R2021-212 2021-09-27 RESOLUTION NO. R2021-212
A Resolution of the City Council of the City of Pearland, Texas, accepting the
City of Pearland Utility Billing Process Report and System Review prepared by
Raftelis and the Utility Billing Ad hoc Committee Final Report.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain City of Pearland Utility Billing Process and System Review
Report, a copy of which is attached hereto as Exhibit"A"and made a part hereof for all purposes, is
hereby authorized and approved.
Section 2. That certain City of Pearland Utility Billing Ad hoc Committee Final Report, a
copy of which is attached hereto as Exhibit"B" and made a part hereof for all purposes, is hereby
authorized and approved.
PASSED, APPROVED and ADOPTED this the 27th day of September, A.D., 2021.
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DARRIN M. COKER
CITY ATTORNEY
City of Pearland
Utility Billing Process and System Review
Report / December 2020
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RAFTELIS
December 16, 2020
Mr. John McCarter
Interim Director of Finance
City of Pearland
3519 Liberty Drive
Pearland,TX 77581
Dear Mr.McCarter:
Raftelis Financial Consultants, Inc. (Raftelis)is excited to provide this Utility Billing Process and System
Review report to the City of Pearland. The major objectives of the review include the following:
• Assess the organization and structure of Pearland's utility billing and meter services groups
("meter-to-cash" operations) to determine where enhancements could be made to improve
performance, streamline operations, or improve customer service
• Review meter-to-cash processes for performance gaps and inefficiencies; identify recommended
changes to address these areas
• Compare Pearland's meter-to-cash operations with national industry data and peers, noting any
significant differences
• Analyze a subset of billing data to confirm the accuracy of bills in the sample
The document summarizes key findings and recommendations. It also highlights key themes that shape
the organization and meter-to-cash operations. While most water utilities provide similar services, local
and regional differences necessitate different structures and alignments to service their customer bases.This
means that there is no one right way to run meter-to-cash operations at a utility,rather only collections of
best practices and comparative metrics that must be interpreted for each organization.
It has been a pleasure working with you, and we thank you and the team at the City of Pearland for the
opportunity to assist with this important project.
Sincerely,
Michelle Ferguson S th Garrison
Senior Manager-Organizational Assessment Project Manager
26 E.Hollister Street,Cincinnati,OH 45219
www.raftelis.com www.thenovakconsuitinggroup.com
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Table of Contents
EXECUTIVE SUMMARY 1
INTRODUCTION 5
Purpose of the Utility Billing Process and System Review 5
Review Methodology 7
About Meter Services and Utility Customer Services 10
Organizational Structure 10
Staffing 12
Budget 12
ANALYSIS AND RECOMMENDATIONS 15
Management and Cultural Practices 15
Process Improvements 26
Structure and Staffing 40
Technology 49
CONCLUSION 53
APPENDIX A: CURRENT PROCESS MAPS 55
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City of Pearland Page 1
Utility Billing Process and System Review
Executive Summary
Over the last five-plus years,utility billing and associated meter services(collectively referred to as "meter-
to-cash" activities)at the City of Pearland have been in a state of perpetual transition. In conjunction with
adding several new staff to deal with rapid account growth,all meter-to-cash managers and supervisors are
new hires or started their current position within the last eight months, including the Water Billing and
Collections Manager,Assistant Water Billing and Collections Manager,Customer Service Supervisor,and
Interim Finance Director.The City also realigned oversight of Finance-related functions and staff to report
directly to the City Manager.Additionally,the City implemented a new billing system(New World')and
is in the midst of replacing all customer water meters with solid-state meters as part of a multi-year
conversion to Advanced Meter Infrastructure(AMI).Solid-state meters employ state-of-the-art technology
designed to provide highly accurate readings on demand to the City and its customers.
Each of these changes is individually significant, and the relatively rapid pace of change has led to well-
publicized challenges. Perhaps the most significant of these challenges includes a 2018 decision to adopt a
meter reading schedule that differed from the billing schedule, producing a growing backlog of unbilled
consumption. The ongoing ramifications of this decision have caused members of the public to voice
concern and express confusion about the City's billing practices.
In early 2020, the City Council hired a firm, Olson&Olson, LLP, to conduct a third-party investigation
to identify why changes to billing and reading dates were made,leading to the growing backlog of unbilled
consumption. The City later authorized the implementation of the "32/30 Plan" to resynchronize meter
reads and bills. An outside consultant, who shortly afterward accepted the position of Water Billing and
Collections Manager,was hired to help implement the 32/30 Plan and manage the utility billing operations
after the departure of the previous two managers within a series of weeks. Several months later, the City
hired Raftelis, a leader in utility and local government financial and management consulting, to perform
an independent Utility Billing Process and System Review to evaluate meter-to-cash processes and
operations.
Under the direction of the new Water Billing and Collections Manager and several of her new managers,
the City has taken several good-faith steps to create effective, accurate, and streamlined meter-to-cash
functions. While the actions have laid a foundation for improvement, they are just the beginning of an
ongoing process. This report provides recommendations for additional steps and provides a framework to
establish a continuous improvement cycle with meter-to-cash activities.The common thread between these
recommendations is that significant culture change needs to continue across the meter-to-cash operations
to manage the complexity of processes and provide customers a high level of service.
While there has been significant focus on past individual decisions and their ramifications, such as the
decision that created the lag between meter reading and billing, broader cultural and process challenges
also contribute. Attending to these challenges will require sustained focus and attention over time. It will
also require patience. There are no simple solutions that can immediately transform utility billing
operations. Rather, diligent management oversight,continued focus on cultivating a culture of continuous
improvement, and patience are required to fully transform the meter-to-cash function and restore
relationships with the community. This is an ongoing process that will occur over the next several years,
particularly as AMI and other investments come to fruition.
City staff recognize the need to foster a culture of continuous improvement in the organization,particularly
by increasing awareness about how meter-to-cash staff rely on each other, empowering staff to exercise
independent judgment,and formalizing processes and service expectations.Achieving a sustained positive
transformation will require continued attention and enhancements regarding performance measurement,
training,and accountability.It will be difficult to make significant progress unless meter-to-cash staff move
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Utility Billing Process and System Review
away from a mindset of doing things "because they are told to" and toward a mindset of participatory
decision-making.
Raftelis engaged in a detailed review of meter-to-cash processes for this assessment and found no systemic
billing errors based on an analysis of consumption and billing data. However,several processes are ripe for
improvement. For example, the City may wish to adjust the 32/30 Plan to avoid future required
readjustments and additional customer confusion, while specific processes directly affected by the AMI
implementation should be adjusted to better support operations. Alternatives to the 32/30 Plan include
disregarding unbilled consumption and only billing the current period consumption; calculating the total
outstanding unbilled consumption and charging for this usage over time; and billing the full "catch up"
amounts.It is important to emphasize that the unbilled consumption is an actuarial loss for the City—that
is,it does not represent a reduction of funds already collected but rather a reduction in anticipated revenue.
The benefits and tradeoffs of each option are explained in detail in this report.
Other processes associated with customer service require additional refinement. While Customer Service
Representatives (CSRs) generally apply the same approaches, the small differences between how they
handle inaccurate meter inquiries, for example, erodes trust for some customers. To improve consistency,
the City would benefit from reviewing and updating standard operating procedures (SOPs) to include
written customer service scripts and process flow diagrams. CSRs also do not have ready access to
consumption information and must ask Meter Services staff to visit customer locations to pull meter profiles
(a history of prior meter readings). In situations where CSRs must follow up with a customer, such as to
report meter profile results, CSRs often write themselves individual reminder notes, and there is little
automation setting deadlines for follow-up or reminding staff that follow-ups are due.
AMI implementation will create lasting and significant operational changes for meter-to-cash staff. Daily
drive-by meter reads will be eliminated,and all meter-to-cash staff will gain the capabilities to rapidly locate
information, conduct meter profiles, and diagnose meter errors. They will know nearly instantaneously,
but certainly within a matter of hours or days, when meter issues and errors occur. Adjustments to the
current division of labor and responsibilities among meter-to-cash staff are warranted to maximize the use
of positions and improve customer service.Raftelis recommends a new approach in the meter services area
where technicians are proactively initiating work orders to repair metering issues that they are alerted to in
the new AMI meter management dashboard(s).Work orders to investigate and correct meter issues should
be issued and corrected before read data enters the billing system. This will dramatically reduce the need
for re-reads and follow up work orders generated by Utility Billing that delay billing and cause additional
work for staff. In short, AMI represents a completely different paradigm that will enable the City and its
customers to move beyond the present meter-to-cash process.
Technology and project management related to AMI requires additional focus and staff support in the near
term to help ensure the system is implemented and rolled out effectively. AMI is a complex undertaking
that will require significant coordination among many City staff and functions, including but not limited
to Water Billing and Collections, Meter Services, Communications, and Information Technology.
Developing a robust management and communication structure to support this work is essential to
providing effective service in the future.
Below is a summary of the recommendations related to management and cultural practices, staffing and
structure, process improvements, and technology. The recommendations in each section are designed to
build upon prior successes and continue enhancing the reliability,accuracy,transparency,and effectiveness
of the meter-to-cash process.
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Utility Billing Process and System Review
Table 1: List of Report Recommendations
Number Recommendation
Management and Cultural Practices
1 Foster a culture of engagement and continuous improvement.
2 Establish formal performance measures to track service delivery.
3 Review and update written standard operating procedures(SOPs)regularly.
4 Develop an enhanced training program.
5 Improve external communications plans for meter-to-cash activities.
Process Improvements
6 Consider alternative options to the 32/30 Plan.
7 Synchronize meter reading and billing cycles.
8 Implement a streamlined meter-to-cash process.
9 Reorder billing cycles.
10 Enhance delinquent account notifications.
11 Create designated morning and afternoon call-takers to streamline CSR workload.
Structure and Staffing
12 Transition to a centralized staffing structure over time.
13 Adjust staffing to reflect short-term needs and prepare for AMI implementation.
14 Pilot a 4-10 schedule for meter-to-cash staff.
Technology
15 Create an inclusive AMI Implementation Team.
16 Continue engaging Tylerh scn Tenoiogies to�cresoiliieeneuiic���
lencies and errors in New World.
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Utility Billing Process and System Review
Introduction
Purpose of the Utility Billing Process and System Review
The City of Pearland is a rapidly growing community with approximately 122,460 residents,'a population
increase of 34% compared to the 2010 Decennial Census. The City provides an array of services to
residents,including water and wastewater(sewer)utility services.Like many other communities across the
country that provide utility services,the City supports utility operations by regularly billing customers for
services based on the quantity of water consumed. The process for metering service, translating meter
readings into bills,collecting revenue, and interacting with customers regarding billing is referred to as the
meter-to-cash cycle in the utility industry.
C ustamK
Reconciliation to cJ
Generic Lodger 0
Meter Reads
SS
GS �i
o Meter-to-Cash
Cycle
4'J
Customer —4 $ t^'
Payments
Systems
Practice`, Integration
Custom,,Utility id]
Requ.sts
Utility Billing
Figure 1: The Utility Meter to Cash Cycle
The City's meter-to-cash operations have faced well-publicized challenges in recent years, including a
reportedly excessive number of broken meters (includes meters that fail to transmit readings), allegedly
inaccurate meter readings, turnover in senior positions, and delays between meter reading and billing.
Residents and utility customers have voiced concerns about these issues during City Council meetings as
well as directly to elected officials and senior City staff. The City Council, concerned about the situation,
has taken a significant interest in meter-to-cash activities and has directed staff to provide regular and
detailed reports regarding utility billing developments and emerging issues. Staff have complied with this
request.
'2019 Population Estimates Program.United States Census Bureau.
hops://www.census.gov/data/tables/rime-series/demo/popest/2010s-total-cities-and-towns.html
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Utility Billing Process and System Review
A decision to set the utility billing cycle at 28 days in 2018 has garnered the most attention. It culminated
in a significant gap between meter readings and billings,which compounded over time.This growing divide
created a range of problems.In a typical utility billing operation,the frequency with which meters are read
generally aligns with the frequency with which bills are generated and sent to customers. This means that
a billing cycle of 28-32 days will reflect a corresponding 28-32 days of consumption, understanding that
reading and billing periods normally fluctuate from month-to-month based on the number of days in the
month and when weekends and holidays fall on the calendar. When the City adopted a 28-day meter
reading cycle but retained a monthly billing cycle, utility bills fell out of sync with actual consumption.
Because consumption was tracked via meter reads at shorter intervals while the billing period remained
constant,an increasing lag began to develop between the amount of water customers were using and when
they received bills related to that consumption. The following figure illustrates this pattern: the number of
days between consumption(Meter Reads)and the billing for that consumption(Billing Period)is captured
in the Billing Lag(Days)row.
Month January February March April
Day 1 2 ... 28 29 30 31 1 2 ... 25 26 27 28 1 2 ... 25 26 27 28 29 30 31 1 2 ... 22
Meter Reads(every 28 days) 1 2 3 4
Billing Period (every 30 days) 1 2 3
Billing Lag(Days) 1 2 1 2 3 4 1 2 3 4 5 6
Figure 2: Example Illustration of Billing Lag
In 2019, the City started receiving customer complaints about billings for water consumption lagging
readings, resulting in an accrual of unbilled consumption. Currently, consumption billings lag meter
readings by approximately two months, and the City has faced ongoing communications challenges
between and among residents,elected officials,and staff about this situation.The complexity of the meter-
to-cash cycle exacerbates these communication challenges.
To better understand and address the complex challenges impacting the meter-to-cash process, the City
adopted a multi-faceted approach,including the following:
• Engaging Olson&Olson,LLP to investigate how the billing cycle gap occurred
• Hiring an independent consultant with significant utility billing experience, Nancy Massey, who
later accepted the position as Water Billing and Collections Manager
• Developing and adopting the 32/30 plan designed to recover unbilled consumption from
customers gradually; it includes a "True-Up Plan" option enabling customers to pay for unbilled
consumption with a single lump-sum payment
• Implementing proactive communications, including creating a website and animated video
describing the billing gap and the 32/30 Plan, publishing an online performance dashboard
capturing key meter-to-cash indicators, providing regular quarterly updates at City Council
meetings, and strengthening internal communications between the City Council and staff
• Engaging Raftelis, a nationally known utility and local government consulting firm, through a
competitive process to assess the organization of meter-to-cash operations and to determine where
enhancements could be made to improve performance, streamline operations, or improve
customer service
Meter-to-cash operations are a high-profile service that requires accurate and consistent practices and
communications with customers. They are also highly complex, requiring many subprocesses and several
pieces of integrated technology to function precisely. The goal of this study is to help the City ensure that
its meter-to-cash operations are organized for success and are appropriate to meet current and anticipated
needs. This study is timely due to several recent changes in City leadership positions, staff involved in the
meter-to-cash process, information systems, meter upgrades, and the ongoing installation of a new
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Utility Billing Process and System Review
Advanced Meter Infrastructure remote meter reading network. This is a significant amount of change, and
managing these changes effectively is essential to streamline meter-to-cash operations.
Review Methodology
To conduct this study, Raftelis utilized several methods designed to gather insights and information
regarding meter-to-cash operations, strengths, and opportunity areas for improvement, including
individual and group interviews with key staff and stakeholders,independent billing data analysis(separate
from the utility billing software), and process mapping.
On September 29, 2020, Raftelis held a kick-off meeting with the Deputy City Manager, Interim Finance
Director, Utility Billing Manager, and several people involved with meter-to-cash activities to review
expectations, goals, and activities associated with the Utility Billing Process and System Review.
Following the kick-off meeting, Raftelis conducted virtual interviews with 39 additional stakeholders in the
meter-to-cash process, listed in the table below.
Table 2: List of Stakeholders Interviewed
Name Title
Kevin Cole Mayor
Adrian Hernandez Councilmember
Luke Orlando Councilmember
Tony Carbone Councilmember
Trent Perez Councilmember
Clay Pearson City Manager
Trent Epperson Deputy City Manager
Jon Branson Former Deputy City Manager
Joshua Lee Director of Communications
Robert Upton Director of Engineering
Clarence Wittwer Director of Public Works
John McCarter Interim Finance Director
Eric Hammond Assistant Director of Public Works
Paul Yeates Cyber& Risk Intelligence Specialist
John Hines Distribution&Collections Superintendent
Joe Rivera Meter Services Supervisor
Dante Prescod Right-of-Way Superintendent
Nancy Massey Water Billing &Collections Manager
Dara Eng Water Billing&Collections Assistant Manager
Jennifer Quiroga Billing Supervisor
Alyssa Mayo Billing Specialist
Karla Hipolito Billing Specialist
Ruben Ruiz Billing Specialist
Lori Flores Customer Service Superintendent
Carl Byrd Customer Service Representative I
Elliot Garza Customer Service Representative I
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Name Title
Marcella Sanchez Customer Service Representative I
Melanie Bevans Customer Service Representative I
Rita Moore Customer Service Representative I
Trisha Hollis Customer Service Representative I
Cheryl Dayhoff Customer Service Representative II
Latisha Garcia Customer Service Representative II
Renata Dorsey Customer Service Representative II
Wendy Henry Utility Field Services Technician Lead
Durell Sparrow Utility Field Services Technician
Gabriel Bonilla Utility Field Services Technician
Jerome Curry Utility Field Services Technician
Steven Ramos Utility Field Services Technician
Jimmy Davis Pearland Resident
In addition to interviews, Raftelis requested and received background information and data regarding
various organizational structure,staffing,and operational elements.This documentation included but was
not limited to the following:
• Organizational charts
• Staff summaries and relevant personnel information
• Performance and benchmarking data
• Financial data
• Meter and billing data
• Process and Standard Operating Procedure(SOP)information
• Background memoranda and prior reports regarding utility billing and the meter-to-cash process
• Granular data and summary reports regarding meter reads,bills,and customer service calls
Raftelis compared quantitative and qualitative organizational and staffing information to benchmarking
data from other organizations, including the Texas cities of Frisco, Cedar Park, League City,McKinney,
Plano,and Sugar Land.Benchmarking and best practices information from industry-leading organizations
such as the American Water Works Association(AWWA)was utilized, including the "Ten Attributes of
Effectively Managed Water Sector Utilities" as presented in the Effective Utility Management (EUM)
framework.2 The EUM framework is a set of organizational, operational, and management guidelines for
water and wastewater utilities universally endorsed by major industry associations.
