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HomeMy WebLinkAboutAgenda Report - April 4, 2018 C-05TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM C-5 AGENDA TITLE: Adopt Resolution Authorizing the City Manager to Execute a Five -Year Professional Services Agreement for the Completion of a Biannual Electric Utility Customer Satisfaction Study with Great Blue Research, Inc., of Cromwell, Connecticut ($118,500) MEETING DATE: April 4, 2018 PREPARED BY: Business Development Manager RECOMMENDED ACTION: BACKGROUND INFORMATION Adopt a resolution authorizing the City Manager to execute a Five- year Professional Services Agreement for the completion of a biannual electric utility customer satisfaction study with Great Blue Research, Inc., of Cromwell, Connecticut, in an amount not to exceed $118,500. The Council adopted the Lodi Electric Utility (LEU) Strategic Plan on October 4, 2017. The Strategic Plan was the result of a multi-year assessment of 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 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 A major component of the strategic planning process was the completion of a 2016 customer satisfaction study by Great Blue Research. Great Blue's analysis provided LEU a better understanding of the current satisfaction levels for both residential and commercial/industrial customers. The methodology used included customer focus groups and telephonic surveys. APPROVED: en Schwabaer, City Manager Adopt Resolution Authorizing the City Manager to Execute a Five -Year Professional Services Agreement for the Completion of a Biannual Electric Utility Customer Satisfaction Study with Great Blue Research, Inc. ($118,500) Page 2of2 The purpose of the focus group meetings was to facilitate discussions within each group to determine which issues warranted addressing in the telephone surveys. The surveys allowed for a deeper dive, along with the ability to uncover more comprehensive feedback while the individual is engaged and communicating. Respondents had the opportunity to interact anonymously with the researcher conducting the telephone interview and the ability to provide their feedback immediately. The data produced was statistically reliable with thoughtful, concise insight into how the findings answer the study objectives. The results of the 2016 analysis were presented to Council on June 15, 2016 and were used by LEU to develop a strategic plan to guide the improvement of the utility, its product and service offerings. One of the key study findings is that a majority of customers reported a 67 percent overall satisfaction rate with LEU. While a satisfactory rating, the Council's adopted 2017 Strategic Plan recognized customer satisfaction must be improved and set a goal to increase and measure customer satisfaction over time: ➢ LEU will strive to achieve and maintain a minimum 80 percent customer satisfaction rating as measured by biannual survey. In accordance with this Strategic Plan goal, staff conducted a competitive request for proposal process and is pleased to recommend the selection of the only proposer, Great Blue Research, Inc., for preparation of the next three biannual customer satisfaction studies. Staff is recommending the Council authorize the City Manager to execute a five-year professional services agreement with Great Blue Research, Inc. in order to maintain consistent research methodology between studies and in order to take advantage of a lower price point that will result in a total contract savings of $9,000. Great Blue Research, Inc. is prepared to begin their research immediately following contract approval, utilizing the 2016 study findings as the baseline for all future studies and employing similar means and methods. LEU will ultimately use study findings to understand if the City's improvements to customer service, product and service offerings are having the desired effect on customer satisfaction and to identify opportunities for additional adjustments to be made. See the attached proposal for more details relating to the customer engagement strategy. FISCAL IMPACT: FUNDING AVAILABLE: AB Attachments Funding will be absorbed within existing appropriations. Approval of the recommended five-year professional services agreement will allow LEU to take advantage of a lower price point and realize a total contract savings of $9,000. The 2018. study is included in FY2017/18 Budget Account No. 50060001.72450. Andrew Keys Deputy City Manager/Internal Services Director ( Ada Brucker Business Development Manager AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1 PARTIES AND PURPOSE Section 1.1 Parties THIS AGREEMENT is entered into on , 2018, by and between the CITY OF LODI, a municipal corporation (hereinafter "CITY"), and Great Blue Research, Inc. (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 Customer Satisfaction Study (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 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 Unless prior written approval of CITY is obtained, CONTRACTOR shall not enter into any subcontract with any other party for purposes of providing any work or services covered by this Agreement. Section 2.6 Term The term of this Agreement commences on , 2018 and terminates upon the completion of the Scope of Services or on December 31, 2022, 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: Adam Brucker, Business Development Manager To CONTRACTOR: Great Blue Research, Inc. 162 West Street Cromwell, Connecticut 06416 Attn: Brady Lee, VP, Business Development 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. 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 Ownershjp 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: CITY OF LODI, a municipal corporation JENNIFER M. FERRAIOLO STEPHEN SCHWABAUER City Clerk City Manager APPROVED AS TO FORM: JANICE D. MAGDICH, City Attorney By: By:4Jt4 Great Blue Research, Inc Attachments: Exhibit A — Scope of Services Exhibit B — Fee Proposal Exhibit C — Insurance Requirements Exhibit D — Federal Transit Funding Conditions (if applicable) Name: Brady Lee Title: VP, Business Development Funding Source: Doc ID: CA:Rev.01.2015 (Business Unit & Account No.) 8 Scope o Services - _xHbit A GreatBlue is uniquely qualified to equip the LEU team with data aimed at understanding customer opinions and maintaining a company wide satisfaction rating. To effectively capture unbiased residential and commercial and industrial 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 LEU 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 and subsequently tracking the 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. GreatBlue understands the desired goal of maintaining a targeted customer satisfaction metric through the collection and analysis of customer data. GreatBlue understands the baseline data collected in 2016 will be utilized during the 2018 study for tracking and trending purposes. GreatBlue will work closely with LEU in 2018, 2020 and 2022 to update and design custom research instruments and pertinent areas of investigation for the particular study. A detailed project scope and timeline wit be created and agreed upon by both parties to assure the necessary data is captured and uncovered. 