Loading...
HomeMy WebLinkAboutRESPONSE - RFP - 7670 UTILITIES SEGMENTATION STUDYRESPONS Com Seg City SE TO RFP #76 mpre gmen y of For 670 ehens ntatio rt Colli ive U on Stu ns Utilitie udy es Resp Due Co Se Prep City o 215 N Fort Prep BBC R 1999 Denv 303.3 www bbc@ ponse to RFP August 14 at ompreh egment ared for of Fort Collins North Mason S Collins, Colora ared by Research & Co 9 Broadway, Su ver, Colorado 8 321.2547 fax w.bbcresearch @bbcresearch #7670 3 p.m. hensive tation S Street, 2 nd Flo ado 80522 onsulting uite 2200 80202‐9750 303.399.0448 .com .com e Utilit Study oor 8 ties Table of Contents BBC RESEARCH & CONSULTING i A. Executive Summary .................................................................................................................. 1 B. Contractor Information and Experience ............................................................................ 2 Figure 1. Organization of BBC Staff ............................................................................................... 3 Figure 2. BBC Project Commitments during Expected Study Timeline ......................................... 8 C. Scope of Services ..................................................................................................................... 10 Figure 3. Project Hours by Proposed Study Task ......................................................................... 14 D. Methods and Approach ........................................................................................................ 15 Figure 4. Study Timeline .............................................................................................................. 16 Figure 5. Sections in the Draft and Final Research Reports ........................................................ 20 E. Customer Engagement Strategy ........................................................................................ 21 F. Fees .............................................................................................................................................. 23 Figure 6. Proposed Fees by Project Task ..................................................................................... 23 Figure 7. Blended Hourly Billing Rate by Project Team Firm ....................................................... 23 G. Sustainability Philosophy and Approach ......................................................................... 23 H. Subconsultants ........................................................................................................................ 25 I. Additional Information ......................................................................................................... 25 BBC RESEARCH & CONSULTING PAGE 1 SECTION A. Executive Summary BBC Research & Consulting (BBC) is pleased to submit this proposal to conduct a comprehensive multivariate segmentation study of residential, commercial, and industrial customers who receive electric, water, wastewater, and stormwater services from the City of Fort Collins Utilities Department (Fort Collins Utilities). The department will use information from the study to gain a better understanding of its customer base so that it can develop more effective service delivery models; better meet customer needs and expectations; optimize programs and services; and establish effective greenhouse gas reduction targets. BBC Background and Qualifications BBC is a 44‐year‐old economic, finance, and market research firm located in Denver, Colorado. Our clients include state and local government agencies; nonprofit organizations; large national corporations; and small businesses. Almost all of the 16 staff members that we employ have graduate degrees in economics, finance, public policy, behavioral science, and other related fields. The combination of several characteristics sets BBC apart from other market research firms and makes us uniquely qualified to conduct a customer segmentation study for Fort Collins Utilities, including our market research expertise; our experience conducting customer segmentation studies; our experience working with utilities and service providers; our customized research approach; and our responsiveness and adaptability. BBC will work with two subconsultants—Davis Research and MWH Global (MWH)—who also possess expertise that is directly relevant to conducting the customer segmentation study successfully and efficiently. Project Approach and Timeline BBC proposes six project tasks to conduct a comprehensive customer segmentation study for Fort Collins Utilities that meets the highest research standards. Information from the study will help Fort Collins Utilities identify key segments of its customers; better meet customer needs and expectations; and optimize programs and services. Task 1 – Project initiation and management. BBC proposes close collaboration with Fort Collins Utilities throughout the study through a series of regular meetings, including a project initiation meeting and management meetings throughout the course of the study. Task 2 – Data review. BBC will gain a thorough understanding of usage and other data that Fort Collins Utilities maintains on its customers through a comprehensive data review. Following the review, BBC will request that Fort Collins Utilities deliver relevant data to the project team in a format that will allow us to use them in conjunction with information that we collect through our own primary research to develop distinct segments of Fort Collins Utilities customers. Task 3 – National trends analysis. BBC will conduct a literature review and an analysis of national trends and factors that may affect utilities usage and demand among Fort Collins BBC RESEARCH & CONSULTING PAGE 2 Utilities customers. In addition, and to the extent possible, BBC will examine any national trends in the segmentation of utilities customers and how those trends relate to Fort Collins Utilities. BBC will summarize findings from the analysis in the draft and final research reports. In addition, information from the analysis will inform the design of other study materials. Task 4 – Residential customer segmentation. BBC will develop distinct segments of residential customers and assess other information—such as factors that motivate utilities usage and responses to utilities‐related issues—that Fort Collins Utilities desires to collect. To do so, the project team will rely on data that Fort Collins Utilities maintains and on data from a large‐ scale survey that the project team will conduct with at least 2,000 residential customers. Task 5 – Commercial and industrial customer segmentation. BBC will develop distinct segments of commercial and industrial customers and assess other information that Fort Collins Utilities desires to better understand its customers. To do so, the project team will rely on data that Fort Collins Utilities maintains and on information from 40 key person in‐depth interviews that the project team will conduct with commercial and industrial organizations. Task 6 — Reporting and presentation. BBC will consider the totality of the research that we conduct as part of the customer segmentation study to prepare research reports and a corresponding presentation. The reports and presentation will summarize research results and methodology and will include thoughtful and actionable recommendations for Fort Collins Utilities to use information from the study to achieve organizational goals. Timeline. BBC will complete the study within three months of project initiation. We anticipate that we will initiate the project in early October 2014 and submit the final research report on or before December 31, 2014. Fees BBC proposes to conduct the customer segmentation study for a firm‐fixed price of $147,000, inclusive of all professional fees and direct costs. SECTION B. Contractor Information and Experience BBC is uniquely qualified to conduct a comprehensive customer segmentation study for Fort Collins Utilities. BBC has specialized expertise in helping organizations understand who their customers are and how to segment them in meaningful ways. Since our establishment in 1970, we have leveraged that expertise to conduct market and customer research for scores of different organizations. 