2 AMWA, APWA, AWWA, NACWA, NAWC, WEF and the US Environmental Protection Agency, June
2008
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Stakeholder
Understanding
and Quality
Support
Water
Resource 411,000 Customer
Adequacy Satisfaction
Effective Employee
Community Utility and
Sustamabdity leadership •
Management Development
Operational Operational
Resiliency Optimization
Infrastructure Financial
Stability Viability
Figure 3: EUM's Ten Attributes of Effectively Managed Water Sector Utilities
Raftelis relies heavily on subjective observations and experience gained from working with well over 1,000
water and wastewater utilities and 32 of the 50 largest utilities in the U.S. to form opinions and identify
areas for consideration. The Raftelis assessment team includes individuals with diverse backgrounds in
local government and utility management, engineering, operations, strategic planning, performance
improvement, and finance.Key members of Raftelis involved in this assessment included the following:
• Michelle Ferguson, Senior Manager and Project Director,has over 20 years of experience in local
government management and consulting in a variety of roles. She leads Raftelis' Organizational
Assessment Practice. Ms. Ferguson has a background in public administration and has worked
with utilities and local governments across the U.S. on a range of operations, strategic planning,
and management consulting assignments.
• Seth Garrison, Senior Manager and Project Manager, has performed utility management,
operations, and business process reviews all over the world for utilities in every size range from
those serving less than 1,500 customers to those serving over one million customers. He has a
background in utility management, performance assessment, and asset management and is a
former utility manager, regulator, and current board member of a large regional water and
wastewater utility similar in size to Pearland's utility. Mr. Garrison is a certified Lean Six Sigma
Black Belt with extensive experience performing process mapping and improvement activities to
enhance the efficiency and effectiveness of utility organizations.
• Joshua Rauch, Manager, has a multidisciplinary background in public administration, public
policy, and performance improvement in local government. He has conducted organizational
reviews, financial assessments, and business process reviews for dozens of utilities and public
government operations.
This project team has over 50 years of combined experience in local government and utility management,
and was assisted by a diverse team of experts from Raftelis that boasts more than 140 consultants
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Utility Billing Process and System Review
specializing in public sector management,fmances,human resources(HR),communications, information
technology(IT)and operations.
About Meter Services and Utility Customer Services
Organizational Structure
Two distinct groups work together to perform utility billing and meter-to-cash functions in Pearland. The
Meter Services Division in the Public Works Department performs drive-by(Automated Meter Reading
or AMR) and manual meter reading. These staff also complete work orders and tasks related to meter
installation, replacement, and maintenance; locating and inspections; turn-on and shut-off activities; re-
reads; and removing and exchanging meters for testing. Meter Services comprises seven (7) full-time
equivalent(FTE)employees, as illustrated in the following figure.
Meter Serv.&
Waterline Maint.
Supervisor
1.0 FTE
Utility Field
Services Tech
Lead
1.0 FTE
Utility Field
Services
Technician
5.0 FTE
Figure 4: Meter Reading Organizational Structure, FY2021
The Meter Services and Waterline Maintenance Supervisor is responsible for the overall activities of the
group and allocation of resources.The position oversees work assignments and schedules for meter services
technicians,including the Utility Field Services Technician Lead.The Supervisor prepares and loads meter
read data from the City's Badger®and Neptune®meters, helps facilitate work order requests from Utility
Billing, and manages the City's relationship with third-party meter testing providers.This position plays a
key coordinating role in the rollout and implementation of AMI in conjunction with several City
Engineering, Information Technology, and Utility Billing staff. •
The Utility Field Services Technician Lead assists the Supervisor with delegating workload assignments
among technicians, managing meter read data and work order requests, recording daily activities
performed by staff, and providing Utility Billing with daily reports regarding meter usage. The Lead also
serves as a working technician and assists with meter inspections, reads, rechecks, testing, and
replacements. This is especially important when there are vacancies or technicians are absent for any
number of reasons.
Utility Field Services Technicians perform meter reading and complete work orders as directed by the
Supervisor and Lead. Technicians rotate between two shifts:the first shift performs regular meter reading,
inspections, replacements,and associated tasks from 6:30 AM to 4:30 PM, while the second shift focuses
on customer service requests,such as turn-ons,shut-offs,and daily work orders,from 7:30 AM to 5:30 PM.
Typically, only one technician is assigned to the second shift on a rotating basis to provide consistent and
equitable coverage.
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Utility Billing Process and System Review
Data collected through the meter reading process is forwarded to the Utility Customer Services Division
in the Finance Department, typically via email, for processing and collection activities. Utility Billing
Customer Services consists of approximately 20.5 FTEs dedicated to tracking water consumption, utility
billing, answering customer service requests and inquiries, and managing customer information and
account databases, as illustrated in the following figure.
Water Billing& Senior Office
Collections Assistant
Manager 1.0 FTE
1.0FTE
Assistant Water
Billing&
Collections
Manager
1.0 FTE
f I
Billing Supervisor Customer Service
1.0 FTE Supervisor
1.0FTE
Billing Specialist Customer Service
4.0 FTE - Representative II
2.0FTE
Customer Service
— Representative I
8.5 FTE
Figure 5: Utility Customer Services Organizational Structure, FY2021
The Water Billing and Collections Manager is responsible for daily management of the division and directly
oversees the Senior Office Assistant and Assistant Water Billing and Collections Manager. Other core
responsibilities assigned to the Water Billing and Collections Manager include annual budget preparation
for the division, customer service de-escalation and conflict resolution, general oversight of the utility
billing process, and ensuring effective staff performance and professional development. The Senior Office
Assistant provides frontline clerical support for the Manager by greeting walk-in customers, maintaining
appropriate records and files,assisting with correspondence and communication,and providing additional
staff support for customer payments and inquiries as necessary.
The Assistant Water Billing and Collections Manager supervises the billing process and customer service
functions, including the Billing Supervisor and Customer Service Supervisor. The Assistant Manager
develops policies and standard operating procedures (SOPs) for billing and customer service functions,
ensures processes are carried out efficiently and effectively,ensures payments are processed accurately,and
engages in more complex customer service resolution functions.
The Billing Supervisor and Billing Specialists carry out regular billing functions, including data entry,
import/export, analysis, and auditing related to consumption. These staff are responsible for setting up
payment plans and dealing with delinquent accounts,compiling queries and reports to validate billing data,
approving bills for issuance,and processing payments.
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The Customer Service Supervisor and Customer Service Representatives (CSRs) serve as the division's
frontline staff for responding to customer inquiries. CSRs assist customers in person at the City Hall Annex
and Public Safety Building, as well as over the phone and via email. Common customer service requests
and issues assigned to CSRs include new account registrations and service terminations, establishing
payment plans for delinquent accounts, reviewing consumption patterns, and performing meter audits to
identify aberrations in consumption patterns. CSRs also perform some other functions, such as validating
and distributing garage sale signs to residents.
Staffing
Overall authorized staffing levels in the meter-to-cash function have increased by 7.5 FTEs since FY2017.
This growth aligns with overall population, development, and utility billing account increases in the
community.
Table 3: Meter-to-Cash Authorized Staffing, FY2017 through FY2021
Authorized Positions FY2017 FY2018 FY2019 FY2020 FY2021 Percent Change
FY2017 -FY2021
Finance -Utility Customer Services 13.0 16.0 18.0 18.5 20.5 58%
Public Works -Meter Services 7.0 7.0 7.0 7.0 7.0 0%
Total 20.0 23.0 25.0 25.5 27.5 38%
Budget
Meter-to-cash functions are supported by the City's Water and Sewer Fund,an enterprise fund designed to
recover the cost of operations and services through fees and charges. The Water and Sewer Fund receives
revenues from a variety of sources,but the bulk of revenue comes from water and sewer charges,which are
based on meter consumption. The FY2021 Budget includes a 16% increase in water sale revenues
compared to FY2017 Actuals,while sewer revenues are projected to increase 11%over the same timeframe.
The table below illustrates revenue trends according to the City's budget documents.
Table 4: Meter-to-Cash Revenues —All Funds, FY2017 through FY2021
Revenues FY2017 FY2018 FY2019 FY2020 FY2021 Percent Change
Actual Actual Actual Amended Bud•et FY2017 -FY2021
Sale of Water $22,061,002 $25,920,698 $24,180,338 $25,621,326 $25,728,066 16%
Sewer $20,256,189 $23,762,116 $23,802,264 $23,408,352 $22,414,905 11%
Revenues
$42,317,191 $49,682,814 $47,982,602 $49,029,678 $48,142,971 14%
Overall expenses among meter-to-cash functions have remained relatively consistent over the last several
years; however, the FY2021 Budget reflects a 45% increase in expenses compared to FY2017 Actuals
because of additional staff positions described above.Conversely,the FY2021 Budget reflects a 43%decline
in Meter Services expenses as AMI meter replacements near completion.
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Table 5: Meter-to-Cash Expenses —All Funds, FY2017 through FY2021
Expenses FY2017 FY2018 FY2019 FY2020 FY2021 Percent Change
Actual Actual Actual Amended Bud•et FY2017 -FY2021
Finance -Utility $1,410,743 $1,245,700 $1,827,022 $1,726,145 $2,041,057 45%
Customer Services
Public Works - $1,295,624 $938,159 $587,082 $671,191 $736,887 -43%
Meter Services
Total $2,706,367 $2,183,859 $2,414,104 $2,397,336 $2,777,944 3%
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Analysis and
Recommendations
Using information gathered during the study process, Raftelis conducted a variety of quantitative and
qualitative analyses designed to assess meter-to-cash operations and effectiveness. The recommendations
in the following sections are designed to support the City's ongoing efforts to rebuild trust with the
community and establish a utility billing operation that maximizes transparency and communication.
Broadly,these recommendations are intended to help the City continue developing a culture of continuous
improvement in meter-to-cash operations, prompt additional policy discussion and process improvement
regarding the 32/30 Plan and AMI implementation,align staffing with future AMI needs,and fully realize
technology assets at the City's disposal.
Management and Cultural Practices
Recommendation 1:Foster a culture of engagement and continuous improvement.
Past practices and management styles among meter-to-cash staff created a work environment that
encouraged employees to focus only on their specific assignments and carry out tasks without fully
considering impacts. This cultural environment has reinforced process inefficiencies, contributed to
miscommunication among staff, and reduced staffs ability to make effective decisions.
The meter-to-cash process is complex and requires all employees to be actively engaged in making sure it
operates as intended.While many of the recommendations in this report describe specific operational and
process-related challenges that the City should address, it will be difficult to make significant progress
unless meter-to-cash staff move away from a mindset of doing things"because they are told to"and toward
a mindset of participatory decision-making.Achieving consistent, accurate, and accountable performance
in meter-to-cash activities requires a culture focused on continuous improvement,particularly as the City
seeks to implement significant changes such as AMI.
New managers in the utility billing area have already begun the culture change process,but fully realizing
change will take time because the current environment developed over many years and is deeply engrained.
The process of developing an engagement and continuous improvement culture varies from organization
to organization depending on historical practices, personnel, and service level expectations. However, all
high-performingorganizations share some common traits:
• Encouraging employees to give managers/supervisors feedback
• Utilising multiple feedback channels, such as creating an anonymous feedback mechanism that
will allow employees to give feedback privately and without judgment
• Leveraging online/digital platforms to solicit employee feedback, such as anonymous surveys
• Conducting small group sessions to discuss employee experiences and perceptions
• Promoting peer-to-peer feedback
• Empowering staff to offer input on decisions and making them part of process changes
• Nurturing a continuous improvement mindset
• Providing continuous improvement and process improvement training
• Providing multiple paths for peer and manager communication across functions,including regular
staff meetings among all meter-to-cash personnel
Seeking greater engagement and equipping employees with tools to critically approach assignments will
foster stronger practices and empower staff to resolve problems without excessive direction. If successfully
practiced, a culture of continuous improvement will empower staff to think through challenges and offer
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Page 16 City of Pearland
Utility Billing Process and System Review
suggestions that leverage their understanding and direct experience to offer solutions. This will create a
better meter-to-cash process.
Raftelis acknowledges that the City has already taken several important steps to build a culture of
continuous improvement. Turnover among management staff in the meter-to-cash process and the
selection of new managers/supervisors/leads creates an opportunity to refresh and reframe cultural
practices. Additionally, staff have implemented more frequent internal meetings and provide regular
updates to customers and stakeholders regarding meter-to-cash operations. This focus on communication
and assessing performance is essential to continuous improvement and represents a good foundation for
continuing to transform culture.
Going forward, the City should continue to encourage additional interaction among staff as described
above and ensure that management staff appropriately model and support continuous improvement by
inviting and utilizing staff feedback to make decisions. If leadership tells employees that involvement is
important but fails to engage with staff or utilize feedback,employees are unlikely to trust the process,and
the Department's culture is likely to revert to a less efficient state. Managers and supervisors must be
personally accountable for feedback by inspiring employees to change and demonstrating their own
willingness to adapt.
Recommendation 2:Establish formal performance measures to track service delivery.
One of the most effective management tools an organization can implement to better understand and
enhance operations involves performance measurement. In the meter-to-cash area, effective performance
measurement provides invaluable insights regarding customer service and efficiency. While the City
currently tracks meter-to-cash data,which can be used to evaluate performance and overall service levels,
specific performance measurement indicators for the meter-to-cash function have not been formalized.
Performance indicators generally fall into one of three categories: workload, efficiency, and outcome
measures described below:
• Workload measures describe quantities or the number of times a specific task or process was
executed. The City currently maintains valuable workload-related data, including the number of
meters read per cycle, the number of customer service phone calls received each month, and the
number of work orders issued/completed.
• Efficiency measures describe how effectively organizations accomplish tasks and/or how well
resources are utilized. These measures are often tracked as ratios, such as the average number of
labor hours required to read meters, the average length of customer service calls, or the average
cost of providing services.
• Outcome measures describe how well a program or service accomplishes its intended purpose or
lives up to its strategic goals.For example,tracking the proportion of meters that trigger exceptions
or follow-up reads provides valuable insights regarding the overall effectiveness of meter
infrastructure. Other outcome measures,such as the proportion of customers satisfied with service
delivery,indicate how customers perceive the meter-to-cash program.
To help demonstrate effective and consistent service delivery, the City should identify a formal list of
workload,efficiency,and outcome measures and ensure data relevant to each measure is regularly tracked.
The American Water Works Association publishes several meter-to-cash metrics that it develops from
utility data. Based on this best practice guidance, AWWA references, a review of the City's current data-
gathering capabilities, and the ongoing AMI implementation, Raftelis has identified the following
performance measures as key performance indicators(KPIs)that should be formally tracked. In the table
below, an asterisk(*)next to the measure name denotes that the measure is tracked by AWWA in their
Utility Benchmarking Performance Management for Water and Wastewater report.
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Utility Billing Process and System Review
Table 6: Recommended KPIs for Meter-to-Cash
Measure Descri.tion
Workload
Number of accounts by Track and summarize the number of customer accounts by type (residential,
type and status* commercial, etc.) as well as whether the accounts are active or inactive. Evaluate
trends to identify growth in the overall customer base.
Track and summarize the number of water meters with size and date of installation.
Number of meters with Most accounts in the City now use Badger water meters or endpoints as a component
size,type,and date of of AMI implementation. Continuing to inventory meters by size and date of installation
installation will enable staff to examine growth trends in greater detail, as well as evaluate
maintenance needs and longevity trends among meters.
Number of customer Categorizing customer service interactions by type will enable the City to analyze how
service interactions by patterns change over time and inform more effective staff training and customer
type outreach efforts. Common types of interactions include bill payment, bill
dispute/question, water quality or service questions, and service request.
Number of work orders Meter services will transition from meter reading and meter maintenance to proactive
generated and meter surveillance and maintenance with the implementation of AMI. Tracking the
completed and backlog number,type,and backlog of work orders will help ensure that the group has the correct
resources and those resources are bein• used a..ro•riatel .
Efficiency
Percentage of bills with Under AMI, meter reading will be largely automated, and the bulk of meter data will be
exceptions and collected remotely at set intervals. By tracking the number of bills generated and the
exception type* number and type of exceptions impacting each bill, the City will better understand the
AMI and billing system's effectiveness, as well as areas of process inefficiency.