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 • Drivers and barriers to engaging • Overall influence of social media efforts • Demographics The actual areas of investigation will be further detailed and new survey instruments drafted upon a definitive agreement, 7.csearch Vethodoogy GreatBlue proposes the following methodology based upon our experience conducting similar projects with similar goals and objectives. L Telephone Interviews Focus Groups Telephone -based Interviews GreatBlue believes a telephone survey methodology will provide the opportunity to gather the highest quality data among the desired residential customer demographic. A telephone survey methodology allows for the collection of both quantitative and qualitative data from the respondent base 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 and measure customer metrics on the findings where data integrity and multi-year tracking 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. As with the study conducted in 2016, GreatBlue suggests communicating with LEU 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. To ensure consistency among data sets, GreatBlue recommends conducting 800 completed residential telephone surveys. This sample size will provide a margin for error of +/- 3.5%. Focus Groups A qualitative focus group methodology will provide the opportunity to track and gather in-depth data from LEU's residential and commercial and industrial customer base. This approach works well when clients desire comprehensive, detailed data sets and are seeking to guide or confirm further planning or research efforts. Focus groups provide the opportunity to get respondents in a room and conduct a deep dive of their feedback and opinions. GreatBlue will conduct one focus group among your residential customers and one focus group among commercial and industrial customers to assure comprehensive feedback is received from both of the targeted groups. GreatBlue will work closely with LEU to finalize stakeholder qualifications for each group. Scope of Services ExhibitA Page / 2 rrple Tentatio 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 Project Leadership r Collect Quality Assurance Analyze f/) Report 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. Scope of Services :: Exhibit A Page / 3 9ro ect Hee __xnIblt B Below are the project fees associated with the requested scope of work. I. Quantitative Research / Schedule of Costs1 (Per Year - 2018, 2020, 2022) No, Item/Description 1 800 Completed Residential Customer Telephone Surveys* II. Qualitative Research / Schedule of Costs (Per Year - 2018, 2020, 2022) No. Item/Description 1 Facility Feet (Per Group) 2 Services Fee3' 5 (Per Group) 3 Participant Incentive Fee4 (Per Group) 4 Number of Focus Groups Amount $22, 400 Amount $750 $4,900 $900 2 Program Fee $13,100 III. Total Per Year Research Fee (assuming 5 year agreement) (studies conducted every other year - 2018, 2020, 2022) $35,500 IV. Total 5 Year Agreement Cost $106,500 Project Fee Notes 1. Pricing is based on a survey length of up 40 questions including demographics and sub -questions (-10 minutes in length). Increase in survey length will result in an increased Fee per year 2. Pricing is based on a five year agreement, commencing on a to be determined date in 2018 and concluding on December 31, 2022 3. Facility Fee includes focus group hosting, recording of the sessions, and basic catering services 4. The Services Fee includes project management, recruitment, moderation and reporting 5. Incentive Fee has been set at $75.00 per participant 6. 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. Sample records fee not to exceed $2,000 per year 7. Travel for presentations and meetings will be billed at cost not to exceed $2,000 per trip unless short notice (less than three week timeframe) or holiday travel is requested EXHIBIT C NOTE: The City of Lodi is now using the online insurance program PINS Advantage. Once you have been awarded a contract you will receive an email from the City's online insurance program requesting you to forward the email to your insurance provider(s) to submit the required insurance documentation electronically Insurance Requirements for Professional Services Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as: 1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations. property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: ISO Form Number CA 00 01 covering any auto or it Contractor has no owned autos, then hired, and non - owned autos with limit no less than $1,000,000 per accident for bodily injury and property damage. 3. Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. 4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant's profession, with limits not less than $1,000,000 per occurrence or claim, $2,000,000 aggregate. Other Insurance Provisions: (a) Additional Named Insured Status The City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers are to be covered as additional insureds on the CGL and auto policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used (b) Primayr + and Non -Contributory Insurance Endorsernenj The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. For any claims related to this contract, the Contractor's insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. (c) Waiver of Subrogation Contractor hereby grants to City of Lodi a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City of Lodi by virtue of the payment of any loss under such Insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Lodi has received a waiver of subrogation endorsement from the insurer NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) and (c) above: 221 West Pine Street. Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of the project that it is insuring. (d) Severability of Interest Clause The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability under the Contractors commercial general liability and automobile liability policies. (e) Notice of Cancellation or Change in Coverage Endorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager. City of Lodi, 221 West Pine St., Lodi, CA 95240. Page 1 1 of 2 pages Risk: rev. 3/1/2018 (f) (g) Continuity of Coverage All policies shall be in effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Contractor shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Contractor shall provide proof of continuing insurance on at least an annual basis during the Term. If Contractor's insurance lapses or is discontinued for any reason, Contractor shall immediately notify the City and immediately obtain replacement insurance. Contractor agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). Failure to Comply If Contractor fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the insurance. Contractor shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum allowable legal rate then in effect in California. The City shall notify Contractor of such payment of premiums within thirty (30) days of payment stating the amount paid, the name(s) of the insurer(s), and rate of interest. Contractor shall pay such reimbursement and interest on the first (1st) day of the month following the City's notice. Notwithstanding any other provision of this Agreement, if Contractor fails or refuses to obtain or maintain insurance as required by this agreement, or falls to provide proof of insurance, the City may terminate this Agreement upon such breach. Upon such termination, Contractor shall immediately cease use of the Site or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities. (h) Verificalion of Coverage Consultant shall furnish the City with a copy of the policy declaration and endorsement page(s), original certificates and amendatory endorsements or copies of the applicable policy Language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective date. (i) Self -Insured Retentions Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City. (j) Insurance Limits The limits of insurance described herein shall not limit the liability of the Contractor and Contractor's officers, employees, agents, representatives or subcontractors. Contractor's obligation to defend, Indemnify and hold the City and its officers, officials, employees, agents and volunteers harmless under the provisions of this paragraph is not limited to or restricted by any requirement in the Agreement for Contractor to procure and maintain a policy of insurance. (k) Subcontractors Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City is an additional insured on insurance required from subcontractors (1) Claims Made Policies If any of the required policies provide coverage on a claims -made basis: 1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work. 2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. 3. If coverage is canceled or non -renewed. and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase "extended reporting" coverage for a minimum of five (5) years after completion of contract work. (m) Qualified Insurer(s) All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of California which are rated at least "A-, VI" by the AM Best Ratings Guide, and which are acceptable to the City. Non -admitted surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines insurers (LESLI list) and otherwise meet City requirements. Page 2 I of 2 pages 1 Risk: rev. 3/1/2018 Customer Satisfaction Study City Council Meeting greatblue Report of Findings 15 June 2016 Table of Contents IN-' I I°ok!. Ira trir �cac411 c• - �1 4-.0 CO" kft SECTION ONE About GreatBlue SECTION TWO Project Overview SECTION THREE Key Study Findings SECTION FOUR Considerations Table of Contents SECTION ONE About GreatBlue SECTION TWO Project Overview SECTION THREE Key Study Findings SECTION FOUR Considerations EXHIBITS Aggregate Data (Provided Separately) ArLkdkri to1212‘; � :)412414fial2 ime % ILI XI *WO f Eike PI 414,2 4 i y SSS ' 4 1 Evcence- oasoc rosoarch across cvorso incusthcs Our experience in instrument design affords our clients actionable analytics to help them identify, address, and improve offerings to, and the way they communicate with, their key constituents. With more than 35 years of experience in diverse markets, our consultative approach ensures our data can be the basis to make important business decisions. Cross -functional engagement teams ensure a complete view of the issues and solutions. GreatBlue Research, Inc. Slide / Expertise in a cverse set of research methocoocer L Having conducted millions of surveys and thousands of focus groups over the past 30+ years, our experience in instrument design, data collection and the presentation of those findings in manageable, actionable ways allows us to serve our clients across the spectrum of research studies. Telephone Interviews In-house, multi-lingual interviewing capabilities Digital Surveys Web + mobile -based survey programs Focus Groups State -of -the -Art facilities in CTand MA In -Depth Interviews Trained researchers allow us to dive deep in a 1:1 setting GreatBlue Research, Inc. Slide / Awareness/Perception Market Feasibility MarComm Reg Compliance Efficiency Customer Satisfaction Solutions that focus on strategb anc ooeraUona neecs of clients Whether direct to clients or through their agencies, we apply our core research methodologies, often applying a mixed methodology to ensure a study that captures both quantitative and qualitative information, to ensure our solutions exceed client expectations. GreatBlue Research, Inc. Slide / Table of Contents SECTION ONE About GreatBlue SECTION TWO Project Overview SECTION THREE Key Study Findings SECTION FOUR Considerations EXHIBITS Aggregate Data (Provided Separately) ■ • ti 1 Project Overview O GreatBlue was commissioned by Lodi Electric Utility (hereinafter "Lodi Electric" or "LEU") to conduct comprehensive research among a cross-section of customers to gain a deeper understanding into their perceptions of the utility and satisfaction with the services provided. Cs The primary goal of this research study was to assess the effectiveness of Lodi's ability to serve its customers, identify areas for improvement, and isolate areas that may increase engagement. O In order to service this research goal, GreatBlue conducted telephone surveys among a random sampling of Lodi's residential customers. Focus groups were also conducted among a select number of residential and business customers to inform the subject