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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/13/2008 - REPORT ON UTILITIES MARKET RESEARCH DATE: May 13, 2008 WORK SESSION ITEM STAFF: Brian Janonis FORT COLLINS CITY COUNCIL Patty Bigner SUBJECT FOR DISCUSSION Report on Utilities Market Research. EXECUTIVE SUMMARY The purpose of this discussion is to provide information to Council related to the Utilities Market Research, conducted in 2007. The research included Customer Satisfaction Surveys of residential and commercial customers and a Benchmark Study to determine market data on customer service, as well as information on the scope of services offered by peer utilities. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED This presentation is to provide background and information on the detailed findings of the research project. BACKGROUND Periodically,Utilities conducts comprehensive market research to benchmark customer satisfaction factors,identify areas for improvement,gauge interest in new products and evaluate awareness and acceptance of existing programs and services. In 2007, Utilities contracted with R.W. Beck Inc. for two market research projects using a methodology that assures statistically valid results. The first was comprised of telephone surveys of residential and commercial customers to continue the practice of periodic customer satisfaction research. The second project initiated a benchmarking study designed to provide information about best practices in delivery of customer service as well as customer-focused programs such as energy efficiency, water conservation and web-based services. Utilities management began discussion of the research during summer 2007 in order to determine those areas for immediate response and those that require planning at a more strategic level. Using a data-based approach to utility management, staff is now addressing key areas that will maintain and/or enhance Utilities' historically high customer satisfaction levels. This presentation has not been taped;however a complete set of slides is attached to this summary. Lynn Adams, a consultant from R.W. Beck, will summarize the findings at the work session. Council Briefing Market Research Et Benchmarking Customer Facing Functions City of Fort Collins Utilities Comprehensive Overview Customer Facing Functions : • Customer Satisfaction • Customer Service Customer Communications Market Research Customer Satisfaction Et Perceptions Customer Information Objectives • Customer satisfaction with electric , water , wastewater and stormwater services Attitudes toward renewables and conservation Customer interest in new products Track trends from previous surveys ( 19990 2002 ) Survey Methodology How • Systematic sampling of Fort Collins Utilities database of current residential electric customers • Entire database of commercial customers , augmented with a purchased list of businesses located within the City of Fort Collins • Telephone survey • When • Surveys conducted between January 31 and February 27 , 2007 • Who • 402 residential customers 400 general business and commercial customers ( excluding Key Accounts ) • Statistics • Frequencies Et Cross - tabulations ; significance testing • Sampling error . A random sample of 400 has a worst - case 95 percent confidence interval of plus or minus 4 . 9 percent about any one reported percentage . Research5 Fort Collins Utilities Market 00 Customer Satisfaction Analysis Deliver on Promises Reliability Situational Service Factors Quality Willing to Help Response The utility controls three of the main Inspiring Trust Assurance Product Customer determinants of Quality Satisfaction customer satisfaction : service quality , Individual Care Empathy product quality Price Personal and price . Factors Physical Attributes Tangibles Source : Services Marketing, Valerie Zeithmal and Mary Jo Bittner, 1996 Research11001 6 1 Fort Collins Utilities Market 00 Customer Service Evaluation A Delighted ♦ World Class Customers ' 6 Acceptable Expectation ♦ Customers ' C Threshold Unacceptable F L]IL Customer expectations increase for a variety of reasons . Customers expect a minimum of ` 6 ' service and are delighted by `A ' service . Top performers strive for 70% or more `A ' ratings and minimal ratings of ` C ' or below. Research7 Fort Collins Utilities Market 00 Fort Collins Utilities : World - class Service 100 % Commercial Residential 90 % 20 % 80 % 32 % 0 ° 33 % 29 % 32 % 7 0 /o 0 46 % 35 % 60 % 34% 8 % 50 % 40 % 30 % - ■ A ❑ B 20 % ' 10 % 0 % Overall Electric Water Wastewater Storm Overall Electric Water Wastewater Storm Water Water Base : Commercial customer respondents : Residential customer respondents: electric = 400; water= 179; wastewater= 178; electric = 402 ; water=257; wastewater=257 ; stormwater =400 stormwater =402 UtilitiesFort Collins - Research era Commercial customers continue to be extremely satisfied with electric service . Commercial 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % oB 20 % MA 10 % 0 % Base : Commercial customer 1999 2003 2007 1999 2003 2007 1999 2003 2007 1999 