Average time to The City should track staff labor hours devoted to completing work orders. By
complete work order by monitoring the average amount of labor hours required,the City will be able to identify
type and by person trends regarding how efficiently staff can accomplish activities.
The amount of time customers spend on hold before receiving service directly impacts
Average wait time and customer service perceptions and can contribute to a prevalence of abandoned calls.
abandoned call ratio* High wait times and call abandonment rates can be caused by several factors,including
but not limited to a lack of available customer service resources. Tracking this
information is vital to ensure that service is provided within acceptable timeframes.
Average minutes per Tracking the average duration of customer calls will help the City ensure that customers
customer service call* receive timely and prompt service that addresses their needs as swiftly as possible.
Note that this number may go up as first call resolution increases.
The total cost of customer service operations for meter-to-cash functions should be
Cost of customer divided among all accounts to develop an average cost per account. This indicator
service per account* provides an important baseline for measuring cost increases and identifying key cost
drivers as the number of accounts changes.
Number of CSR FTEs An efficient organization can handle more calls per customer service representative
per customer account* than an inefficient organization.This metric helps measure the level of efficiency in that
area.
Outcome
Ratio of complaints per Understanding the prevalence of complaints is critical to ensure that services provided
Ratio accounts and per meet customer expectations. By measuring the ratio of complaints by account (and
1,0001,000 population type, if recorded) and population served and comparing trends over time, the City will
served* be able to validate perceptions of service effectiveness and identify opportunities for
additional improvement.
Resolving customer concerns on the first call is an important threshold for evaluating
First call resolution service delivery. Repeat calls and follow-up calls extend the resolution process for
rate* customers and can contribute to negative perceptions of the City and the meter-to-cash
process. Tracking first call resolution rates will provide the City with important insights
into the kinds of calls that require follow-up and the effectiveness of service delivery.
Regularly monitoring delinquency rates can provide the City with invaluable insights
regarding how broader economic activity impacts customers and projected utility billing
Delinquency Rate* revenues. Normal economic fluctuations, coupled with interruptions imposed by the
ongoing COVID-19 pandemic, can create uncertainty and unexpected budgetary
impacts for utilities across the country.
* Indicates a measure tracked by AWWA's Utility Benchmarking Performance Management for Water and
Wastewater report
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Utility Billing Process and System Review
Other useful indicators can be found in the AWWA Utility Benchmarking Performance Management for
Water and Wastewater report.3 However, tracking more measures is not usually better. It is best to
concentrate on a few of the most relevant measures and center activities around meeting them.Additional
measures can always be tracked later if needed.
To effectively track these KPIs,the City and staff involved in the meter-to-cash process must focus on two
critical tasks. First, staff should ensure that the data needed to inform each KPI is tracked by the City's
software systems. Creating workflow processes that are automated, consistent, and avoid duplicative data
entry tasks will be a critical component of the AMI implementation, as discussed in Recommendation 15.
Once the data has been gathered, the City internally and externally publishes KPI data to better inform
staff and customers. Utilities across the country utilize several methods to communicate information,
including bill inserts, website dashboards and data trackers, and statistics published in annual budget
documents. Figure 6 shows excerpts from the City of Pearland's new web-based utility performance
dashboard. The dashboard of KPIs and internal data is a way of advancing communication and
transparency. It went live on the City's website on November 25, 2020. This is a commendable effort that
should be enhanced going forward with new measures that are reflective of things that customers care
about,such as service activities and billing statistics.The data should be updated regularly to ensure that it
stays relevant and accurate.
Demonstrating effective and consistent performance is key to implementing process improvements,
rebuilding trust with the community, and capitalizing on AMI implementation. As the City continues to
improve service delivery and modernize processes, continuing to enhance tracking, and publishing KPI
data will serve as a useful communications tool, help hold staff accountable, and keep service level
expectations in check.
Recommendation 3:Review and update written standard operating procedures(SOPs)regularly.
Developing a culture of continuous improvement requires management staff to set clear and consistent
expectations regarding meter-to-cash processes and procedures. Utility billing and meter services staff
currently rely on 32 written SOPs covering five major topic areas, as illustrated in Table 7: Current SOPs
by Topic Area.
3 "Utility Benchmarking Performance Management for Water and Wastewater." American Water Works
Association(AWWA).2019.
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City of Pearland Page 19
Utility Billing Process and System Review
Figure 6: Pearland Utility Billing Performance Dashboard (excerpts)
Departments a Water Being a
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R RAFTELIS
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Utility Billing Process and System Review
Table 7: Current SOPs by Topic Area
Topic Area SOP Title Quantity
Billing Checklist 1
Billing Process 32/30 Plan 1
Cycle Bill Export: Printing Bills(Export File): Record Count—0 1
Daily Work Orders Process 1
DATAPROSE Exception Bills 1
Delinquency Process Reports 1
Delinquency:Customer Reminders, Payment Arrangements,and Shut-Off Process 1
Billing Delinquent Processing Late Fee Event 1
Delinquent Processing Phone Calls&Shutoff Calls 1
Exception Billing Process(Move Out Bills) 1
Exception Bills: Correction Process 1
Leak Adjustment Form 1
Manual Calculation for a Set Reading Date 1
Out of Cycle Billing Process 1
Billing Total 14
Customer Service: Customers First 1
High Consumption Outbound Calling 1
Hotel Tax Payment Procedure 1
Leak Adjustment 1
New Service Application Process (commercial and residential) 1
Online New Service Application Process 1
Customer Payment Arrangements: Tiers in Assisting Our Customers 1
Service Payment Arrangements:Tiers in Assisting Our Customers(CSR II Guidance) 1
Payment Streams 1
Process for Call Wrap-Up Codes 1
Returned Mail Procedure 1
Tap Requests from Residential Builders 1
Verification of New Service&Termination 1
Customer Service Total 13
Cash Handling Procedures 1
Finance End of Day Process 1
Finance Total 2
Meter Construction Application Process 1
Installation Meter Installation Total 1
Garbage/Recycling Issues 1
Solid Waste Waste Management Codes: Garbage Issues Reference Guide 1
Solid Waste Total 2
Grand Total 32
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Utility Billing Process and System Review
Most of the billing-related SOPs describe specific, software-based processes, such as importing/exporting
data,running reports, and validating bills. Customer service SOPs include guidance on handling common
requests, setting up payment plans for delinquent accounts, escalating challenging calls to supervisors, and
establishing new service accounts.Finance-related SOPs include cash handling procedures and end-of-day
closeout processes, while the meter installation SOP discusses verifying tap fees, scheduling installation,
and verifying installations in the City's New World financial system. Finally, two of the SOPs currently
utilized by staff describe how to notify the City's solid waste provider, Waste Management, of account
changes and service requests.
The SOPs described in Table 7 above are available to utility billing staff and CSRs in a printed binder for
reference.While the City's current approach to SOPs acknowledges the importance of these materials and
seeks to proactively provide them to staff, several aspects of SOP implementation require additional
development and modification.
SOP documentation used by meter-to-cash staff does not follow a standardized format, and many SOPs
lack basic information, such as the author, date drafted, date adopted,and a purpose statement.Although
staff report SOPs were most recently updated two years ago,the latest revision date is not incorporated in
each SOP. As a best practice, SOPs should adhere to a uniform format, layout, and structure to improve
readability and consistency. There are numerous methods for developing SOPs; however, they typically
share the following common elements:
• A clear title describing the topic
• An introduction/objectives statement describing the purpose of the SOP
• A detailed description of the work to be performed,including step-by-step instructions
• A process map,if applicable,that captures key decisions, sub-processes,responsibilities, etc.
• Discussion of additional considerations that should accompany the work
• Additional documentation and/or references to other SOPs that may apply to the work
Much of the existing SOP documentation specifically discusses software-related processes. While this
information is essential to ensure staff record and process data accurately, additional SOP development
regarding other operations,would be beneficial. For example, the City currently utilizes the same
consumption ratio year-round to determine whether meter readings are likely over- or under-reporting
compared to historical patterns. This means that in summer months, when consumption is higher due to
irrigation and other water demand,more meters are likely to be incorrectly flagged as"high consumption"
compared to winter months when water usage drops off. Developing an SOP that provides specific
thresholds for high consumption will help reduce the likelihood that meters will be incorrectly singled out
for further analysis.
Unique circumstances involving customer accounts warrant specific SOPs. For example, during
interviews, staff reported uncertainties about how to handle accounts for customers who had died and
whose estates were seeking to wrap up their affairs. Describing requirements and appropriate procedures
for these and other less-common requests provides important guidance for staff who may be asked
unfamiliar questions and reduces the likelihood that staff will offer conflicting solutions. A common
method for addressing these circumstances is to adopt scripts that contain pre-written, standardized
responses that CSRs can use to respond to unusual requests. By supplying CSRs with the specific words
and key phrases to say in response to inquiries,the City can minimize the likelihood that CSRs will supply
incorrect or contradictory information to customers.
Another important component of most SOPs is the use of process maps and/or flow charts to highlight key
decision points, subprocesses, and responsibilities. Representing SOPs visually often makes them easier to
understand and more useful. High-performing utilities often rely on collections of single-page process
reference diagrams to remind staff about how to perform a process.
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Utility Billing Process and System Review
Other SOPs often referenced by the AWWA and present at high-performing utilities include the following:
• The complete delinquent account process, including shut off and restoration subprocesses
• Meter change out process(office and field sub-processes)
• Investigating and resolving suspected customer leaks
• Customer billing error resolution
• Estimating meter readings(broken or malfunctioning meter)
Note that many of these processes need to be coordinated with ordinances or other City policies for
consistency.
SOPs have an important role to play in empowering staff to exercise appropriate judgment and discretion.
While many of the processes governed by SOPs are relatively straightforward, other aspects of the meter-
to-cash process offer staff significant latitude. Customer service functions, in particular, are seldom
"routine"and often require staff to adapt to novel circumstances and unusual requests,as described above.
While several of the SOPs and training elements currently utilized by the City describe how CSRs should
handle requests, providing additional context and guidance to all staff about the proper exercise of
judgment across all meter-to-cash functions is essential. Ongoing training, including role-playing activities
in this area,is often helpful as it can often demonstrate different scenarios and their appropriate resolution.
Existing meter-to-cash SOPs largely define the City's historical practices for collecting meter data,
calculating bills, processing payments, and dealing with customer complaints. While a few of these
practices will remain consistent, the upcoming implementation of AMI will dramatically impact existing
procedures. The AMI system will reduce drive-by meter readings, empower utility billing and customer
service staff to identify exceptions and meter errors with greater accuracy, simplify the process of
conducting meter profiles, and increase the volume of information available to staff and customers alike.
Bringing existing SOPs in line with AMI will be an essential component of training existing staff and
onboarding new staff in the future, as discussed in the following recommendation. It will be a significant
task.
To address the format and content challenges described above and position the City to implement AMI as
effectively as possible,the Water Billing and Collections Manager should conduct a comprehensive review
of meter-to-cash SOPs, update each SOP using a standard format, and ensure the content of each SOP
appropriately matches the City's current and future practices, as described above. Once completed, the
revised SOPs should be included in a hardcopy manual similar to the City's current practice. SOPs should
also be readily available in electronic format, such as an intranet site or shared network drive, so that staff
can access these materials from remote locations. The revised SOPs should be regularly reviewed and
updated as necessary to ensure they accurately reflect contemporary operations and expectations.
According to staff, this review is already underway and has been delegated to the Assistant Water Billing
and Collections Manager. The revised SOPs will be made accessible to staff on the City's digital
SharePoint'Knowledge Center.
Formalizing and updating SOPs will help the City cultivate an environment of continuous improvement
by ensuring all staff share the same awareness and understanding of critical processes. It also serves as a
useful management tool for holding staff accountable,providing guidance about when staff should apply
discretion,.and empowering staff to proactively address work tasks and customer needs.
Recommendation 4:Develop an enhanced training program.
Staff involved in the meter-to-cash process have limited access to training and professional development
opportunities in their subject matter areas. Onboarding training is provided when new employees join the
City,but the organization generally relies on institutional knowledge to accomplish daily tasks, aside from
processes specifically documented in SOPs, as described in Recommendation 3. During interviews, staff
indicated they had little cross-training or exposure to work performed by other meter-to-cash personnel.
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Utility Billing Process and System Review
Furthermore, except for a few staff who worked at other utilities or in similar customer service
organizations,there is little exposure to industry or peer best practices.
This approach contributes to two important challenges associated with meter-to-cash operations.First,the
lack of ongoing training and professional development opportunities exacerbates existing silos and prevents
staff from collaborating effectively. While meter readers, CSRs, and billing staff all possess a general
awareness of responsibilities assigned to their colleagues,unfamiliarity with how those responsibilities are
specifically carried out creates a disconnect between expectations and the practical reality of fulfilling
requests.For example,CSRs do not intimately understand the often laborious work of locating,evaluating,
and reading meters in the field,while meter readers have little context regarding how the information they
provide is used to create and verify bills. This can create misaligned expectations for CSRs and meter
services staff,resulting in work environments that obstruct rather than facilitate cooperation.
Second, a lack of ongoing training opportunities prevents the City from adapting to changes in the meter-
to-cash process,recognizing and addressing process inefficiencies,and developing internal skills to manage
the process effectively.Meter-to-cash functions,like many other local government and utility functions,are
continually impacted by advances in technology and shifting customer preferences. However, the City's
training process equips staff with only the minimum skillsets required to provide service.Cultivating a more
robust culture of continuous improvement requires ongoing, sustained training efforts to ensure new and
tenured employees alike are adequately supported as processes and preferences change. It also requires
exposing staff to new practices and approaches.
Reducing siloed practices and creating a cultural climate that can more easily accommodate change will
require the City to develop a comprehensive training program for all meter-to-cash staff. At a minimum,
this program should consist of several key elements:
• Regular cross-training. Staff should accompany each other on assignments throughout the day to
understand how their activities impact others involved in the meter-to-cash process. CSRs and
billing staff should shadow each other, as well as accompany meter services staff as they are
assigned and complete work orders. Similarly,meter services staff should observe and listen in on
daily customer service and billing operations.Providing staff with regular opportunities to see and
experience how their counterparts work increases internal awareness and encourages staff to
identify further opportunities for process improvement. As this assessment was being finalized,
City staff reported that they have initiated monthly cross-training activities between CSR and
billing staff;however, these efforts should expand to include meter services activities as well.
• Process improvement training.As the City implements AMI,it should expect and encourage staff
to provide feedback and insights regarding operational effectiveness. The best way to accomplish
this involves providing meter-to-cash staff with foundational training regarding process
improvement. At a minimum, staff should be able to map out the fundamental steps associated
with their work,understand how those steps intersect with other staff and customers, and identify
areas of redundancy or inefficiency in their daily tasks. Cultivating these skills among staff will
help the City ensure that the meter-to-cash process is as effective as possible even as future
adaptations occur.
• Software/technology training. Much of the work performed by meter-to-cash staff involves
highly complex technology systems and databases.To minimize the likelihood of human error and
maximize staff effectiveness,the City should ensure all meter-to-cash personnel have regular access
to foundational technology training.Areas of critical need include Microsoft®Excel,database and
SQL management, and proprietary software system training related to Badger, New World, and
AMI. In addition, staff should participate in user group meetings for Badger, New World, and
AMI software to develop a group of peers to consult about processes, work arounds, product
opportunities and limitations, and to build general knowledge on the platforms. While
management staff in utility billing currently have access to a bank of training hours for New World,
training should be expanded to all staff across functions described above.
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Utility Billing Process and System Review
• Role-playing/scenario training. Several of the processes and situations encountered by meter-to-
cash staff involve fluid interactions, particularly regarding customers. While developing SOPs to
address requests as described in Recommendation 3 will provide staff with a valuable training
resource, it is important to ensure staff develop appropriate skills to think quickly and critically
while supporting customers. To accomplish this,the City should develop role-playing or scenario-
based situations that place staff in challenging circumstances in a controlled way. Example
scenarios could include belligerent customers, uncommon customer requests, and uncooperative
responses from peers or management staff. By simulating these events and observing how staff
respond to challenging circumstances, the City can help foster interpersonal skills and encourage
staff to respond consistently.
Establishing a training program as designed above will require significant management support and the
active participation of key stakeholders, including but not limited to the Water Billing and Collections
Manager, the Meter Services Supervisor, and human resources personnel. These staff should collaborate
to develop suitable training options and create a schedule consisting of mandatory and optional training
opportunities. Ensuring staff utilize training and enhance skillsets will help the City improve operations in
the near- and long-term by creating a workforce that can better adapt to changing circumstances and
communicate more effectively.
Recommendation 5:Improve external communications plans for meter-to-cash activities.
City staff utilize a variety of communications mechanisms regarding meter-to-cash activities. Since the first
quarter of 2020,utility billing staff have provided a biweekly memorandum to senior City staff and elected
officials regarding meter reads, billing activities, customer contacts, the 32/30 Plan, and AMI
implementation. The purpose of this memorandum is to provide regular progress updates regarding
recovering unbilled funds and core meter-to-cash activities. In addition to this memo, utility billing staff
also present a quarterly update at City Council meetings covering similar information in a public setting.
Staff have relied mainly on updates to the City's website and billing inserts to communicate with the public
about meter-to-cash activities.
