HomeMy WebLinkAboutMinutes - May 16, 2017 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, MAY 16, 2017
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, May 16, 2017, commencing at 7:01 a.m.
Present: Council Member Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne
Absent: Council Member Chandler, and Council Member Mounce
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo
B. Topic(s)
B-1 Receive Update on the City of Lodi Customer Service Division (CM)
Deputy City Manager Andrew Keys provided a PowerPoint presentation regarding Customer
Service Division update. Specific topics of discussion included prioritization - Information
Technology level; prioritization - business view; get people on board; service priority; people;
positive customer feedback; process; current processes; process documentation; technology;
phone infrastructure; and improvement plans for people, process, and technology. Mr. Keys
pointed out that a majority of the customer service issues are items that staff is already aware of
and have been working to address prior to his arrival at the City of Lodi.
In response to Mayor Kuehne, Mr. Keys stated that training is focused on internal processes and
cross training of staff at the counter and in the back office to better understand how each division
works. He added that he is also looking at outside customer service training options. Supervising
Accountant Derrick Cotten stated the Customer Service Representatives have access to online
training exercises, purchased from a third -party vendor, that includes 17 modules of best practice
and industry standard applications. The program was purchased one year ago and includes a
one-year subscription. He stated all Customer Service Representatives have access to the
program and can perform exercises throughout the day. Mr. Cotten further responded that
training is mandatory and he has the ability to track usage and view scores. Even though the
program was purchased a year ago, the implementation was rolled out roughly 45 days ago and
staff training is approximately 30 percent complete.
In response to Mayor Pro Tempore Nakanishi, Mr. Cotten stated he would prefer to offer
customer service training on a yearly basis and, even though the subscription is only one year,
staff has access to hard copy versions of the training materials and can conduct live training
sessions for staff on site. In further response, he stated the 17 training courses are broken into
15 to 20 minute segments. Mr. Keys stated the City is also looking for outside opportunities for all
City staff to improve best practices and industry standards.
Council Member Johnson stated that years ago the previous City Manager suggested spending
$27,000 for a consultant to address customer service throughout the City, which he believed was
unnecessary. He questioned where the starting base is on customer service in the Finance
Department and how significant the problem is. Mr. Keys stated the key to making customer
service successful is to hold staff accountable because training is worthless if employees do not
execute what they learn. He anticipated all staff members will complete the online training course
within the next six months and the metrics that will hold them accountable will be a review of the
number of calls handled, number of complaints received, and time spent on each call or at the
counter. From that, a pattern will form to ascertain whether or not there is a lack of customer
service.
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In response to Mayor Pro Tempore Nakanishi, Mr. Keys stated the online training courses will
provide four to five hours of training for each employee. He pointed out that Finance employees
are the face of the City because a majority of residents interact only with these employees for
services such as business licenses and utility bill payments and it is imperative they receive
quality service. Mayor Pro Tempore Nakanishi stated he would prefer the City not spend money
on customer service consultants, adding he believed it could be handled appropriately in house.
Mr. Schwabauer recognized the Finance Department staff in attendance, adding they did so on
their own because they care about the Department and are committed to the level of service they
provide.
In response to Mayor Kuehne, Customer Service Representative Michelle Martinez stated the
online customer service training courses are a good tool and are primarily common sense issues
that most employees understand; however, she believed there may be some who will require
additional training for the Department to reach the level of customer service needed for Lodi. In
further response, she stated that supervisors are also required to take the training. Ms. Martinez
expressed support for cross training collections and billing division staff because it provides one
seamless customer service experience that can be handled at one window.
In response to Mayor Kuehne, Mr. Keys stated staff is currently changing signage in the Finance
Department to refer to itself as customer service groups versus collections or billing.
In response to Mayor Pro Tempore Nakanishi, Mr. Keys stated the concept of cross training the
two divisions arose from the imbalance between the two types of Customer Service
Representatives. The windows on the billing side of the lobby are open more often, while the
other side is used less frequently. Despite the fact that staff is working behind those windows, the
public perception is there are available windows and representatives who are not helping
customers and they do not understand that those particular representatives do not have the
ability to assist in those types of transactions. Mr. Keys stated that staff communicated this issue
to him because it also made the representatives uncomfortable that they could not assist
customers.
In response to Mayor Pro Tempore Nakanishi, Mr. Schwabauer confirmed that staff receives a
high number of customer complaints about the inability to get through to Customer Service
Representatives on the phone, particularly on or near shut-off days. Mr. Keys stated that an
automated phone system and the ability to leave a voice mail message will help reduce the
number of customers coming into the lobby, which will shorten the lines for cash -paying
customers. Automated phone systems will assist customers in retrieving their account balance or
due date and paying their bill.
In response to Mayor Kuehne, Mr. Keys stated that roughly 90 percent of the walk-in patrons are
cash -paying customers. Further, Mr. Keys stated that staffs goal is to respond to voice mail
questions or concerns within one business day.
