Estimated Billings. Doug Evanson. Board Meeting. Senior Vice President and CFO. October 6, 2015
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1 Doug Evanson Senior Vice President and CFO Board Meeting
2 Causes: A perfect storm Estimations Staffing Unique weather pattern Meter replacement program Page 2
3 Estimated Bills & Staffing 2014 Actual Reads on 97.2% of All Bills 2.8% Estimated Bills With Est. Reads 25,000 Meter Reading Headcount 60 20,000 15, ,000 5, Jan. Feb. Mar. Apr. May Jun Jul Aug Sep Oct Nov Dec Bills with Estimated Reads Meter Reading Headcount - Page 3
4 Valid Reasons for Estimates Page 4
5 You Can t Read What You Can t Find Page 5
6 Combine Disparate SAWS & DSP Billing Cycles One of Last Operational Activities to be Fully Integrated Page 6
7 New Billing Cycles Map Re-drawn and Consolidated Rolled Out Beginning January 2015 Page 7
8 Estimated Reads & Staffing Jan. to Sep Actual Reads on 90.2% of All Bills Not Acceptable Bills With Est. Reads 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Meter Reading Headcount Jan. Feb. Mar. Apr. May Jun Jul Aug Sep Bills with Estimated Reads Meter Reading Headcount - Page 8
9 Unique Weather Pattern 22.5 Inches of Rain in Q2 Followed by 2.3 Inches in Q3 Millions of Gallons 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Rainfall in Inches Jan. Feb. Mar. Apr. May Jun Jul Aug Sep Water Pumped for Usage Rainfall in Inches - Page 9
10 Meter Replacement Program Effort to Replace Meters > 15 Years of Age & Sick Meters Meters Replaced By Month this Summer June 4,615 July 4,785 August 6,249 September 6,345 Page 10
11 Improvements were already taking place Increased customer-oriented approach Efficiency and process review conducted Board action item #21 from today s agenda Reviewing technology solutions Neighborhood meetings to address concerns Page 11
12 Efficiency and Process Review Meter Reading and Billing Findings Meter Reading costs were lower than average, both on a per-customer and perreading basis, and service levels were stronger than average. Within the billing area, costs were mixed, but mostly on the high side, likely due to the high volume of exceptions and postmail adjustments. Service levels were either around or below the median (between Q2 and Q4). Page 12
13 Immediate Responses Media blitz Letters to those affected Calculating and posting credit adjustments Page 13
14 Rapid response Sessions Conducted Friday Sept. 25 Thursday Oct. 1 Saturday Oct. 3 Saturday Oct. 3 9 a.m. to 3 p.m. 9 a.m. to 4 p.m. 8:30 a.m. to noon 1:30 p.m. to 4:30 p.m. SAWS HQ 2800 U.S. Hwy. 281 N Encino Branch Library 2515 E. Evans Road Tobin Library at Oakwell 4134 Harry Wurzbach Road Cody Branch Library Vance Jackson Page 14
15 Long-Term Solutions and Goals Increased quality assurance reviews Review billing review algorithms Use industry best practices Communicate billing statistics to Board regularly January bill redesign will indicate any time a bill has been estimated Continue to evaluate technology-based solutions Continuously improved route efficiency Page 15
16 Doug Evanson Senior Vice President and CFO Board Meeting
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