matter of the survey and, where applicable, aid in elaborating on survey findings. O The outcome of this research will enable Lodi personnel to a) more clearly understand, and ultimately set, customer expectations, b) act on near term opportunities for improvement and, c) create a strategic roadmap to increase customer satisfaction. GreatBlue Research, Inc. Slide / The Lodi Electric Utility Customer Satisfaction Study leveraged a multi -mode research methodology to address the following areas of investigation: o Perception of local utilities and area organizations Rating Lodi's organizational characteristics LT) Satisfaction with customer service and/or field personnel o Preferred methods of communication o Interest in services and products offered by Lodi o Interest in Lodi having a renewable energy portfolio o Demographic profile of respondents research 1 Methodology 1 Telephone Target Residential Vethoc No. of Completes 800 Quality Assurance DuaIIeveI** oogy Sna No. of Questions 67* Margin of Error 3.4% oshot Time Compensation None Confidence Level Sample Customer list Research Dates 95% Apr2O-May9 *This represents the total possible number of questions; not all respondents will answer all questions based on skip patterns and other instrument bias. **Supervisory personnel in addition to computer-aided interviewing platform ensure the integrity of the data is accurate. GreatBlue Research, Inc. Slide / 10 Survey Res oonc ent Sna oshot This slide quantifies select data points to provide context for the quantitative research study. The following graphs provide an empirical view into the demographics of the survey respondents. Age Refused 5.0% Ec ucation Refused 5.6% H eh school,. .EL) ai.s% 2year c e, 1'st gtradute28.1% 9,.5% 4 year co �e rad 30 . 5` Genc er Roso ncy Refused 5.0% GreatBlue Research, Inc. Slide / research Vethoc Methodology Focus Groups Target Customers Length of Session oogy Sna oshot Time Compensation Sample 75/participant Customer List Discussion Moderation Research Date 0-90 minutes GreatBlue March 24 Participant Criteria Commercial Residential GreatBlue Research, Inc. Slide / Focus Grou Participants: Resc enUal Customers This slide quantifies select data points to provide context for the qualitative research study. The following graphs provide an empirical view into the segments and demographics of the participants. 3 10 6 4 2 Length of time as customer Gender Male Female Less than 10 years 11-2Oyears 21 years or more Undisclosed GreatBlue Research, Inc. Slide / Focus Grou Partici pants: Commercial Customers This slide quantifies select data points to provide context for the qualitative research study. The following graphs provide an empirical view into the segments and demographics of the participants. 3 10 6 4 2 Length of time as customer Male Female 0 Less than 10 years 11-2Oyears 21 years or more Undisclosed GreatBlue Research, Inc. Slide / Table of Contents •0• SECTION ONE About GreatBlue SECTION TWO Project Overview SECTION THREE Key Study Findings SECTION FOUR Considerations EXHIBITS Aggregate Data (Provided Separately) M. 1. 0 4 4 T 4. 4 4. 4. 4 4. 4. 4. 4 IP a -' r _ 11 1 1 - 1 1 1 1 ✓ 1 11 1 7/\ '1 I 0 1 would still purC\R' at an increased price faint P m 1 P 1 1 . 1 r F 1 F 1 ■ Negative Impact .. . . 1. t ■ r 1 1. F .,•I r 1 7 WA Boomers 1 d . 4 a 1 i • 4. • 4. I. 4. aL I. m. 4. 4 4. aL ■ Ke y Stuc yHnc 1 inc S O When compared to other utilities (gas, phone, water, cable, etc.), respondents had a comparatively favorable perception of the service they receive from their electric utility. While the highest frequency of respondents had a favorable perception of their "gas company" (88.0%), it was followed second by their "electric utility" (75.8%). In addition, 62.8% of residential customers reported that Lodi Electric closely aligns with their perception of an ideal utility experience. O Lodi Electric was rated satisfactorily by a majority of customers when evaluated on a series of nine (9) organizational characteristics. When "don't know" responses were removed from the data, the average positive rating among residential customers was 62.7%. The top individual areas rated were "maintaining a modern and reliable infrastructure" (74.5%) and "overall satisfaction with Lodi Electric" (67.0%). O Contact resolution was the primary driver of satisfaction. When contacting Lodi Electric, only 59.4% reported having their issue or concern taken care of on the first contact. Further, when rating the organization, those respondents who experienced first contact resolution provided an average positive rating of 72.3% compared to those that did not, who provided an average positive rating of only 22.8%. GreatBlue Research, Inc. Slide / Ke y Stuc yHnc i inc L. S, CO (,t1 od O 43.8% of residential customers reported calling or visiting a Lodi Electric office in the last 12 months, and among those respondents, 71.7% were satisfied with the customer service employee who handled their call or visit. O 6.1 % of residential customers reported having a field service representative visit their home in the last 12 months, and among those respondents, 79.6% were satisfied with the field service employee who visited their home. Cs 69.5% of residential customers reported Lodi Electric meets their expectations either "all" or "most" of the time. The top three expectations reported among respondents include "affordable prices/lower prices" (38.9%), "reliability" (25.6%), and "good service" (17.5%). Cs Lodi Electric's billing was reported to be "easy to understand" and to "accurately detail the separate charges for electric, water, wastewater, and solid waste charges" by a strong majority of residents (79.8% and 84.6%, respectively). However, it should be noted that 50.2% of respondents reported Lodi Electric's rates were "higher than surrounding towns." GreatBlue Research, Inc. Slide / Ke y Stuc yHnc 1 inc L. S, CO (,t1 od O In general, residents only provided moderate support for the expansion of solar energy in Lodi Electric's service territory. 