Request for Proposals for Branding Services

Request for Proposals for Branding Services Proposal Deadline: 4pm EDT, Thursday, April 13, 2017 The Johnson City Power Board (JCPB), a not for profit energy authority, requests proposals for branding services to be completed and submitted electronically to JCPB by 4pm EDT on Thursday, April 13, 2017. Please provide notice of your intent to submit by Monday, April 3, 2017 by sending email notification to Bobby Fair or Amy Netherly, JCPB Purchasing Specialists at purchasing@jcpb.com. Questions regarding this RFP should be directed to Angela Shrewsbury, JCPB Manager Energy Services & Marketing at ashrews@jcpb.com. Responses to all questions will be emailed to all ad agencies who have submitted RFPs. All questions must be received prior to 1pm EDT Tuesday, April 11, 2017. Electronic RFP submissions in PDF format are preferred and should be submitted via email to purchasing@jcpb.com with Proposal for Branding Services in the subject line by 4pm EDT, Thursday, April 13, 2017. Please submit any intent to submit an RFP by 4pm EDT, Monday, April 3, 2017. JCPB is not obligated to accept quotations received after the date stated. Copies of RFPs received will be printed in black and white and distributed in a notebook containing all qualifying submissions to the JCEA Board of Directors. Introduction Effective March 31, 2017, Johnson City Power Board (JCPB) became the Johnson City Energy Authority (JCEA). An energy authority is a governmental entity as defined under Tennessee law, and operates very similar to a municipality. Please be advised that, although the legal entity has changed, business shall continue as usual with minimal change. JCEA will continue to utilize Johnson City Power Board as an operating name, commonly referred to as Doing Business As (DBA) over the next several months. In the meantime, a new DBA name will be created, which will replace Johnson City Power Board. For the purposes of this document, please note that when speaking of the company the name Johnson City Power Board will be used, and the governing board will be referred to as the Johnson City Energy Authority (JCEA) Board of Directors. Page 1

All Requests for Proposal (RFP) will be reviewed by the JCEA Board of Directors. Two finalists will be selected from the RFPs submitted. These two candidates will be asked to present to the JCEA Board of Directors at a May 25, 2017 workshop. See Appendix A 2 for the checklist of items that should be included in the Board meeting presentations. The ad agency selected by the JCEA Board of Directors will be asked to work in collaboration with and in support of JCPB s development of the new brand. As a nonprofit energy authority, JCPB is committed to the effective and efficient use of its limited marketing budget. The proposed contract period for services may be defined in the subcontract agreement. About JCPB JCPB is a not for profit, public power provider serving electricity and related services to residential and commercial customers within Washington, Sullivan, Carter, and Greene counties in Northeast Tennessee. JCPB came into being by resolution of purchase by the City of Johnson City from Tennessee Valley Authority (TVA) in 1945 at a sale price of $2,002,500. During its first year, JCPB served 9,778 electric customers (i.e. meters served), and purchased a total of 46,303,924 kwhs (energy) from TVA at a purchase price of $219,139.99. In 2016, JCPB provided electric service to 77,000 electric customers. Purchased power from TVA totaled $150,003,369.27 for 1,854,391,070 kwhs. Total electric sales were $195,424,568.59. About eighty percent (80%) of all sales is paid to TVA for purchased power. JCPB only retains about 20% of every dollar earned for operating and capital purchases. JCPB is the tenth largest of Tennessee Valley Authority s (TVA) 154 local power companies and is a longstanding, well respected energy company among its utility peers and customers. JCPB is governed by a nine member Board of Directors. Members are appointed to serve four year terms by the elected boards and commissions of communities within JCPB s service territory: City of Johnson City (6), Town of Jonesborough (1), and Washington County (2). The JCPB Administration Team consists of a President & CEO, Jeff Dykes, appointed by the then JCPB Board of Directors in 2013, an executive management team (5), department managers and supervisors (28), and an Administrative Assistant. The responsibilities of these management groups are to oversee and direct the daily operations of JCPB. Currently, JCPB has 178 employees. JCPB provides a multitude of programs and services for all 77,000 customers, from low income residential to top revenue accounts. A recent in house study found that there are more than 60+ programs available to JCPB customers. Visit jcpb.com for additional information about JCPB s programs and services. Despite many program offerings, JCPB's number one priority is to provide safe, reliable electricity to thousands of customers 365 days a year with minimal to no interruption. The overall JCPB reliability rate is 99.997%. JCPB actively maintains its electric service by daily improving its system with proactive system upgrades, an aggressive tree trimming program, and by maintaining a knowledgeable, qualified, service minded staff. Technology and energy efficiency initiatives continue to dictate change in our industry. Technology has significantly improved over the last ten years, which continues to provide new, innovative ways to conduct business and allows previous unthinkable opportunities for new services. Improvements in Page 2