While these efforts are commendable, existing communications practices have not cultivated a shared
understanding of meter-to-cash processes and priorities to date. Principally, staff and stakeholders
experience communications challenges regarding three significant areas:
• Meter-to-cash cycle complexity. Neither customers nor many of the stakeholders involved with
meter-to-cash fully understand the complexity of meter reading and utility billing activities.
Generally speaking, meter-to-cash processes involve collecting meter readings,having a computer
perform some calculations, and generating bills, but this is a gross simplification. Dozens of
overlapping processes must act in concert to create a smooth and accurate meter-to-cash cycle.
Communications must be adequate for stakeholders to understand the essential elements of the
cycle, appreciate the complexity of the overall process,and feel confident that staff are doing what
is needed to send out accurate bills.
While the City has worked to provide detailed information to increase transparency, more
information is not necessarily better. An unintentional impact of flooding stakeholders with
information is increasing confusion and mistrust rather than enhancing understanding. It is
essential for staff to provide transparent,accurate information at a level that is accessible and easily
digestible by stakeholders and customers unfamiliar with the meter-to-cash process.
• 32/30 Plan.While the 32/30 Plan has been adopted by the City Council and is being implemented,
the impacts of executing the Plan are not well understood by stakeholders. Carrying out the Plan
requires numerous time-intensive and complex processes, manual adjustments, and temporary
alteration to processes like final billing (when customers leave the area). While evaluating
alternatives to the 32/30 Plan and enhancing operations as discussed in Recommendations 6 - 8
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will help, the complexity of the Plan is still difficult to communicate. As policies and potential
changes to the existing Plan are discussed, the City must continue to provide essential elements
without overwhelming stakeholders in detail.
• AMI implementation. AMI is a technology that, if implemented correctly, promises to save
significant staff time while increasing automation and accuracy. However, successful AMI
implementation is a complex undertaking that cannot occur on short notice.In addition to ongoing
meter and endpoint upgrades, City staff must become familiar with entirely new methods for
collecting and analyzing meter data, evaluating exceptions, and providing usage and service
information to customers. Implementing AMI will necessarily require changes, adjustments, and
adaptions in the future as the City continues to maximize the advantages of the new system.These
must be communicated progressively and effectively to stakeholders.
Specifically, the City should enhance communications with stakeholders and customers by
stressing the need for patience and constructive feedback as AMI implementation proceeds.Future
communications should prepare customers for change and advise them about potential issues that
may arise going forward,including but not limited to human errors,development delays with AMI
software and hardware, and potential changes to familiar processes. Transparently articulating
these challenges will help the City rebuild a foundation of trust with customers and provide
stakeholders with useful context regarding meter-to-cash processes.
Going forward,the Water Billing and Collections Manager should work closely with the Interim Finance
Director, Communications Director, and City Manager to develop a formal, comprehensive
communications outreach plan that addresses the challenges described above.Specifically,this plan should
describe how existing communications tools leveraged by the City will be used to create clear, concise,and
consistent messages about meter-to-cash functions. The plan should identify key messages and takeaways
for customers and stakeholders and describe how those messages will be conveyed to target audiences.
Note that utilities in the U.S. choose a variety of communication methods. Some communicate frequently
with stakeholders, while others prefer infrequent communications. Examples of utilities with well-
developed communications programs include Denver Water,Louisville Water Company,East Bay MUD,
and Madison Water Utility.
In addition to delivering messages to stakeholders, the City should develop a robust direct engagement
program that seeks feedback from residents and customers. One method of receiving this feedback is
through citizen surveys. The City already participates in the National Citizen SurveyTM, which seeks to
capture residents' opinions about the community. According to the most recent survey results, positive
ratings of utility billing and meter reading functions increased from 69%in 2015 to 77%in 2019.4 Note that
this survey data was collected before the City revealed the growing gap between meter reading and billing
intervals in early 2020 and before the introduction of the 32/30 Plan.The NCS instrument provides a high-
level overview of all City services,so the City may benefit from a more specific customer satisfaction survey
that specifically pertains to utility billing.This could consist of a large-scale effort to conduct a community-
wide survey, online feedback forms, and/or immediate feedback tools, such as phone surveys customers
can complete after placing a service call.
Another common engagement approach relies on gathering input directly from groups of customers. This
could consist of small focus groups conducted as part of a larger survey effort or more regular task force
meetings designed to provide insight and feedback regarding utility billing.For example,the City of Corpus
Christi, Texas, utilizes a Water Advisory Committee to advise elected officials and the City Manager
regarding water management, usage, and distribution. Similarly, the City of Bainbridge Island,
Washington, created a Utility Advisory Committee to offer supplemental advice and feedback regarding
4 City of Pearland. "Community Survey Results."Retrieved December 2020.
https://www.pearlandtx.gov/government/administration/citizen-survey-results
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utility operations for water, sanitary sewer, stormwater, and other utilities. The Utility Advisory
Committee is responsible for the following:5
• Reviewing utility-related policies prior to city council consideration
• Consulting with the city manager to develop an annual work plan for approval by the city council;
• Consulting with and making recommendations to the city council regarding such utility-related
policy matters, utility rates, and rate structures and other charges made to water, sanitary sewer,
and stormwater utility customers
• Consulting with and making recommendations to the city council relative to the planning for and
financing of water, sanitary sewer, and stormwater utility capital facilities
• Keeping the city council regularly informed of activities of the committee in a timely manner
• Reporting annually to the city council before the start of the budget process.
Raftelis assisted the San Antonio Water System(SAWS)with establishing a Rates Advisory Committee
connected to utility rate adjustments updates and supported the Pittsburgh Water and Sewer Authority
(PWSA) with establishing a stormwater data advisory committee. Similar advisory committees are used
by communities across Texas and the nation to provide additional ongoing support to elected officials and
staff regarding important community issues that extend beyond utilities.
Before establishing a customer committee, the City should develop a charter and carefully consider the
committee's role, responsibilities, membership, and expectations. For example, if the purpose of the
committee is to support the transition to AMI, then the committee should disband after the transition is
complete. If the City prefers a longer-term approach, where the committee provides ongoing advice
regarding water and sewer rates/fees,meter-to-cash processes,technical utility-related matters,or regional
water-related issues,then the committee charter should align with those goals. There are typically myriad
issues for a customer committee to consider.They provide a great way to get consumers involved,provide
a sounding board, and are an excellent means to gather feedback.
Members of the committee should be volunteers and may be recruited based on technical knowledge,
customer type(commercial,multi-family residential,etc.)or interest.It is appropriate for the committee to
include an elected official as a regular participant, such as the Mayor or a Councilmember, to provide
guidance and serve as a liaison to the City's governing body. However, it is important to emphasize that
these committees are most effective when they are organized as partners rather than adversaries, and the
committee should not be perceived as having a governance function. Establishing a citizen advisory
committee primarily to perform oversight or audit-related functions is inadvisable because it creates
multiple lines of accountability for staff and potentially impedes the City Council's proper role as a
governing body.
Creating and implementing a formal external communications plan and seeking additional feedback from
customers will enable the City to deliver a consistent message to customers across a broad media landscape.
In turn, this will enable staff to help set and temper public expectations, manage process and
implementation delays,and rebuild trust with the public.
Process Improvements
Recommendation 6: Consider alternative options to the 32/30 Plan.
Since the City discovered the lag between meter reading periods and utility bills in 2019, elected officials
and staff have engaged in a lengthy public process to identify an appropriate remedy.Developing a solution
City of Bainbridge,Washington. "Utility Advisory Committee."Retrieved December 2020.
https://www.bainbridgewa.gov/242/Utility-Advisory-Committee
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to the billing challenge is difficult because the City must quickly balance resolving the billing gap with the
impacts on customers,perceptions of fairness, and preserving the public trust.
In April 2020, the City adopted the 32/30 Plan designed to cover unbilled consumption charges by
increasing meter reading intervals to 32 days while continuing to bill customers every month.In effect,this
represents the opposite approach to the practice that created the billing problem in the first place:whereas
a 28-day meter reading cycle increased the number of days between reads and billed amounts each month,
the 32-day meter reading cycle decreases the gap.The 32/30 Plan represents a good-faith effort to align the
reading and billing cycles. However, there are several key challenges associated with the Plan that merit
further consideration and adjustment:
1. The Plan is temporary. The City will not be able to utilize the Plan in perpetuity without creating
another billing gap. In 2023, the 32/30 Plan will "catch up" to the billing gap created by the
previous billing plan. To avoid overbilling customers going forward, the City will be required to
change billing practices again to maintain alignment between meter reads and billing periods.
Changes to certain practices, such as how final bills are calculated,will also be required.
2. 13 billings in some years. Although the 32/30 Plan was intended to result in one bill per month
and 12 bills per year, customers in billing cycles 14 and 11 will receive two bills in the months of
October 2021 and August 2022,respectively,resulting in a total of 13 bills in those years.Producing
13 bills will likely create extreme confusion among customers and increase public perceptions of
inconsistency and incompetence.
3. Rate impacts. Rate-related decisions have been and will continue to be impacted by the 32/30
Plan. Following the adoption of the 32/30 Plan, in May 2020 the City modified the water and
sewer rate structures and financial planning model used to estimate rates in future years.Note that
future year rates can only be modeled and not accurately set because the annual budgeting process
ultimately determines the revenues, or rates, needed to fund utility operations. Raftelis worked
with staff and billing data to determine revenue projections based upon a full year of consumption
under the 32/30 Plan's revised rate structure.This work provided the City with an updated model
illustrating projected revenues, assuming the City's meter reading and billing cycles are
synchronized.However,because the 32/30 Plan requires several years to fully synchronize reading
and billing cycles, any future changes to rate amounts or the rate structure could create inequities
for City customers. For example, if the City raised water rates in 2022, customers who close their
accounts in that year would pay higher rates for unbilled consumption than customers who close
their accounts in 2021.Modifying consumption tiers while the 32/30 Plan is still in place will create
similar inequities.
4. AMI complications. The 32/30 Plan will complicate the adoption of AMI. Because the Plan
creates a disconnect between current consumption and billed consumption for any given period,
customers may be confused by apparent discrepancies between meter reading periods, the
consumption shown on their meter, and their billed amounts. However, it is inadvisable to delay
AMI implementation given the significant customer service and process improvement advantages
that the City currently lacks.
5. Process inconsistencies. The Plan perpetuates inconsistencies in the billing process.For example,
utility bills are currently due 23 to 29 days after issuance,depending on when they are created and
the timing of the 32/30 Plan.This means that customers cannot easily rely on a set date each billing
period to know when their bill will be due, which may unnecessarily create confusion regarding
utility bills and disrupt automatic payments.
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City staff proposed several revisions to the 32/30 Plan at the November 23, 2020, City Council Meeting.
These proposed revisions included establishing a consistent methodology for calculating final bills,
extending the final bill methodology to"True-Up Plan"calculations,adjusting bills for customers affected
by 13 billings, and adopting ordinance updates designed to bring Section 30 of the City Code into greater
alignment with meter-to-cash best practices. Raftelis reviewed and considered these proposed revisions in
the context of this assessment. While the proposed changes may be effective in addressing some of the
32/30 Plan's current limitations, the City must first address a broader, more fundamental policy question
about how to handle unbilled consumption and close the current billing gap in a way that is responsive and
understandable to customers.
To better understand the financial implications of the 32/30 Plan,Raftelis first sought to calculate the total
value of unbilled consumption. While this task appears straightforward, in practice, it is highly complex
and nuanced. The most accurate method of calculating unbilled consumption requires daily read
information from the date the 28-day read cycle was implemented going forward. However, meters are
read monthly, and local storage on each meter retains only the previous 40 days of reads. Because billing
currently lags reads by about 60 days, it is impossible to reconstruct daily consumption with accuracy.
Additionally,because the 32/30 Plan continues to close the billing gap on a rolling basis,the total amount
of outstanding consumption changes each billing period.
Given these constraints, Raftelis developed a methodology designed to estimate the value of unbilled
consumption as of January 1, 2021. It is important to emphasize that this methodology does not include
the base rates paid by customers because customers have consistently been billed for base charges since the
billing gap was discovered and will continue to pay monthly base charges in the future. Additionally,
because water and sewer rates were developed assuming 12 base charges per year,collecting more than 12
base charges would increase revenue collections beyond the amount needed to support anticipated revenue
requirements.
Using billing data provided by the City from October 4, 2019 through November 9, 2020, Raftelis
calculated the average monthly billing amount for each account based on service line size. Raftelis then
subtracted monthly base charges from this amount, which results in the average monthly amount each
account pays for consumption alone. The amount was divided by 30 days to generate an estimated daily
consumption charge, as illustrated in the table below.
Table 8: Estimated Average Daily Consumption Charges by Meter Siz
Meter Size Est.Average Water Monthly Base Est.Average Est.Average Daily
(Inches) and Sewer Charges Charge Amounts Consumption Consumption
•er Month Char•es •er Month Char•es
5/86 $74.79 $38.52 $36.27 $1.21
1 $192.54 $96.31 $96.23 $3.21
1.5 $406.53 $192.62 $213.91 $7.13
2 $924.97 $308.19 $616.78 S20.56
3 $2,097.82 $577.85 $1,519.97 $50.67
4 $2,433.21 $963,09 $1,470.12 $49.00
6 $7,105.17 $1,926.17 $5,179.00 $172.63
8 S9,093.54 $3,081.88 $6,011.66 $200.39
10 $14,978.65 $4,430.20 $10,548.45 $351.62
6 In Tables 8 and 9, the 5/8-inch meters include three customer accounts with 3/4-inch meters, which are
currently billed at the 5/8-inch rates.
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On January 1,2021,the average lag between meter reads and bills will be approximately 58.25 days across
all billing cycles.The estimated average daily consumption charge was multiplied by 58.25 days to estimate
the total value of unbilled consumption for individual accounts based on service line size. Next, the per-
account average was multiplied by the number of active accounts to estimate the total value of unbilled
consumption, as illustrated below.
Table 9: Estimated Value of Unbilled Consumption by Meter Size
Meter Size Est. Average Daily Est.Total Unbilled Number of Est. Total Value of
(Inches) Consumption Charges Consumption per Accounts Unbilled Consumption
Account
5/8 $1.21 $70.43 36,256 $2,553,449.41
1 $3.21 $186.85 1,333 $249,075.99
1.5 $7.13 $415.34 93 $38,626.60
2 $20.56 $1,197.58 1,264 $1,513,741.63
3 $50.67 $2,951.27 67 $197,735.09
4 $49.00 $2,854.48 42 $119,888.02
6 $172.63 $10,055.89 18 $181,005.98
8 $200.39 $11,672.63 8 $93,381.04
10 $351.62 $20,481.58 2 $40,963.16
Total $4,987,841.61
According to this analysis,the estimated value of outstanding unbilled consumption as of January 1,2021,
is approximately$5.0 million.This reflects an average of$70.43 for most residential accounts,which utilize
5/8-inch water lines. Most commercial accounts use 1-inch lines or larger and have an outstanding
consumption value between$186.85 and$1,197.58.
Determining whether and how to recover unbilled consumption,considering the challenges associated with
the 32/30 Plan, is a policy consideration. There is no definitive "fix" and no solution that will provide a
quick, easy, and perfectly equitable resolution to all City customers. Raftelis offers a couple of alternate
approaches to solve some of the challenges of the 32/30 Plan but acknowledges they have other drawbacks.
•
Option 1:Disregard unbilled consumption.
This option allows the City to acknowledge and move past the previous billing issue and focus on fostering
a culture of continuous improvement, future process improvements, and AMI implementation, as
discussed in this report. By abandoning efforts to collect unbilled consumption, the City can implement a
"clean slate" and focus on fostering trust with customers using a consistent billing methodology. It also
provides the most expedient solution,carries almost no administrative burden to implement,and positions
the City for future success. It simplifies communications with customers by eliminating the confusion
associated with the current 32/30 Plan.
An argument can be made that this approach is universally fair because the same period of unbilled
consumption will be disregarded for all customers.It may also be widely accepted since customers will pay
less than what they were projected to pay under the 32/30 Plan.
While this approach presents the simplest and most straightforward way to resolve unbilled consumption
and close the current billing gap, it does come with tradeoffs. For all its advantages,this option will cause
the City to forgo the collection of approximately $5 million in potential unbilled revenue. Because
customers have been paying their normal fixed base charges with each monthly billing, the amount that
needs to be disregarded is only the volumetric portion of consumption that has yet to be billed.
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It is important to emphasize that this revenue loss does not reflect a loss of funds already collected by the
City,nor is it a reduction in amounts owed,i.e. "billed but not collected."It also does not reflect a reduction
or interruption of cash flows from month-to-month. In other words, the City's rate structure will continue
to appropriately cover operational expenses going forward. Rather, the loss is actuarial in the sense that
the City will have to "write-off" the incremental cost of water provided to customers that has remained
unbilled and will show a one-time lower"actual"revenue(compared to budget),which may result in a net
deficit in the annual audit for that one year.There is no single correct approach to accounting for this write-
off, and the City can leverage a variety of strategies to minimize the accounting impacts associated with
recognizing this loss.Viable options include but are not limited to the use of reserves,budget transfers,and
cost savings from operational and process improvements. However, adjusting the City's rate structure is
not recommended because this will create additional confusion for customers and result in rates that exceed
the cost of service after the actuarial loss has been resolved.
