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HomeMy WebLinkAboutAgenda Report - February 1, 2017 C-13TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Adopt Resolution Authorizing the City Manager to Extend Professional Services Agreement for Lodi Electric Utility Strategic Planning Consulting and Facilitation Services with Hometown Connections International, LLC, of Lakewood, Colorado MEETING DATE: February 1, 2017 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: BACKGROUND INFORMATION: Adopt a resolution authorizing the City Manager to extend Professional Services Agreement for Lodi Electric Utility Strategic Planning Consulting and Facilitation Services with Hometown Connections International, LLC, of Lakewood, Colorado. On December 16, 2015, the City Council authorized the City Manager to execute a professional services agreement for Lodi Electric Utility strategic planning consulting and facilitation services with Hometown Connections International, LLC, the utility services subsidiary of the American Public Power Association. There have been challenges in scheduling meetings; as a result it is taking longer than originally anticipated to complete the strategic planning process. Staff recommends extending the term of the original professional services agreement. The term of this Contract Extension Agreement shall commence January 1, 2017 and terminate June 30, 2018. All other terms and conditions, including compensation, will remain as set forth in the Professional Services Agreement for Electric Utility Strategic Planning Consulting and Facilitation Services. FISCAL IMPACT: No additional funding is required. FUNDING AVAILABLE: In ped in FY2O16/17 Budget Account No. 50060001.72450. EAK/Ist usan Bjork Supervising Budget Analyst APPROVED: e7( Elizabeth A.`Kirkley Electric Utility Director Stephen Schwabauer, City Manager CONTRACT EXTENSION AGREEMENT HOMETOWN CONNECTIONS INTERNATIONAL, LLC ELECTRIC UTILITY STRATEGIC PLANNING CONSULTING AND FACILITATION SERVICES THIS CONTRACT EXTENSION AGREEMENT, made and effective this day of 2017, by and between the CITY OF LODI, a municipal corporation (hereinafter "City"), and Hometown Connections International, LLC (hereinafter "Contractor"). WITNESSETH: CONTRACT: Contractor and City, entered into a Professional Services Agreement for Electric Utility Strategic Planning Consulting and Facilitation Services on February 22, 2016. TERM AND TERMS: The term of this Contract Extension Agreement shall commence January 1, 2017 and terminate June 30, 2018. All other terms and conditions, including compensation, will remain as set forth in the Professional Services Agreement for Electric Utility Strategic Planning Consulting and Facilitation Services, attached hereto as Exhibit 1 and made a part hereof as though fully set forth herein. IN WITNESS WHEREOF, City and Contractor have executed this Contract Extension Agreement on the date and year first above written. CITY OF LODI, a municipal corporation Hometown Connections International, LLC hereinabove called "City" hereinabove called "Contractor" By: STEPHEN SCHWABAUER By: TIM BLODGETT City Manager President and CEO Attest: JENNIFER M. FERRAIOLO, City Clerk Approved as to Form: JANICE D. MAGDICH, City Attorney c \/./ Exhibit 1 AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1 PARTIES AND PURPOSE Section 1.1 Parties THIS AGREEMENT is entered into on -ga`ITC4440by 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 1 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 Staffin 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. 2 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 of Payment 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. 3 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, Severability, 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 attomey's fees from the party who does not prevail as determined by the San Joaquin County Superior Court. 6 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 Ownership 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. 7 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: J IFER MI ERRAIOLO C y Clerk CITY OF LODI, a municipal corporation City Manager APPROVED AS TO FORM: Hometown Connections International, LLC JANICE D. MAGDICH, City Attorney By: Name: Tim Blodgett- Title: 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 Strategic 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 statt' 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 strategics, prioritization and focus on key desired outcomes and the creation of an action plan to support those outcomes. iieatn understanding and Alignment around'yr� External Environment Create integrated pian 44 of strategies Strengths and weaknesses ! , Wh ere wewant to be I nth ef uture 1 Crucial Issues/0i alenges r VaIuesPropasition / Stakeholders `'. L Elulyd specific goals 1\ and actions Priorhfae thalse strategies Hometown Connections 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 them, and be encouraged to align their own work closely with those strategic priorities. Page 1 D 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. D Values -Driven: Public power is a reflection of community values Hometown Connections' Strategic Planning Process OELIWERIRE VALUE 70 PURIIC POWER 1 11,1,110 f:rotilni .r.,lonluq V i siLlli16lkS14) I L'V _tl ue:; a 1 lilt l::i.GC �, � i-111• r�lil'�)���y; ..j,,j1,fli 1r :111 i,�i rl„i ,'f[rl}"r;?,'ia,•:'h r:r[=!3 ' hvir, ,,rt r.,rtiNNrii,I. apinr'ru„ur, • Ct > ,17r11*rt 19Kiln4tft etwleMr7 Nerds .411`.1'; 1,1 I Il611 Duds ;{I:ItBIpillty ^11, .