1. Company Background BBC is a 44‐year‐old economic, finance, and market research firm that is owned by seven directors and located in Denver, Colorado. Since 1970, the firm has completed more than 5,000 assignments all across the nation and abroad. Our clients include state and local government BBC RESEARCH & CONSULTING PAGE 3 agencies; nonprofit organizations; large national corporations; and small businesses. Almost all of the 16 staff members that we employ have graduate degrees in economics, finance, public policy, behavioral science, and other related fields. Figure 1 presents our firm’s organizational chart, which illustrates our leadership and staff structure. Figure 1. Organization of BBC Staff Dr. Sameer Bawa, BBC Director, will serve as the Project Manager for the customer segmentation study and will have primary responsibility for the project. He will also serve as the primary point of contact. Dr. Bawa may be reached at: BBC Research & Consulting 1999 Broadway, Suite 2200 Denver, CO 80202 telephone: 303‐321‐2547 email: sbawa@bbcresearch.com 2. Project Personnel The BBC project team includes three project team firms that, collectively, possess decades of experience conducting customer segmentation studies and working with utilities and service providers—BBC (prime consultant), Davis Research, and MWH. BBC presents brief resumes for key project team personnel below. Todd Pickton Managing Director Kevin Williams Director Allie Hausladen Associate BBC Directors BBC Staff Heidi Aggeler Managing Director Ford Frick Managing Director Doug Jeavons Managing Director Adam Orens Director Christy Pushchak Research Associate Helene Luna Project Assistant Shawna Lanham Accounting Manager Leah Bluntschli Research Associate Janna Raley Research Associate John McManus Research Associate Sameer Bawa Director Jen Garner Senior Consultant Mollie Fitzpatrick Associate BBC RESEARCH & CONSULTING PAGE 4 Sameer Bawa, BBC Director. Dr. Bawa will serve as the Project Manager and primary point of contact on the customer segmentation study. He will have primary responsibility for this contract. Dr. Bawa joined BBC in 2008 after completing his Ph.D. in Psychology at the University of Virginia. His areas of expertise include market research; survey design; in‐depth interviews; quantitative and qualitative data analysis; and technical writing. Dr. Bawa has expertise with various statistical tools to ensure that data are analyzed accurately and appropriately. Dr. Bawa has extensive experience with statistical significance testing, cross tabulation, regression modeling, cluster analysis, factor analysis, and myriad other analytical tools. Dr. Bawa has taught 11 undergraduate courses at the Universities of Illinois and Virginia, primarily related to survey research methods, data analysis, and technical writing. He has extensive experience conducting behavioral research and has published his work in several peer‐reviewed journals. Dr. Bawa has been involved with many market research projects with both private and public sector organizations. He recently led customer segmentation studies for several organizations including the Denver International Airport (DIA), the Regional Transportation District –Denver (RTD), and Rack Room Shoes. As part of those projects, Dr. Bawa led BBC’s efforts to collect survey information from thousands of customers. He then used sophisticated statistical tools— such as factor analysis and cluster analysis—to develop distinct, meaningful customer segments that each organization used to better understand the people that they serve as well as people that they could potentially serve in the future. He is currently leading large‐scale market and customer research projects for the State of Indiana, Rack Room Shoes, Off Broadway Shoe Warehouse, the Port of Seattle, and Graland Country Day School. Douglas Jeavons, BBC Managing Director. Mr. Jeavons will serve as Assistant Project Manager on the customer segmentation study. Mr. Jeavons joined BBC in 1992 and leads the firm’s natural resource practice. Mr. Jeavons holds a Master’s degree in environmental economics and quantitative methods from the University of Colorado. Mr. Jeavons has directed numerous studies focused on the attitudes and behaviors of utilities customers, including ongoing water demand analyses for various customer segments for Aurora Water and the City of Greeley. Mr. Jeavons also recently completed an innovative assignment for the Phoenix Water Services Department analyzing trends influencing industrial, commercial, and multifamily water use. That assignment involved a combination of detailed statistical analysis and interviews with property managers, equipment suppliers, and other sources to better understand the factors driving changes in water use by offices, warehouses, retail establishments, and other subsectors. Mr. Jeavons has also directed several water demand analyses by customer segment for Denver Water and has served as an expert witness on water demand‐related issues in court proceedings. Mr. Jeavons also has experience in analyzing electric utility customer segments, primarily focusing on larger commercial and industrial categories. In addition, he has directed utility customer surveys for the City of Fort Worth, Denver Water, and other utilities providers. In 2013, Mr. Jeavons led a statewide study of public attitudes and perceptions regarding water and water‐related issues for the Colorado Water Conservation Board (CWCB). Mr. Jeavons is past president of the Denver Association of Business Economists and currently serves on the Board of Directors for the Consolidated Mutual Water Company in Lakewood, Colorado. Allie Hausladen, BBC Associate. Ms. Hausladen joined BBC in 2013 after completing her Master’s degree in Environmental and Energy Policy at Stanford University. Ms. Hausladen has BBC RESEARCH & CONSULTING PAGE 5 been involved in many survey and market research projects during her time at BBC. Her areas of expertise include market research; survey analysis; survey design; data management; quantitative and qualitative analysis; and technical writing. Prior to joining BBC, Ms. Hausladen worked at the Colorado Governor’s Energy Office and in database management. Ms. Hausladen has worked on many projects involving survey design and execution. She was responsible for reviewing survey instrument design and administering intercept surveys for a market research project with Rack Room Shoes. She also played a key role in collecting and analyzing data from a survey for a customer segmentation study with RTD. Ms. Hausladen also has extensive experience conducting complex data analyses on numerous diversity studies. Ms. Hausladen is currently serving as the lead data analyst on BBC survey projects for the Port of Seattle and the California Department of Transportation. Ms. Hausladen also has extensive experience performing in‐depth stakeholder interviews with local businesses and other stakeholders. For several diversity studies, Ms. Hausladen has been responsible for conducting one‐ to two‐hour long interviews with local businesses and trade organizations about local marketplace conditions. She also has experience identifying key themes and writing clear, relevant summary reports for those interviews. Jason Kerns, Davis Research Project Management Director. Mr. Kerns will be the only staff member from Davis Research who will serve as key personnel on the customer segmentation study. Mr. Kerns brings more than 15 years of project management and survey research experience to the project team. His areas of specialization include quantitative data collection; survey design and implementation; multilingual telephone surveys; web surveys; and qualitative research design and implementation. Mr. Kerns will lead Davis Research’s efforts in programming the customer segmentation survey that the project team will use to segment residential utilities customers. Mr. Kerns will consult closely with BBC and Fort Collins Utilities to ensure that question formats are consistent with project objectives and needs. Mr. Kerns has served in a management role on scores of quantitative research projects for numerous clients in both the public and private sectors, including on recent BBC customer segmentation studies for DIA and RTD. His major responsibilities include managing quantitative and qualitative research projects; briefing and training surveyors on finer details of survey administration; conducting quality assurance overviews for programmed surveys; managing field efforts for in‐person surveying and intercept projects; and processing data for select projects, including analysis and reporting. Jason Mumm, MWH Project Manager. Mr. Mumm will be the only staff member from MWH who will serve as key personnel on the customer segmentation study. Mr. Mumm is an experienced financial and management consultant who focuses his services on financial and economic issues facing water, wastewater, electric, and gas utilities providers. His expertise includes development of financial, ratemaking, and policy solutions for clients throughout the United States. He has worked directly with city and district managers; finance directors; utility managers; and elected officials to describe the financial impacts of utilities’ capital and operating plans, including the impact on ratepayers and other stakeholders. He has completed more than 100 economic studies for U.S. water sector clients, and has authored more than 120 published BBC RESEARCH & CONSULTING PAGE 6 works. Relevant project experience includes engagements for the City of Aurora, Colorado; the City of Denver, Colorado; and the City of Santa Fe, New Mexico. For the City of Aurora, Mr. Mumm is managing a $2.6 million project to determine the long‐term planning and implementation of the agency’s water supplies, treatment, and delivery. He is leading a team of more than 50 consultants—including BBC—in engineering, science, permitting, financial, and other disciplines. He is responsible for the delivery of every aspect of the project. 