Utilities Customer Service Evaluation
Update
Council Workshop
October 4, 2010
Discussion Outline
• Background
• Review of Customer Service Initiatives
• Review of Recommendations
– Nine initiatives resulted in 40 recommendations the “40 point plan”
• Next Steps
2
Background
•
•
•
•
Effort initiated by City Manager in January 2010
Updates on progress to City Council in May and June
Cross-departmental team with consultant assistance
Customer Service Initiatives:
–
–
–
–
–
–
–
–
3
Benchmarking Study
Business Process Improvements
Meter Reading Equipment Audit
Billing System Audit
Cornelius Citizen Taskforce Recommendations
Customer Assistance Program
Meter Route/Billing Cycle Re-sequencing
Rate Methodology Study (resulted from budget process)
Recommendations
• 40 Point plan to address root causes
• Plan goals:
– Consistent customer-centric service philosophy,
performance targets and oversight
– Uniformly documented business processes
• Clear and consistent application
– Improved training and adequate equipment
– Ongoing evaluation and maintenance
• 40 Point plan divided into three categories
1. Pre-billing
2. Post-billing
3. Other improvements
4
• Equipment monitoring and maintenance
• Customer Payment Assistance Program
• Rate Methodology Study
Business Process Improvements
Start
Resolve Meter Reading
Exception
Get Meter
Readings for
each Customer
Customer payment
received and
amount applied to
Customer’s account
Billing Cycle
Charlotte-Mecklenburg Utilities
Customer
receives and
pays bill
5
Print Bills and
mail to
Customers
Resolve Billing
Exceptions/ Out
of Cycle
Resolution of Pre-Bill Exceptions
• Office review determines need for field
verification
• Currently a manual process
• Proposed automation of field verification
– 16,000 printed service orders per month
– Expect reduction of second visits by over 500 per month
• Increased customer satisfaction
• Improved transparency
• Electronic management of ongoing equipment
audit
6
Pre-Billing Process Improvements
Completed
• More field investigations before bills are issued
–
–
–
–
–
Check more High, Low, Zero readings
Increased from 8,500/month to 13,000/month
Replace equipment sooner
Analyzing resource impact and efficiency
Manual now but more efficient with new equipment
• Training
– More desktop tools to analyze bills
– Customer contact: Some training completed; more to come
Next Steps
7
•
•
•
•
Pre-bill customer notification of potential high bills
Reduce meter reading exceptions
Implement paperless environment across system
Simplify leak adjustment processes
Post-Billing Improvements
• High Bill Inspection Process Redesign/Automation
– Reduce field work & improve responsiveness
• Automated pre-billing field verifications eliminates
need for many high bill inspections
– Improve inspection process
• Payment Arrangements and Delinquencies
– Benchmarked against other utilities
– Improvement opportunities
• Print cut-off date on bill
• Update payment arrangement procedures
• Evaluate deposit requirement for residential accounts
8
Meter Equipment Audit
• Purpose
– Baseline for quality assurance program
– Determine if meter equipment is impacting water billing
• Process
–
–
–
–
–
–
Contractor completed field work – July 2010
Manufacturer analyzed removed equipment
Staff observed manufacturer’s analysis
Staff observed manufacturer’s QA/QC measures
Staff conducted pipe loop testing
Staff talked with other Utilities
• Similar experiences with all manufacturers & types
• Wide variation in O&M practices
9
Meter Equipment
EXAMPLE OF A RESIDENTIAL METER PIT BOX
ERT
Model
50W-2
ERT
Model
60WP
Connection of wire
from ERT to wire
from register
Register
Meter
10
Sample Selection
• Representative of service area
– Consistent mix of equipment types/models
– Mix of consumption patterns
• Sample population used full meter reading routes
for efficient completion – some concentration of
work resulted
• Sample size – 9,000 meters
– Much larger than required for statistical significance
– Largest sample size that could be completed within
summer schedule
11
Field Audit Process
•
•
•
•
•
•
•
•
Locate meter on site
Visually read register and photograph
Electronically read ERT & capture data
Run water to increment meter
Visually read register and photograph
Electronically read ERT & capture data
Leave door hanger with results
Validation of field observations by contractor
project manager
• Verification of results by staff for quality
assurance
• Remediation of any issues observed
12
Meter Reading Equipment Audit
• Informing customers of test
results
13
Running
Water
Meter Reading Equipment Audit
• Examples of meter box and/or meter
covered over with dirt
14
Meter Reading Equipment Audit
• Damaged or misplaced
equipment
Damaged wire
15
Antenna placed incorrectly
Meter Equipment Audit
Observations
• Categories of observations
–
–
–
–
Register mismatches
Radio transmission issues