47.0% of respondents reported Lodi Electric should be "somewhat" or "very" conservative when it comes to efforts to expand solar energy, with 67.6% reporting to be "unwilling to pay anymore" to compensate for those efforts to grow solar. However, 43.8% of residents were interested in Lodi Electric providing "solar rebates" for those customers who had the desire to develop solar energy for their individual dwelling. O Avast majority of those residents who experienced an outage in the last 12 months reported to be "satisfied" with the time it took to restore power (81.2%). O "Lodi Electric website" (31.6%) or "internet" (31.1 %), in general, were residents' preferred sources of information. O Finally, customers reported a relatively strong relationship with Lodi Electric, as the utility scored a net positive rating - defined as advocacy+loyalty+satisfaction - of 73.3% among residents. Further, 68.9% of respondents reported to have "a great deal of trust" or "some trust" in Lodi Electric. GreatBlue Research, Inc. Slide / erceotons of eecthc utility stronc While perceptions of their gas company were highest; electric utilities and, thus, Lodi Electric received comparably positive ratings among other area organizations measured. However, slightly fewer residential customers (62.8%) believed Lodi Electric compared closely to their ideal utility. As I read a list of area organizations and companies providing services to you, please rate each on the quality of their overall customer service. 25.0% (w/o "Don't Know" responses) 100.0% 75.0% 50.0% 62.8% of residents report Lodi compares closely to their ideal utility 7 I 9 73 L ')/0 Internet Provider CableTVCompany Water Company Phone Company Electric Utility Gas Company GreatBlue Research, Inc. Slide / Loc i'� service + staff c rive ratings Customers provided an average positive rating of 62.7% regarding Lodi Electric's organizational characteristics. While lack of awareness drove some lower ratings, the perception that Lodi Electric "helps customers conserve electricity" (56.0%) and "provides good service and value for the cost of electricity" (53.6%) received the lowest ratings. Furthermore, only 52.1 % of customers believed the rates they pay for electricity are "reasonable." However, most customers expressed interest in rebates that may help them conserve electricity. Item: Organizational Characteristics Maintaining modern and reliable infrastructure Overall satisfaction with Lodi Electric Helpful and knowledgeable staff Responding promptly to customers questions and complaints Communicating with customers Being open and honest about company operations and policies Community involvement Helping customers conserve electricity Providing good service and value for the cost of electricity Average positive ratings GreatBlue Research, Inc. 2016 2016 w/ "Don't Knows" w/o "Don't Knows" 59.4 65.9 51.0 50.3 56.1 46.3 32.3 44.8 50.6 50.7 74.5 67.0 66.0 64.9 64.2 59.0 58.9 56.0 53.6 62.7 52.1% of customers believe the rates they pay for electricity are "reasonable" 60.7% of customers were interested in Lodi providing "rebates for energy efficient appliances" Slide / 20 Low rate of first contact resolution In general, Lodi Electric tends to resolve 3 out of 5 issues on the first contact for residential needs; however, 28.9% of respondents reported requiring multiple contacts to have their issues resolved. 75.6% of customers Contact resolution has a strong correlation with overall satisfaction. More than 7 out of 10 customers who had to have repeated contact were dissatisfied with the Lodi Electric. 100.0% 75.0% 50.0% 25.0% Generally, when you contact Lodi Electric, are things taken care of to your satisfaction the first time, or must you have repeated contact with them? 59,4% 0 -- 11796 Takes care of things first time Must have repeated contact Varies/DK Residential (N=350) GreatBlue Research, Inc. Slide / contact resouUon im groves raUngs Interestingly, customers who had their issues resolved with first contact consistently provided a higher frequency of positive ratings for the organization. Those who required multiple contacts to resolve issues provided significantly lower scores for each of the utility's characteristics. The lowest scores recorded were, understandably, "communicating with customers" (18.3%) and "being open and honest about company operations and policies" (13.6%). Item: Organizational Characteristics 2016 Residential First -contact Multiple -contact w/o "Don't Knows" resolution resoletion Maintaining modern and reliable infrastructure 74.5 84.4 Overall satisfaction with Lodi Electric 67.0 75.2 Helpful and knowledgeable staff 66.0 80.5 Responding promptly to customers questions and complaints 64.9 73.9 Communicating with customers 64.2 72.8 Being open and honest about company operations and policies 59.0 67.2 Community involvement 58.9 73.8 Helping customers conserve electricity 56.0 59.2 Providing good service and value for the cost of electricity 53.6 63.5 Average positive ratings 62.7 72.3 37.1 24.4 22.7 23.4 18.3 13.6 :3 19.0 23.1 23.7 22.8 GreatBlue Research, Inc. Slide / 22 SaU sfl ec with offne personnel Residential customers reported contacting Lodi Electric's office personnel primarily for procedural items such as paying bills or initiating/terminating service. However, a segment of customers contacted LEU regarding a "high bill/bill error" (19.1 %). While 71.7% of customers were satisfied with the interaction, LEU's ability to resolve these contacts with a stronger rapport and willingness to assist can help mitigate reasons for dissatisfaction that are beyond control, such as long wait times. 100.0% 75.0% 50.0% 25.0% How satisfied were you with the service provided by the Lodi Electric employee? 4O4% 71.7% 7.7% -19 zi-% Very satisfied Somewhat satisfied Somewhat dissatisfied Very dissatisfied Residential (N=350) GreatBlue Research, Inc. ( 39.4% � Make a pay To 0 21.7% 19.1% Start/stop services/ \High bill/bill error seasons for Contact 28.4% \\Rude/unfriendly To 3 20.0% Unhelpful/lack of understanding/ seasons for ( 16.8% Long wait dissatisfaction Slide / 23 ustomor sorvbo can stanc arc 1 IZP O Detailed findings from the focus groups support a sense of inconsistency in terms of customer service. This may be indicative of the low rate of first contact resolution. While customers acknowledged the quantity of inquiries that CSRs deal with on a daily basis, a standard experience was lacking for both the residential and commercial focus groups. "The purpose of the visit was to pay a bill and since then I have gone to online bill payment because they Just ruin your day. They have no empathy." - Resident "It's very interesting because depending on the reason you're there the same exact people will give you different customer service." - Resident "They need to be reminded that, for them, we're number 300 but for us it's the only time we're having that interaction. They may have heard this problem 300 times; we are saying it for the first time from our perspective. They need to remain compassionate and understand that we are one