3. Qualifications The combination of several characteristics sets BBC apart from other market research firms and makes us uniquely qualified to conduct a customer segmentation study for Fort Collins Utilities. Market research. BBC is widely recognized for our ability to combine complex quantitative analyses with nuanced information from qualitative research. Our philosophy for each research assignment is to fully meet our clients’ needs while maintaining a high level of methodological rigor. Most of BBC’s market research projects include both a qualitative and quantitative research aspect, and we bring market research expertise, independence, objectivity, and creativity to each assignment. BBC prides itself in designing and conducting market research that engages participants to share intelligent, thoughtful responses about any number of research topics. We are known for thoroughly analyzing research results and providing research reports that include thoughtful interpretation and recommendations. BBC possesses unparalleled expertise in survey research, focus groups, in‐depth interviews, and myriad other quantitative and qualitative research methods that are directly relevant to conducting a successful customer segmentation study for Fort Collins Utilities. Customer research and segmentation studies. BBC has conducted customer and member research for myriad organizations all across the nation. We have used various tools—such as surveys, focus groups, and in‐depth interviews—to provide our clients with essential information to help them understand who their customers are; what their customer’s perceptions are of the services and products that they provide; and, ultimately, how to better serve their customers in the future. In many cases, organizations have asked BBC to conduct customer segmentation research. As part of those studies, BBC uses sophisticated statistical techniques to identify distinct segments of customers, members, or other stakeholders based on their attitudes, interests, behaviors, demographic characteristics, and various other dimensions. Information from segmentation studies has helped our clients optimize how they market to different segments of customers and non‐customers. In addition, it has helped our clients maximize the value of various customer groups to their organizations. Utility and service providers. BBC has extensive experience working with various utilities and service providers throughout the United States. Much of that work has focused on understanding customer perceptions; current and future demands for utility services; and resource conservation opportunities. For example, for more than two decades, BBC has evaluated water demand and developed demand projections by customer segment for Denver Water. Our work has also included numerous customer surveys to help Denver Water target conservation efforts and understand customer views regarding the rate structure and level of service that Denver Water provides. We have also undertaken several customer segmentation BBC RESEARCH & CONSULTING PAGE 7 analyses for the Phoenix Water Services Department, most recently evaluating various subgroups of industrial, commercial, and institutional customers. BBC recently completed a survey of Aurora Water customers and will soon undertake a similar survey for the City of Bozeman, Montana. In 2013, BBC conducted a statewide survey of Colorado residents regarding attitudes and perceptions about water‐related issues. Other similar clients have recently included Boulder EnergySmart, the City of Fort Worth, the City of Greeley, RTD, and Transfort. Customized research approach. BBC understands that all of our clients have unique research needs. We pride ourselves in our ability to create fully‐customized research programs that are specifically tailored to meet those needs. BBC does not have a cookie cutter research approach that we use from project to project. Instead, we collaborate closely with our clients from the beginning of each project to fully understand the issues that they are facing and the information that they require. Then, based on that understanding and on our expertise in market research, we build a customized research program that provides the specific information that will help our clients make key decisions and move their organizations forward. Responsiveness and adaptability. BBC does not treat research projects as a static collection of discrete tasks. We understand that objectives may change and unforeseen needs may arise throughout the course of a project. Our clients appreciate our ability to act fast and provide solutions to their ad hoc requests. As part of most of our projects, clients make numerous requests based on new information, organizational changes, and other factors. We view it as our responsibility to be as responsive and adaptable as possible and make sure that we meet all of our clients’ needs even if those needs are different from when the project started. 4. Project Team Availability Key project team personnel will be fully available to conduct the customer segmentation study in a manner that meets the highest research standards. BBC anticipates that the customer segmentation study will require approximately 23 percent of Dr. Bawa’s capacity, 12 percent of Mr. Jeavons capacity, and 25 percent of Ms. Hausladen’s capacity during the expected study timeline (October 1, 2014 – December 31, 2014). Figure 2 presents BBC’s project commitments during the expected study timeline. The project commitments that we have during that time will not interfere with our ability to conduct the customer segmentation study. 5. Similar Projects BBC has conducted many projects that were similar to the customer segmentation study for Fort Collins Utilities in terms of objectives and scope. The following examples highlight our experience in conducting customer segmentation research and working with utilities and service providers. BBC RESEARCH & CONSULTING PAGE 8 Figure 2. BBC Project Commitments during Expected Study Timeline RTD Customer Segmentation Study. BBC and Davis Research recently completed a customer segmentation study for RTD. BBC conducted a survey with more than 2,000 Denver residents to collect information about their attitudes toward public transit; their public transit usage; and their psychographic, demographic, and household characteristics. BBC used factor analysis and cluster analysis to identify distinct groups of RTD customers and non‐customers throughout the Denver area. RTD is using information from the study to better understand customers and non‐customers so that it can more effectively tailor future communications and service offerings. Dr. Bawa led the RTD Customer Segmentation Study and Ms. Hausladen served as the lead data analyst. Mr. Kerns managed survey programming and execution. To access the final research report for the RTD Customer Segmentation Study, please visit www.bbcresearch.com/images/RTD_Market_Segmentation.pdf. DIA Customer Segmentation and Concessions Study. BBC conducted intercept surveys with more than 4,000 DIA passengers to assess customer characteristics as well as concessions desires and behaviors. The survey collected detailed information about travel behaviors, concessions preferences, and passenger characteristics. It allowed BBC to segment concessions customers into distinct segments based on concessions‐related behaviors, travel purposes, and demographic characteristics. BBC was responsible for conducting the surveys, analyzing the data, and reporting the results. DIA is using BBC’s research to improve its concessions program. Dr. Bawa served in a management role on the DIA Customer Segmentation and Concessions Study. Mr. Kerns managed survey programming. Rack Room Shoes Customer Research. Since 2012, BBC has provided Rack Room Shoes with quantitative and qualitative research services to help the company track customer and non‐ customer insights. Information from the research has helped Rack Room Shoes make decisions about its brand, products, and service. As part of the account, BBC has conducted surveys with thousands of customers and non‐customers in key Rack Room Shoes markets to examine customer satisfaction and insights in specific geographic markets; customer perceptions about recent and potential store changes; demographic characteristics; and other related information. BBC also has provided detailed segmentation information about Rack Room Shoes customers based on shopping