Mr. Schwabauer expressed that the City's goal is not to dis-incentivize customers from coming
into the Finance office; rather, it is to make services easier and more functional for people in other
ways, such as providing electronic services, that are less costly for ratepayers and the City. He
assured the public that personal customer service will not decrease. Mr. Keys added that, with
these additional options, those customers who prefer not to come into Finance will no longer be
required to do so, which eases the burden and wait time for customers who prefer in-person
service. Mr. Keys reiterated that in-house customer service will not be reduced and these tools
will help improve customers' experience.
Mr. Schwabauer cautioned Council that, any time a system is improved or changed, there will be
a break in service and complaints while customers figure out a new system. Staff participated in
demonstrations for the add-on component to the Tyler billing system and feel confident this
approach will be a better, more sustainable product for customers because it allows for online
and recurring payments; unfortunately, it will require customers to set up their account
preferences again. Mr. Keys stated the added challenge with the add-on product is that staff must
work to earn the public's trust again because most customers distrust the City's current system.
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Staff will educate the public by posting online videos demonstrating how to use the system and
set up payments.
Council Member Johnson suggested staff consider upgrading the phone system and related
technology at one time, instead of improving it in piece meal fashion, and paying the cost from the
catastrophic reserve fund because he believed this situation fits the category and would fix the
problem once and for all. Mr. Keys stated that not all of the projects can be accomplished at one
time due to limited staff and resources, but the project timeline can be advanced.
Mr. Schwabauer added that most of the work is utility driven, which is a healthy fund, therefore,
staff is less concerned about funding the project or dipping into reserves.
Mayor Kuehne agreed that the phone system and related technology should be improved sooner,
rather than later, because citizens have been complaining for the last three years and he would
prefer it not be pushed out further, even if it requires hiring outside resources to complete the
project. Mr. Schwabauer stated the phone element is a year out because it is not the major cause
of the bottleneck; rather, it is customer service staff assignments, which is changing now with
cross training that will provide greater staff resources to take payments and answer calls.
Mr. Keys summarized the three issues that will be immediately addressed: 1) online payment
portal system; 3) payment kiosks for 24-hour payment processing; and 3) interactive voice
response phone system shortly thereafter, all provided by the same vendor. He stated these
changes will go a long way toward addressing the issue.
In response to Mayor Pro Tempore Nakanishi, Mr. Schwabauer stated that most of these
improvements will come back to Council for contract or funding approval unless it is something
within the City Manager's level of authority or an internal process change.
Myrna Wetzel stated she prefers receiving service at the Finance office, adding that the Customer
Service Representatives are helpful and friendly. She stated there is a population of the
community that prefers in-person connections and that many people do not have computers or
Smartphones for conducting business, nor do they wish to remain on hold or navigate an
automated phone service in order to connect with a live representative.
C. Comments by Public on Non -Agenda Items
None.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:11 a.m.
ATTEST:
Jennifer M. Ferraiolo
City Clerk
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CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
AGENDA TITLE: Receive Update on the City of Lodi Customer Service Division
MEETING DATE: May 16, 2017
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Staff recommends that Council receive an update on the City of Lodi
Customer Service Division. No council action is required.
BACKGROUND INFORMATION: The City's Customer Service (CS) Division faces significant
obstacles with implementing the City's Enterprise Resource
Program (ERP). The utility module of the ERP launched in
October 2016. The launch highlighted several opportunities for improvement in the CS division in
addition to the ERP. Staff will present these opportunities this morning from the People, Process,
Technology framework.
People: It is essential to have the right people, with the right training and the right mentality to
succeed in all business endeavors, including the CS division. Employees must buy into the
philosophy of the division and any proposed changes.
Process: The appropriate business rules (policy and procedures) must be in place in order to
successfully administer existing programs, provide services and implement new programs.
Business rules also establish the parameters of each position's duties, responsibilities, authority
level and set clear performance expectations.
Technology: Technology is an essential asset to modern organizations. However technology
will never overcome people and processes. Successful technology implementations are
contingent on the existence of best practices that pre -date the technology and are widely known
(through thorough and consistent training) by high quality employees moving in the same
direction at all staff levels.
This framework will be used to discuss the current status of the CS division.
FISCAL IMPACT: There is no impact from this informational presentation.
FUNDING AVAILABLE: Not applicable.
Manager
Keys,
Deputy Ci
APPROVED:
ITO '4
phe • ► wab- er, City Manager
Customer Service
Division Update
Presented By: Andrew Keys, Deputy City Manager
Agenda
• Prioritization
• Overview of current status
— People
— Process
— Technology
• Improvement Plan
PRIORITIZATION
Prioritization — IT Level
PrOCasS Technology
Prioritization —Business View
FIRST WHO
THEN WHAT
' 117
PEOPLE. BEFORE STRATEGY
Ge' Iii Agrii people lirsl and
Irian yea the !HIM glraIegy
Get People on Board
We found, instead, that they first got the right
people on the bus, the wrong people off the bus,
and the right people in the right seats. And then
they figure out where to drive it.