�rfh,•i irk ,n�� ii 1.1 • /ICON I ktrn i sprs't/il rth'railhus la ac raaetpirA penal ) Lrt1ult lnalfedlnq S prrrnftr unplenIrflattln 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 ol'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 he 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 hoard 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: Site Visit One Advisory Meeting ='/2 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 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 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. Page 3 Implementation Meeting = t and V2 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 Tearn, and by meeting's end, assign deliverables for the next meeting. This 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 com lete aloewith a date for the next meetin_. Advisory Meeting ='/2 day evening session plus 1 day of travel, Day 2 evening meeting 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 morning of day 3. Implementation Meeting = 1 and''/ day session plus 1 day of travel. Day l will begin with the responsible parties presenting their assigned deliverables to the team. The team 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 bb ectives and deliverables assi _ ed and a sresentation to the Advise Team the Hometown Connections. DELIVERING VALUE TO P.PELIC POWER greatblue ... 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, Tim Blodgett Chief Executive Officer Hometown Connections International til Michael J. Vigeant Chief Executive Officer GreatBlue Research, Inc, www.HometownConnections.com bv`\^r:w.Grca1F luo c oarcl-.';oin Customer Satisfaction Study Prepared Exclusively For: This offer is valid until December 1 B, 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. Elizabeth Kirkley From: Michael Vigeant <mjv@greatblueresearch.com> Sent: Tuesday, December 8, 2015 4:24 PM To: Elizabeth Kirkley Cc: Bill Smart; Tim Blodgett; Brady Lee; Karen Engelmann (Lodi EUD) 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 Grealfltie Research. lite. Office :: 860-740-4000 Mobile ;; 860-306-6135 Web :: GreatBlueResearch.com About GreatBlue. GreatBlue provides reliable. actionable research and analytics to help organizations identity address and improve their offerings to key constituents. With more than 35 years of experience in diverse mai kets, t ireatBlue effectively yokes this knowledge to correlate general attitudes and perceptions with behavioral trends 10 provide our clients with a roadmap for success. 1 Table of Contents PI:(L4 About GreatBlue PM;F A Project Overview 'II[; F 8 Implementation Plan PDGF 10 Engagement Team Representative Client Roster n Gout ,s Hometown Connections and GreatBlue Research are partnering to deliver actionable customer intelligence. The firms combine Hometown's deep knowledge of public power utility rT)anagemerrt wth .t.he research design, analysis, and reporting expertise of GreatBlue Research, Together, the firms are closely integrating customer & employee research with Hometown's strategic planning, facilitation, organization assessment and other consulting services This service helps APPA members identify and support. the needs of public power communities through reliable research. 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 Digital Surveys at • Focus Groups In -Depth Interviews Market Research :: Proposal Page 14 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: Awareness Market 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. Isr n Data Presentations Analysis and Training Market Research ;: Proposal Pagel 5 • Project: Overview We are uniquely qualified to equip your team with the data driven analytics to better assist you in undeistandinC,, youi satisfaction levels within your customer base 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 airn to measure the satisfaction, awareness, perception, arid 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 he further detailed and new survey instruments drafted upon a definitive agreement. Market Research „Proposal Page / 6 i Research Vet 00 of Hometown Connections and GreatBlue propose upon our experience conducting similar projects L ocgy the following methodology based with similar goals and objectives Telephone Interviews 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 Groups 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 Research :: Proposal Page/ 7 T C enation 3 an Our cross -functional implementation team includes representation from Research, Analytics, Sales and Senior Management to ensure the study is designed and executed without issue and meets the primary research objective(s). 