2003 2007 1999 2003 2007 respondents= 400 Reliability of electric Power quality ; few Reasonable price Speed of electric Overall grade for service ; few outages voltage fluctuations service repair & electric utility or interruptions or surges service restoration ` "Don't know" and "Not used" responses were not included for "speed of repair" as responses require direct interaction with the Utilities. A remarkable 97 percent of respondents give the electric utility an "A" or T95 grade overall . ResearchJL Fort Collins Utilities Market 00 Residential customers continue to be extremely 40 satisfied with electric service . Residential 1 0 0 era 90 pro a 0 pro 70 % s 0 pro 50 % OB 40 % WA 30 % 20 % 10 % 0 % 1999 2003 2007 1999 2003 2007 1999 2003 2007 1999 2003 2007 1999 2003 2007 Reliability of electric Power quality ; few Reasonable price Speed of electric Overall grade for service ; few outages voltage fluctuations service repair and electric utility or interruptions or surges service restoration " Base: "'Don't know" and "Not used" responses were not included for "speed of repair" as responses require direct interaction with the Utilities. Residential customer respondents= 402 A remarkable 97 percent of respondents give the electric utility an "A" or T95 grade overall . ResearchJL 10 Fort Collins Ultitities Market 00 Commercial customers are very satisfied with water service . Commercial 100% 90% so% 70% 60% 50% ❑ B 40% A 30% 20% 10% Not asked 0% 1999 2003 2007 1999 2003 2007 1999 2003 2007 1999 2003 2007 1999 2003 2007 1999 2003 2007 Reliability; few Taste of the water Quality of the Reasonable price Safety of drinking Overall grade for water service water: pure and water WATER service Base : interruptions clean Commercial customer respondents= 179 Over 90 percent of survey participants grade the water utility an "A" or T overall . ResearchI I Fort Collins Utilities Market 00 Residential customers are very satisfied with water service . Residential 100% 90% 80% 70% 60% 50% ■ A ❑ B 40% 30% 20% 10% Not 0% asked 1999 2002 2007 1999 2002 2007 1999 2002 2007 1999 2002 2007 1999 2002 2007 1999 2002 2007 Reliability; few Taste of the Quality of the Reasonable price Safety of drinking Overall grade for water service water water: pure and water WATER service Base : interruptions clean Residential customer respondents= 257 Over 90 percent of survey participants grade the water utility an "A" or T overall . Research12 Fort Collins Utilities Market 00 Commercial customers express high levels of satisfaction with their wastewater service . Commercial 100% 90% 80% 70% 60% ❑ B 50% ■ A 40% 30% 20% 10% Not Not asked asked 0% 1999 2003 2007 1999 2003 2007 1999 2003 2007 1999 2003 2007 Reliability, few breaks or Reasonable price Controlling odors at Overall grade for backups caused BY the WASTEWATER facilities WASTEWATER service Base : utility Commercial customer respondents= 178 Nearly nine out of ten customers give the Utilities an "A" or " B " overall for wastewater service . Research13 Fort Collins Utilities Market 00 Residential customers express high levels of satisfaction with their wastewater service . Residential 100°ro 90% a0% 70% 60% ❑ B 50% ■ A 40% 30% 20% 10% Not Not asked asked 0% 1999 2002 2007 1999 2002 2007 19997 2002 2007 1999 2002 2007 Reliability, few breaks or Reasonable price Controlling odors at Overall grade for WASTE backups caused BY the wastewater treatment WATER service Base: utility facilities Residential customer respondents= 257 Nearly nine out of ten customers give the Utilities an "A" or " B " overall for wastewater service . Research14 Fort Collins Utilities Market 00 Satisfaction with stormwater service lags the others with respectable , but not world - class ratings . Commercial 100% 90% 80% 70% s0% ❑ B 50% 40% NA 30% 20% 10% 0% 1999 2002 2007 1999 2002 2007 1999 2002 2007 1999 2002 2007 1999 2002 2007 1999 2002 2007 Adequate Adequate Reasonable rate Overall Preparation for Overall grade for protection from protection from and fee structure Maintenance of future growth STORM WATER major floods local street the drainage service Base : flooding system . Commercial customer respondents= 400 Research15 Fort Collins Utilities Market 00 Satisfaction with stormwater service lags the others with respectable , but not world - class ratings . Residential 100% 90% 80% 70% s0% ❑ B 50% 40% ■ A 30% 20% 10% Q% 1999 2002 2007 1999 2002 2007 1999 2002 2007 1999 2002 2007 1999 2002 2007 1999 2002 2007 Adequate Adequate Reasonable rate Overall Preparation for Overall grade for protection from protection from and fee structure Maintenance of future growth STORM WATER major floods local street the drainage service flooding system . Base : Residential customer respondents= 402 Researchz9- 00 Gap Analysis Radial Graphs Map customer perceptions of " importance " and " performance " Clear visual representation of gaps Commercial customers feel the Utilities meets / exceeds expectations on the most important factors . Commercial Customers : Importance vs . Grade Reliable service 100% 900 Programs to help you conserve Accurate bills 0% 70% 