energy efficiency have significantly slowed kwh (energy) sales industry wide. Energy sales across the nation continue to decline or remain flat. JCPB kwh sales have remained flat since 2004 despite adding over 8,500 customers (meters) during that same period. One example of how technology has drastically changed how JCPB conducts business is with the completed installation of an Advanced Metering Infrastructure (AMI) in February 2012. Many functions that were manual years ago are now automated with the AMI system. JCPB no longer manually sends employees to visually read meters, instead readings are obtained on the hour via the AMI. This act alone saves time and money, and allows JCPB customers to access to their household s energy usage data via our SmartHub mobile app. Second, JCPB has a robust 163 mile fiber optic back bone connecting its substations. The fiber back bone has dual purpose, which includes supporting the utilities communications network and providing an opportunity for Internet service to be delivered by Fiber To The Premise (FTTP). This will be the first non power service offering. Third, JCPB is partnering with Silicon Ranch to build a solar farm. In addition to investing in earth friendly renewables for power production, another reason for such a business venture is to provide an opportunity for an additional revenue stream as customers can purchase solar energy produced by the farm. As the market changes, utilities have no choice but to invest in new business opportunities. Today, business is much different for JCPB than it was in 1945. Finally, it is important to understand that the JCPB target market includes all residential, commercial, and industrial customers within the service areas mentioned above. In addition, JCPB supports local and state economic development in collaboration with TVA, competing globally to attract business to the JCPB/TVA service territory. All socioeconomic groups are included in the JCPB service area. The marketing challenge is to be visible, but not too visible. JCPB must operate as a normal business, seeking enough revenues to cover its costs; however, it is a not for profit public utility organized to serve its customers. Typically, electric utility customers are sensitive to perceived expensive marketing campaigns. This is one reason the JCPB marketing approach often relies on either low cost or no cost marketing efforts. For additional information about JCPB, please see jcpb.com. JCPB Brand Background The samples below provide a visual example of the JCPB brand as it has evolved through the years. Prior to 1970, there was no defined brand. There was only the company name of Johnson City Power Board. As marketing has evolved, it has become essential that companies, including local electric utilities, establish a strong brand identity. Customers of utilities with strong brand trust enroll in more programs and are more prone to make positive comments on social media and elsewhere. Cogent Report 2014. Page 3

1970 s 1991 1991 1999 1999 Present National studies report that the typical customer only thinks of their electric utility on average about nine minutes each year. Furthermore, these reports indicate when the utility comes to mind, the top three reasons are as follows: power interruptions, billing issues, or electric rate increases. The challenge for JCPB, as with many local power companies, is to become the trusted energy advisor to the community. This may effectively be achieved by a strong, established brand identity. The collective efforts of all employees to become marketing representatives is essential to the success of the company brand. A brand is more than a logo, color palette, or tagline. It is a representation of the employees who are committed to their efforts and the community they serve. Essentially, the employees become the brand. The JCPB brand must tell the untold public power story. Public power is affordable, reliable, and local. New technology has presented even more opportunities for electric utilities. Many electric utilities now offer services other than electricity such as Internet, telecom, water and sewer. The JCPB management team and its Board of Directors began working towards becoming an energy authority in early 2013. In December 2014, Directors and key employees engaged in the process of creating a new brand. A detailed history of the brand project to date will be provided to the selected ad agency upon hire. Projected Schedule The Projected Scheduled below shall serve as a working guide for planning purposes. JCPB reserves the right to adjust this timetable as necessary during the course of the project. Amendment to the schedule will be provided in writing (email) to the appointed ad agency project manager. Phase 1 April 13 Ad agencies submit proposals to JCPB. April 17 April RFPs reviewed by JCPB. 21 April 25 Board Meeting JCEA Board of Directors Business Development Committee reports and final two agencies chosen to present to full Board. Finalists to be notified by April 28. April 28 JCPB Energy Services & Marketing and Public Relations Departments meet with ad agencies selected by Board to relay presentation Page 4