- Jim Collins, Good to Great
Service Priority
• Customer Level of Effort Based
1) Face to face — in person
2) Phone — live phone calls and voicemails
3) Remote/Mobile — mail, email, other web based
request
PEOPLE
Good People
• April 27t" customer email:
1 spoke with from
Solar Company. He states he and a customer called
in a few days ago and spoke with to
get usage history on an account and
was very friendly and efficient he said he wishes all
companies were as friendly and efficient as the City
of Lodi.
Good People
• April 10t" customer hand written note:
"mliDeA-ec
Ail oltT
¶-A-ki L4141( ykw
EM6 1I R.
Rs1- _ q .rest
MF
you Eivr , l 9 \r ,
rp LCI y -n4e, G
Leioi k A..14 cblJtvs,1/4)11.Y-‘34•
People
• Listen and learn to gain trust and buy in
• Review of staff assignments and duties
• Ensuring staff has adequate resources to
preform
— Education
— Training
— Follow up
— Process documentation
• Holding staff accountable
PROCESS
Current Processes
• 97% of bills are produce accurately and timely each month
— Error rate is tied to approximately 900 average payment plan
(aka budget billing) customers
• Daily processing of drop box payments
— Tested with the Councilmember's bill 4/11/17
• 7,000 monthly online E -check and credit card payments
are processed and posted with 100% accuracy
• Cashiers process 7,500 walk in utility payments with
100% accuracy
— Combine 1,000 transactions daily in person plus mail/drop
box
• Currently customer average 3 minutes per transaction
when coming in person
• Separation of duties at customer windows created
an inefficient and unfriendly counter philosophy
Process Documentation
• Customer service functions necessarily touch multiple
departments
— Finance, Electric, Water, Wastewater, Public Works
• Business processes and workflows are not always clearly
documented or understood
— Residential Medical Discount Program
— Home Energy Assistance Program low income program
— Exception billing practices
• Best practice has been hampered by technology limitations
— Lack of investment
— Significant challenges due to ineffective phone tree resources
• Resources
• Line limitations
• Physical versus virtual system
— Lack of customization functionality and internal knowled
ERP system
TECHNOLOGY
Technology
• Significant history of under investment forces manual
customer service
• Phone
— No voicemail for generic line until this week.
— No IVR system
— Antiquated call center system
• Web/Mobile
— Poor user interface
— Poor communication tool
• Counter credit card processing
• ERP Software
— Inability to easily and consistently customize the software to
fit Lodi's Municipal Code and policy
— Historical lack of provider support for training and
education
Phone Infrastructure
• March 30t" email about March 29t" shut off:
Instead, my husband spent 2.5 hours on hold
yesterday morning trying to reach anyone at the City
of Lodi Utility Department about the issue. He finally
had to give up, and arrived late to work. No small
My sister had to take an unpaid
emergency day off her job at and
spent 3 hours driving to Lodi to address this issue in
person. During the entire 3 -hour drive, she was on
hold with your utility with no answer.
IMPROVEMENT PLAN
Improvement Plan
PEOPLE
• Internal cross training
• Customer first approach for a unified
department
• Face, phone, remote service approach
• Secure additional training on ERP system
• Train in advance of all technology rollouts
• Offer and encourage training opportunitie
Online CC
Mail/Drop Box
Improvement Plan
Process
• Benchmarking and best practice efforts
— Reduce walk ins by providing Customer Self Service options
(Note Roseville has 4% walk in rate per its 2016-17 Budget)
Cit of Lodi Month! Pa ments b Tender T
E -Checks
Customers Bank
10,940
5,315
1,582
1,825
2,828
7,577
30,066
• Resource and workflow scheduling
1
140
120
104
80
50
40
20
0
Hourly RE.c:h:Iit Volt.rne
36%
18%
5%
6%
9%
25%
100%
441,4
A F " Ft'N .7, 'f 'inn. 6 i
Improvement Plan
Process (continued)
• Increased Communication — Parking Lot
— Bill insert, Social Media, Library e -newsletter, on site
signage
• Life impacting policy review
— Shutoff policy, medical discount rates and low income rate
programs
• Consider consolidation of billing routes
• Develop clearly defined processing expectations for all
types of services provided
• Significant testing of software or hardware rollouts
Improvement Plan
Technology
• Voicemail box for general line, including voicemail to
email conversion
• Interactive Voice Response phone system
• Modern call center structure
• Kiosks for 24 hour payment processing with receipt
• Web/Mobile upgrades
• Continued dispersion of internal knowledge
• Continued dialogue with ERP provider to ensure staff
has adequate system knowledge and that the system
preforms
QUESTIONS?