In short, while writing off unbilled consumption creates a specific accounting challenge for the City, it
presents the quickest and easiest method of resolving the billing gap in a way that is easily understood by
customers.It is fair and equitable to write off this consumption because the same period is effectively being
written off for each customer;however, some customers may claim other customers are getting more of a
benefit due to differences in usage among customers during billing periods.
Option 2: Calculate the value of unbilled consumption and charge a prorated amount over time.
As an alternative to Option 1, the City could estimate the total value of unbilled consumption for each
account and assess a separate "recovery fee" to charge for this usage. The total cost of the recovery fee
should be prorated over a 12-or 24-month period until the outstanding consumption has been fully paid,
and the prorated amounts should be added to each month's bill as a surcharge. For example, if the City
wished to recover unbilled consumption amounts over a 24-month period,the monthly recovery fees listed
in the table below could be assessed for each account based on service size.
Table 10: Estimated Recovery Fee Allocation per Account
Meter Recovery Fee(24
Size monthly payments)
(Inches
5/87 $2.93
1 $7.79
1.5 $17.31
2 $49.90
3 $122.97
4 $118.94
6 $419.00
8 $486.36
10 $853.40
This option provides increased transparency regarding how the City will calculate and recover unbilled
consumption. It also removes the confusion associated with future rate increases and allows customers to
pay unbilled charges at the lowest applicable tier rate. Once the value of unbilled consumption has been
recovered,the City can drop the recovery fee from utility bills without also having to adjust meter reading
or billing schedules. Additionally, this approach enables the City to better support customers who wish to
pay off their recovery fee in full by simply setting the recovery fee amount to$0 after payment is received.
In Table 10, the 5/8-inch meters include three customer accounts with 3/4-inch meters, which are currently
billed at the 5/8-inch rates.
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To implement the recovery fee,City staff will be required to assess and track unbilled consumption on each
customer account, ensure that individualized charges are tracked accurately during the recovery period,
and redesign bills to include a specialized line item for the recovery fee. These tasks are likely to generate
ongoing work for staff, which may distract from process improvements and AMI implementation. They
may also require significant manual tracking and bill calculations and/or adjustments to the billing system.
Option 3:Bill full catch-up amounts.
The City has already contemplated the possibility of enabling residents to simply pay the full outstanding
unbilled consumption associated with their account. This option, known as the "True-Up Plan," could
generate additional revenue in a short time if many customers pay off unbilled consumption.It also avoids
additional complications created by changes to rate fees or rate structures in the future,which could impact
how unbilled consumption is collected.
Offering this option as an alternative to some customers while permitting others to participate in the current
32/30 Plan or a prorated plan, as described above, could result in several challenges. If utility rates or rate
structures are changed at any point while another repayment plan is in place, then some customers will
have paid different amounts to resolve the same issue.This can increase perceptions that the City is unfairly
or inconsistently recovering unbilled costs, potentially exacerbating existing tensions and negative
feedback.
Additionally,the City will be required to monitor customer accounts individually to ensure that customers
who have paid in full are not also continually billed for unbilled consumption. If a prorated payment plan
is implemented for all customers, as described above, the City can adjust recovery fees for customers who
pay in full to$0.However,if the 32/30 Plan is retained without modification,the City will effectively have
to maintain two billing systems to enable customers to pay unbilled consumption: one for customers who
have paid in full and one for customers who are still accountable for unbilled consumption.Unfortunately,
the City's current billing software appears to only supports calculations for a single rate structure as
currently configured, meaning staff would be required to manually track and verify True-Up payments,
accounts, and billings. Creating a parallel system to track multiple rates would be administratively
burdensome,introduce significant opportunities for error,and exponentially increase the complexity of the
current meter-to-cash process.
The City could choose to require all customers to pay outstanding unbilled consumption in full;however,
this is not recommended because it would result in potentially high bills for some customers and would
likely generate many delinquencies. Low-income customers would be particularly impacted, and the City
would likely experience a significant increase in requests to establish payment plans, which would be
administratively burdensome and another potential opportunity for error. It will also be difficult to
communicate to customers why this approach was selected.
The options discussed above represent a significant policy departure from the City's goals under the 32/30
Plan. However, a change in policy is justified to help streamline AMI implementation,facilitate improved
communications with customers, establish additional transparency regarding customer charges, and avoid
the need to adjust billing practices in the future. Ultimately, there is no right or wrong answer, and the
decision about how to recover unbilled consumption is a policy matter for the City to determine.
Recommendation 7: Synchronize meter reading and billing cycles.
In addition to making a policy determination regarding unbilled consumption, the City should seek to re-
synchronize meter reading and billing cycles to avoid customer confusion. Moving away from the 32/30
Plan, as described above, creates an opportunity for the City to establish a billing cycle schedule that will
not need to be adjusted in future years.This opportunity is particularly ripe for implementation as the City's
AMI system comes online.
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Once AMI is implemented and fully functional, the time needed to gather initial read information will
decrease,and meter-to-cash staff will be able to focus more readily on bill analysis and verification.Because
customers have historically been billed once each month for utilities,the City should establish a set of dates
each month for meter reading, bill issuance, and payment. The following table illustrates an example
timetable for meter-to-cash practices throughout a calendar year for a given billing cycle.
Table 11: Example Meter Reading and Billing Timetable
Consum•tion Period Meters Read AMI Bills Validated and Sent Pa ment Due
January 1-31 February 3 February 10 March 1
February 1-28/29 March 3 March 10 April 1
March 1-31 April 3 April 10 May 1
April 1-30 May 3 May 10 June 1
May 1-31 June 3 June 10 July 1
June 1-30 July 3 July 10 August 1
July 1-31 August 3 August 10 September 1
August 1-31 September 3 September 10 October 1
September 1-30 October 3 October 10 November 1
October 1-31 November 3 November 10 December 1
November 1-30 December 3 December 10 January 1
December 1-31 January 3 January 10 February 1
In practice,the dates above will fluctuate somewhat due to weekdays and holidays,but by establishing firm
dates for each step of the meter-to-cash cycle each month,the City can maximize consistency for customers.
Additional billing cycles could use similar dates, such as the 4d', 1P', and 2nd of each month,respectively,
to create the same consistency for all customers regardless of which billing cycle they are in.
Once a revised meter reading and billing cycle is identified, the City should enact the policy decision
regarding unbilled consumption as described above and simultaneously realign billing to reflect the most
recent consumption period. In effect, this will eliminate the 32/30 Plan's efforts to gradually recover
unbilled consumption by adjusting meter reading and billing frequencies.By creating a consistent schedule
that functions independently of the billing error,customer confusion will be reduced,and the meter reading
and billing process will not require further adjustment in the future.
Recommendation 8:Implement a streamlined meter-to-cash process.
The meter-to-cash process involves a significant amount of manual and redundant activities. For example,
Utility Customer Services generates work orders for Meter Services using the City's New World system.
However,Meter Services does not have direct access to these work orders and relies on Utility Customer
Services to electronically transmit copies of work order documents and summary sheets. Meter Services
then prints each work order and assigns it to staff. Completed work orders are manually marked and
scanned back to Utility Customer Services, who must then update the work order entry in New World.
Other work order requests, such as rechecks,rereads, and same-day service requests,are sent via a parallel
process involving Microsoft Excel spreadsheets.While Meter Services can see pending work order requests
in New World, staff cannot readily access and update this information, and there is no universally
accessible work order process in place to allow staff to avoid manual entry.
Utility Customer Services currently lacks direct access to meter reading data and relies on Meter Services
to conduct drive-by reads and error checks.Meter Services aggregates read information and electronically
distributes it to Utility Customer Services via email for manual entry into New World. If a customer
requests a meter profile to check consumption history, CSRs must file a work order request with Meter
Services to physically visit the meter, download requested data, and upload the data to a shared network
drive for analysis. This practice introduces a lag of at least one or two business days for most error and
follow-up meter read requests.
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Billing activities also currently involve a high degree of redundancy and verification.After entering meter
reads via a file into New World, billing staff must audit the data to check for over/under-consumption,
zero consumption, reverse flow, and other billing exceptions. When exceptions occur, new work orders
must be generated and sent to Meter Services to conduct rechecks and validate initial reads. Once billing
data has been verified and entered into New World, Billing Specialists conduct an extensive validation
exercise to ensure bill amounts are calculated correctly. After all billing data has been validated, the City
works with a third-party distributor to print and mail bills.
The following figure illustrates high-level steps in the current meter-to-cash process.A more detailed map
of the current process is attached in Appendix A of this report.
Current Meter-to-Cash Process
Meter Reading and Billing
[111111 .11111z, gMeterFollow-uponvance and Return WoException/Customer
Reading for Evities Service Work Orders
2
cu
Import Meter Generate Exception Enter Work Order Authorize Vendor to
Reading Data to Reports and Create Results into New Print and Distribute
N New World Exception/Customer World Bills
Service Work Orders
Bill Distribution
°
u7
Resolve Exceptions Review and Validate
and Generate Bills Bill Amounts
Figure 7: Current Meter-to-Cash Process, 2020
The City asked Raftelis to independently verify whether the current process illustrated above results in
accurate billing calculations for a random sample of customers.Using comprehensive billing data provided
by the City, Raftelis applied the latest water and sewer rates to consumption for all accounts(instead of a
sample) and compared this calculation to each customer's actual billed amount. This comparison was
conducted for all reads and bills from August 11, 2020 (the date the latest rates were first applied to
customer accounts)through November 9, 2020(the latest date for which data was received), equivalent to
approximately three months of consumption per account.
This analysis revealed highly consistent calculations performed by City staff. Raftelis readily confirmed
accurate billing amounts for 98.6% of customer accounts over the three-month period analyzed. Out of
38,398 unique customer accounts, 551 showed relatively minor differences compared with those calculated
by Raftelis. City staff investigated these accounts and determined that the blanket calculation used by
Raftelis did not accurately capture specialized calculations needed for meters outside the City's usual
jurisdiction or compound/multi-unit meters. The City confirmed that the calculations for these accounts
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was correct. In summary, the billing verification analysis performed by Raftelis and verified by staff
indicates that although the City's billing calculation processes are highly manual,there do not appear to be
systemic billing errors.
AWWA maintains metrics on industry billing accuracy.An error rate of 1.8 to 22.2 errors per 10,000 bills
represents the normal range. Based on the sample provided by the City of Pearland, billing accuracy was
100%with the consumption values provided.This analysis did not evaluate the accuracy of meter readings
or the reading collection process.
Many of the challenges associated with the City's meter-to-cash process are rooted in the need to manually
obtain and verify meter information. To address these challenges, increase efficiency, and improve
transparency, the City is in the process of implementing AMI. One of the core features of AMI systems
involves the ability to remotely read meters throughout the City, which will remove the need to conduct
drive-by meter reads. Because AMI meters are constantly connected to the City's network, City staff and
customers will be able to quickly access and view information regarding consumption, meter errors, and
historical usage patterns.An entirely new process will be needed to maximize these new tools.
To fully capitalize on AMI implementation, the City should adjust the meter-to-cash process to take full
advantage of remote data tracking capabilities.This should be accomplished by focusing Utility Customer
Services on continuous data monitoring and exception resolution to identify and resolve meter errors before
they are imported into the billing system. When meter reads are due, Utility Customer Services should
import read data via AMI and compile a list of work orders related to misreads and exceptions that cannot
be remotely resolved.These work orders should pass to Meter Services staff for follow-up and verification.
In addition to AMI implementation, the City should investigate options for digitizing and streamlining
work orders between Utility Customer Services and Meter Services. Potential options include but are not
limited to providing Meter Services staff with direct access to New World work orders or adjusting the
work order request process to leverage CityWorksTM,which is currently being implemented by the Public
Works Department. Regardless of the selected solution, it will be important for Meter Services staff to
digitally access,update, and resolve work orders in the field to maximize staff capacity and reduce manual
data entry.
The following figure illustrates a proposed meter-to-cash process that fully leverages AMI and an electronic
work order system.New and significantly adjusted process components are highlighted in green.
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Proposed Meter-to-Cash Process
Meter Reading and Billing
au
Follow-upon Update Work Orders
cn Exce ption/Customer
Service Work Orders in New World
2
Continuously Generate Exception Finalize Meter Data Authorize Vendor to
Monitor AMI for Reports and Create Review and Validate
cn Exceptions and Exception/Customer for Import to New gill Amounts Print and Distribute
Errors Service Work Orders World Bills
aJ
E
O
v1
U
Diagnose and
)„ Resolve Exceptions Collect Meter Read Import and Validate Generate Bills Bill Distribution
Remotely(as Information via AMI Meter Reading Data
appropriate)
Figure 8: Proposed Meter-to-Cash Process, 2021
Compared to the existing process, the proposed process front-loads responsibility for tracking exceptions
and gathering initial meter reads to Utility Customer Services.Accomplishing these activities earlier in the
cycle and resolving errors before billing will greatly reduce the need for follow-up readings. It also reduces
the need to validate data gathered from meters before entering consumption values into the billing system
and provides staff with more capacity to ensure New World is correctly calculating utility bills.
Implementing a streamlined meter-to-cash process will require diligent oversight and participation among
a variety of staff, including but not limited to the Water Billing and Collections Manager, Billing
Supervisor, Customer Service Supervisor, Meter Services Supervisor, and Information Technology staff.
The Water Billing and Collections Manager has already begun the process of identifying specific changes
that should occur after AMI implementation is complete. It is entirely appropriate to utilize a dedicated
group of key staff, such as the AMI Implementation Team discussed in Recommendation 15, to manage
and oversee process and workflow enhancements related to AMI.
Recommendation 9:Reorder billing cycles.
The City utilizes four billing cycles totaling approximately 38,000 accounts. The size of each cycle varies
widely, from approximately 7,800 meters to more than 13,000 meters per cycle. Each cycle loosely
corresponds to a different geographic area of the City to better align with meter reading routes. However,
once AMI is fully operational,the need to physically visit meters to gather information will be dramatically
reduced.This will provide an opportunity to reorder the meter cycles.Note that changing the billing cycles
does not necessarily mean changing billing dates.
Utilities commonly employ two approaches with respect to organizing billing cycles. The first involves
establishing cycles based on a specific geography, as currently practiced by the City. This approach is used
when organizations perform manual or AMR type metering to minimize the time and distance between
meter readings.The second approach organizes cycles based on other criteria,such as the type of customer
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or the size of meter. For example, Billing Cycle A could include all commercial customers or meters over
one inch,while Billing Cycle B could include all single-family residences or all 5/8-inch meters,and so on.
Both methods of organizing billing cycles are valid.Communities employ the method that reflects historical
practices and technology limitations.
Once AMI is fully implemented,the City should consider rebalancing billing cycles to create a more evenly
distributed workload for meter-to-cash staff and align cycles by meter size, customer type, etc. Because
meter cycles and billing dates have some flexibility,there is opportunity to bill the rearranged cycles in a
different order to balance workloads and meet customer needs.
Additionally,the City could evaluate the feasibility of consolidating billing cycles and processing a greater
number of accounts each cycle by leveraging AMI. However, reducing the current number of cycles will
be limited by staffs ability to process and validate meter reads in a timely manner. While implementing
AMI and the recommendations in this report will likely provide staff with some additional capacity, it is
inappropriate to consolidate cycles in the near term. Rather, the City should track the labor hours
associated with meter-to-cash processes and determine the number of personnel required to collect,
validate,and bill according to the current cycle arrangement before seeking to consolidate cycles.
Recommendation 10:Enhance delinquent account communications.
The City considers a customer account delinquent if the customer fails to make payment by the due date
indicated on each bill.If a customer misses a payment,a Billing Specialist prepares and mails a delinquency
notice the following business day, and the customer receives an automated call indicating payment is late.
The notice requires customers to pay the delinquent amount 21 days from the date the notice was mailed.
If payment is still not received within seven days of the delinquency due date, a second automated call is
generated to notify the customer.
While the actual number of delinquencies was not readily available, staff estimate approximately 200
delinquency notices and calls are generated each week. Approximately half of these delinquencies are
remedied before the due date.If the customer does not remedy the delinquency,the City will cut off service
until the account and associated fees have been paid. Utility billing staff generally prioritize delinquent
account shutoffs based on the outstanding amount owed and the size of the meter and issue work orders
to shut off the top 50-100 accounts that meet these criteria. Meter Services then performs shutoffs on
Tuesdays, Wednesdays, and Thursdays each week. Customers who make payments can request that the
City restore water service.Water tum-ons performed after regular business hours are assessed an additional
fee.
The City's notification process for delinquent accounts relies on three touchpoints with customers: a letter
sent at the beginning of the process and two automated phone calls. While this outreach is reportedly
effective, these methods may not reach or draw significant attention from all customers. In particular, the
prevalence of junk mail and spam phone calls increases the likelihood that the City's outreach to customers
will be lost or avoided. There is also the possibility that the contacts will not reach the appropriate party
for a variety of reasons,including old phone numbers,minors answering the phone, etc.