May 25 expectations for the Board. This may be done via email, phone, or in person. Ad agencies selected (two) present to JCEA Board of Directors (Brand RFP Workshop). The Board deliberates and approves/disapproves decision to hire one of the two presenting ad agencies at the May 30 th board meeting. Phase 2 June 5 JCPB Energy Services & Marketing Department and Public Relations meet with the chosen ad agency to review in detail the expectations of the project. June 5 July 24 Selected ad agency will begin work on the project. During this time, it is expected that much back and forth communication will be required. Furthermore, it should be noted that at least one meeting is expected so that the JCPB can review the project prior to its presentment to the full JCEA Board of Directors at the July 25th Board of Directors Meeting. July 25 Ad agency presents branding recommendation and supporting advertising package as directed by the Scope of Project to the JCEA Board of Directors. The Board deliberates and considers making a motion for approval. Proposal Requirements In seeking the most qualified partner to complete this project, the JCEA Board of Directors will carefully consider submittals. Therefore, each respondent must provide RFP submissions that are concise, professional, and a complete response to the proposal requirements. It is preferred that all RFPs not exceed 25 pages and be typed in a minimum of 11 font size. Your company s adherence to the proposal requirements listed below would be most appreciated. Complete the general forms (7). See Appendix A 1. Provide a brief description of your firm s structure, including basic information, and history. Provide substantial information which documents your qualifications to produce the required outcomes, including ability, capacity, proven design skill, and number of years of experience you have in providing and executing new brands. Describe the process and tools your firm employs to evaluate and measure results during rebrand projects. State your firm s experience in the creation and design of branding projects, as well as the creation of mission and vision statements in the electric sector and/or municipal governments. If you have no experience in the either sector, how will your team educate themselves to perform the proposed work? Describe how your company can create a new name/brand strategy that will encompass all the promises JCPB makes to its customers such as reliable low cost electricity, as well as a variety of programs and services. See jcpb.com for general program and service offerings. Also consider non electric services such as Internet. Page 5

List all the services provided in house and services provided by outside consultants. If any services are to be provided by outside consultants, provide a brief description of the firm(s), contact information, roles, and capabilities. Also, please provide a short summary of previous experience, if any, you have had with the outside consultants listed. Introduce your proposed project team, including consultants. Provide a brief qualification summary of individuals who would be assigned to this project, and identify individual project roles. Please identify the primary or day to day contact person assigned to the project and who should be contacted, if needed, for submittal clarification. Provide at least two case studies of rebrand projects to companies similar to our size, especially projects completed for other electric utilities. These case studies should include a brief description of the project, summary of the outcome, and sample designs. You may provide web links to these projects, in order to show design work to minimize the number of pages within this RFP. Describe your agency s availability over the next three to four months. Review the JCPB Projected Schedule and submit a proposal for how your company will meet critical milestones, assuming a start date of May 31, 2017. Describe the software, hardware and technical skills your agency has to produce the required brand designs. Vector designs are preferred. Provide a detailed, itemized fee proposal identifying specific activities to be performed during the brand process. Provide three references, including the company name, website, address, and contact information (email and phone numbers). Scope of Work JCPB seeks a partner with a proven track record for creative excellence in brand development and execution. The hired agency must create a new, distinctive brand that may be used for years to come. However, it is essential that the new brand build on the current JCPB history with its proven customer and brand history. Please review again About JCPB and JCPB Brand Background to gain a better understanding of the JCPB current brand situation. You may also gain additional information by reviewing the JCPB website (jcpb.com) or during the research phase of the project. The specific scope of the project shall include, but may not be limited to, the following: Phase 1: New company name New company logo New company tagline New mission and vision statements Page 6