Physical damage
Installation issues
• Physical observations
–
–
–
–
–
–
Buried meter boxes
Meters obscured by landscaping materials
Water/dirt/debris in meter boxes
Dislodged equipment
Cable issues
Environmental issues
• Operational observations
16
– Bill processing and formatting
– Maintenance of meter installations
– Equipment inventory control
Analysis of Equipment
Witness of engineering analysis
Pilot plant
consumption testing
Comparison visits to other Utilities
17
Meter Equipment Audit Findings
• Four Categories of Findings:
1. Full conformance – no issues found
–
–
–
–
–
ERT and register readings agree within 2 cf
Transmitter responded to handheld unit
Equipment in good condition
Meter box in good condition
Unobstructed
2. Transmitter responded
3. Agreement within 1 billing unit (1 CCF)
4. No billing impact
18
Meter Equipment Audit Findings
• 78.4% of meters audited – Full conformance
–
–
–
–
–
–
ERT and register readings agree within 2 cf
Transmitter responded to handheld unit
Equipment in good condition
Meter box in good condition
Unobstructed
Equipment replaced/repaired for all impacted meters
• 93.7% of meters audited – Transmitter
responded to hand-held unit
19
– Audit process required better communication than
normal meter reading
– All meters audited responded to previous normal meter
reading
– Equipment replaced for all impacted meters
Meter Equipment Audit Findings
• 98.2% of meters responding – ERT and Register
agree within 1 ccf
– 0.51% >1 ccf variance was higher than the register
– 1.31% > 1 ccf variance was lower than the register
– Equipment replaced for all impacted meters
• 99.3% of meters responding– No billing impacts
– ERT and register agree within 1 ccf, or
– ERT and register maintain consistent difference
– Bill corrections completed for impacted meters
• Summary: Only 0.64% of 9011 audited
meters had any billing impact
20
Meter Equipment Audit
Next Steps
• Implement on-going audit program
• Implement on-going maintenance program
– Pit-box conditions
– Locates and uncovers
– Program to address tampers
• Improve bill formatting to better reflect adjustments
made
• Develop ERT inventory control program
• Use FC300 hand-held units for field verifications
– Ability to interrogate electronic and mechanical meter
components
– Improved consistency and fewer field visits
21
Meter Equipment Audit
Next Steps
• Internal Audit Review Recommendations
– Record and maintain retirement date of each ERT
– Monitor the replacement of equipment and history of
ERT locations by account
– Validate serial numbers of ERTs to prevent duplication
22
Billing Cycle Re-alignment
• 19 Billing cycles
• Cycles vary
from 5,000 to
25,000+ accounts
• Cycles are not
geographically
contiguous
• Results in unbalanced
workload
23
Billing Cycle Re-alignment
• Project will
re-group cycles
– Maximize efficiency by
balancing workload
– Reduce time between
meter reading and bill
issuance
– Improve billing period
consistency
• Project phases
– Back-office
preparation underway
– Billing route
restructuring – winter
2011/2012
24
Payment Assistance
Program Improvements
• Options for customers needing financial help
– Payment arrangement plans
– Crisis Assistance Ministries (CAM)
• Opportunities for improvement
– Utilities funded financial assistance program through
CAM (evaluate feasibility and authority)
– Strengthen relationship/integration with CAM
– Earlier referrals to CAM
– Voluntarily-funded financial assistance
• Similar to “Share the Warmth”
• “Round-Up” program
25
Rate Methodology Study
• Need for Study
– Evolution of existing rate structure
– Public concern about rate equity
– Environmental and economic sustainability
• Purpose
– Evaluate costs to provide service to customers by
category/class
– Evaluate rate design alternatives
– Recommend rate setting methodology to Council
26
Rate Study Process
•
•
•
•
•
•
27
Working with nationally recognized consultant
Stakeholder process to advise project team
Provide opportunities for customer input
Review by Utilities Advisory Committee
Work with Restructuring Government Committee
Recommendation to Council by February 2011
Rate Methodology Issues
• Affordability / life-line rates
• Influence of rates on water conservation
• Revenue stability during wet or dry conditions
• Equity for customers
• Commercial/industrial charges
• Allocation of capital and operating costs
28
Next Steps - Council
• Contract to purchase FC300 hand-held devices
– November 8th
• Rate Study recommendations
– Budget Process (March – May)
• Payment Assistance program options
– Budget Process (March – May)
29
Next Steps - Staff
• Implement process changes from 40 point plan
– Seven items completed
– 16 items complete by December 2010
• Utilities escalation POD at 311
– 16 complete by July 2011
– Billing cycle alignment complete winter of 2011/2012
• Monitor progress and outcomes
30