To ensure customers are appropriately notified that their accounts are delinquent and to offer a higher level
of customer service, it is important to enhance communications practices regarding late payments. While
automated calls represent a time savings for staff,they are easily ignored or screened by customers.To the
greatest extent possible,the City should enlist CSRs to make personal phone calls notifying customers that
their accounts are past due. If customers do not answer the phone, the CSRS should leave messages and
contact information. It is difficult to evaluate if existing staffing levels are sufficient to provide this extra
level of service in the absence of some of the recommended KPI information and prior to AMI
implementation. Raftelis suggests collecting the KPI information and anticipating workload changes to
gauge staffing impacts.
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Personal calls and voicemail messages may be perceived as less suspicious and provide customers with a
known contact they can connect with to discuss payment issues. Utilities across the country commonly
employ personal phone calls and direct notifications, such as door hangers,to make personal contact with
account owners. Personal phone calls create the opportunity to update information on the customer
account,ask questions about service and communications,and review reasons why the customer may have
difficulty paying their bill.In circumstances where customers require assistance, such as in the wake of job
loss, a call from a CSR can quickly connect the customer with helpful resources, avoiding disconnections
and fostering a better relationship.Anecdotal reports from other utilities also describe reductions in shutoffs
after implementing a personal call program.
The City is in the process of developing door hanger notices that can be delivered directly to customers
before cutting off service. This practice should continue, and the City should adopt a policy of notifying
customers with a door hanger a week after the initial delinquency, if it wants to increase customer service
levels.Many regulated utilities hand deliver notices,including several of the largest utilities; although, the
practice is less common in Texas. In designing the notices, the City should strike a balance between high
visibility and telegraphing to the community that the customer is in danger of a shut-off,which could cause
embarrassment for some customers.It is appropriate to design a visible door hanger that can be utilized for
a variety of purposes and not simply for non-payment shutoffs.
City staff have also discussed creating an after-hours turn-on program for customers who can pay to restore
service in the evenings or over weekends. This is an appropriate practice that will prevent customers from
going without essential services like water if they have the means to restore their accounts to good standing.
The City must ensure that this practice does not get abused by charging a premium for after-hours turn-ons
that recover the cost of labor and equipment.
Implementing robust communications practices for delinquent accounts is critical as the City resumes
enforcing bill payment expectations amid the COVID-19 pandemic. Additionally, AMI implementation
and potential changes to the meter read and billing cycles discussed throughout this report may further
impact billing periods and due dates in future months and years. In turn, this will increase the likelihood
that some customers will inadvertently become delinquent as processes change.By seeking to connect with
customers in a variety of ways,the City can continue to build good relationships with the community and
reduce the need to deal with delinquencies.
Recommendation 11: Create designated morning and afternoon call-takers to streamline CSR
workload.
Utility billing customer service requests,including phone calls,are handled by 10.5 CSR positions that are
available from 8:00 AM to 5:00 PM Monday through Friday. These staff answer calls using the City's
Cisco FinesseTM system, a specialized software platform designed to route customer service calls to
available agents.
The City provided detailed utility billing customer service call information for 53,396 calls received in the
2019 calendar year. Most calls (87%) concerned general water service inquiries. Approximately 8%
concerned delinquent accounts, while 5%related to construction and meter service inquiries. Overall call
volume tends to be highest in the morning,especially on Mondays.By noon,call volume levels out through
the end of the workday, as illustrated in the figure below.
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Utility Billing Call Volume by Hour and Day of the Week, 2019
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM
—Monday —Tuesday —Wednesday —Thursday Friday
Figure 9: Call Volume by Hour and Day of the Week, 2019
Calls received in 2019 averaged 3 minutes and 49 seconds in length.About 54%of calls were concluded in
three minutes or less,and 75%were concluded in five minutes or less.Approximately 20%of all calls lasted
longer than five minutes. The following figure shows the number of calls received in 2019 by the length of
call.
Utility Billing Customer Service Call Volume by Length, 2019
14,000
12,000 11,700
10,000
9,369 9,922
U 8000, 7,732
0 6,646
6,000 4,880
4,000
2,231
111 619 2,000
249 48
0-1 1-2 2-3 3-4 4-5 5-10 10-15 15-20 20-30 More
Minutes Minutes Minutes Minutes Minutes Minutes Minutes Minutes Minutes than 30
Minutes
Call Duration
•
Figure 10: Count of Customer Service Calls by Length, 2019
There was some variation in length by type of call, with calls about delinquent accounts taking the longest
at an average of 4 minutes and 28 seconds.
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Call center staffing for functions like police dispatch and customer service is commonly assessed using the
"Erlang-C Model," a queuing theory staffing model that estimates the required staff to meet a desired
service level based on workload. Erlang-C relies on both the volume of calls and the average call duration
to determine how much staff coverage is required at various times of the day. Raftelis applied the City's
customer service call data to the Erlang-C model to estimate the minimum call takers needed based on an
average call length of 3:49 minutes.
Table 12: Average Calls Per Hour and Call Takers Needed by Hour of the Day
Hour 2019 Average Calls per Minimum Call
Calls Hour Takers Needed8
8:00 AM 6,572 26.3 4
9:00 AM 6,615 26.5 4
10:00 AM 6,552 26.2 4
11:00 AM 5,886 23.5 4
12:00 PM 5,434 21.7 3
1:00 PM 5,383 21.5 3
2:00 PM 5,491 22.0 3
3:00 PM 5,728 22.9 3
4:00 PM 5,694 22.8 3
5:00 PM 41 0.2 N/A
Total Calls 53,396 _1-
Based on historical call patterns,four call takers are needed on average during morning hours(8:00 AM to
11:00 AM),while three call takers are needed during the remainder of the day to answer incoming customer
service calls. However, this analysis assumes that staff are entirely dedicated to Ball-taking and have no
ancillary responsibilities, and it does not account for leave usage(vacation, sick, etc.)or staff turnover.
While customer service functions for the meter-to-cash process appear adequately staffed based on the
• analysis above, CSRs perform other critical duties aside from responding to calls. Other time-intensive
tasks currently performed by CSRs include assisting customers in person at the City Hall Annex and Public
Safety Building; processing payments; setting up new accounts; closing accounts; opening work orders,
which require Meter Services follow-up; and conducting meter profile analysis. Additionally, AMI
implementation will enable CSRs to play a more active role in routine meter monitoring, diagnosing and
troubleshooting errors and exceptions,and assisting customers with accessing online information regarding
their water meter. Given these responsibilities,it is inappropriate to reduce or adjust CSR staffing until the
full impact of AMI on staffing needs can be measured and demonstrated. Additionally, given the growth
experienced by the community,the volume of work is expected to increase consistently.
Rather than adjusting staffing, it is appropriate to re-evaluate how the City allocates highly responsive
workload among CSRs. During interviews for this assessment, CSRs indicated that they often cannot
concentrate on time-intensive tasks, such as meter profiles, due to the constant influx of new calls and
service requests. The analysis above supports staff perceptions that call volume is relatively constant
throughout the day and presents significant interruptions to other assigned tasks. Frequent interruptions
make activities less productive and increase the likelihood of human error, which in turn creates service
delays and potentially contributes to a lack of public trust.
8 Erlang Model Assumptions: 80%of calls answered in 20 seconds or less;call duration 3:49 minutes.
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To address this challenge, the City should implement dedicated morning and afternoon call-taker roles
among CSRs. While performing as a dedicated call-taker, CSRs should focus solely on customer service
calls and should not engage in other time-intensive work.CSRs not serving as a dedicated call-taker should
use their time to accomplish intensive tasks that require significant concentration with limited
interruptions. The dedicated call-taker role should rotate to provide all CSRs with dedicated focus time
while ensuring that routine call volumes can be adequately met.
Structure and Staffing
Recommendation 12: Transition to a centralized staffing structure over time.
There is no single best practice for structuring meter-to-cash functions. Some organizations, such as
Pearland,adopt decentralized staffing models where key tasks are distributed among multiple departments
and divisions.The primary advantage of this approach is that meter-to-cash personnel can be more readily
available to perform outside tasks, such as broader water distribution repairs. Indeed,Meter Services staff
in Pearland assist other Public Works staff with water line repairs and related tasks as time and resource
demands allow.
Decentralization increases the risk that staff will be pulled into other tasks.For example,the Water Billing
and Collections Manager's May 2020 memorandum appropriately identifies daily cash reconciliations as
an activity that should transition away from Utility Customer Service and to a more general City
accounting function. Similarly,meter technicians should not be addressing a backlog of water line work or
other public works activities while building a backlog of meter work orders.
Decentralized staffing models also require more consistent and often more formal communication among
workgroups to ensure tasks are completed in a timely and efficient manner.At present,there are no formal
service level agreements(SLAs)or related service expectations that govern how Utility Customer Services
and Meter Services work together. Communication between CSRs and meter technicians is infrequent and
unstructured. While the managers and supervisors of both groups meet regularly to discuss ongoing
workloads and challenges, communication among line staff is limited. The following figure illustrates the
division of high-level functional responsibilities among the City's meter-to-cash divisions.
Utility Customer Meter Services
Services
20.5 FTE 7.0 FTE
Respond to Process and Conduct Routine _Conduct Follow-up/
Customer Requests—Troubleshoot Meter. Drive-By Reads Exception Reads
(Desk,Phone,etc.) Read Data
Calculate and Process Customer Respond to Shut- Troubleshoot and
Verify Bills Payments and Off/rum-On Replace Water
Delinquencies Requests Meters
Process New Gather Meter
— Accounts and Profile Information Locate Meters
Account aosures
Figure 11: Current Allocation of Functional Responsibilities, 2020
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An alternative approach involves centralizing meter-to-cash staff in a single department, such as Finance,
Public Works,or an independent utility department. Centralization can streamline the reporting structure
for staff,reduce managerial overhead,and simplify the communications process among staff.A centralized
operation also reduces the likelihood that meter-to-cash personnel will feel pressured to address outside
responsibilities and tasks at the expense of customer service, billing, and meter reading. However,
centralized structures reduce the availability for meter-to-cash staff to assist other departments, and merely
centralizing staff into one organizational unit will not necessarily result in performance or efficiency
increases.
Benchmark organizations utilize both structural approaches.Of the nine organizations for which structural
information was readily available, half separate meter reading and utility billing staff into distinct
organizational units.Five of the benchmark organizations currently use AMI meter infrastructure;of these,
four utilize separate functions while two have combined meter reading and utility billing.
Table 13: Structural Arrangements for Meter-to-Cash Personnel
Benchmark Organization AMI Meters Separate Utility Billing
and Meter Staff
City of Olathe, KS No No
Central Arkansas Water No No
City of League City,TX Yes No
City of McKinney, TX Yes No
City of Franklin,TN Yes Yes
City of Frisco, TX Yes Yes
Town of Cary, NC Yes Yes
City of Sugar Land, TX In Progress9 Yes
City of Cedar Park,TX Yes Yes
City of Pearland,TX In Progress Yes
In benchmark organizations where meter reading and utility staff are combined in a single organizational
structure, meter-related functions are sometimes limited to reading and minor troubleshooting, while
installation and repairs are performed by another organizational unit. This is often for legacy reasons or
because of job classifications or union restrictions. The industry preference is to have all the meter-to-cash
cycle staff in one group. The proposed division of functional responsibilities is illustrated below;functions
that should transfer to Utility Customer Services are highlighted in blue.
9 City of Sugar Land has a planned CIP investment in AMI meters in FY2021.
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Utility Customer Water Distribution
Services
Respond to Process and Conduct Major
Customer Requests Troubleshoot Meter _ Water Meter
(Desk,Phone,etc.) Read Data Repairs and
Replacements
Calculate and Process Customer
Verify Bills Payments and - Meter Testing
Delinquencies
Gather Meter Process New AMI System
Profile Information Accounts and - Monitoring
Account Closures
Conduct Follow-up/ Respond to Shut-
Exception Reads Off/Tum On
Requests
Troubleshoot Water Locate Meters
Meters
Figure 12: Proposed Allocation of Functional Responsibilities
Reallocating functions in this manner will effectively consolidate Meter Services and Utility Customer
Services into a single organizational unit, while some high-maintenance meter tasks will continue to be
performed by Water Distribution staff in Public Works. This structure will convey several important
benefits.First,it centralizes control over meter-to-cash functions and personnel.This is critically important
as the City continues the process of implementing AMI and streamlining service delivery. Because AMI
will eliminate regular drive-by meter readings, staff will have more capacity to attend to customer service
requests, shut-offs/tum-ons, and meter maintenance and troubleshooting.
Fostering a culture of continuous improvement will require close management oversight of all staff
involved in the meter-to-cash function. Centralizing staff into a single reporting structure empowers the
Water Billing and Collections Manager with greater authority to exercise leadership,develop practices and
cross-training opportunities, and organize staff in a way that best supports ongoing communications and
improves service delivery. Because line staff will no longer be separated into multiple departments,
perceived barriers to communication will be reduced, and the ability to build lasting relationships among
line staff will be improved.
The City is nearing completion of upgrading meters to AMI, and future replacements in the near term(10-
15 years)will likely be confined to meters that have failed. Because the bulk of meter upgrades have been
implemented,meter failures and replacements are likely to represent a smaller overall proportion of meter
installation activities in the near-to-medium term. Of course, a major meter replacement will be needed in
the future,and the City should maintain a regular testing program for large meters as outlined by AWWA.
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Because the impact of AMI on overall workloads and labor hour requirements is not yet clear, simply
reassigning staff in the short term is inadvisable. Rather, the City should implement this proposed
restructuring after the AMI project is completed to ensure that task assignments properly reflect available
staffing.By closely tracking the volume and labor hours of core functions,such as follow-up and exception
reads and shut-off/turn-on requests,the City will be able to precisely determine how many staff are required
to perform functions and can reassign those staff in the future.
Recommendation 13:Adjust staffing to reflect short-term needs and prepare for AMI implementation.
Meter-to-cash functions are performed by approximately 27 staff divided among two divisions: Utility
Billing in the Finance Department and Meter Services in the Public Works Department. In recent years,
staffing levels in Utility Customer Services have increased to absorb growth in customer accounts, service
requests, and bill processing requirements. In May 2020, the Water Billing and Collections Manager
drafted an internal memorandum describing future staffing needs:
• Adding two Cashier positions to process daily water bill payments and process voicemails for CSRs
• Reclassifying a CSR as a Delinquency Specialist
• Creating and filling a second Delinquency Specialist position
• Filling the vacant Senior Office Assistant position
• Creating two additional Billing Specialist positions
• Promoting the Lead Billing Specialist to Billing Supervisor
Several of the above personnel enhancements were enacted for the FY2021 budget,including the creation
of an additional CSR and two Billing Specialists,as well as promoting the Lead Billing Specialist to Billing
Supervisor. This increase in staff capacity will position Utility Customer Services to exercise greater
oversight of utility billing functions and maintain high service levels as AMI implementation unfolds.
Staffing needs in any organization are primarily driven by service level expectations, workload patterns,
and business processes. However, it is often helpful to review overall staffing levels among benchmark
organizations for comparative purposes.Raftelis examined meter-to-cash staffing levels in each benchmark
organization using publicly available information, such as budget documents. For the purposes of this
analysis,Raftelis compared overall utility-related staffing in customer service and meter service functions,
as well as management and business support staffing levels. Staffing levels were normalized by the number
of customer accounts at the utility.
Customer service positions include a variety Customer Service Representatives positions(or positions with
similar titles), which primarily work in call centers or serve customers in person. Business support and
billing positions include administrative assistants, analysts, cashiers, and various meter-to-cash function
specialists.Meter maintenance and field staff include any dedicated meter service,reading,or testing people
designated in the organization's budget. Finally,positions with"manager"or"supervisor"in the title were
evaluated separately from the other categories above. The following table provides a breakdown of meter-
to-cash positions by function in each of the benchmark communities.
Table 14: Benchmark Organization Utility Billing and Meter Staffing
Managers
Customer Business Meter Total Customer
Customer and
Organization Service Support Service Staff Accounts
Accounts (FTEs) (FTEs) (FTEs) Supervisors (FTEs) per FTE
FTEs
City of Franklin, TN 16,918 7.00 4.00 2.00 2.00 15.00 1,128
City of Pearland, TX 37,900 10.50 5.00 7.00 4.00 26.50 1,430
City of Cedar Park 23,181 4.00 3.00 4.00 3.00 14.00 1,656
City of Frisco, TX 57,661 8.00 1.00 21.00 4.00 34.00 1,696
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Managers
Customer Business Meter Manag Total Customer
Customer and
Organization Service Support Service Staff Accounts
Accounts (FTEs) (FTEs) (FTEs) Supervisors (FTEs) ' per FTE
FTEs
City of Olathe, KS 35,000 11.00 2.00 2.00 3.00 18.00 1,944
City of McKinney, TX 60,730 9.00 2.00 15.00 5.00 31.00 1,959
City of League City, TX 34,308 6.00 0.00 5.00 2.50 13.50 2,541
City of Sugar Land, TX 62,149 8.00 1.00 12.00 3.00 24.00 2,590
Town of Cary, NC 63,887 9.03 2.00 N/A 4.00 15.03 4,252
Central Arkansas Water 205,000 23.00 5.00 12.00 3.00 43.00 4,767
Notably, the only organization that did not have a dedicated meter team was the Town of Cary, whose
public works operations staff install and repair meters in addition to other duties.
