Council Agenda Report s9

COUNCIL AGENDA REPORT

City of Anaheim DEPARTMENT OF PUBLIC UTILITIES

DATE: JUNE 5, 2007

FROM: PUBLIC UTILITIES GENERAL MANAGER

SUBJECT: APPROVAL OF PILOT OFF-SITE CALL CENTER AGREEMENT WITH CALLNET CALL CENTER SERVICES TO PROVIDE EMERGENCY CALL ANSWERING SERVICES

ATTACHMENT (YES/NO): YES ITEM # 35

RECOMMENDATION:

That the City Council, by Motion:

1. Approve an agreement between CallNet Call Center Services, Inc. (CallNet) and the City of Anaheim (City) to provide the Public Utilities Department (Department) with after-hours/emergency call answering services (Agreement) for a term of three (3) months with automatic monthly renewals not to exceed one (1) year at a cost not to exceed $70,000; waive Council Policy 402; and

2. Authorize the Public Utilities General Manager to execute the Agreement on behalf of the City and any and all other documents necessary to effectuate the intent and purpose of the Agreement.

DISCUSSION:

Background With the Department’s current telephone system, customers that call in after normal business hours to report electric trouble are routed to the electric system operators. These electric system operators are on duty around the clock, monitoring and controlling the Anaheim electric system. At times, these electric system operators may not be able to answer customer calls in a timely manner, given that their priority is to stabilize the power system and/or call in crews to make emergency repairs and restore power as needed. When these electric system operators are unable to take after-hours customer calls, the calls are then directed to an automated interactive voice response (IVR) system that prompts customers to leave their phone number for a call back. This information is manually transcribed, and customers are called back to assure them that we are aware of 201 S. Anaheim Blvd. Suite #1101 the power outage, obtain any information the customer may have about the outage such Anaheim, CA 92805 as downed wires, and/or to give them an estimated time of power restoration. Tel: (714) 765-5137 www.anaheim.net However, the maximum number of concurrent calls that the existing outdated system appears to be able to handle outside of normal business hours is six; the seventh and subsequent callers will receive a busy signal. The current IVR system is also now routinely overloading, resulting in customers simply hearing endless ringing. The IVR has deteriorated much more rapidly than expected, and steps must immediately be taken to insure that appropriate levels of customer service are maintained while new systems are procured.

The Department is addressing these issues through a process review and call handling systems upgrade. It is expected the Department’s telephone service will be upgraded in about six months, including adding additional lines to allow more concurrent calls and improving the functionality of the IVR. However, given the sudden frequency of serious problems with the current call handling system, the Department must take prompt measures to insure customer service while these telephone improvements are accomplished; therefore, the Department proposes to enter into an agreement with CallNet.

CallNet is an offsite call answering service located in Bloomington, Indiana. The proposed agreement will expand the number of lines available to customers after hours from 6 to 24. These phone lines will be available for usage during normal business hours if call volumes suddenly overwhelm the Anaheim call center, as may occur during a widespread or lengthy power outage, or in an emergency. Obviously, the question arises, why only go to 24 phone lines, why not more? CallNet could make 100 phone lines available; however, physical limitations with Anaheim’s existing phone switches limit the number of simultaneous calls into the Utility Call Center to 24. Anaheim Communications personnel are making improvements which will raise that number to 48 phone lines by the end of October this year.

Agreement Details The Department proposes to enter into a one-year agreement with CallNet for after- hours/emergency call center services. Under the terms of the agreement, CallNet will provide this service for a one-time set-up fee of $22,500, plus a monthly fee of approximately $1,500. The monthly fee includes 1,300 minutes of phone answering service, with all minutes over that limit incurring a cost of $0.79 per minute. We are estimating an additional monthly minute-usage to be approximately 1,600 minutes at $0.79. Therefore, the total estimated annual cost for this agreement is $65,500. The running contract total will be closely monitored to insure we do not exceed the allowed total cost.

The Department’s proposed agreement with CallNet is part of a pilot program to test the feasibility of using an out-of-state call center to answer the Department’s customer calls during large scale emergency events such as a significant earthquake or widespread power outages that could occur during or after normal operating hours. This proposed agreement is not intended to replace the use of local customer service representatives, 201 S. Anaheim Blvd. but rather to respond to the immediate problem of a rapidly failing after-hours customer Suite #1101 Anaheim, CA 92805 call system, as well as evaluate one option to respond to unexpected large call volumes. Tel: (714) 765-5137 www.anaheim.net During the year, the Department will evaluate the implications of the use of this third party call system. It may be that this could continue to serve as an emergency backup long term, provided we did not access their services too frequently. At .79 cents a minute for all calls over a predetermined number, the costs could be prohibitive. If it is determined that an offsite call center could be a worthwhile long term backup, then a provider will be found via the typical bid process.

How It Will Work With the CallNet service, the customer experience should generally be seamless. When a situation warrants, the electric system operator will manually forward the phone lines to CallNet. CallNet will be alerted by a call identifier that the call is coming from Anaheim Public Utilities. After the connection to CallNet is activated, customers will interact with CallNet’s representative. CallNet representatives with be provided with standard scripts and other supporting information to provide responses to customers.

CallNet representatives, using information gained from Anaheim customer calls, will then provide Anaheim electric system operators with detailed information on the outage via an email. This process will provide the Department’s electric system operators with critical information that will facilitate a prompt restoration of power service to customers.

The Department will randomly monitor CallNet’s representative to insure courtesy, responsiveness, customer focus, knowledge, and the provision of accurate information.

CallNet’s Role and Qualifications CallNet has 20 years of experience with providing third party call center services and operates over 200 around-the-clock customer call centers around the United States. In addition, many of their clients include public utility companies such as Salt River Electric, KY.

In addition to providing overflow call answering service during periods of high call volume during business hours, CallNet specializes in providing after-hours and disaster and emergency response call center services. Finally, adding to CallNet’s value as an emergency call center is the fact that it operates outside of the State of California.

Future Third-Party Call Center Opportunities Should the pilot with CallNet prove that a third-party call center can provide effective service, it may be feasible to consider something similar for overflow call handling in the new 311 system. Additionally, as the recent Anaheim Hills area fire proved, having the capability to answer calls at all hours can provide valuable and timely information to our residents.

IMPACT ON THE BUDGET:

Sufficient funds have been included in the Electric Operation budget account number 201 S. Anaheim Blvd. 525-521-6274-7825. There is no impact on the City’s General Fund. Suite #1101 Anaheim, CA 92805 Tel: (714) 765-5137 www.anaheim.net Respectfully submitted,

Marcie L. Edwards Public Utilities General Manager

Attachment(s): CallNet Agreement

201 S. Anaheim Blvd. Suite #1101 Anaheim, CA 92805 Tel: (714) 765-5137 www.anaheim.net