HomeMy WebLinkAboutMinutes - October 24, 2017 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, OCTOBER 24, 2017
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, October 24, 2017, commencing at 7:02 a.m.
Present: Council Member Johnson, Council Member Mounce, and Mayor Kuehne
Absent: Council Member Chandler, and Mayor Pro Tempore Nakanishi
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo
NOTE: Mayor Kuehne left the meeting at 7:55 a.m.
B. Topic(s)
B-1 Receive Update on City of Lodi Customer Service Division (CM)
Deputy City Manager Andrew Keys reminded Council that in May 2017 Council received a
presentation using the framework of people, process, and technology to discuss the customer
service division. Staff intends to provide updates to report on the efforts to improve services.
Financial Services Manager Derrick Cotten provided a PowerPoint presentation regarding the
City of Lodi Customer Service Division update. Specific topics of discussion included framework
of people, process, and technology; cross training; staff training; benchmarking; enhanced
customer experience; lobby enhancements and upgrades; improvement plan process;
consolidating billing cycles, including pros, cons, and schedule; new technology; future
technology improvements; and areas of weakness in technology.
Mr. Keys explained staff benchmarks track number of transactions and speed of each employee.
That information, which was never before collected, is monitored and shared with staff.
Mayor Kuehne pointed out the significant discrepancy between a couple of employees and asked
how staff plans to improve their performance. Mr. Cotten stated he meets with staff on a monthly
basis to review numbers and discuss what the proficient employees are doing to record such high
transaction numbers, whether it is navigating through the system quicker, advanced training, or
knowledge of policies and procedures. He then ascertains what he can do for those employee
who may need additional assistance in getting the job done better and quicker.
Council Member Mounce expressed support for benchmarking exercises because it is difficult to
manage systems and techniques when they cannot be quantified.
With regard to the Finance lobby, Mr. Keys stressed the goal is to change from an institutional
look to a friendly, comfortable setting to make the customer experience more pleasant.
In response to Council Member Mounce, Mr. Keys stated he anticipates construction on the lobby
will occur over a three-day weekend or phased over a number of three-day weekends to minimize
disruptions. Construction will not commence until the kisosks are in place in order to have
alternative payment options that can be manned by staff should construction interfere with
customer service in the lobby. Funding for the improvements will come from the Utility fund since
most of the transactions at the Finance Department are utility-related; therefore, there would be
no impact to the general fund. In further response to Council Member Mounce, Mr. Keys stated
the impact to utility rate payers would be minor and will be absorbed by normal operations.
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Council Member Johnson commented on the cost range of $8,525 to $45,765 for lobby
enhancements and questioned if there were options available to reduce costs, such as
purchasing less-expensive chairs or installing an alternative to laminated flooring, while still
making the area functional and comfortable for customers. He stated he believes the kiosks,
which are already budgeted and programmed, will be a great benefit to Finance, but he would like
staff to take another look at the costs. Mr. Keys assured Council this was only an initial cost
estimate that staff will refine as it proceeds. He stated the glass panels are the most important
line item in this project because it provides two-way visibility that will greatly improve the one-way
communication that currently exists; however, there are different options for the glass that will still
work with the overall feel. Staff will fine-tune the final project and associated costs that will
ultimately be approved by Council.
Council Member Mounce suggested staff consider other architects that may have a more frugal
approach and could find less-expensive ways to accomplish the project.
In response to Council Member Mounce, Mr. Cotten stated there are roughly 400 preferred billing
date customers who will experience a greater level of discomfort with the change in billing cycles.
Those customers will be notified and phased in to be billed by location, versus their current set up
of billing on a specific date. All customers will have access to the payment scheduler, as well as
other tools, to schedule payments for a preferred date. Council Member Mounce stated she
believes this change will be more challenging for staff than it anticipates because many people
plan their payments based on when they get paid and changing it will likely upset customers.
In response to City Manager Schwabauer, Mr. Keys explained that the payment scheduler will
allow customers to choose a specific date to make a payment by either debit card, credit card,
or e-check. He added that most of the 400 customers will see a slight shift in due date, with many
of them moving to a different day within the same week. A small percentage will see a shift of a
week or two. He explained the concept is that 25 percent of customers will pay in week one of the
month, with another 25 percent paying in the second, third, and fourth weeks of the month for four
cycles total. During the phased changed-over, these customers will be exempt from normal
collection and shut-offs while they adjust to the change. They will all receive advance
communications, and, while this may inconvenience some customers, it will provide the City an
opportunity on the back-end to serve customers at a higher level and with greater accuracy.