The City of Pearland uses comparatively more staff than several other organizations analyzed for this
report,particularly regarding frontline customer service personnel. However, comparisons of raw staffing
numbers are misleading because the size of each community and the scope of services delivered can
significantly impact the number of personnel needed to provide service. Technology plays a big role as
well; systems that employ AMI technologies have fewer meter readers than those with manual or AMR
technologies. In addition, some utilities, like Pearland, bill for other services such as wastewater,
stormwater,solid waste,and electric services.To help account for these differences,Raftelis calculated the
ratio of customer accounts per FTE in each benchmark organization, as illustrated below.
Customer Accounts per All Meter-to-Cash FTEs
4,500 4,252
4,000 3,727
3,500
3,000 2,590
2,500 1,802
2,000 / 1.656 1,696 1,750 1,854 1,959
,4J0
1,500 1
1,128
1,000
500
0
City of City of City of City of City of City of City of City of Central Town of
Franklin, Pearland, Cedar Frisco,TX Olathe, League McKinney, Sugar Arkansas Cary, NC
• TN TX Park,TX KS City,TX TX Land,TX Water
Median
Figure 13: Benchmark Organization Customer Accounts per Meter-to-Cash FTE
The median number of accounts per meter-to-cash FTE is 1,802 among benchmark organizations. The
ratio of customer accounts to meter-to-cash FTEs in Pearland is 1,430. This means that, on average, the
City of Pearland's meter-to-cash staff serve fewer accounts than staff in comparable agencies.
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To provide a thorough picture of staffing by function,Raftelis also compared the ratio of accounts per FTE
across each of the functional areas discussed above.As shown in the figure below,the number of accounts
per customer service FTE is lower in Pearland than in most other organizations.Because customer service •
staff in Pearland are responsible for fewer accounts on average,they theoretically have a higher capacity to
provide service compared to other benchmark agencies, such as wastewater and solid waste billing.
Customer Accounts per Frontline Customer Service FTEs
10,000
8,913
9,000
8,000 7,769
6,748
7,000 6,272
7,079 7,208
6,000 `,712 7ac
5,000
4,000 3,182 3,610
3,000 2,417
2,000
1,000
0
City of City of City of City of City of City of Town of City of City of Central
Franklin, Olathe, Pearland, League Cedar McKinney, Cary, NC Frisco,TX Sugar Arkansas
TN KS TX City,TX Park,TX TX Land,TX Water
-Median
Figure 14: Customer Accounts per Frontline Customer Service FTEs
Meter staffing varies considerably among benchmark organizations. Some meter functions are spread out
across different groups, while others (including Pearland) utilize dedicated meter teams that install and
repair meters as well as collect readings. There are also significant differences in the services performed by
meter staff in each organization. Some have technicians that perform meter testing and other services,such
as cross-connection control, while some have older meters that require more services. Outsourcing
preferences vary,with some contracting with outside firms to perform some services,like collections,meter
reading, and meter testing,while others provide those services in-house.
All the benchmark organizations with meter staff in the utility billing group(Central Arkansas Water; City
of League City, Texas; City of McKinney, Texas; City of Olathe, Kansas) assign meter installation and
repair to another division or department in the organization.The Town of Cary does not have a dedicated
meter team; rather, meter installation and repair is done by public works operations staff in addition to
other duties.
The number of accounts per meter staff in each benchmark organization is illustrated below.
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Customer Accounts per Meter Services FTEs
20,000
18,000 17,083 17,500
16,000
14,000
12,000
10,000 8,459
8,000 5,795 6,862
6,000 1 5,179 5,414 5,795
4,049
4,000 2,746 P
2,000 -111
0
City of City of City of City of City of City of City of Central City of Town of
Frisco, TX McKinney, Sugar Pearland, Cedar League Franklin, Arkansas Olathe, Cary, NC
TX Land, TX TX Park,TX City,TX TN Water KS
-Median
Figure 15: Customer Accounts per Meter Services FTEs
The City of Pearland averages 5,414 meters per meter services FTE, which is near the benchmark median
and commensurate with other Texas cities. However, it is important to emphasize that differences in
workload assignments among the benchmark communities make direct staffing comparisons challenging,
particularly for meter functions.
With respect to management and support staff;, overall levels again varied widely among benchmark
agencies. Some organizations did not have any support staff, while others allocate only one or two FTEs
to management and support functions.As with other meter-to-cash functions,the City of Pearland averages
4,211 customer accounts per management and support FTE,well below the median of 9,662.
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Accounts per Manager/Supervisor and Support FTE
30,000
25,625
25,000
20,000 __
15,537
15,000 9,662 13,723.____
10,648 11,532
10,000 8.676
7,000
5,000 2,820 3,864 4,211
City of City of City of City of City of Town of City of City of City of Central
Franklin, Cedar Pearland, Olathe, McKinney, Cary, NC Frisco,TX League Sugar Arkansas
TN Park,TX TX KS TX City,TX Land, TX Water
—Median
Figure 16: Customer Accounts per Manager/Supervisor and Support FTE
These comparisons are helpful to understand relative effort compared to other organizations and can be
indicative of staffing resources,but it may not reflect all workload expectations.While overall staffing levels
in Pearland are somewhat higher than several benchmark communities,this is not necessarily an indication
that meter-to-cash functions are overstaffed. The highly manual and process-intensive operations assigned
to Pearland CSRs currently require dedicated staff capacity in a way that may not reflect the benchmark
organisations. For example, if one organization expects frontline customer service staff to assist with
creating or processing bills as part of their regular duties,while another organization has frontline staff only
responding to customer calls, more customer service staff would be needed in the first organization. In
general, the FTE counts and staffing ratios above can provide interesting staffing insights but do not
sufficiently capture the nuance and variation among different communities and service level standards.
In the near-to-medium term, the largest factor impacting the City's meter-to-cash staffing needs is AMI.
AMI represents a fundamental shift in service delivery, which will result in two major staffing impacts.
First,regular meter reads will be accomplished remotely using network infrastructure, and the City will no
longer rely on meter readers to gather regular meter reads using a drive-by process.While the actual labor
hours associated with regular meter reading are not currently tracked, staff estimate that drive-by meter
reads require approximately 24 labor hours per billing cycle, or roughly the equivalent of three (3 FTEs)
meter readers performing drive-by readings one day each week.Under the AMI system,this staff time can
be reallocated to other important tasks, such as evaluating errors, troubleshooting meters, and responding
to customer service requests.
AMI will also increase the availability and transparency of meter-related data. Several meter-to-cash
functions are currently reliant on the processing and exchange of information among Utility Billing and
Meter Services staff. For example, to perform a meter profile, CSRs must enter a work order for Meter
Services to pull meter read data from a specific meter. Meter Services then visits the meter to obtain
historical data and downloads the information to a shared network drive. CSRs must then locate the data
and analyze it to evaluate usage patterns. In contrast, under the AMI system, meter profile information
will be immediately available to CSRs through a network portal interface, which will reduce or eliminate
the need for Meter Services staff to prepare data for analysis.
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Because AMI will substantively impact the day-to-day work of staff in Utility Billing and Meter Services,
it is inappropriate to make significant staffing adjustments based on historical and current workloads.
Instead, the City should hold staffing levels constant while continuing to track relevant performance
indicators, implement process and service delivery enhancements, and develop a culture of continuous
improvement in the organization. These efforts will maximize the capacity of existing staff to perform
assigned tasks. It's likely that the combination of increased population growth and natural attrition will
lead to staff right-sizing opportunities.
After AMI is fully implemented and baseline performance and workload related to AMI processes are
available, the City should conduct an analysis to ensure meter-to-cash functions are appropriately staffed.
This analysis should also consider how to best balance staff among meter reading, customer service, and
bill processing functions given the changes in workflow AMI will create.
Recommendation 14:Pilot a 4-10 schedule for meter-to-cash staff.
The schedules used by staff involved in the meter-to-cash process vary slightly. Utility Customer Service
staff(CSRs and Billing Specialists)work from 8:00 AM to 5:00 PM,Monday through Friday. In contrast,
most Meter Services personnel work a 9/80 schedule from 6:30 AM to 4:30 PM,with one rotating position
reporting for duty from 7:30 AM to 5:30 PM to better align with customer service requests.Due to the 9/80
schedule, Meter Services staff receive every other Friday off, and the schedule is arranged so that half of
the division's staff report for duty each Friday. The schedule enables Meter Services to be more available
to other Public Works staff who might require assistance in the early mornings, such as water distribution
and collections personnel.
The overall schedule for customer service functions in Pearland is highly similar to schedules used by other
benchmark organizations, as illustrated in the following table.
Table 15: Customer Service Operating Hours Among Benchmark Organizations
Benchmark Organization Operating Hours
Central Arkansas Water 7:30 AM to 5:00 PM, Monday-Thursday;
7:30 AM to 4:30 PM, Friday
City of League City, TX 7:30 AM to 5:30 PM, Monday-Thursday;
7:30 AM to 12:00 PM, Friday
City of Cedar Park, TX 8:00 AM to 5:00 PM, Monday-Friday
City of Franklin, TN 8:00 AM to 5:00 PM, Monday-Friday
City of Frisco, TX 8:00 AM to 5:00 PM, Monday-Friday
City of Olathe, KS 8:00 AM to 5:00 PM, Monday-Friday
City of Pearland, TX 8:00 AM to 5:00 PM, Monday-Friday
City of Sugar Land, TX 8:00 AM to 5:00 PM, Monday-Friday
Town of Cary, NC 8:00 AM to 5:00 PM, Monday-Friday
City of McKinney, TX 8:30 AM to 4:45 PM, Monday-Friday
The upcoming AMI implementation will require significant customer outreach and engagement, and it is
likely that customers will generate additional inquiries and requests during and after implementation.
Considering the City's ongoing efforts to rebuild trust and enhance communications with customers and
residents, it is appropriate to consider extending regular customer service hours. To accomplish this, the
City should pilot a 4-10 schedule for meter-to-cash staff.
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A 4-10 schedule involves assigning staff a 10-hour workday over a four-day workweek, while staggering
staff coverage throughout the week to provide consistency. The following table outlines an example 4-10
work schedule for meter-to-cash line staff.
Table 16: Example 4-10 Schedul,
Line Staff Monda Tuesda Wednesda Thursda Frida
CSR Team A 8:00 AM to 8:00 AM to 8:00 AM to 8:00 AM to Off
(5 FTE) 6:00 PM 6:00 PM 6:00 PM 6:00 PM
CSR Team B 8:00 AM to 8:00 AM to 8:00 AM to 8:00 AM to
(5 FTE) Off 6:00 PM 6:00 PM 6:00 PM 6:00 PM
Billing Team A 8:00 AM to 8:00 AM to 8:00 AM to 8:00 AM to Off
(2 FTE) 6:00 PM 6:00 PM 6:00 PM 6:00 PM
Billing Team B 8:00 AM to 8:00 AM to 8:00 AM to 8:00 AM to
(2 FTE) Off 6:00 PM 6:00 PM 6:00 PM 6:00 PM
Meters Team A 8:00 AM to 8:00 AM to 8:00 AM to 8:00 AM to Off
(2 FTE) 6:00 PM 6:00 PM 6:00 PM 6:00 PM
Meters Team B 8:00 AM to 8:00 AM to 8:00 AM to 8:00 AM to
(2 FTE) Off 6:00 PM 6:00 PM 6:00 PM 6:00 PM
In the table above, line staff are grouped into two teams. Team A reports for work Monday through
Thursday, while Team B reports Tuesday through Friday. This schedule provides full staff coverage
Tuesday through Thursday for 10 hours each day,while half of line staff would be available over a 10-hour
period each Monday and Friday. Staffing in this manner enables the City to provide meter-to-cash services
beyond normal business hours each day of the work week. It also creates a uniform schedule among all
meter-to-cash staff and avoids the need to create separate shifts during each workday.
Disadvantages created by a 4-10 schedule include lighter staffing on Mondays and Fridays, which could
impact staff's ability to respond to customer service requests if demand on those days is high.Additionally,
the example schedule above assumes supervisors and management staff will continue to work a traditional
8:00 AM to 5:00 PM schedule Monday through Friday.This results in an hour at the end of each workday
where line staff will function without a supervisor present,which could be problematic if customer requests
need to be escalated. This schedule change would also represent a cultural shift for the organization and
may be difficult to adapt and successfully implement in light of other significant cultural and process
changes recommended in this report.
If the City elects to proceed with a 4-10 schedule to provide enhanced customer service,it should begin by
piloting the schedule among a limited subset of trustworthy staff.The pilot group should be responsible for
providing services, tracking overall service demands after 5:00 PM each day, and providing insights and
feedback on the appropriateness of the schedule change.Additionally,customers who utilize meter-to-cash
services during the pilot program hours should be asked to submit perceptions and feedback regarding
service delivery. If customer demand after 5:00 PM is significant, the City should seriously consider
expanding the pilot program to all meter-to-cash line staff. However, if customers refrain from utilizing
services after traditional business hours, the pilot program should be eliminated, and the current staffing
schedule should be retained.
Technology
Recommendation 15: Create an inclusive AMI Implementation Team.
Implementing an AMI system is a complex, time-intensive process that requires staff coordination across
multiple departments.Much of the implementation workload to-date has involved procuring and installing
AMI-capable meters throughout the City,along with endpoints and network infrastructure that enables the
meters to communicate. There has been limited involvement or communication about the work with the
CSRs and other frontline staff.
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The City has successfully replaced nearly all customer meters with AMI-capable units, and approximately
300 endpoints and 53 connected grid routers (CGRs) are awaiting installation. This work was primarily
overseen by the City Engineer and Meter Services staff in the Public Works Department. The next phase
of AMI implementation involves creating the network linkages, access portals, dashboards, and process
improvements necessary to fully leverage the system. The City's Information Technology Department is
aware of these requirements and has begun development and testing for network, data flow, and related
issues. However, staff and customer requirements regarding data access and reporting capabilities are still
undefined.Now is the time to involve those staff and to communicate about the project with customers.
Since replacement meter installations began in 2017, staff involved in the AMI process have attended
weekly meetings with the City's meter provider to discuss installation progress and potential future needs.
Attendees at this meeting have included the City Engineer,the Water Billing and Collections Manager and
Assistant Manager, the Meter Services Supervisor, and the Utility Field Services Tech Lead. Once the
capital components of AMI are in place and functional,it is unclear whether these meetings will continue
and who will lead them. During interviews, staff expressed differing perceptions about who should lead •
the next phase of AMI implementation and coordinate rollout to customers.
Given the ongoing billing gap and the need to foster trust and assurance among the City's utility customers,
it is critical that AMI implementation proceeds in a timely and effective manner. To support this
implementation,the City should formally create an inclusive AMI Implementation Team and define clear
roles for staff and stakeholders involved in the AMI process. The following table describes the minimum
recommended membership of the team, along with proposed roles and responsibilities for each team
member.
Table 17: Proposed AMI Implementation Team
Position De•artment Role
• Lead and coordinate the Implementation Team
• Propose and develop process improvements designed to fully
leverage AMI
• Understand and describe how process changes will impact utility
billing and customer service operations and staffing requirements
Water Billing & Finance • Identify specific data,workflow, dashboard, and operational
Collections Manager needs
• Solicit input and provide direction to the Assistant Water Billing &
Collections Manager and other meter-to-cash staff as appropriate
to guide decision-making
• Coordinate with senior staff, including the Finance Director,other
department directors, and City management staff as necessary
• Assist the Implementation Team with developing proposed
process improvements designed to fully leverage AMI
• Understand and describe how process changes will impact meter
Meter Services reading operations and staffing requirements
Supervisor Public Works • Identify specific data,workflow, dashboard,and operational
needs
• Solicit input and provide direction to the Utility Field Services
Tech Lead and other meter-to-cash staff as appropriate to guide
decision-making
• Provide guidance regarding how to message and promote the
AMI system
• Develop communications tools to explain AMI rollout and any
Communications changes customers may experience
Director(or designee) Communications • Create a communications plan that leverages multiple resources
and tools to educate the public about AMI
• Provide advice and guidance regarding how potential operational
changes may impact customers and where changes may require
additional communication
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Position De•artment Role
• Provide status updates regarding AMI infrastructure and
troubleshooting
Engineering Director • Ensure proposed process improvements can be supported by
(or designee) Engineering existing infrastructure
• Provide advice and input as needed regarding AMI capital needs
and requirements in future years
• Describe how back-end technology systems should interact to
support current and future workflows
Information • Listen to group feedback regarding requested elements and
Technology Director Information features for dashboards and communications tools
(or designee) Technology • Develop prototype dashboards and tools to enable staff to
leverage AMI
• Support efforts to streamline workflows and processes using
technology
Representatives from • Offer perspective on the practical implications of the technology
billing and customer Utility Billing • Create a broad sense of participation
service functions • Allow junior staff to offer input and make them feel part of the
solution
• Listen to staff feedback
City Manager(or City Manager's • Ensure the impacts of process adjustments associated with AMI
designee) Office are understood by staff
• Communicate regularly with the City Manager and City Council
• Ensure AMI implementation proceeds on time and within budget
• Understand how AMI will change meter-to-cash workflows and
processes, particularly regarding impacts to New World and
financial procedures
Finance Director(or Finance • Identify high-level opportunities to continue process and workflow
designee) refinements using the new system
• Identify communication and data requirements associated with
AM I
• Provide specific direction to the Water Billing&Collections
Manager
• Identify opportunities for Public Works to continue supporting AMI
during and after the transition
• Understand how AMI will change meter reading processes
Deputy Public Works Public Works • Identify high-level opportunities to continue process and workflow
Director(or designee) refinements using the new system
• Provide specific direction to Public Works staff involved in water
distribution and meter reading, including the Meter Services
Superintendent
Broadly speaking, the AMI Implementation Team should be led by the Water Billing and Collections
Manager, who will ultimately be in charge of the group using the tool. The Team should consist of staff
most closely involved in managing AMI-related operations. The Team's primary goal is to ensure a
smooth, consistent transition to AMI that contemplates the necessary workflow changes, process
improvements, technology needs, training, customer communications, and service level standards to
support effective deployment. One of the Team's first tasks should involve creating an implementation
timeline identifying activities that are critical for AMI implementation and establishing timeframes to
complete those activities.At a minimum,the Team should meet monthly or bimonthly to monitor progress
on the AMI project, discuss and vet proposed process changes, resolve challenges, and ensure the rollout
is proceeding smoothly.