behaviors, attitudes toward shoe shopping, and demographic characteristics. BBC began similar efforts with Off Broadway Shoe Warehouse in 2014. Dr. Bawa leads the Rack Room Shoes Customer Research and Ms. Hausladen serves as a data analyst. Project Key BBC personnel involved Aurora Water Demand Study Doug Jeavons California Department of Transportation Diversity Study Allie Hausladen Off Broadway Shoe Warehouse Customer Research Sameer Bawa; Allie Hausladen RTD Customer Satisfaction Study Sameer Bawa State of Indiana Diversity Study Sameer Bawa; Allie Hausladen Rack Room Shoes Customer Research Sameer Bawa; Allie Hausladen BBC RESEARCH & CONSULTING PAGE 9 Aurora Water Demand Study. BBC and MWH are currently working together to develop long‐term water demand projections that Aurora Water can use to develop a new, integrated water master plan (IWMP). As part of the project, BBC is projecting demand by customer class and conducting other water‐demand related analyses. The work has included various econometric analyses of historical trends in water use and a telephone survey of more than 800 residents of Aurora, Colorado. Mr. Jeavons is leading the Aurora Water Demand Study and Ms. Hausladen served as a data analyst. Mr. Mumm is integrating BBC’s work with that of other consultants as part of developing the IWMP. Phoenix Water Services Department Water Use Study. BBC is one of several consulting firms currently undertaking a major study of industrial, commercial, and institutional water use for the Phoenix Water Services Department. BBC’s role has included a detailed evaluation of the factors that are driving changes in water use among retail establishments, office properties, warehouses, and multifamily residences. The work has included extensive statistical analysis of data from the department’s billing database combined with assessor data regarding commercial properties and other information. The project team has also conducted in‐depth interviews with property managers, equipment vendors, and other sources. Mr. Jeavons is leading the Phoenix Water Services Department Water Use Study and Ms. Hausladen is serving as a data analyst. CWCB Water Perceptions Study. In 2013, BBC conducted a major statewide survey for the Colorado Water Conservation Board (CWCB) to examine Colorado residents’ perceptions regarding water and water‐related issues. Nearly 2,000 residents across Colorado participated in the survey, providing statistically‐valid results for each of six different regions throughout the state. Survey topics included respondents’ knowledge of Colorado water use and issues; perceptions of household water service relative to other utilities and services; assessments of the performance of government agencies tasked with regulating water use and quality; perceptions of water scarcity; greatest water‐related concerns; and most trusted sources for water‐related information. Mr. Jeavons led the CWCB Water Perceptions Study. 6. References BBC selected the following references, because of the similarities between the services that we provided to their organizations and the customer segmentation study for Fort Collins Utilities. Each reference can attest to BBC’s ability to complete the study successfully, efficiently, and in a manner that meets the highest research standards. RTD. BBC recently completed a customer segmentation study for RTD. Dr. Bawa led the project. BBC’s contact at RTD is: Dennis Yaklich Senior Market Research Analyst (t) 303‐299‐2110 (e) dennis.yaklich@rtd‐denver.com BBC RESEARCH & CONSULTING PAGE 10 DIA. BBC recently conducted a customer segmentation and concessions study for DIA. Dr. Bawa served in a management role on the project. BBC’s contact at DIA is: Neil Maxfield Managing Director, Business Development Commercial Division (t) 303.342.2574 (e) Neil.Maxfield@flydenver.com Phoenix Water Services Department. BBC is conducting a water trends and demand analysis for the Phoenix Water Services Department. Dr. Jeavons is leading the project. BBC’s contact at the Phoenix Water Services Department is: Douglas Frost Principal Planner (t) 602‐262‐4883 (e) douglas.frost@phoenix.gov SECTION C. Scope of Services Fort Collins Utilities is interested in commissioning a comprehensive multivariate segmentation study of its residential, commercial, and industrial customers who receive electric, water, wastewater, and stormwater services. The department will use information from the study to gain a better understanding of its customer base to meet the following objectives:  Develop more effective service delivery models;  Better meet customer needs and expectations;  Optimize programs and services; and  Establish effective greenhouse gas reduction targets. 1. Narrative of Services The BBC project team will leverage its market research and customer segmentation expertise to conduct a comprehensive multivariate customer segmentation study for Fort Collins Utilities. The study will include both quantitative and qualitative research tasks and, at a minimum, will provide Fort Collins Utilities with information about:  National trends and factors that may affect utilities usage and demand among residential, commercial, and industrial customers;  Characteristics, attitudes, behaviors, and usage trends that define residential, commercial, and industrial customers; BBC RESEARCH & CONSULTING PAGE 11  Segments of residential, commercial, and industrial customers that help Fort Collins Utilities identify distinct clusters of its customer base;  Factors that motivate residential, commercial, and industrial customers’ utilities usage;  Potential programs, offerings, and tools that Fort Collins Utilities could use to better accommodate the needs and desires of residential, commercial, and industrial customers;  Factors that would help Fort Collins Utilities determine and identify key residential, commercial, and industrial accounts;  Customer responses to utilities‐related pricing, programs, and environmental issues, including renewable energy;  Communication preferences of residential, commercial, and industrial customers;  Factors and criteria that residential, commercial, and industrial customers use to make utilities‐related decisions; and  Benefits that residential, commercial, and industrial customers expect from utilities providers, including Fort Collins Utilities. After conducting the study, BBC will summarize research results, key findings, and recommendations in a written research report and an in‐person presentation. 2. Project Management and Execution Dr. Sameer Bawa will have primary responsibility for managing the Fort Collins Utilities’ customer segmentation study with assistance from Mr. Douglas Jeavons and Ms. Allie Hausladen. BBC’s project management plan will allow us to accomplish all of the tasks that we present in our proposed methodology successfully and in an efficient, timely manner. Key elements of BBC’s project management abilities include:  Proven management approach to meet deadlines and achieve accurate research results;  Close collaboration and frequent communication between the BBC project team and the client, including regular telephone and in‐person meetings;  Clear project team organization so that subconsultants understand that BBC will lead all project tasks and will be accountable for the quality of all deliverables;  Close BBC oversight during data collection and other project tasks, made possible by our commitment to producing high‐quality research results;  Ample opportunity for client review at key junctures of the study, including during the report writing process (and at any other time, upon client request); and  Expertise with customer segmentation and other market research methodology. BBC will leverage its management and research expertise to conduct segmentation analyses of Fort Collins Utilities’ residential, commercial, and industrial customers. In addition, BBC will analyze national trends and factors that may affect utilities usage and demand among Fort Collins Utilities customers. BBC RESEARCH & CONSULTING PAGE 12 Residential customers. BBC will develop distinct segments of residential customers and assess other information—such as factors that motivate utilities usage and responses to utilities‐ related issues—that Fort Collins Utilities desires to better understand its customers. To do so, the project team will rely on data that Fort Collins Utilities will provide and on data from a large‐ scale telephone and online survey that the project team will conduct with residential customers. Assumptions. BBC’s methodology assumes that Fort Collins Utilities maintains data that we can link to individual residential customers and households. It also assumes that survey participants will provide unbiased and accurate information about their own attitudes, perceptions, behaviors, and characteristics. However, BBC is skilled at creating survey instruments and collecting data in a