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: Learn Design J Project Leadership 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. Project Timeline Task Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Agreement Execution (0) Project Initiation Meeting 4 Survey Instrument Design «' Study Pre-Tests/Sampling Planning Full -Scale Survey Fielding Q 4 4 Data Analysis 4 4 Final Report Preparation 4 10 0 Report Delivery/Presentation(s) Market Research :: Proposal Page / 9 ' ■. gTgeTTnTearT Hometown Connections and GreatBlue draw upon 18 years of public power experience and 35 years of success sterns from our ability to effectively serve our clients Marl of this rests within our creation of cross functional project teams that include a member of senior management as the engagement team leader, 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: Your GreatBlue AccountTearn Project Role Name Corporate Title Organization Public Power Coordinator Tim Blodgett President & CEO Hometown Engagement Team Leader Michael Vigeant CEO GreatBlue Co -Project Director Seamus McNamee Senior Director, Research GreatBlue Co -Project Director Nicole Gaona Senior Director, Research GreatBlue '; Analytics & Trends Stephen Benoit Research Analyst GreatBlue Survey Fielding Shawn Kincey Supervisor, Call Center GreatBlue About Michael Vigeant, Engagement Team Leader With more than 2 decades of rnarket 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 Research ;: Proposal Pagel 10 RcDresentative 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. (Coca-Cola Comcast LogistiCare Solutions Eversource McDonalds United Illuminating Municipal Berkshire Electric CT Water Gas Association Company of MA Alabama Rochester Turlock Municipal Public Irrigation Electric Association Utilities District cfercnccs 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 112 si roicct Fec Below are the project fees associated with each individual study type and sample size 1. 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 11. Qualitative Research / Schedule of Costs No. Item/Description 1 Facility Fee? (Per Group) 2 Services Fee3' 5 (Per Group) 3 Participant Incentive Fee4 (Per Group) 4 Number of Focus Groups Program Fee Amount $18,750 $25,000 $31,250 Amount' $750 $5,100 $900 I 2 $13,500 111. Total Research Fee (assuming 800 sample size is selected) $38,500 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 managernent, 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 Research :: Proposal Page/ 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. D c ii'ltion of Sery ces Hometown Connections Strategic Planning Services as defined above) Hometown Connections Travel Costs Total Nice (not to exceed) $53,000 GreatBlue Research Market Research Services as described in GreatBlue Proposal 100 surveys and 2 focus rou.s GreatBlue Travel Costs $9,000 $38,500 $3,500 Total Costs $104,000 RESOLUTION NO. 2017-13 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXTEND THE PROFESSIONAL SERVICES AGREEMENT FOR ELECTRIC UTILTY STRATEGIC PLANNING CONSULTING AND FACILITATION SERVICES WITH HOMETOWN CONNECTIONS INTERNATIONAL, LLC, OF LAKEWOOD, COLORADO WHEREAS, on December 16, 2015, the City Council authorized the City Manager to execute a professional services agreement for Lodi Electric Utility strategic planning consulting and facilitation services with Hometown Connections International, LLC, the utility services subsidiary of the American Public Power Association; and WHEREAS, there have been challenges in scheduling meetings; as a result it is taking longer than originally anticipated to complete the strategic planning process; and WHEREAS, staff recommends extending the term of the original professional services agreement; and WHEREAS, the term of this Contract Extension Agreement shall commence January 1, 2017, and terminate June 30, 2018; and WHEREAS, all other terms and conditions, including compensation, will remain as set forth in the Professional Services Agreement for Electric Utility strategic planning consulting and facilitation services; and WHEREAS, no additional funding is required and funding is included in Fiscal Year 2016/17 Budget Account No. 50060001.72450. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a Contract Extension Agreement with Hometown Connections International, LLC, of Lakewood, Colorado, commencing on January 1, 2017, and terminating on June 30, 2018, with all other terms and conditions, including compensation, to remain as set forth in the Professional Services Agreement for Electric Utility strategic planning consulting and facilitation services. Dated: February 1, 2017 I hereby certify that Resolution No. 2017-13 was passed and adopted by the City Council of the City of Lodi in a regular meeting held February 1, 2017, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, and Mayor Kuehne NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Nakanishi ABSTAIN: COUNCIL MEMBERS — None 2017-13 )Alt 4,04 NIFER FERRAIOLO y Clerk