60% 50% Infrastructure security Fast repairs/service restoration " 0% 30 2 °o Environmentally conscious Company you can trust Courteous customer service" Quality of Product delivered Competitive price Importance Base : Commercial "Don't know" and "Not used" responses were not included for these two f Grade Respondents=400 factors as responses require direct interaction with the Utilities. For reliable service , accurate bills , being a trustworthy company , and product quality , the Utilities combined "A" and T " grades closely match the percentage of respondents who feel each factor is "very" or "somewhat important . " Research18 Fort Collins Utitities Market August 2007 Commercial customers feel the Utilities falls short of meeting expectations i n a few areas . The Utilities falls short of expectations on two factors . Competitive prices Environmentally conscious Somewhat of a reflection of respondents answering " don ' t know " rather than low grades Likely indicates a communications gap Infrastructure security shows a large gap May be based to lack of knowledge about the Utilities efforts 19 Fort Collins Utilities Market ResearchAugust . , 0 Residential customers feel the Utilities meets / exceeds expectations on the most important factors . Residential Customers : Importance vs . Grade Reliable service t 00ON o, Programs to help you conserve Quality of Product delivered 0% 70% 60% 50% Infrastructure security Accurate bills 0% 30 2 °o Courteous customer service' Fast repairs/service restoration` Environmentally conscious Company you can trust Competitive price tlmportance * "Don't know" and "Not used " responses were not included for these two f Rating factors as responses require direct interaction with the Utilities . Base : Residential Respondents=402 For reliable service , product quality, accurate bills , and being a trustworthy company , the Utilities combined "A" and " B" grades are equal to the percentage of respondents who feel each factor is "very" or "somewhat important . " Research20 Fort Collins Utilities Market 00 - M Residential customers feel the Utilities falls short of meeting expectations i n a few areas . Expectations are not met for the following . Competitive prices Environmentally conscious Providing a high level of infrastructure security Largely due to respondents answering " not applicable " or " don ' t know " rather than actual dissatisfaction Lower percentages of ` A / B ' grades and higher percentages of " no answers " signal the need for more consistent customer education / communication , particularly for those items they rate as " very or somewhat important " - Renewabtes 8: Conservation Customer perceive a higher level of " green " than exists . Commercial Residential 2% 7% 1 % 4% 0 No renewables 18% ' 1 to 4 % 25% � 5to10 % 11 % 38% Q 11 to 20 % 0 21 to 30 % 36% s�io 1 o% 0 > 31 % 0 Don ' t know 8% 18% 13% Base : All Commercial respondents= 400 Base: All Residential respondents= 402 Well over half of its customers think that the Utilities obtains at least five percent of its generation from renewable sources . ResearchI Fort Collins Utilities Market 00 Renewabtes 8: Conservation Customers want even more renewables . Commercial Residential Don't know 3% Don't know Generate less Generate less 4% 2% 1 % Generate about the same 12% Generate about the same 14% Generate more 83% Generate more 81 % Base : All Commercial respondents= 400 Base : All Residential respondents= 402 In the absence of cost implications , the current trend in high levels of interest in renewable sources of energy appears to be strong in Fort Collins . Research23 Fort Collins Utilities Market 00 Renewables Customers ' favor renewable energy even air quality impact is regional . Commercial Residential ❑ More likely to buy ❑ No impact on purchase ❑ Don ' t know ■ Less likely to buy Base: All Commercial respondents= 400 Base: All Residential respondents= 402 The majority of respondents indicated that if their purchase of renewable energy decreased pollution regionally or nationally, rather than locally, it would have no impact on purchase behavior. As only 2 % of commercial and 8% of residential customers surveyed currently purchase renewable energy from the Utilities , this does not forecast a major increase in participation . However it appears that a change in the Utilities ' program from locally-sourced wind should not have a negative impact on participation . Research24 Fort Collins Utilities Market 00 Conservation Conservation largely at the correct level although almost 25 % prefer more . Commercial Energy Conservation Residential Notenough Notenough 22% 24% About right 70% Don't know Don't know 3% 5% Too much Too much 3% 2% About right 71 % Water Conservation Notenough Notenough 19% 24% Don't know 8% Don't know 6% Too much 3% Too much 4% About right 66% About right 70% low- JANNEV- Fort Collins - 11 Water Customers understand water as a limited resource and attribute rising costs to limited supply and competition for use . Commercial Residential 100% - 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Rising Increase