individual case; we are not number 300 even though we are 300." - Resident "They've got their script and they can't deviate from the script." - Resident "If you think about it the first day you start a job you are so overwhelmed and they are training you to do something and you can't possibly remember everything in training and you don't even know if it's going to apply to you until after the fact later on down the road when you've completely forgotten what to do." - Resident - "I do know that with Lodi Electric their customer service is very poor. Their CSR's are not trained well enough to handle the high quantity of people that walk in both residential and commercial." - Business Note: Copy in blue italics are quotes transcribed verbatim from focus group sessions. GreatBlue Research, Inc. Slide / 24 Satisfaction hgher wth fiec Residential customers reported slightly higher ratings of satisfaction with the field personnel (79.6%) than with office personnel. The top reasons respondents required a field visit included "meter reading," "service problems," and "installing service." 100.0% How satisfied were you with 75.0% the service provided by the Lodi Electric employee? 25.0% 50.0% L c C) 79.6% 71 personnel 20.4% Meter reading 16.3°/a Service problem Install service To 0 Roasons for Visit Very satisfied Somewhat satisfied 6.1% 10,2c Somewhat dissatisfied Residential (N=49) Very dissatisfied GreatBlue Research, Inc. Slide / 25 Cx oeotaUons oonsstent amonc all v Residential and commercial customers were generally in agreement about their top expectations of Lodi Electric. "Affordable prices/lower prices," "reliability," and "good service" or "customer service," were the common themes that drive a good experience working with LEU, which was reiterated by business customers in the focus groups. In addition, 69.5% of residential customers reported Lodi Electric met their expectations of the utility either "all" or "most" of the time. 100.0% 75.0% 50.0% 25.0% What are your top three expectations of Lodi Electric? 38 9 6 of residential customers report Lodi meets their expectations "all" or "most" of the time r YL Affordable prices/lower prices Reliability Residential Good service "1 think price stability is a big one for us; knowing what we're going to pay month to month and keeping that stable. When you annualize it out over 12, 18, 24 months it's pretty steady but the month to month swings are very concerning." - Business "Reliability, knowing that you have your electricity every day when you come in and turn the switch on it's going to work, cost of what your utility is and customer service. If you ever have a problem you'll know that they will be there for you." - Business "1 think reliability is number one, cost probably number two and customer service but as long as the power is on I really don't need it." - Business GreatBlue Research, Inc. Slide / 26 RoHa offity anc rato s ro at v 0 cc As affordable prices and reliability were top expectations of residential and commercial customers in both the survey and focus group findings, it is understandable that customers would believe these aspects are intertwined. As such, while residential customers leaned towards a balance of reliability and rates, a slightly higher frequency of customers placed importance on reliability (55.6%) than rates (44.4%). 100.0% 75.0% 50.0% 25.0% Which of the following statements best describes how you feel about the importance of reliable electric service and rates? 3 t 29,4 Reliability significantly more important Reliability somewhat more important Residential Rates somewhat more important Rates significantly more important GreatBlue Research, Inc. Slide / RoHa offity stronc, orom ot res oonse Umo O Residential customers were appreciative that the reliability of their electric service was consistently a strength of LEU. Focus group participants reflected on past rolling blackouts throughout California in which they were not subject to a loss of power, and recognized the benefit of that service. "I think the service itself is pretty good. We don't get black outs; the power stays on." - Resident "I was living here when we had that big powershortage and the state sent rolling blackouts throughout the state Lodi Electricsaid not us; we don't have to do that and they didn't. That was a plus for the consumer but environmentally negative." - Resident O Business customers participating in the focus groups cited the same instances of maintaining power while the rest of the State experienced blackouts. In addition, when there were outages due to ancillary problems, commercial customers noted that LEU responds promptly to get their power back up and operating smoothly. "We had a contractor that backed up and knocked our pole down in our back lot and the City was out there in pretty quick time and had it back up. I've had really good luck with the City ofLodi."- Business "I will say I like it when California was experiencing rolling blackouts we never did; we have very few problems. We don't usually have a huge loss in service and when we do they're back up immediately." - Business - "If you have a problem and you call they're there. They're really easy." - Business GreatBlue Research, Inc. Slide / 28 Outace restoration satisfactory Very promisingly, 81.2% of residential customers' who experienced an outage in the past 12 months were satisfied with the amount of time it took to restore power. In addition, customers indicated strong preferences to enroll in automated, digital communication for outage updates should they become available. 100.0% 75.0% 50.0% 25.0% How satisfied were you with the outage restoration time? 1 4B,1% 81.2% 1 72% 6.1% 5.5% Very satisfied Somewhat satisfied Somewhat dissatisfied Very dissatisfied DK Residential (N=181) GreatBlue Research, Inc. LkeytoenroHn... 39.3% \ Text messaging 34.6% Telephone/ Robo-calls 23.8% Email Slide / 29 Dostvo reaUonshi 3 with Loc 1 1 Lodi Electric scored a net positive score (advocate + loyal + satisfied customers) of 73.3% in 2016. While a similar percentage of customers reported having "trust" in the utility (68.9%), a segment of customers identified as "less than satisfied" (20.8%) which could jeopardize potential initiatives that require a great deal of trust in Lodi. 100.0% 75.0% 50.0% 25.0% How would you best describe your relationship with Lodi Electric? 