Mr. Keys stated that preferred billing is not a commonly-offered service because it is hands-on
and requires additional labor by the agency. He explained that billing for one versus 20,000
customers represents the same amount of work (roughly 9 to 12 hours) and the more preferred
customers there are in the system, the greater it increases the amount of staff time.
In response to Council Member Mounce, Mr. Keys stated currently preferred customers call the
Finance Department to request a preferred payment date. With the new system, customers can
use the interactive voice response (IVR) phone system or log into Invoice Cloud to create an
account and select an option of either one-time payment or recurring payments. Council Member
Mounce expressed concern that many of the preferred customers are on fixed incomes and
moving the payment due date will create a hardship. Additionally, many customers are senior
citizens who do not use technology, computers, or the Internet. She asked staff to keep these
points in mind as this moves forward so it does not alienate citizens. Mr. Keys assured Council
that staff will also be available to walk customers through the process if they have difficulties.
Mr. Keys stated that another utility recently shared with him that, once the agency installed
payment kiosks, partial payments increased substantially because customers were more
comfortable making regular, partial payments at a machine instead of at a face-to-face
transaction. Because of this alternative payment option, the utility experienced a reduction in late
charges and shut-offs. The switch-over on billing cycles will not occur until after the IVR phone
system, kiosks, and lobby enhancements are completed.
Council Member Mounce questioned, in light of the previous provider's less-than-favorable track
record, what assurances the City has from Invoice Cloud if there are problems rolling out the
program. Mr. Keys stated the company has not yet been compensated because it is paid from
transactions. The minor hiccup in the program is a logic-based error that requires rewriting a code
that will handle the City's Portable Document Format and multiple-page files. He estimated the
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issue will be resolved by the end of October. Mr. Schwabauer pointed out that Invoice Cloud is
much more intuitive than the last product. Mr. Cotten added the functionality of Invoice Cloud is
more user friendly and follows the lines of an Amazon or E-Bay set up.
In response to Council Member Mounce, Mr. Cotten stated that one of the kiosks will be available
inside the Finance Department during regular business hours; the other will be outside, across
the street from the Lodi Police Department, and will be accessible 24 hours. The kiosks will have
security cameras; the machines are owned by the provider, but located on City property; and the
City will be charged when a payment card is swiped. Mr. Schwabauer pointed out the kiosks are
not automated teller machines and will not dispense cash.
Myrna Wetzel stated she likes to go to the Finance Department, pay cash on her account, and
converse with the tellers. She stated that, in all her years going to Finance, she has never met an
unfriendly Customer Service Representative and she has had pleasant conversations with other
customers in the lobby. She stated a large number of the population needs human interaction and
she was concerned these changes would eliminate that option for people. She questioned who
"preferred customers" were, to which Mr. Cotten explained they are customers that reached out
to the City asking for an alternative billing date that does not align with the system.
Mr. Schwabauer clarified it does not mean the City prefers them over any other customer.
Mr. Keys assured Ms. Wetzel these updates are not intended to take away the option for personal
interaction, adding that some will prefer to use the kiosks or on-line services, which will allow staff
greater time and flexibility to work with customers who prefer to come to the lobby.
Mr. Schwabauer stated the idea is to make technology attractive to customers so those who do
not wish to stand in line do not have to.
C. Comments by Public on Non-Agenda Items
Alex Aliferis shared a personal story in which Officer Ryan Holz assisted a homeless man with
improving his life. This gentleman from Australia has no family in this country, lives in his car, and
cannot find a job even though he has no drug or alcohol addictions or felonies. He is down on his
luck and cannot get a break. Officer Holz met with him and connected the individual with sources
in Southern California for training to become a truck driver. Officer Holz continues to stay in touch
with him should he need assistance with school or money. Mr. Aliferis expressed concern that a
majority of people categorize homeless into one classification; however, many are down on their
luck due to unfortunate circumstances and simply need a helping hand. He encouraged people to
break out of their shells, interact more with one another, and communicate with someone who
needs assistance to help them back on the right track.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 7:56 a.m.