The proposed AMI Implementation Team primarily consists of a mix of senior staff and managers and
more junior staff who will have to use the technology every day. This creates an opportunity to apply the
management and cultural practices recommended in this report at a high level and will help to avoid
miscommunication between management levels. It is important for all members of the Team to share a
sense of direction, understanding about proposed process changes, and commitment to raising issues and
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challenges for group discussion. Openly and actively participating in the Team will increase knowledge
and awareness among staff and help foster a cultural environment where communication is encouraged.
Another major duty of the AMI Implementation Team will be to increase communication with customers
and stakeholders about AMI. While there has been some communication about the associated meter
change-outs, there has been little talk about what AMI will bring to customers. The City needs to be
preparing customers now for AMI-related changes to avoid taking customers by surprise and inadvertently
deepening a sense of mistrust in the community. Bringing customers along during the implementation
process and making them feel like they are part of the solution is essential.
Finally, the AMI Implementation Team should convey direction and lessons learned from the Team to
others in their respective service areas. It will be critical to gather input, advice, and feedback to ensure
process improvements and AMI-related needs are appropriately accounted for and incorporated into the
new system. The Team should rely on this information to adjust the implementation approach.
Recommendation 16:Continue engaging Tyler Technologies to resolve inefficiencies and errors in New
World.
During interviews, staff reported that software issues with the City's New World program are a driving
factor behind the need to manually audit consumption and billing-related data. Once consumption
information has been cleaned, Utility Customer Services loads this information into New World and
calculates bill amounts. After New World has calculated each bill, staff validate a selection of bills from
each customer type(e.g.,residential, commercial, etc.)to ensure New World applied the correct rates and
amounts to each bill, particularly in cases where consumption reports initially indicated an exception or
error. This is a time-intensive process that can take several hours each billing period. This is just one of
several workarounds needed to make New World operate properly.
The City has engaged Tyler Technologies to remedy situations where New World incorrectly utilizes
consumption and exception data;however,according to staff,these challenges have not been resolved,and
the need to continue manual billing audits remains.
Creating a manual verification process to deal with software limitations does not represent the highest and
best use of available staff. The City should continue working with Tyler Technologies to ensure that New
World effectively and accurately calculates utility bills, particularly as the AMI implementation process
moves forward.While staff will likely be able to save time cleaning and verifying consumption data using
AMI,the need to manually validate bill amounts will remain until errors in New World are resolved.
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Conclusion
Although the City of Pearland has experienced challenges associated with utility billing and the meter-to-
cash process in recent years,the City has laid an effective foundation for streamlining and enhancing service
delivery. Continuing to focus on the culture, process, and related improvements described in this report
will help the City fully leverage AMI and rebuild lasting,trustworthy relationships with customers.
All change management and process improvement efforts require time, perseverance, and focused
attention.This is particularly true in situations where a systemic problem,such as the unbilled consumption
gap discussed throughout this report, impacts a wide array of customers and stakeholders. The policy and
operational changes needed to address meter-to-cash challenges will cany significant impacts and require
thoughtful consideration and careful implementation.There are no simple solutions or quick fixes that can
yield lasting results for the City and its customers. As the process of resolving these challenges unfolds, it
will be important for the City, its customers, and stakeholders in the meter-to-cash process to continue
open,good faith communication while patiently assessing changes to ensure they improve service delivery.
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Appendix A: Current
Process Maps
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•
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.., EFI-E EP •.-• . ,.•
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vroH9-u911eplenauleui{ v o1.IE unuepilen leuon!ppv s.noH 9-1999.9 v99H 9[-sulpnvle,., s.iwH 6-salau1s3 ale.a.a9 v ou8-A+l143aum0 .UIu aB aH `.noV El 3. PeB s•apV9[a6B-speatll.wl
uo!lep9IeA pub uou3apop slap—Ss69OJd gse}ol-Jalay1 lual
rrent Meter-to-Cash Process—Data Collection and Validation
o-wrw
Current Meter-to-Cash Process — Utility Billing
Bill Posting—4 hours After Posting— 13 hours
Verify with Accounting
that the most recent Collect After Billing Complete and
Create billing
due date/payments Complete bill auditsSignaturesreview outstanding
are posted for this register rechecks as received
billing cycle
Email the Lead Billing
Specialist to ensure no Review unbilled Complete and
dates need to be Manually calculate consumption Enter revenue review UM Unbilled
adjusted on the billing accounts accounts on the information
calendar before billing register Account report
posting
Attach email Create printing Post bills and save Complete and
response to billing Calculate bills export file for reports into Water review Billing
packet Peregrine and send billing drive Validation report
to Dataprose
tw
m Complete and
Load non-metered Validate bill samples review outstanding
Verify delinquency consumption and vs.New World Approve print job accounts found from
settings run report pending bills with Dataprose Billing Validation
report
Complete final Collect After Billing
billing approval Completion
authorization Signatures
Utility Billing Recommendations—
Comparison of Raftelis Report,Staff Response, and
Ad Hoc Advisory Committee Review
City of Pearland, TX* 8 September 2021
Raftelis Ad Hoc Advisory Committee Final Additional Staff information/
Rec. Report CoP Staff Response Report update
# December 16, December 18, 2020 July 2021 August 2021
2020
Agree Agree Agree
UB leadership team has been focusing on Identifies this as an area that still needs Since April 2020 a rotation in UB
revamping the Finance division culture to be work. Offered four specific examples that management staff has improved
customer-centric and innovative. Much of highlight the ongoing need.The need spans communication and transparency with
this has been shared on the subject through multiple departments and is not isolated to an outward facing dashboard, cross-
Quarterly updates to City Council and will be UB. communication within UB for
a priority to continue going forward. streamlined responses to customers.
Foster a culture For example, staff has created a
1 of engagement process for identifying and
and continuous communicating high consumption
improvement. billing,and.
Moreover, recruiting staff that are part
of the Enterprise system to contribute to
the upcoming new image for Pearland
water. Looking forward, transitioning
Meter Services to UB will enable
leadership to continue with direct
resources aiding revamping the culture.
1
Raftelis Ad Hoc Advisory Committee Final Additional Staff information/
Rec. Report CoP Staff Response Report update
# December 16, December 18, 2020 July 2021 August 2021
2020
Agree Agree Agree
The Raftelis report provided a good list of Offers additional measuresto track based on UB continues tracking metrics for the
Key Performance Indicators(KPI's)for staff observations which include number of meter Call Center and customer centric
use. Using these suggestions, staff have read upload errors identified; the number of communications. From UB 4th Quarter
developed external facing dashboards that negative consumption reads,number of days Review, Staff consistently and
include some of these measures and have between meter read date, when its sent to successfully processed an average
additional KPI's in development to be added. Meter Services, and when verification is over 3,600 phone calls monthly since
complete;and number of zero consumption September 2020.
reads that are not validated.
Moreover,Staffs average time per call
Establish formal is 4:52, less than the AWWA industry
performance standard of 6:10. In addition to phone
2 measures to calls, Staff efficiently processes over
track service 600 emails monthly.With the transition
delivery. of Meter Services to UB, the team will
focus solely on UB workload and on a
more timely basis.
Zero consumption reads made up 3%
of all accounts in July. These are
primarily due to damaged meter part
and have been tracked and identified
since June 2021. There is not an
ongoing substantive issue with zero
consumption reads.
Agree Agree Agree
32 SOP's were reviewed and updated by UB Identifies this as an area still needing SOPs are updated with current
staff starting in November 2020 in addition to improvement; cites the Cycle 11 February processes, next review of SOPs
the creation of a Knowledge Center for UB 2021 meter read issue as a recent example scheduled for September.
Review and staff to reference. Monthly department of the ongoing need. No SOPs could have been predicted for
update written meetings take place to promote
standard camaraderie, new ideas, and provide the unusual February ice storm and the
3 operating training. Standard scripts and emails for staff resulting cascade of unique read
procedures have been developed for utilization when issues. Since that time, SOPs have
(SOPs) speaking with customers via phone or email. been created for weather events.
regularly. Staff recognizes the need to strengthen
reporting and alerts when there are
variances and departures from norms
to understand consequences of
reactions as best possible.
2
Raftelis Ad Hoc Advisory Committee Final Additional Staff information/
Rec. Report CoP Staff Response Report update
# December 16, December 18, 2020 July 2021 August 2021
2020
Agree Agree Agree
Staff have started cross-training efforts. Encourages staff toconsideroutsidesources Based on availability and budget,
Additional opportunities for process to help develop the training program. Says outside source training will be
improvements were identified between that process improvements are not the same considered, especially the annual
Develop an Meter Services and Utility Billing (Finance) as a training program. software conference.Since the Raftelis
4 enhanced staff. Report, there have been monthly
training program. refresher trainings, bi-monthly UB/PW
meetings and weekly UB leadership
huddles, even with Professional
Development reduced during Budget
FY21.
Agree, with caveats Agree(gives rec) Agree, with caveats
Several activities that City staff had already Identifies this as an area that still needs Staff is working with Rogue Water,and
Improve external undertaken were not included in the report. work. Offered four specific examples that additionally been updating UB website
RogueWaterwasselectedasathird-partyto highlight the ongoing need for improved to provide consistent communication;
communications support and develop a water billing specific external communications plans. These along with bill inserts, bill messages for
5 plans for meter- communication strategy. include Cycle 11 February 2021 meter read known 32/30 Cycle 14 2' bill in same
to-cash issue; two examples with information month; interactive map of switched
activities. presented on the 32/30 plan website; and
development of a permanent utility billing AMI meters, availability of True Up and
advisory board and committee. WaterSmart customer portal
No opinion Cease 32/30 The 32/30 Plan has been successfully
3 options provided: Critical area that needs immediate attention. implemented and billed after
• Disregard unbilled consumption. Six specific points were highlighted by the alternatives presented and Council
• Translate unbilled consumption into committee:
arrears and bill percentage overtime • Inability to validate data related to decided to proceed.
(Raftelis has not confirmed the negative consumption or zero-meter Current arrearage has decreased 39%
Consider feasibility of this option inNewWorld reads. from the original 71 days to 43 days,
alternative or adequate detailed steps to • Top 50 highest percentage increase steadily decreasing 2 days per month
6 complete this approach). pro-active approach by UB staff is since August 2020.
options to the • Bill full catch-up amounts. not inclusive of all customers.
32/20 plan. Responding to Ad hoc Committee
• Enterprise fund suffers financial specific points:
harm.
• Enterprise fund will experience an • Since June 2021, Staff has had the
increase in cash flow by getting ability to identify zero-consumption.
caught up sooner. Negative consumption is
• Move out accounts on the 32/30plan addressed at time of billing; both
when AMI is implemented. addressed in#2.
3
Raftelis Ad Hoc Advisory Committee Final Additional Staff information/
Rec. Report CoP Staff Response Report update
# December 16, December 18, 2020 July 2021 August 2021
2020
• Question on whether or not 13 or 14 • Staff continues to address the need
monthly charges occurred in the to identify and contact the high
past. consumption users based on the
customer's previous month's
usage. As of March 2021,Staff has
increased the identified number
from 25to50.
• If a larger true-up is adopted, the
Enterprise fund will not see an
increase in cash flow, but rather a
decrease in liabilities.
• AMI project is progressing. Staff
has switched over 2,800 meters
from AMR drive-by to AMI network
reading. With a switched AMI
meter, the customer can True-up
and place their account in a
current billing status, 10 to 15
between read date and bill date.
• From 2018 to current each billing
cycle has been billed 12 b ills a year,
with the upcoming known
exceptions of two cycles due to the
32/30 Plan. With the 32/30 Plan,
Council is aware of (4) known
issues since its inception:2 cycles
with 2 due dates in the same month
and 2 cycles with 2 bill dates in the
same month.The 2 cycles with 2 bill
dates will have 13 bills in the year,
however, these bills will be
assessed base charges and the
monthly contractual fees of MUD
and garbage only to the first bill
date billings for the same month.
4
Raftelis Ad Hoc Advisory Committee Final Additional Staff information/
Rec. Report CoP Staff Response Report update
# December 16, December 18, 2020 July 2021 August 2021
2020
Agree Agree Agree
Once billing is caught up, this is the next Concur with Raftelis that this opportunity is Upon completion of 32/30 Plan, the
step. ripe for implementation as the City's AMI billing cycles will be synchronized with
system comes online. specific bill dates and reading periods
Synchronize to account for a total of 365 days/year,
7 meter reading to prevent billing lapses. With AMI
and billing phasing in by meter, accounts will be
cycles. able at the customer's choice to "true-
up" their unbilled amount, and be
placed into a separate billing cycle to
bill currently, 10 to 15 days after read
date.
Agree, with caveats Agree(gives rec) Agree
Implement a Agree with the recommendation but the Refers to specificrecommendationsfromthe With Meter Services workload
streamlined specific process mapping should be further Metersubcommitteeforspecificcritical items specifically for UB, along with meters
8 meter-to-cash reviewed considering the Asset that should be addressed. switched from AMR to AMI, Ad hoc
process. Management software. recommendations can be incrementally
addressed as the transition progresses
over the upcoming FY
No opinion No comment
More discussion is needed before
considering implementation. We are
9 Reorder billing currently undergoing change by introducing
cycles. the new metering system and catching up
the billing arrearage. Making the change now
would lead to an increase in customer
inquiries.
Disagree Agree Making additional calls is not possible
Making additional calls to customers from when reducing the lag time in billing as
staff (not utilizing the automated system) we are with the 32/30 Plan. Door
Enhance would be time consuming and slow down the hangers for delinquencies would
10 delinquent time to handle each incoming call. The identify non-paying customers to
account recommendation of a door hanger for neighbors and is not customer-centric.
notifications. delinquencies is not supported by Staff; it
would physically identify non-paying
customers to neighbors, bringing additional
concerns.
5
Raftelis Ad Hoc Advisory Committee Final Additional Staff information/
Rec. Report CoP Staff Response Report update
# December 16, December 18, 2020 July 2021 August 2021
2020
Agree, with caveats No comment Since Sept 2020, Customer Service
Staff agrees that call center staffing should Team has successfully responded to
be optimized through rotating employees over 3,000 phone calls in an average of
Create who are on the phone and those who are 4:52; less than AWWA Call Center
designated doing other tasks to avoid interruptions and Industry standard of 6:10; monthly call
morning and maximize customer service. Exploring center metrics allows leadership staff to
11 afternoon call- options with Selectron to better route calls monitor and evaluate/train staff.
takers to depending on the topic.
streamline CSR Customer Service Team also responds
workload. to customer emails from new accounts
to questions regarding consumption. In
July, Staff responded to over 1,000
emails.
No opinion Agree Ag roc v,it`' c ;nts
Current staffing structure is in line with other Recommends that City Council evaluate Meter Services is transitioning to UB.
model cities. structure for performance and cost AMI will significantly reduce drive-by
Transition to a considering other benchmark organizations. meter reading; however, maintenance
centralized Also suggests considering other options for and monitoring of the AMI system will
12 staffing structure the service. increase. This is due to replacing meter
overtime. parts due to customer damage (I.e.
lawnmowers damaging the meters
antenna on meter lid), monitoring alerts
and connectivity of the meters'
endpoints.
Adjust staffing to Agree Agree
reflect short-term This is being planned through the AMI Recommends that this be evaluated at the
13 needs and implementation process. same time as#12.
prepare for AMI
implementation.
Pilot a 4-10 Disagree No comment
14 schedule for Staff currently works on 9/80 schedules,
meter-to-cash which provides 30 minutes before and after
staff. hours.
Create an Agree Agree
inclusive AMI Utility billing has been involved in the project Identifies this as a work in progress.
15 since inception.The previousfocus has been
Implementation equipment installation and is now pivoting
Team. towards a more UB-centric team.
6
Raftelis Ad Hoc Advisory Committee Final Additional Staff information/
Rec. Report CoP Staff Response Report update
# December 16, December 18, 2020 July 2021 August 2021
2020
Continue Agree Agree
engaging Tyler Billing software is regularly upgraded. Staff Notes that some of the errors identified may
Technologies to currently has and utilizes a bank of training not have been New World errors.
16 resolve hours to stay current on functionality (48
inefficiencies hours remaining). Staff to attend billing
and errors in software training events to refresh and learn
New World. new features and networkwith other cities on
the same software.
7