Rising labor Aging Competition for Limited amount Rising Rising labor Increased Aging Competition Limited chemical costs regulations cost infrastructure water supply of water chemical costs cost regulations infrastructure for water amount of supply water ■ Very important ❑ Somewhat important ■ Very important ❑ Somewhat important Base: All Commercial respondents; 400 Base: All Residential respondents= 402 26 Fort Collins - 11 Water Customers also expect water rates to continue to increase . Commercial Residential 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% -- I I � I I I L Service Diminished water Environmental More frequent Increase in water Service Diminished water Environmental More frequent Increase in water permanently quality violations water main rates permanently quality violations water main rates reduced breaks/sewer backups reduced breaks/sewer backups ■ Very likely ❑ Somewhat likely ■ Very likely ❑ Somewhat likely Base: All Commercial respondents; 400 Base: All Residential respondents= 402 Additionally , customers think that service disruptions will occur more frequently if the aging water and sewer infrastructure is not replaced . Research27 1 Fort Collins Utilities Market 00 Product Interest ■ One - half of commercial customers express interest in only two products ■ Support for facility design ■ Equipment incentives ■ Load Control ■ About one - half of residential customers who have central air conditioning in their home express interest in subscribing to a load control program offering a $ 25 incentive . ■ 58% of respondents have central a / c Key Findings : Customer Satisfaction Extraordinary levels of satisfaction from both customer segments Significant alignment of commercial and residential segments • Not surprising given that messaging overlaps both segments Stormwater service ratings significantly lag those for the other three services • Several service attributes obtain world - class levels of satisfaction Key Findings : Customer Satisfaction ( cont . ) • Price satisfaction across all four utility services lags behind most other attributes , often the case Apparent resistance to tiered water rates among residential customers • Customer satisfaction related to price clearly trending downward Key Findings ,, Importance / Gap Analysis • Gap in " green " is counter to public trends • Largely due to customer ' s lack of knowledge , so communication is key Conservation • Nearly one - quarter of respondents indicate that the Utilities is not doing enough regarding energy and water conservation • Worth further exploration in the context of the Utilities ' stewardship mission Key Findings ,, Importance / Gap Analysis ( cont . ) Generation • Perception that percentage of renewable generation is significantly higher than the actual • Potential challenges if / when rates are increased to pay for additional renewable resources • A disproportionate share of customers think the Utilities is close to attaining or has already exceeded the current goal of 15 percent Key Findings : Importance / Gap Analysis ( cont . ) Generation Customers favor more renewable generation Despite perception that percentage is already higher than actual Indicates a strong alignment between the community values and City Council ' s renewable directive Fossil fuels are viewed unfavorably Support for renewables does not always come with acceptance of higher prices A positive impact on national / regional ( rather than local ) air quality appears to increase the likelihood of purchasing renewable energy Key Findings : Water • Customer understanding regarding high cost of water highly related to limited supply Possible overlap with the communications on the Halligan - Seamans project • General lack of awareness of the aging water infrastructure and the likely impacts Recommendations • Due to the Utilities high performance , the Utilities ' challenge is associated with the need to continue to : Monitor and anticipate customer needs Et remain proactive • Implement effective , programmatic communications • Within the context of the Utilities ' stewardship mission , address energy and water conservation efforts • Given current public " green " trends , increase efforts aimed at customer lack of knowledge regarding the Utilities environmental consciousness • Introduce internal sustainability approach as well ResearchAL ANN 35 Fort Collins Utilities Market 00 Recommendations ( continued ) Address customer lack of awareness of the aging water and sewer infrastructure and likely impacts Provide information about the contents of the current generation portfolio to make customers aware of efforts required to achieve the 15 % mandate Develop plan and detail efforts to increase renewables Conduct further research regarding perceptions and interest in purchasing renewable energy Impacts modifications to Wind Power Program Relates to acceptance of national versus local benefits Recommendations ( continued ) Validate response on local vs . regional / national air quality benefits from use of renewables • Further evaluate stormwater ratings and develop