ATTEST:
Jennifer M. Ferraiolo
City Clerk
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AGENDA ITEM B-l
Crrv or Lonr
CouNcrr-, C onnMUNICATIoN
AGENDA TITLE:
MEETING DATE:
PREPARED BY:
Receive update on the city of Lodi customer service Division
October 24,2017
Financial Services 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 strives to provide top of
the line service. As such, the department seeks continuous
improvement. The presentation will provide a status update on the
department and briefly touch on future planned enhancements.
The Shirtsleeve session on May 1 6,2017, focused on the opportunities, improvements and current
challenges in the CS division. Today's discussion provides an update on progress to ensure continuous
improvãment in line with the People, Process, Technology framework introduced at the May Shirtsleeve.
That framework is summarized here and will be used to guide the presentation'
people: lt 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 tñe paiameters of each position's duties, responsibilities, authority
level and set clear performance expectations.
Technotogy: Technology is an essential asset to modern organizations. However technology
will never overcome people and processes. Successfultechnology 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.
Attached to this report are a schematic cost estimate, floor plan, mockup images and pictures of
suggested materials in other service lobbies that are suggested for the Customer Service Lobby
enñáncement first discussed briefly at the May Shirtsleeve. These details will be referenced in the
presentation, but no action will be considered at this meeting on the lobby enhancement project.
FISCAL IMpAGT: There is no impact from this informational presentation.
FUNDING AVAILABLE: Not a licable.
Derrick Cotten, Financial Services Manager
Andrew Keys, Deputy CitY
APPROVED
nager
, City Manager
City of Lodi
Finance Department Customer Service Lobby
Interior upgrades – Schematic Cost Estimate
5757 Pacific Avenue
Suite 226
Stockton CA 95207
209.944.9110
2000 L Street
Suite 125
Sacramento CA 95811
916.254.5546
www.wmbarchitects.com
OPTION 1
Carpet Tile over existing flooring 300 SF @ $9/SF $2,700
Re-use (e) seating 6 chairs @ 0/EA $0
Large Scale artwork for north wall 3 EA @$350/EA $1,050
Re-paint w/ added accent walls 1 LS @ 3,500 $3,500
Replace wall mounted service shelf w/ custom casework 1 EA @ $500 $500
SUBTOTAL $7,750
10% CONTINGENCY $775
Total Estimated Construction $8,525
OPTION 2
Carpet Tile over existing flooring 300 SF @ $9/SF $2,700
New upholstered contract seating w/ commercial vinyl 4 chairs @ $800/EA $3,200
Large Scale artwork for north wall 3 EA @$350/EA $1,050
Re-paint w/ added accent walls 1 LS @ 3,500 $3,500
Replace wall mounted service shelf w/ custom casework 1 EA @ $500 $500
SUBTOTAL $10,950
10% CONTINGENCY $1,095
Total Estimated Construction $12,045
OPTION 3
Woodgrain Vinyl Plank Flooring (existing vinyl to be removed) 300 SF @ $25/SF $7,500
New upholstered contract seating w/ commercial vinyl 5 chairs @ $800/EA $4,000
Occasional tables @ seating 3 tables @500/ EA $1,000
Large Scale artwork for north wall 3 EA @$350/EA $1,050
Re-paint w/ added accent walls 1 LS @ 3,500 $3,500
Replace wall mounted service shelf w/ custom casework 1 EA @ $500 $500
SUBTOTAL $17,550
10% CONTINGENCY $1,750
Total Estimated Construction $19,300
OPTION 4 – Updated 10-12-17
Woodgrain Vinyl Plank Flooring (existing vinyl to be removed) 300 SF @ $25/SF $7,500
New rubber base 1 LS $300
New upholstered contract seating w/ commercial vinyl 5 chairs @ $800/EA $4,000
Occasional tables @ seating 3 tables @500/ EA $1,000
Large Scale artwork for north wall 3 EA @$350/EA $1,050
Translucent dividers (demo + new construction) 3 EA @ $3,000/EA $9,000
Re-paint w/ added accent walls 1 LS @ 3,500 $3,500
Replace wall mounted service shelf w/ custom casework 1 EA @ $1,500 $1,500
Retrofit troffer lighting 3 EA @ 600 $1,800
New Signage/ dimensional letters & Logo 1 LS $3,000
SUBTOTAL $32,650
10% CONTINGENCY $3,265
SUBTOTAL $35,915
18%+ General Conditions $7,000
Total Estimated Construction $42,915
Total A/E Fees $2,850
Total Estimated Project Cost $45,765
Presented By: Derrick Cotten, Financial Services Manager
Customer Service
Division Update
2
Agenda
•People, Process, Technology
–Background
–Overview of current status
–Improvements
•Consolidation of Billing Cycles
BACKGROUND – PEOPLE, PROCESS,
TECHNOLOGY
Background
•Prioritization
–People
–Process
–Technology
PEOPLE
People
•Cross Training
–50% increase in payment windows
–Decreased customer wait times
•Staff Training
–All CSR’s intended the Public Treasury Institute course
in customer service and cash handling best practice.