0 68.9% of residential customers have "a great deal" or "some" trust in Lodi 7 A t 0 t 2.9% 6.0% Advocate Loyal Satisfied Less than Satisfied DK/neutral/no relationship Residential GreatBlue Research, Inc. Slide / 30 Soar growTh may 30 SOW. r oRtcs necessary A small segment of residential customers (37.0%) reported an aggressive approach to develop solar energy would be desired if it ultimately incurred a cost. Furthermore, 67.6% of customers were unwilling to pay additional costs to cover the expansion of solar; however, rebates may sway those unsure of their commitment to solar. Commercial customers who participated in the focus group were generally aware of, and had taken advantage of, many of the rebate programs and incentives available to help businesses operate more efficiently. 100.0% 75.0% 50.0% 25.0% How aggressive would you like Lodi Electricto be in their efforts to expand solar energy throughout their service territory considering that more aggressive measures typically result in a higher cost? 67 of residential customers were "not willing to pay anymore" to compensate for efforts to / expand solar 43,8% of residential customers were interested in Lodi providing "solar rebates" / 5,5-'0 r co ) Li (-X) L 113LO% Very aggressive Somewhat aggressive Somewhat conservative Very conservative DK "We're a fairly sizeable industrial consumer and in the past several years Lodi Electric has done a good job of being aggressive when it comes to rebates and incentives to keep the cost competitive. - Business - "There were rebate programs that we capitalized on." - Business "LED, energy efficiency stuff, new hire stuff; we were able to capitalize on all of that." - Business GreatBlue Research, Inc. Slide / Renewa ol encrgy c manc may c O Residential customers in the focus groups expressed an interest in renewable energy, such as wind or solar, as long as there is a clearly outlined plan for implementing the alternative. In addition, there was a general consensus that the City of Lodi could be trusted to offer alternative energy; there was a general distrust of third -party vendors. Further, both residential and commercial customers saw the perceived return on their investment. - "I think it needs to be very well outlined. We need baby steps, maybe we're going to implement this in this part of Lodi which seems to have the highest bills. Because of how old the houses are or because the electrical might be old and wired differently or less efficiently or something of that nature so maybe they are going to implement it and we're all going to be onboard and maybe be a 3yearplan."- Resident "California already has a bunch of regulations and we're pushing harder regulations as time goes on so I think it's in our best interest." - Resident - "There are so many third parties and some of them are legitimate, but others are not. The City of Lodi has checks and balances and regulations that it does have to show proof of and such. Those third party suppliers and the third party gas suppliers do not have the same regulations and they kind of own you and it's hard to take them to court and sue them. Yes and I think everyone agrees that the City of Lodi we can at least put our trust in them." - Resident - "Hydroelectric is great and wind turbine is great but they talk about how you have to do this bio gas stuff and that's not sustainable. I think Lodi Electric should maybe get more involved in solar and not have to buy as much power." - Business - "But like everything else we're all looking at returns right. Returns on our investments so like you were saying; if you have to pay the piper a little bit up front to get it back later." - Business GreatBlue Research, Inc. Slide / 32 easy to unc erstanc bs; C scounts less so While residential customers generally understood their bills (79.8%) and how the separate charges are delineated (84.6%), fewer customers believed the programs designed to provide energy assistance or discounts were adequate. However, significantly fewer customers were able to provide a rating, indicating there may be a lack of awareness regarding the energy assistance and medical discount programs. Raising awareness of the programs available to assist with bills may assuage the perception that the prices they pay are "higher than surrounding towns," especially in comparison to PG&E. Statement.. Lodi Electric bills are easy to understand Lodi Electric bills accurately detail the separate charges for electric, water, wastewater, and solid waste charges Lodi Electric has adequate energy assistance programs to help low and/or fixed income customers with bills Lodi Electric has an adequate medical discount program 2016 w/ DK 2016 w/o DK 77.4 79.8 80.4 84.6 27.2 66.6 15.6 64.8 believe the prices they currently pay for electric service are "higher than surrounding towns" 3(.8% of customers were thinking about PG&E when comparing GreatBlue Research, Inc. Slide / 33 ommunbaUons aHgn wth preferences Residential customers' current means of receiving information from Lodi aligned with their communication preferences, with a tendency to prefer the company's website. However, focus group participants were in nearly full agreement that the LEU website had caused issues for them in the past, especially in regards to navigation and ease of finding information. Item: Communication Methods 2016 2016 Current Preferred Lodi Electric website Internet Bill inserts 5 provided a positive rating for "ease of finding information" on LodiElectric.com 32.3 30.4 26.0 31.6 60.5% 31.1 24.4 provided a positive rating for "quality of information" on LodiElectric.com - "Going out to the website isnot exactly easy; I don't even know what website to go to." - Resident "I pay my bills online also. I find the City of Lodi's website very customer unfriendly; user unfriendly." - Resident "I couldn't find my bill from this last billing and 1 never logged in online and the only way you can register is with your account number and your customer number. I would like another alternate way like my social security number or my address." - Resident - "PG&E their online billing and being able to go in there and pay a bill and look at my statement was very easy. With Lodi Electric it's very difficult; I've had some problems trying to get into the website and look at my bill." - Business - "On the website there is not a lot of information on who to contact and how for what you're looking for and you then have to call the city." - Business GreatBlue Research, Inc. Slide / VooUeaoousefufor / 36.1% account information While only 1 out of 3 customers expressed initial interest in downloading a mobile app for Lodi Electric, residential customers reported an interest in accessing information related to their