mitigation approach - Five of nine parameters that received lowest rating are related to stormwater service Monitor downward trend in satisfaction with water pricing Mnr"� Benchmarking Study Customer Service Et Communications Purpose Fort Collins Utilities sought to benchmark best practices in marketing and customer service to position for continued excellence . Alignment Creates a Solid Foundation Understand Benchmark Customer to Peer Perception Utilities Foundation for Optimal Performance Define Strategic Direction 39 Fort Collins Utilities Market Research00 Methodology Establish practices to be researched Design survey instrument • Identify electric , water , wastewater participants • Sought leading multi - service utilities with high customer satisfaction ratings ( J . D . Power and / or industry knowledge ) • Austin Energy , TX Austin Water Utility , TX City of College Station , TX • Colorado Springs , CO • Denver Water , CO • Gainesville Regional Utilities , FL • Eugene Water 8t Electric Board , OR • Snohomish Public Utility District , WA • City of Tallahassee , FL 40 Fort Collins Utilities Market Research Methodology ( continued ) Identify stormwater participants • City of Austin , TX • City of College Station , TX • Denver Wastewater Management , CO • City of Eugene , OR • City of Tallahassee , FL • Contact participants — April /July 2007 Create interest ; build on high interest levels Findings ( raw data ) to incentivize participation • FC Utilities participating in Credit & Collections benchmark • Analyze data /draft report Research41 Fort Collins Utilities Market August . , Participant Profiles Electric Annual Retail Water Annual Retail Sales Wastewater Stormwater Paticipant Customers Sales ( MWh ) Customers ( Millions of Gallons ) Customers Customers Austin Energy 431 , 995 11 , 296 , 879 n/a n /a n/a n/a City of Austin n/a n/a 1975511 49 , 000 184 , 022 3251300 City of College Station 321746 723 , 600 205233 3 , 660 26 , 774 261774 City & County of Denver n/a n/a n/a n/a n/a 1531304 Colorado Springs Utilities 2051827 4 , 2951000 1305209 261975 133 , 292 n/a Denver Water n/a n/a 2301594 46 , 000 n/a n/a Eugene Water and Electric Board 841138 2 , 6631173 497179 91385 561515 53 , 290 Gainesville Regional Utilities 831586 178821800 661479 81712 597207 n/a Fort Collins Utilities 621856 1 , 4091072 331306 8 , 616 337033 391939 Snohomish Public Utilities District 3283236 7 , 9503609 183500 11430 n/a n/a City of Tallahasee 1 1003231 2 , 3413180 753301 81960 64 , 206 88 , 333 Source : Customer Service and Market Research Benchmarking Study Research42 Fort Collins Utilities Market 00 Overview Fort Collins Utilities is among the smallest participants yet : - Implements a robust program and set of offerings related to its customer facing functions Several areas in which Fort Collins meets or beats the average performance of peer utilities • A few notable exceptions or gaps Indicate areas for change and / or further evaluation Use as input to program development or refinement Electric / Water / Wastewater Utility Practices Organizational Structure Fort Collins Utilities is a department within the City Responses indicate a 50 / 50 split Utility as part of the City Utility as more autonomous from the City May share a governance structure The stormwater function is not located under the Utility department for other participants Commonly found in the Public Works department Staffing Fort Collins Utilities ' ratios of customers per representative deviate from the benchmarked data showing a higher level of productivity : • Customers per FTE Customer Service Representative ( including the call center representatives ) • Customers per FTE Billing Representative • Customers per FTE Stormwater Employee FC Utilities ' result is within the average group range in : • Meters per FTE Meter Reader FC Utilities ' result is below the group average in : • Customers per FTE Credit Et Collection Representative Further analysis is required to determine if service levels are appropriate ; correlate with market research findings . 46 Fort Collins Utilities Market ResearchAugust Customers per Customer Service Representative ✓ Fort Collins Utilities exhibits slightly Customers per Customer Service Representative higher than average productivity in its (Including Call Center Representatives) call center operations as compared to peer utilities with combined services . 25,000 The average for the group is approximately 5 , 800 customers per FTE customer service and call center 20 ,00o representative . Utility G and J were excluded from the average due to the reasons presented below . Fort Collins Utilities is above the group ' s average at 15 ,000 8 , 600 customers per representative , which indicates E high productivity in working with customers . 0 in U 101000 Note that Participants G and J are water only utilities . Utility Ts customer service and call center representatives show the highest productivity in 57000 working with customers . It should be noted that the call center for this Utility handles those customers with specific issues and problems related to the 0 o utility' s services , so it is considered an "elevated call A B c D E F G H I J Average center. " utility 47 Fort Collins - 11 Customers per Billing Representative Customers per Billing Representative ✓ Fort Collins Utilities ' billing representatives exhibit high 353000 productivity . 