Phase 2: Evaluate and develop a branding strategy that coordinates with both business divisions, electric and Internet. The Internet business is in the final pilot stages and is pending Board approval. Additional information about the JCPB Internet/Voice businesses will be provided to the chosen ad agency upon hire. Please be advised that the Internet Pilot Program will continue through July 2017. It is possible that the Internet services may be expanded to full telecom services; however, as of this RFP such is undetermined. Phase 3: Marketing research which may include, but shall not be limited to, the following: Review of the local market (avoid names with similarities to other local businesses) Review electric utility branding, especially including local power companies located in the TVA service territory (avoid names, color schemes, etc. that may have similarities to other power companies) Surveys (direct mail, email, phone, etc.) Focus groups, which may include JCEA Board Members and employees, as well external stakeholders Summary of general branding strategies, including information as to perception regarding shapes, colors, names, spelling, etc. Previous market research may be made available upon request; however, current positioning and strategy may need to be revisited and updated Phase 4: Work in coordination with JCPB s Energy Services & Marketing Department to complete the following: Create an effective Marketing Plan for the new brand roll out strategy. See Projected Schedule for anticipated roll out goal date. The roll out timeline is TBD, and not confirmed at this time. However, plans are to release the new brand by the end of summer or beginning of fall 2017. Secure appropriate trademarks for the company name, logo, and taglines. Secure adequate web domains (e.g. abccompany.com, abccompany.org, abc.com, abc.gov, etc.). *See also Brand Package Requirements for a detailed list of requirements. Brand Package Requirements JCEA Board Member Criteria Page 7

A cohesive Board Member criteria will be made available to the awarded agency at the first initial meeting in May. See Projected Schedule. The Board Member Criteria shall include specific information regarding the objective and purpose for the new brand. JCPB Energy Services & Marketing Department Criteria Color Must be one or two colors Web Domain(s) Logo Must be short and easy applicable to various advertisements, promotional items, etc. Must be easy to spell and easy to remember Must clearly differentiate from other web domains, especially those of other local businesses and electric utilities Must be obtainable within budget or at reasonable cost Must secure multiple domains (e.g..com,.edu,.gov,.org, etc.) Must be contemporary, clean, and simple Must avoid electrical imagery Must avoid product based imagery Must meet ease of application requirement Ease of Application Name and logo must be easily applicable to a variety of subject matter: Small: business cards, letterhead, envelopes, utility bills, social media, uniforms/hardhats, etc. Medium: flyers, brochures, graphics, internal signs, etc. Large: vehicles, internal/external signs, large banners, billboards, etc. Collateral Material and Other Requirements Typeface information Must provide font details and files, if applicable, on flash drive Page 8

Color information *Must provide color palette information (PMS, CMYK, RGB, grayscale) Vector files Must provide vector files on a flash drive Graphic elements Must provide all finished, ready for use brand assets, and graphic elements on flash drive Web Domain Must be considered an integral part of the brand identity! Must be available or obtainable Social Media Must be able to integrate new brand identity across all social media platforms seamlessly Social media platforms shall include, but are not limited to, the following: Facebook, Twitter, YouTube, Blogger, Pinterest, and Instagram Example Designs Tagline Feedback Must provide example designs of the following: business cards, letterhead, email signature, invoices, flyers, signage (internal and external), promo items, social media covers and profile images, and vehicle signage Must communicate positively to community Must obtain feedback from employees and customers via a variety of marketing research techniques to include, but not limited to, online surveys and focus groups Expectations Must meet both the Board of Directors and Marketing Department requirements New brand should be embraced positively by the employees and the community (marketing research) Implementation Must be willing to consider extension past the initial brand creativity to implement the new brand Page 9