–Hands on and web based training on technology
before roll outs.
•Invoice Cloud training included extensive staff testing
People - Staff
•Continues improvement and benchmarking
–Analyze strengths and weaknesses to best utilize
staff strengths
Staff Member
September 2017
Total Volume % Vol Per Hr
Staff #1 490 8% 3.06
Staff #2 1,418 22% 8.86
Staff #3 673 11% 4.21
Staff #4 508 8% 4.23
Staff #5 1,070 17% 6.69
Staff #6 1,329 21% 11.08
Staff #7 692 11% 5.77
Staff #8 209 3% 1.31
Team Totals: 6,389 100%
People - Customer
•Enhanced Customer experience
–Provide the tools necessary to preform self service
if desired
•Web based
•Phone based
•Kiosks
–Lobby Enhancements
•Modernize the lobby layout to improve customer flow
and enhance the experience for in person customers
•Customer
Service
“rebranding”
•Softening of
colors
•Translucent
glass for staff
visibility
•Enhanced
seating
•Flooring
•Lighting
•Artwork
Lobby Upgrade Options
•Invest in making customer service pleasant for
the customer
•Primary functional enhancement is the
translucent dividers
–Also carries the highest cost
•Funding source would be utilities
•Provides a source of pride for residents and staff
in the professional environment
•Cost ranges from $8,525 to $45,765
–Staff recommends the “all in” Option 4 at
$45,765
PROCESS
Improvement Plan
Process Improvement
Process
•Benchmarking and best practice efforts
–Working with industry partners to determine best practice
•Resource and workflow scheduling
–Using analytics to best utilize staffing and resources
September 2017
Process Improvement
Consolidating of Billing Cycles
–16 billing cycles down to 4, 75% reduction
–Standardizes bill due dates for customers
–Data review and management of monthly or
weekly billing cycles (as opposed to daily) will
result in more confidence and accuracy in billing
–Field services staff will be working within assigned
routes
–Labor savings of 84 hours per month, over 1,000
hours a year
Process Improvement
Consolidating of Billing Cycles – Cons
–Preferred billing customers will no longer be
supported
•Less than 400 customers on preferred billing
•No late fees or shut offs during transition
•New billing portal provides other options
–Recurring credit card and EFT payments
–Payment scheduler
Process Improvement
Consolidating of Billing Cycles – Schedule
•November – Notify preferred billing customers
and update bill message.
•December – Update preferred billing customers
to correct route and partial bill for usage
•January – Combing to 4 billing routes. Preferred
billing customers will have special condition
to not receive late fees during transition.
TECHNOLOGY
Technology Improvement
New Technology
•Web/Mobile upgrades – InvoiceCloud
–Went live October ___
–Recurring credit card payments
–Payment Scheduler
–Mobile payments/ Pay-by-Text options
–Improved customer interface
Technology Improvement
Technology – Coming Soon
•Kiosks for 24 hour payment processing with
receipt (Nov. 2017)
–Cash
–Checks
–Card
Technology Improvement
Technology – Future and ongoing discussions
•Voicemail box for general line, including voicemail
to email conversion (discussion in 2018)
•Continued testing of new and existing products
and dispersion of internal knowledge (ongoing)
•Continued dialogue with ERP provider and
internal training (ongoing)
–Ensure staff has adequate system knowledge
–Ensure system is activated to preform
optimally
Phone Infrastructure
Technology – Continued Weakness
•Phone Infrastructure - Ongoing
–Limited volume
–No analytics
•Interactive Voice Response (IVR) – Recent
Upgrade
–Phone payments
–Check account information
QUESTIONS?