30,000 / The average for the group is approximately 21 , 000 customers per FTE billing 25,000 / representative . Fort Collins Utilities is above the group ' s average at approximately 32 , 000 12 customers per representative , which indicates 20,000 / high productivity in regard to billing . 0 U 153000 / The billing representatives for Utility C demonstrate the highest productivity based 101000 / on the number of customers reported and the number of FTE employees that develop billing 55000 / activities . 0 0 A B C D E F G H I J Average Utility 48 Fort Collins - 11 Customers per Credit Et Collections Representative ✓ Fort Collins Utilities productivity for Customers per Credit & Collections Representative credit & collections is below the 250 ,000 average . The average for the group is 26 , 000 2003000 / customers per FTE credit and collections representative , excluding Utility G since other employees assist with this function . Fort Collins Utilities is below the group ' s average y 150 ,000 at 18 , 000 customers per representative . O The credit and collections representatives for U 100 ,000 / Utility G demonstrate the highest productivity based on the number of customers reported and the number of FTE employees that 50,000 develop credit and collection activities . Credit and collections employees at Utility G may be supported by customer service and call 0 0 0 o center employees . A B c D E F G H I J Average utility 49 1 FortCollins - 2007 Meters per Meter Reader Meters per Meter Reader 25 ,000 ✓ Fort Collins Utilities performs at approximately mately the study average for meter reading efficiency . The average for the group is approximately ur 15,000 7 , 400 meter per meter reader , excluding `m o Utility G since it is a water utility only . Fort Collins Utilities is slightly above the group ' s 10 ,000 average at 7 , 800 meters per FTE meter reader . 5,000 0 0 0 A B c D E F G H I J Average utility min= 50 1 FortCollins - 2007 Customer Service Costs High - level overview of cost efficiency by comparing customer service costs per customer Results indicate higher efficiency for Fort Collins Utilities ■ Costs generally are at or below the averages reported • Ratios show that overall Fort Collins Utilities ' Customer Service division / department is cost efficient in : • Customer Service Department Non - Labor Costs / Customer • Customer Service Function ( Labor and Non - Labor ) Costs / Customer • Fort Collins Utilities ' results are at the group average in : • Customer Service Division / Department Labor Costs per Customer Comparison of Direct Customer Service Function Costs Per Customer ✓ Fort Collins Utilities operates at an overall customer service cost ratio per customer well below the survey average . Customer Service Costs Per Customer The cost per customer was identified by $ 30 considering the labor and non - labor costs for the customer service function only — direct $ 25 customer contact via phone or walk- in for general service issues — within the Customer Service division/department at the participating $ 20 utilities . The cost for this function was the only one that was shared by the majority of the $ 15 participants . Utility B presents the most cost effective $ 10 performance for servicing its customers at $ 3 . 38 . It is interesting to note that Utility B has high rankings on the J . D . Power & Associates $ 5 Electric Utilities Customer Satisfaction research . o 0 $o The labor and non - labor costs for customer A B c D E F G H I J Average service for Fort Collins Utilities is $4 . 38 which utility well below the average of the group at $ 13 . 87 . Research00 Products Et Services Many of the study participants offer an array of additional services - Internet based services essential Access to account information Electronic account access Et bill payment On - line energy usage / bench marking tool On - line service requests Others included in detailed input Im 0 M Market Research • Fort Collins Utilities reflects the survey norms with two exceptions • Regular transactional surveys Internet - based research Key Accounts • Like FC Utilities , the majority of the participants have a Key Accounts Program - Additional service and communications concepts highlighted • Some of the participants also have a program for mid - size customers , worth considering Customer Service Training ■ Formal and on - the - job customer service training is provided by majority of participants Opportunities to improve the breadth of customer service training , particularly for meter readers ■ Although valuable , fewer utilities provide cross - training programs Career development and knowledge management ■ Customer service and marketing cited Performance Metrics Fort Collins Utilities maintains and monitors performance metrics • Except in the