scientifically ‐valid manner that minimizes bias and inaccuracy. Limitations. The analyses for residential customers will be limited by the amount and types of data that Fort Collins Utilities maintains and can deliver to the project team and on the amount of information that the study team can collect as part of a survey that is of reasonable length. Commercial and industrial customers. BBC will develop distinct segments of commercial and industrial customers and assess other information that Fort Collins Utilities desires to better understand its customers. To do so, the project team will rely on data that Fort Collins Utilities maintains and on information from key person in‐depth interviews that the project team will conduct with representatives from commercial and industrial organizations. Assumptions. BBC’s methodology assumes that Fort Collins Utilities maintains data that we can link to individual commercial and industrial customers. It also assumes that survey participants will provide unbiased and accurate information about their own attitudes, perceptions, behaviors, and characteristics. However, BBC is skilled at creating survey instruments and collecting data in a scientifically ‐valid manner that minimizes bias and inaccuracy. Limitations. The analyses for commercial and industrial customers will be limited by the amount and types of data that Fort Collins Utilities maintains and can provide to the project team and on the amount of information that the study team can collect as part of an in‐depth interview that is of reasonable length. It will also be limited by the project team’s ability to get representatives from commercial and industrial organizations to agree to participate in interviews. We will work closely with Fort Collins Utilities to encourage interview participation. Trends in utilities usage and demand. BBC will conduct secondary research—including an extensive literature review—to examine national trends and factors that may affect utilities usage and demand among residential, commercial, and industrial customers. In addition, and to the extent possible, BBC will examine any national trends in the segmentation of utilities customers and how those trends relate to Fort Collins Utilities. Assumptions. BBC will make no substantial assumptions to analyze usage and demand trends. Limitations. BBC’s research of relevant national trends and factors will be limited by the availability of existing research and information on the topic. BBC RESEARCH & CONSULTING PAGE 13 3. Project Communication Effective communication and close collaboration between the BBC project team and Fort Collins Utilities is essential to completing the customer segmentation study successfully and efficiently. BBC’s project approach is designed so that the project team will collaborate closely with Fort Collins Utilities throughout the course of the entire study.  The project team will participate in an in‐person project initiation meeting with Fort Collins Utilities to begin the study and to discuss any project management issues.  The project team will participate in regular project management meetings—either via telephone or in person—with Fort Collins Utilities at least twice per month to discuss study progress, preliminary results, and any project challenges.  BBC will engage in a series of meetings with Fort Collins Utilities to review the data that the department maintains on residential, commercial, and industrial customers.  BBC will submit detailed monthly progress reports that will include information about the project team’s work plan and major project milestones.  The project team will include Fort Collins Utilities in the process of reviewing and approving all study materials and project deliverables.  The project team will meet in person with Fort Collins Utilities to discuss and review the draft research report.  The project team will meet in person with Fort Collins Utilities to deliver the final report and to give a final presentation. Dr. Bawa, BBC Director, will lead the project team’s communication efforts with Fort Collins Utilities during the course of the project. 4. Project Size BBC proposes approximately 1,950 hours to complete a comprehensive, multivariate customer segmentation study for Fort Collins Utilities.1 Figure 3 presents the percentage breakdown of project team hours by proposed study task. 5. Software and Analysis BBC will use the following software and analytical tools to conduct a comprehensive customer segmentation study for Fort Collins Utilities. Microsoft Project. BBC will use Microsoft Project to ensure that we manage the study as effectively as possible, including tracking the project team’s progress on study tasks, coordinating the timing of project tasks, and budgeting project resources. Microsoft Access. BBC will use Microsoft Access to compile and review usage and other data that Fort Collins Utilities maintains on residential, commercial, and industrial customers. 1 Davis Research survey staff will spend approximately 1,300 of those hours executing the telephone and online survey. BBC RESEARCH & CONSULTING PAGE 14 Figure 3. Project Hours by Proposed Study Task STATA. BBC will use STATA to analyze data that we collect from Fort Collins Utilities and data that we collect from the large‐scale survey of residential customers. CFMC Survent. Davis Research will use CFMC Survent to conduct telephone surveys with customers. CFMC Survent is a Computer‐Assisted Telephone Interview (CATI) system. IBM SPSS Dimensions. Davis Research will use IBM SPSS Dimensions to program and execute online surveys with residential customers. 6. Subconsultants The BBC project team includes two qualified subconsultants that will assist in conducting the customer segmentation study successfully and efficiently. Both firms—MWH and Davis Research—possess expertise that is directly relevant to the customer segmentation study. Davis Research. Davis Research is an experienced survey fieldwork firm based in Calabasas, California. BBC and Davis Research have worked together on many survey research projects since 1998, including recent customer segmentation projects with DIA and RTD. Since its inception in 1970, Davis Research has grown to be one of the leading survey data collection firms in the nation. The firm consistently delivers a sophisticated product with seamless programming and a customized look and feel. Davis Research’s success has come from partnering with its clients to deliver tailored solutions that best answer research questions. The firm’s clients range from one‐person consultancies to some of the world’s largest corporations. All of Davis Research’s clients can attest to the intimate attention that the firm gives each of its clients and the high quality data that the firm delivers. On the customer segmentation study for Fort Collins Utilities, Davis Research will be responsible for programming and fielding telephone and online surveys related to segmentation efforts with residential utilities customers. For the customer segmentation study, Davis Research will be responsible for executing telephone and online surveys with residential customers. The firm will be responsible for programming the survey in both formats and working out of its offices and call center to conduct surveys with a minimum of 2,000 residential customers. Davis Research will conduct approximately 41 percent of the work associated with the customer segmentation study. Project task Task 1 ‐ Project initiation and management 25 1% Task 2 ‐ Data review 32 2% Task 3 ‐ National trends analysis 43 2% Task 4 ‐ Residential customer segmentation 1,502 77% Task 5 ‐ Commercial, industrial customer segmentation 186 10% Task 6 ‐ Reporting and presentation 162 8% Total 1,950 100% Total project team hours Percentage of total study hours BBC RESEARCH & CONSULTING PAGE 15 MWH. MWH Global builds on 200 years of service implementing practical solutions that deliver substantial improvements to municipal utilities providers. MWH provides consulting services to utilities providers in the areas of asset management, organizational transformation, technology implementation, predictive analytics, strategic planning, revenue strategies, and myriad other areas. MWH has a long and successful history of providing consulting services to utilities providers throughout Colorado, including in Fort Collins, Denver, and Colorado Springs. The firm is currently working with BBC on a water demand study for the City of Aurora. MWH also works with various local and regional governments and private sector clients all across the nation. For the customer segmentation study, MWH will serve in an advisory role. The firm will assist BBC with various study tasks, including an initial data review; an analysis of national trends; reviewing research materials; and reviewing the draft and final research reports. MWH will conduct approximately 5 percent of the work associated with the customer segmentation study. 