account. Most importantly, the ability to make bill payments was the most desired feature (53.2%) should an app be developed. GreatBlue Research, Inc. : ( • • • were interested in downloading and using a mobile app from Lodi Ty 53.2% Bill pay 3o of information. , , 14.6% Usage/monthly comparisons 6.5% Rates/payment options Slide / 35 Table of Contents • • SECTION ONE About GreatBlue SECTION TWO Project Overview SECTION THREE Key Study Findings SECTION FOUR Considerations EXHIBITS Aggregate Data (Provided Separately) 44•LL e 4 r . Iv_= il 4 sirk, Consc eraUons CI Improve contact resolution. Overwhelmingly, contact resolution was the key driver in satisfaction, or lack thereof, with Lodi Electric. While technological and infrastructure improvements may be necessary to improve contact resolution in the long run, providing explanations and setting expectations are key stop -gaps to improving customer experience when reaching out to Lodi Electric. CSRs should inform customers of the process in which their issue will be resolved, including additional personnel - such as field reps - that will be required to assist. One additional option may be improving the self-service offerings contained on Lodi Electric's website. This may help reduce incoming call traffic to Lodi's offices along with providing a preferred option for those customers that favor self -servicing their issues or concerns. CI Develop and promote energy efficiency services. While Lodi Electric offers several programs and rebates related to energy efficiency, the residential energy efficiency audit is, currently, the only option that has prominent placement on Lodi Electric's website homepage. This may be leading to the perception Lodi could be doing more to help customers conserve energy. Rotating services and offerings to list other customer programs on the home page may help Lodi Electric communicate their diverse energy efficiency rebates and services. Heavy promotion of these rebates and services may also help mitigate the perception of Lodi Electric having higher rates than surrounding areas. GreatBlue Research, Inc. Slide / Consc eraUons O Continue to investigate solar. While initial support for expanding solar energy was moderate, this support and desire may grow in the coming months or years. Additional research, directed towards customers currently using solar energy or in the process of developing solar, may be beneficial to understanding any difficulties or issues that arose during the process of incorporating solar. This may help Lodi Electric proactively correct any procedural issues customers experienced as they attempted to incorporate solar power into their residence, as well as anticipate organizational difficulties such as net metering or load response should the demand rise in the coming years. This may also provide an opportunity to train Lodi Electric's CSRs on solar related issues and FAQs, as customers had a higher level of trust in Lodi Electric compared to third -party solar vendors. Cs Mobile has merit. There is a moderate initial demand for a Lodi Electric mobile app. Features could include: paperless billing and account details, monthly usage and comparisons, and available rebates/incentives. Many apps are downloaded and underutilized, thus research and user experience testing prior to any development should be prioritized should this be an option Lodi Electric considers. While Lodi Electric may project out the development of a mobile app for the distant future, improvements to the website should be mindful of mobile -friendly features to accommodate customers accessing website information via a smart phone on mobile device in lieu of a mobile app. GreatBlue Research, Inc. Slide / 38 (860) 740-4000 MJV@GreatBlueResearch.com RESOLUTION NO. 2018-56 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A FIVE-YEAR PROFESSIONAL SERVICES AGREEMENT FOR COMPLETION OF A BIANNUAL ELECTRIC UTILITY CUSTOMER SATISFACTION STUDY WITH GREAT BLUE RESEARCH, INC., OF CROMWELL, CONNECTICUT WHEREAS, the Lodi City Council adopted the Lodi Electric Utility (LEU) Strategic Plan on October 4, 2017; and WHEREAS, the Strategic Plan was the result of a multi-year assessment of the health of the utility, relative to public power benchmarks, and a major customer engagement component of the strategic planning process was the completion of a 2016 customer satisfaction study by Great Blue Research, Inc., to provide LEU a better understanding of the current satisfaction levels for both residential and commercial/industrial customers; and WHEREAS, the results of the 2016 customer satisfaction study were presented to Council on June 15, 2016, and with a key study finding being a majority of customers reported a 67 percent overall satisfaction rate with LEU; and WHEREAS, the Council's adopted Strategic Plan recognized customer satisfaction must be improved and set a goal to achieve and maintain a minimum 80 percent customer satisfaction rating as measured by biannual survey; and WHEREAS, after conducting a competitive request for proposal process and receiving only one proposal, and in order to maintain consistent research methodology between studies and to take advantage of a lower price point over multiple years and realize a total contract savings of $9,000, staff recommends selecting Great Blue Research, Inc., for completion of a biannual survey; and WHEREAS, funding for the 2018 study will be absorbed within existing appropriations included in Fiscal Year 2017/18 Budget Account No. 50060001.72450 and will be budgeted in future years accordingly. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes the City Manager to execute a five-year professional services agreement for the completion of a biannual electric utility customer satisfaction study with Great Blue Research, Inc., of Cromwell, Connecticut, in an amount not to exceed $118,500; and BE IT FURTHER RESOLVED that the Lodi City Council hereby directs that the 2018 survey commence no sooner than October 1, 2018; that the survey results be reviewed with Council at a publicly -noticed meeting; and, at that time, Council will provide direction to staff as to the term of the agreement. Dated: April 4, 2018 I hereby certify that Resolution No. 2018-56 was passed and adopted by the City Council of the City of Lodi in a regular meeting held April 4, 2018, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Kuehne, and Mayor Nakanishi NOES: COUNCIL MEMBERS — Johnson and Mounce ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None 2018-56 NIFER FERRAIOLO ity Clerk