area of customer complaints • Standard practice among the majority of survey participants Other participant responses indicate measurement to the objectives of a Strategic Et Business Plan Common practice for high performing organizations Worth consideration Recognition Programs Fort Collins Utilities does not report a recognition program Such a program would reinforce desired behavior and align well with the Utilities ' values Example : City Manager' s Corporate Reward Et Recognition Program • On - the - Spot Awards • Corporate Awards • Employees' Choice Awards Information Technology • Participants use a variety of Customer Information Systems ( CIS ) to manage customer accounts Some use more advanced IT applications : • Integrated Voice Response Systems ( IVRs ) that allow customers to pay their bills , report issues and access other information • Outbound dialing to inform customers of outages • Post outage information on the utility website • Automated outage reporting based on the customer ' s home telephone number Customer Communications ■ Continue communications program ■ Additional concepts for consideration ■ Programmatic communications ■ Introduce Internet - based methodologies ■ Consider adding television to the media mix , particularly for Public Service Announcements ■ Consider adding Events / Outreach programs such as Speaker ' s Bureau , Employee Volunteerism Corporate Culture There appears to be a gap related to the Utilities ' corporate culture Address through Strategic Plan development Many provided Mission / Vision statement - or something - in response Only two N / A responses including Fort Collins Utilities Stormwater Utility Practices Stormwater Fees Fees Various structures reported by participants • Fort Collins residential fees are higher than peer group • Annual Revenues Range from $ 1 . 2 million to $ 52 million Reported annual revenues for FC Utilities are $ 13 million Organizational Structure / Staffing Stormwater utility integrated with the Electric &t Water Utility is unique among survey participants Typically located under the city ' s Public Works Department • Staffing data shows that Fort Collins Utilities performs at the survey average in terms of efficiency ( customers per FTE ) Stormwater Customers per Employee ✓ Fort Collins Utilities operates at approximately the survey average in Customers per Stormwater Employee terms of staffing efficiency level . 3,500 The average for the group is approximately 39000 1 , 300 customers per stormwater employee . If Utility 3 as the out layer is removed from 25500 � the group , the average drops to approximately 900 customers . At this level , 25000 ! Fort Collins Utilities is close to the group ' s o average at 998 customers per stormwater V) 11600 employee . 13000 Utility 3 shows the highest productivity for IL stormwater utility employees per customer. soo The stormwater employees at Utility 3 are supported by employees from other areas O 1 2 3 4 5 6 Average within the city' s Public Works Division . utility Research65 1 Fort Collins Utilities Market August 2007 Stormwater Performance Measures Measures related to State and Federal requirements • Follow up question planned related to participants ' use of and ranking on Community Rating System ( CRS ) as key metric or Recommendations �t Final Thoughts Recommendations • Introduce Internet capabilities in customer functions - both residential and commercial segments • Online payment ; access to account information ; energy analysis Include Internet based market research Evaluate communications program • Consider programmatic element • Evaluate areas of deviation from norms ( under - or out - perform ) to look for efficiency and / or service improvements • Credit Et Collections Coordinate with Market Research findings MA— . : Fort Collins Utilities Market ResearchAugust Recommendations continued • Evaluate offering a key accounts program for mid - sized customers • Consider additional communication methods such as an electronic newsletter and educational seminars • Continue providing customer service training for its employees , including meter reading • Add cross - training opportunities • Develop a recognition program to reward employees / teams / department for outstanding performance Recommendations ( continued ) Introduce quantifiable Performance Metrics Develop , implement and track customer satisfaction targets Develop action plans to achieve the defined targets Identify the values and behaviors that drive corporate culture , best in context of enterprise - wide Strategic Plan Research01 70 1 Fort Collins Utilities Market 00 Final Thoughts / Bench marki ng Fort Collins Utilities has positioned itself in a " stretch " group of peer organizations Clear themes emerged that dovetail with market research Forms a foundation for further development of strategic direction Use as basis for Tactical Action Plan or as part of broader Strategic Planning effort Reciprocal opportunities will become available Benchmarking &t Best Practices efforts are hallmarks of industry leaders Questions &t Discussion Thank you !