7. Timeline BBC will complete a comprehensive customer segmentation study for Fort Collins Utilities within three months of contract execution. Figure 4 presents a visual representation of the proposed timeline for the study, which includes the following key milestones:  BBC will initiate the project in early October 2014.  BBC will review Fort Collins Utilities data over a two‐week period in October.  BBC will analyze national trends in utilities over a three‐week period in October.  BBC will begin the residential customer segmentation—including a large‐scale survey effort—in early October 2014 and will complete it at the end of November 2014.  BBC will begin the commercial and industrial customer segmentation—including an interview effort—in early October 2014 and will complete it at the end of November 2014.  BBC will begin writing the research report in early November 2014. We will deliver a draft report in December 2014 and a final report at the end of December 2014.  BBC will give a final in‐person research presentation at the end of December 2014. BBC will work with Fort Collins Utilities to finalize the study timeline at project initiation. SECTION D. Methods and Approach 1. Project Approach BBC proposes six project tasks to conduct a comprehensive customer segmentation study for Fort Collins Utilities that meets the highest research standards. The study will provide a multivariate segmentation of Fort Collins Utilities’ residential, commercial, and industrial customers who receive electric, water, wastewater, and stormwater services. That information BBC RESEARCH & CONSULTING PAGE 16 will help Fort Collins Utilities identify key segments of its customers; better meet customer needs and expectations; and optimize programs and services. Figure 4. Study Timeline Note:  = Deliverable;  = In‐person meeting Task 1 – Project initiation and management. Effective communication and responsive project management are essential to completing the customer segmentation study successfully and efficiently. BBC proposes close collaboration with Fort Collins Utilities throughout the study through a series of in‐person and telephone meetings. Project initiation meeting. Based on direction from Fort Collins Utilities, the BBC project team will coordinate and participate in an in‐person project initiation meeting to begin the study. During the meeting, BBC will:  Establish effective and responsive channels of communication;  Review previous research that Fort Collins Utilities has conducted, including information about any known segments;  Discuss and refine segmentation objectives and methodology;  Discuss data that Fort Collins Utilities maintains on residential, commercial, and industrial customers; and  Address other study topics. Management meetings. BBC will participate in regular project management meetings with Fort Collins Utilities throughout the course of the study, either in person or via telephone. BBC also Project Task  Survey development  S urvey execution S urvey analysis Existing data analysis Interview guide development  Interview execution Interview analysis Task 6 ‐ Reporting and presentation  October November Task 1 ‐ Project initiation and management Task 5 ‐ Commercial, industrial customer segmentation December 2014 Task 2 ‐ Data review Task 3 ‐ National trends analysis Task 4 ‐ Residential customer segmentation Project initiation meeting Draft report Final report Utilities review Utilities review Final presentaton BBC RESEARCH & CONSULTING PAGE 17 recommends holding additional in‐person management meetings at key junctures of the study, including when the project team submits draft and final research reports. Task 2 – Data review. As part of the project initiation meeting and subsequent telephone meetings, BBC will gain a thorough understanding of usage and other data that Fort Collins Utilities maintains on its residential, commercial, and industrial customers. Following the data review, BBC will submit a written data request that will specify the data that will be helpful to the project team. BBC will expect Fort Collins Utilities to deliver relevant data to the project team in a format that will allow us to use them in conjunction with information that we collect through our own primary research to develop distinct segments of Fort Collins Utilities customers. Task 3 – National trends analysis. BBC will work closely with MWH to conduct a literature review and an analysis of national trends and factors—such as healthcare reform, current economic conditions, and concerns about climate change—that may affect utilities usage and demand among residential, commercial, and industrial customers. In addition, and to the extent possible, BBC will examine any national trends in the segmentation of utilities customers and how those trends relate to Fort Collins Utilities. BBC will rely on several information sources for its review and analysis including academic journal articles, industry white papers, other consultants’ research, and other relevant publications. BBC will summarize findings from the national trends analysis in the draft and final research reports. In addition, information from the analysis will inform the design of the survey instrument and in‐depth interview guide. Task 4 – Residential customer segmentation. BBC will develop distinct segments of residential customers and assess other information—such as factors that motivate utilities usage and responses to utilities‐related issues—that Fort Collins Utilities desires to better understand its customers. To do so, the project team will rely on usage and other data that Fort Collins Utilities maintains and on data from a large‐scale telephone and online survey that the project team will conduct with residential customers. Survey development. The BBC project team will develop a survey instrument that collects information to accurately and meaningfully segment residential customers. Survey development will be based on information from the project initiation meeting; conversations with Fort Collins Utilities; and our expertise in conducting survey research and segmentation studies for various organizations. The survey will collect information about various topics related to utilities and customer characteristics, including:  Utilities‐related attitudes, behaviors, and usage;  Utilities‐related programs, offerings, and tools;  Utilities related pricing, billing, and other issues;  Factors that motivate utilities usage;  Factors that influence decisions about utilities;  Expectations of utilities providers;  Communication preferences; and  Demographic and household characteristics. BBC RESEARCH & CONSULTING PAGE 18 BBC anticipates that the survey will take approximately 12 minutes to complete via telephone (approximately 10 minutes via Internet). We will submit full drafts of the survey instrument to Fort Collins Utilities for review and approval. After responding to the department’s comments, BBC will finalize the survey instrument and send it to Davis Research for programming. Survey execution. Once the survey instrument is approved and programmed, BBC will work with Davis Research to conduct the surveys via telephone and Internet. Based on billing data that Fort Collins Utilities will deliver to the project team, Davis Research will use address‐based sampling and random‐digit dialing techniques to complete surveys with a random, representative sample of at least 2,000 residential customers within Fort Collins Utilities service area. The resulting overall margin of error will be less than 3 percent at a 95 percent confidence level. Prior to survey execution, BBC and Fort Collins Utilities can discuss any desire or necessity to oversample certain segments of the resident customer population. Survey analysis. The BBC project team will be responsible for compiling and analyzing all data from the survey. As part of that process, BBC will perform a customer segmentation analysis, which will accurately identify distinct segments of residential customers based on information about utilities‐related usage, attitudes, behaviors, motivations, and other information. The study team will then use other information from the survey—as well as existing data that Fort Collins Utilities maintains—to develop detailed descriptions of each identified segment. BBC will collaborate closely with Fort Collins Utilities throughout the analysis process to develop an analysis plan, discuss preliminary results, and consider implications of the research results. Task 5 – Commercial and industrial customer segmentation. BBC will develop distinct segments of commercial and industrial customers and assess other information that Fort Collins Utilities desires to better understand its customers. To do so, the project team will rely on usage and other data that Fort Collins Utilities maintains and delivers to the project team and on information from