This will require a new project timeline and additional preparation of a variety of collateral materials (e.g. press release, marketing strategy, etc.). The selected agency will be required to work in close coordination with the JCPB Energy Services & Marketing Department. Proposal Evaluation Proposals are due by 4pm EDT, Thursday, April 13, 2017. The selection criteria outlined below will be used to evaluate proposals. The JCEA Board of Directors will carefully review each evaluation and will score all submittals individually. The scores will be compiled and will most likely be reviewed collectively. Two finalists will be selected among qualifying RFPs received. The two finalists will be invited to present to the JCEA Board of Directors at a May 25, 2017 workshop. See also Appendix A 2 for criteria for presentation expectations. Following the presentations, if an award is made, the project will be awarded to the vendor whose proposal is the most thorough and advantageous to JCPB. Furthermore, if an award is made, JCPB anticipates negotiating with the most qualified vendor, until a satisfactory contractual agreement has been made. The following factors will be considered and will be weighed during the RFP assessment process: Firm s Responsiveness to Scope of Work and Project Needs 30% Responsiveness, holistic approach to work scope and project needs A clear and concise RFP Firm s Qualifications and Experience 30% Demonstrated experience and expertise with similar projects Vendor's overall reputation and references Overall ability, capacity, and skillset to complete project Firm s Methodology and Project Plan 20% Demonstrated commitment to customer service Responsiveness to Projected Schedule Project Cost Effectiveness & Other 20% Itemized budget is commensurate with the value offered Any other reason deemed appropriate by JCPB *Budgetary parameters may override the overall score Page 10

Contract Terms & Legal This RFP does not commit JCPB to award a contract or to pay any costs incurred in the preparation or submission of proposals. Each advertising agency RFP shall constitute an offer to sell the services sought by this RFP. The award shall be made by execution of a contract mutually agreed upon by both parties. All contracts are subject to review by JCPB legal counsel, and the project will be awarded upon signing of an agreement or contract, which outlines the terms, scope, budget, and other pertinent project information. All material produced, data collected, and reports generated by the subcontractor on behalf of JCPB are confidential and become the exclusive property of JCPB. The contractor may not share program materials, customer data, industry or program participant contact information, etc. unless explicitly authorized by JCPB. JCPB reserves the right to reject any or all quotations, to waive any and all informalities and/or irregularities in the quotation, to negotiate and/or renegotiate with any vendor the terms of its quotation, and to accept any proposal which in its opinion may be in the best interest of JCPB. This RFP does not commit JCPB to pay any costs incurred in the preparation of a proposal or to procure or contract for services. JCPB reserves the sole discretion to withdraw this RFP in its entirety at any time without prior notice. All submittals in response to this RFP are considered confidential until JCPB selects the final two candidates, at which time the submittals could become public information upon request. Respondents should understand that information provided in this RFP is intended solely to assist the respondent in preparing a submittal. To the best of JCPB s knowledge, the information provided is accurate; however, there is no warranty expressed or implied. Furthermore, the respondent should be advised that omission of any proposal requirements and/or quotations received after the date stated may not be accepted. No respondent shall be discriminated against on the basis of race, gender, religion, national origin, ethnicity, sexual orientation, age, or disability in the solicitation, selection, hiring, or treatment of subcontractors, vendors, or suppliers. The respondent shall provide equal opportunity for subcontractors to participate in subcontracting opportunities. The respondent understands and agrees that violation of this clause shall be considered a material breach of this contract and may result in contract termination or other sanctions. Contact Information Questions regarding this RFP should be directed to Angela Shrewsbury, JCPB Manager Energy Services & Marketing at ashrews@jcpb.com. Responses to all questions will be emailed to all ad agencies who have submitted RFPS. All questions must be received prior to 1PM EDT Tuesday, April 11, 2017. Page 11

Appendix A 1 Page 12

Instructions to Bidders (Ad agencies submitting Branding Services RPFs) Each bidder shall carefully examine all specifications, drawings, and other contract documents to familiarize themselves with all the RFP requirements, terms, and conditions thereof. Any information relating to the work furnished by the Owner or others, or failure to make these examinations shall in no way relieve any Bidder from the responsibility of fulfilling all of the terms of the contract, if awarded a contract. No payment will be made for items not set up in the quotation, unless otherwise provided by contract amendment. All bidders are cautioned that they should include in the prices quoted for the various bid items all necessary allowances for the performance of all work required for the satisfactory completion of the project. Bidder will return any pages requesting return with the bid by email notification to: Bobby Fair or Amy Netherly, JCPB Purchasing Specialists at purchasing@jcpb.com Bids that are submitted shall be clearly marked Proposal for Branding Services as appropriate. No mailed or facsimile proposals will be accepted. *PLEASE SIGN THE FORMS LISTED BELOW, SCAN/SAVE AS PDF, AND RETURN VIA THE INSTRUCTIONS ABOVE. Checklist for Bidders: Contact Form Proposal Requirements Scope of Work Brand Package Requirements Specifications Exception Form Indemnification Agreement No Bid Questionnaire Page 13