Presented By: Derrick Cotten, Financial Services Manager
Customer Service
Division Update
2
Agenda
•People, Process, Technology
–Background
–Overview of current status
–Improvements
•Consolidation of Billing Cycles
BACKGROUND – PEOPLE, PROCESS,
TECHNOLOGY
Background
•Prioritization
–People
–Process
–Technology
PEOPLE
People
•Cross Training
–50% increase in payment windows
–Decreased customer wait times
•Staff Training
–All CSR’s intended the Public Treasury Institute course
in customer service and cash handling best practice.
–Hands on and web based training on technology
before roll outs.
•Invoice Cloud training included extensive staff testing
People - Staff
•Continues improvement and benchmarking
–Analyze strengths and weaknesses to best utilize
staff strengths
Staff Member
September 2017
Total Volume % Vol Per Hr
Staff #1 490 8% 3.06
Staff #2 1,418 22% 8.86
Staff #3 673 11% 4.21
Staff #4 508 8% 4.23
Staff #5 1,070 17% 6.69
Staff #6 1,329 21% 11.08
Staff #7 692 11% 5.77
Staff #8 209 3% 1.31
Team Totals: 6,389 100%
People - Customer
•Enhanced Customer experience
–Provide the tools necessary to preform self service
if desired
•Web based
•Phone based
•Kiosks
–Lobby Enhancements
•Modernize the lobby layout to improve customer flow
and enhance the experience for in person customers
•Customer
Service
“rebranding”
•Softening of
colors
•Translucent
glass for staff
visibility
•Enhanced
seating
•Flooring
•Lighting
•Artwork
Lobby Upgrade Options
•Invest in making customer service pleasant for
the customer
•Primary functional enhancement is the
translucent dividers
–Also carries the highest cost
•Funding source would be utilities
•Provides a source of pride for residents and staff
in the professional environment
•Cost ranges from $8,525 to $45,765
–Staff recommends the “all in” Option 4 at
$45,765
PROCESS
Improvement Plan
Process Improvement
Process
•Benchmarking and best practice efforts
–Working with industry partners to determine best practice
•Resource and workflow scheduling
–Using analytics to best utilize staffing and resources
September 2017
Process Improvement
Consolidating of Billing Cycles
–16 billing cycles down to 4, 75% reduction
–Standardizes bill due dates for customers
–Data review and management of monthly or
weekly billing cycles (as opposed to daily) will
result in more confidence and accuracy in billing
–Field services staff will be working within assigned
routes
–Labor savings of 84 hours per month, over 1,000
hours a year
Process Improvement
Consolidating of Billing Cycles – Cons
–Preferred billing customers will no longer be
supported
•Less than 400 customers on preferred billing
•No late fees or shut offs during transition
•New billing portal provides other options
–Recurring credit card and EFT payments
–Payment scheduler
Process Improvement
Consolidating of Billing Cycles – Schedule
•November – Notify preferred billing customers
and update bill message.
•December – Update preferred billing customers
to correct route and partial bill for usage
•January – Combing to 4 billing routes. Preferred
billing customers will have special condition
to not receive late fees during transition.
TECHNOLOGY
Technology Improvement
New Technology
•Web/Mobile upgrades – InvoiceCloud
–Went live October ___
–Recurring credit card payments
–Payment Scheduler
–Mobile payments/ Pay-by-Text options
–Improved customer interface
Technology Improvement
Technology – Coming Soon
•Kiosks for 24 hour payment processing with
receipt (Nov. 2017)
–Cash
–Checks
–Card
Technology Improvement
Technology – Future and ongoing discussions
•Voicemail box for general line, including voicemail
to email conversion (discussion in 2018)
•Continued testing of new and existing products
and dispersion of internal knowledge (ongoing)
•Continued dialogue with ERP provider and
internal training (ongoing)
–Ensure staff has adequate system knowledge
–Ensure system is activated to preform
optimally
Phone Infrastructure
Technology – Continued Weakness
•Phone Infrastructure - Ongoing
–Limited volume
–No analytics
•Interactive Voice Response (IVR) – Recent
Upgrade
–Phone payments
–Check account information
QUESTIONS?