key person in‐depth interviews that the project team will conduct with representatives from commercial and industrial organizations. Analysis of existing data. BBC will work with MWH to analyze usage and other data that Fort Collins Utilities maintains on commercial and industrial customers. BBC will use that information as the basis for a customer segmentation analysis, which will accurately identify distinct segments of commercial and industrial customers. In‐depth interviews. The study team will augment data from Fort Collins Utilities with insights that we gather from 40 in‐depth interviews with representatives from commercial and industrial organizations that are Fort Collins Utilities customers. Information from the interviews will allow the project team to develop detailed descriptions of each identified customer segment. In‐depth interview guide development. BBC will develop an interview discussion guide based on information from the project initiation meeting; conversations with Fort Collins Utilities; and our extensive experience conducting in‐depth interviews for various studies. BBC will collect information about many of the same topics as in the residential survey including information related to utilities usage and demand. BBC anticipates that the interview will take approximately 30 minutes to complete. We will submit full drafts of the discussion guide to Fort Collins Utilities BBC RESEARCH & CONSULTING PAGE 19 for review and approval. After responding to the department’s comments, BBC will finalize the discussion guide and begin conducting interviews. Interview recruitment and execution. BBC will work with Fort Collins Utilities to identify commercial and industrial organizations to interview. The project team will be responsible for scheduling interviews and conducting them via telephone. Interview analysis. BBC will analyze and summarize data immediately following each in‐depth interview. We will identify themes, anecdotes, and quotations that are relevant to the segmentation objectives. We will use information from the interviews to augment Fort Collins Utilities data and to develop rich, detailed segments of commercial and industrial customers. Task 6 — Reporting and presentation. BBC will consider all of the research that we conduct to prepare research reports and a corresponding presentation. The reports and presentation will summarize research methodology and results and will include recommendations and information regarding best management practices related to customer segmentation studies and how Fort Collins Utilities can use study information to drive utilities‐related programs and services and achieve key organizational objectives. Draft and final research reports. BBC will prepare a complete draft research report and submit it to Fort Collins Utilities in mid‐December 2014. Assuming that Fort Collins Utilities reviews the report and provides BBC with comments in a timely manner, BBC will make any suggested revisions and deliver a final research report on or before December 31, 2014. Figure 5 presents the sections that the draft and final research reports will include. Final presentation. At the time of delivering the final research report to Fort Collins Utilities, Dr. Bawa will give an in‐person final presentation summarizing findings and recommendations from the study. BBC will work with Fort Collins Utilities to schedule the final presentation and determine the most appropriate audiences. Other deliverables. In addition to the draft and final research reports and the final presentation, BBC will also deliver:  A written outline of the project schedule shortly after the project initiation meeting;  All of the data that BBC collects and the analyses that the project team completes; and  A separate document that details broad recommendations for Fort Collins Utilities to apply study results to its programs and services and to meet organizational objectives (which will also be detailed in the full report). 2. Anticipated Interactions BBC anticipates a great deal of communication and collaboration between the project team and Fort Collins Utilities throughout the course of the entire customer segmentation study. BBC’s interactions with Fort Collins Utilities will include:  An in‐person project initiation meeting with Fort Collins Utilities to begin the study and to discuss any project management issues; BBC RESEARCH & CONSULTING PAGE 20  Regular project management meetings with Fort Collins Utilities at least twice per month to discuss study progress, preliminary results, and any project challenges;  A series of meetings with Fort Collins Utilities to review the data that the department maintains on residential, commercial, and industrial customers;  Detailed monthly progress reports that will include information about the project team’s work plan and major project milestones.  Process for Fort Collins Utilities to review and approve all study materials and deliverables;  In‐person meeting with Fort Collins Utilities to review the draft research report; and  In‐person meeting with Fort Collins Utilities to deliver the final research report and final presentation. Dr. Bawa, BBC Director, will lead the project team’s communication efforts with Fort Collins Utilities during the course of the project. Figure 5. Sections in the Draft and Final Research Reports Chapter Description Executive Summary Brief summary of background research, methodology, results, analysis, and recommendations Chapter 1. Introduction and Background Information about Fort Collins Utilities, national trends, and research objectives Chapter 2. Methodology Methodology that BBC used to conduct the segmentation analyses Chapter 3. Residential Customer Segmentation Detailed discussions of results from the residential customer segmentation Chapter 4. Commercial and Industrial Customer Segmentation Detailed discussions of results from the commercial and industrial customer segmentation Chapter 5. Conclusions and Recommendations Research conclusions, including recommendations related to application of study results Appendix A. Survey instrument Survey instrument that BBC used to conduct residential customer survey Appendix B. In‐depth interview discussion guide Discussion guide that BBC used to conduct in‐ depth interviews with commercial and industrial customers BBC RESEARCH & CONSULTING PAGE 21 3. Resources Although BBC will collaborate closely with Fort Collins Utilities throughout the course of the customer segmentation study, we will remain cognizant of the resource demands that the project puts on department staff. BBC anticipates requiring the following department resources as part of the study:  Fort Collins Utilities staff time to participate in various in‐person and telephone meetings, including the project initiation meeting; regular management meetings; data review meetings, the draft research report meeting; and the final research report and final presentation meeting;  Fort Collins Utilities staff time to compile data that the department maintains on residential, commercial, and industrial customers and to deliver those data to the BBC project team;  Fort Collins Utilities staff time to review and approve study materials, including the survey instrument for the residential customer segmentation; the discussion guide for the commercial and industrial customer segmentation; and the draft research report. 4. Availability of Key Personnel Key project team personnel will be fully available to conduct the customer segmentation study in a manner that meets the highest research standards. Details about key personnel’s availability for the study are presented in Section B, Part 4 and in Figure 2. 5. Estimated Hours BBC presents detailed information about project hours by task in Section C, Part 4 as well as in Figure 3. Those estimated hours include time for meetings, conference calls, and other study‐ related interactions. SECTION E. Customer Engagement Strategy BBC will engage directly and extensively with Fort Collins Utilities customers as part of conducting a comprehensive customer segmentation study. Doing so will result in robust data collection that will provide Fort Collins Utilities with valuable information about its customers. 