Research Fee (assuming 800 sample size is selected) $38,50(
Project Fee Notes
1. Pricing is based on a survey length of +/- 40 questions including demographics (-10 minutes in length)
2. Facility Fee includes focus group hosting, recording of the sessions, and basic catering services
3. The Services Fee includes project management, recruitment, moderation and reporting
4. Incentive Fee has been set at $75.00 per participant
5. Regarding sample: If Client can not provide sample - or adequate sample - an additional fee to procure
such sample records will be billed separately above and beyond the quote provided herein
6. Travel for presentations and meetings will be billed at cost
Market Researcli :: Proposal Pagel 13
Exhibit B — Fee Schedule
_Proposal to Lodi Electric for
Strategic Planning Consulting and Facilitation
PRICING
The summary of pricing is listed below. All Hometown Connections services include a 10% discount off
standard consulting/facilitation rate for Lodi Electric's APPA membership. Hometown will provide additional
facilitation and consulting services, as required, for an additional fee.
Descripti0h 4 Services
Total Price
( not to exceed)
Hometown Connections Strategic Planning Services
$53,000
as defined above
Hometown Connections Travel Costs
$9,000
GreatBlue Research Market Research Services as
$38,500
described in GreatBlue Proposal 800 servas and 2
focus ou s
GreatBlue Travel Costs
$3,500
Total Costs
$104,000
RESOLUTION NO. 2015-224
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT
FOR LODI ELECTRIC UTILITY STRATEGIC PLANNING CONSULTING AND
FACILITATION WITH HOMETOWN CONNECTIONS INTERNATIONAL, LLC,
OF LAKEWOOD, COLORADO
WHEREAS, the Lodi Electric Utility (LEU) recently completed an Organizational
Checkup with Hometown Connections International, LLC, the utility services subsidiary of the
American Public Power Association; and
WHEREAS, Hometown Connections consultants met with City staff from various
departments to access the health of the utility, relative to public power benchmarks, in the areas
of customer service, community outreach and communications, utility programs, power supply
and risk management, distribution operations, employee safety, governance, strategic planning,
rates, administration, accounting and finance, technology, and human resources; and
WHEREAS, the results of the Organizational Checkup will be used as a starting point
for a strategic planning process that would include input from the City Council, as well as the
LEU customer -owners; and
WHEREAS, given the familiarity that Hometown Connections has with LEU as a result
of the Organizational Checkup, staff recommends utilizing Hometown Connections for strategic
planning and facilitation services; and
WHEREAS, their proposal includes a customer engagement service performed by
Hometown's market research partner, GreatBlue Research; and
WHEREAS, funding will be absorbed within existing appropriations included in
FY 2015/16 Budget Account No. 50060001.72450.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes
the City Manager to execute a Professional Services Agreement with Hometown Connections
International, LLC, of Lakewood, Colorado, for strategic planning consulting and facilitation in
an amount not to exceed $104,000.
Dated: December 16, 2015
I hereby certify that Resolution No. 2015-224 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held December 16, 2015, by the following vote:
AYES: COUNCIL MEMBERS — Johnson, Kuehne, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Mounce
ABSTAIN: COUNCIL MEMBERS — None
NIFER . FERRAIOLO
Ci#y Clerk
2015-224