Johnson City Power Board RFP Ad Agency Contact Form Ad Agency Address Phone Web address Contact 1 Primary Contact/Project Manager Name Title Phone (mobile/direct) Email Contact 2 Secondary Contact Name Title Phone (mobile/direct) Email Utilizing a separate page, please send contact information for any additional vendors you may contract with on this project. Email Indicate names and email addresses as to whom RFP answers to questions should be directed: 1 2 3 Contact Name Email Page 14

Johnson City Power Board Specifications Exception Form In the interest of fairness and sound business practice, it is mandatory that you state any exceptions taken by you to our specifications. It should not be the responsibility of the Johnson City Power Board to search out information concerning the materials which you intend to furnish. If your bid/quotation does not meet all of our specifications, you must so state in the space provided below. Bids on equipment, vehicles, supplies, services, and materials not meeting specifications may be considered by Johnson City Power Board; however, all deviations must be listed below. I do meet specifications. Signature: I do not meet specifications. Exceptions are in the space provided. Signature: Failure to submit this form with your bid/quotation will result in being rejected as unresponsive. Exceptions (please list below and specify exceptions): Page 15

Johnson City Power Board The following indemnification agreement shall be and is hereby a provision of any contract. The successful contractor agrees to indemnify, investigate, protect, defend, and save harmless Johnson City Power Board, its officials, officers, agents, and employees from any and all claims and losses accruing or resulting to any and all contractors, sub contractors, supplies, laborers, and any other person, firm, or corporation furnishing or supplying work, services, materials, or supplies in connection with the performance of this contract and from any and all claims and losses accruing or resulting to any person, firm, or corporation which may be injured or damaged by the contractor in the performance of this contract. In any case, the foregoing provisions concerning indemnification shall not be construed to indemnify Johnson City Power Board for damage arising out of bodily injury to persons or damage to property caused by or resulting from the sole negligence of Johnson City Power Board or its employees. This indemnification shall survive the expiration or early termination of this contract. Company: Taxpayer ID: Authorized Signature: Printed/Typed Name: Telephone: Fax: Email: Failure to submit this form with your bid/quotation will result in being rejected as unresponsive. Page 16

Johnson City Power Board No Bid Questionnaire If you choose not to bid, please complete the questionnaire below and return it with your response by the bid opening date. Your assistance in helping us to analyze no bid rationale is very much appreciated. Thank You. For the following reason(s), we are submitting a no bid: Services not supplied by our company RFP specifications (e.g. too restricted, not clear, etc.) Please explain. Profit margin on municipal bids is too low Past experience with Johnson City Power Board (e.g. payment delay, bid process, administrative problems, etc.) Please explain. Insufficient time allowed to prepare and respond to RFP RFP requirement (too large or small for our company) Priority of other business opportunities limit time/other resources available to deliver or perform according to bid specifications Other reason(s) Please explain. Company Name: Address: Telephone: Email: (Signature) (Printed/Typed Name) Title: Date: Page 17

Appendix A 2 Page 18

Presentation Criteria Two Finalists May 25, 2017 Board Workshop Each presenter will be expected to follow the criteria below when presenting to the JCEA Board of Directors, and others that may be attending the May 25, 2017 board workshop. The maximum time to present, including question and answer session, is one hour. Candidates are encouraged to provide visuals, which may enhance their presentation. A projector and screen will be made available. Please advise Angela Shrewsbury, Manager Energy Services & Marketing of any additional needs at least two days prior to the April 25, 2017 meeting. Contact information: 423 952 5079 or ashrews@jcpb.com. Please limit attendees representing your company to no more than three. As a courtesy to each presenting ad agency, only the presenting agency will be present in the room, along with the JCEA Board of Directors. The other ad agency will be asked to remain in the JCPB main lobby (downstairs) or other assigned nearby area. Page 19