1. Reaching Customers BBC will engage with residential, commercial, and industrial customers through a large‐scale survey and through in‐depth anecdotal interviews. BBC has used those tools successfully on scores of research projects in the past. Information that we collect as part of the survey and interviews will help us achieve all research objectives (for details, see Section C) and to complete the research tasks that we proposed in our project approach (for details, see Section D, Part 1). Telephone and online survey. BBC will conduct a large‐scale telephone and online survey to develop distinct segments of residential customers and assess other information that Fort BBC RESEARCH & CONSULTING PAGE 22 Collins Utilities desires. Based on billing data that Fort Collins Utilities provides, the BBC project team will use address‐based sampling and random‐digit dialing techniques to complete surveys with a random sample of at least 2,000 residential customers within Fort Collins Utilities service area. We will use a CATI system and online survey software to conduct the surveys. In‐depth interviews. BBC will conduct 40 in‐depth interviews with representatives from commercial and industrial customers of Fort Collin Utilities. BBC will work with Fort Collins Utilities to identify commercial and industrial organizations to interview. The project team will be responsible for scheduling interviews and conducting them via telephone. 2. Measuring and Verifying Value One of BBC’s primary points of emphasis in conducting a customer segmentation study for Fort Collins Utilities is to ensure that the department receives great value from the information that the study produces and from the project team’s analyses and recommendations. BBC will take several steps during the course of the project to measure and verify that Fort Collins Utilities receives great value from the study:  BBC will use various tools—including Microsoft Project and monthly progress reports—to keep track of our progress throughout the study and to makes make sure that we conduct all project tasks within budget.  BBC will work closely with Fort Collins Utilities at the project initiation meeting to define research objectives so that both the project team and the department have similar expectations about the information and analyses that the study will produce.  BBC will meet regularly with Fort Collins Utilities throughout the course of the entire project to refine research objectives as necessary and to ensure that the project team is meeting the department’s expectations.  Fort Collins Utilities will have the opportunity to review and approve all study materials and research deliverables to ensure that the information that the study team collects as part of the study is useful to the department and to ensure that the department understands how to use that information to meet organizational goals.  BBC will use sophisticated research and analytical techniques throughout the project— including advanced statistics; web‐based sampling and random‐digit dialing; and cutting‐ edge software—to ensure that our research design and analysis produces accurate and actionable results. If Fort Collins Utilities has questions or concerns about the value that the BBC project team is providing at any point during the course of the project, BBC will be happy to meet with the department and address those questions immediately. BBC RESEARCH & CONSULTING PAGE 23 SECTION F. Fees Figure 6 presents BBC’s proposed fees and hours for conducting the customer segmentation study itemized by project task. As presented in Figure 7, BBC proposes to conduct the customer segmentation study for a firm‐fixed price of $147,000, inclusive of all professional fees and direct costs. Figure 7 presents the blended hourly billing rate for each project team firm and the number of hours that each firm has committed to the project. Figure 6. Proposed Fees by Project Task Figure 7. Blended Hourly Billing Rate by Project Team Firm Note: BBC computed blended billing rates by dividing each firm’s total professional fees by each firm’s total hours on the project. Billing rate calculations did not include direct costs. SECTION G. Sustainability Philosophy and Approach BBC is committed to promoting sustainability in our business activities. Concern for our physical, social, and economic environment is essential to our identity as a firm. We adhere to and promote effective sustainability practices; strive to reduce the environmental footprint of our Project task Professional fees Direct costs Total Task 1 ‐ Project initiation and management 25 $4,085 $200 $4,285 Task 2 ‐ Data review 32 $4,340 $0 $4,340 Task 3 ‐ National trends analysis 43 $5,645 $0 $5,645 Task 4 ‐ Residential segmentation 1,502 $84,600 $0 $84,600 Task 5 ‐ Commercial, industrial segmentation 186 $22,780 $3,000 $25,780 Task 6 ‐ Reporting and presentation 162 $22,250 $100 $22,350 Total 1,950 $143,700 $3,300 $147,000 Total project team hours Project team firm Total firm hours Blended billing rate * BBC Research & Consulting 599 $127.21 Davis Research 1,301 $46.12 MWH Global 50 $150.00 BBC RESEARCH & CONSULTING PAGE 24 business activities; and provide our clients and partners with services that are rooted in the principles of sustainability, which are:  To integrate sustainability considerations into all of our business decisions and actions;  To ensure that all BBC staff are fully aware of our sustainability policy and are committed to implementing and improving it;  To minimize the environmental impact of office‐related purchases and activities;  To make clients and colleagues aware of our sustainability policy and encourage them to adopt similar practices; and  To regularly review and improve our sustainability‐related performance. BBC is engaged in a variety of efforts to put our sustainability policy into action. We make those efforts in the areas of travel, resource consumption, and general work practices. Travel BBC makes several sustainability efforts in the area of travel and commuting:  BBC staff is encouraged to minimize travelling for meetings when other alternatives—such as teleconferencing and video conferences—are available, practical, and effective.  When we do travel in person, BBC takes multiple steps to ensure that meetings are conducted as efficiently as possible to avoid having to make multiple trips. Examples of those efforts include producing detailed agendas to help guide meeting proceedings and combining different meetings with multiple audiences into single trips.  BBC supports alternative working arrangements for our staff—including home telecommuting—to reduce the firm’s environmental footprint.  BBC encourages the use of public transportation by being based in a downtown Denver office that is easily accessible via public transit and by purchasing monthly public transit passes for our staff upon request.  BBC subsidizes bicycle purchases for staff who pledge to commute to work via bicycle. Resource Consumption BBC makes several sustainability efforts in the area of resource consumption:  BBC minimizes our use of office consumables. For example, as standard practice, we avoid printing whenever possible, and when we do print, we require it to be double‐sided.  BBC purchases recycled paper products for printing use.  BBC maximizes our use of email and electronic means for internal and external communication, including when we deliver large reports and presentations.  We require the reuse or recycling of office waste, including paper, toner, electronics, and other equipment.  BBC only purchases energy efficient office equipment to reduce energy consumption. BBC RESEARCH & CONSULTING PAGE 25  BBC is currently located in a LEED Silver office building that provides single‐stream recycling services. In addition, we participate in a program to shut off all non‐essential lights on hot, summer days to reduce the building’s energy burden. General Work Practices BBC makes several sustainability efforts in the area of general work practices:  BBC staff regularly participates in community events and environmental organizations that promote sustainability, such as the Alliance for Sustainable Colorado, Denver Transit Alliance, DRCOG Bike‐to‐Work Day, and the National Bike Challenge.  BBC provides our employees with access to convenient work from home options.  We conduct regular employee training sessions to ensure that sustainability issues are represented in our client work. SECTION H. Subconsultants The BBC project team includes two qualified subconsultants that will assist in conducting the customer segmentation study successfully and efficiently. Both firms—MWH and Davis Research—possess expertise that is directly relevant to the customer segmentation study. Information about each firm’s qualifications for the study is presented in Section C, Part 6. Information about key personnel from MWH (Mr. Jason Mumm, MWH Project Manager) and Davis Research (Mr. Jason Kearns, Davis Research Project Management Director) is presented in Section B, Part 2. SECTION I. Additional Information For additional information about BBC’s qualifications for the customer segmentation study or about our research staff, please visit our website at www.bbcresearch.com. In addition, for an example of a recent customer segmentation study that BBC conducted for RTD, please visit www.bbcresearch.com/images/RTD_Market_Segmentation.pdf. BBC has no concerns or potential conflicts of interest related to maintaining objectivity, recommending solutions to Fort Collins Utilities, or in conducting any other aspect of the customer segmentation study.