Loading...
2007-04-17 3-C Power PointActions on "An Analysis of Telecom Operations" April 16, 2007 Public Utilities Board April 17, 2007 City Council City of Alameda Re: Agenda Item #3 -C Presented by Matt McCabe /AP &T 04 -17 -07 Introduction ✓ Consultant report accepted by the Public Utilities Board - Decem ber 2006 ✓ Specific recommendations - 3 categories > Revenue Increase Strategies > Expense Reduction Strategies ➢ Operational Efficiencies ✓ Public comment solicited - 2 workshops in January 2007 ✓ Implementation continues: ✓ Evaluate and Implement Consultant PLUS other recommendations ✓ Implementation Teams established ✓ Balanced budget projection ...SHARED VALUES. 2 1 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 elecom Interfund Advance FY2007 Forecast Comparision with Budget 2,654,470 1,200,000 p Budget Interfund Advance Forecast Interfund Advance Current year Inter fund advance is lower than budget ... trend is in right direction ..SHARED VALUES. 3 Summary SUMMARY OF TELECOM BUSINESS IMPLEMENTATION PLAN Revenue Increasing Strategies 1 Rate Increases 2 Churn Control Program - 5 year program Non -pay program 'Win -back program 1 New electric customers sales pitch 1 Referrals to property managers FY 06 -07 Done Initiated Done Done I Literature to military 3 Add Voice Services Expense Reduction Strategies 1 Eliminate Studio 2 Eliminate Most Marketing Expense and Staff 3 Channel line -up 4 5 Reduce Inside technicians Reduce Installers Operation- Efficiency Strategies 1 Wear Multiple Hats 2 In -house Internet Service Provider 3 Cheaper Billing system 4 Eliminate Overflow call center Other - Non -CCG Recommendations 1 Commercial Internet 2 Marketing Plan 3 Cross - division implementation team 4_,Reduce Interfund Advance Done Done Done Research Done Done Done Done Done Done Research Research In- process FY 07 -08 & later Implement in Fall Implement and evaluate customer counts Continue Continue Continue at increased level Continue Continue Research + Decision Continue and evaluate service impacts Continue and evaluate service impacts Continue and evaluate contracts Continue and evaluate service impacts Continue and evaluate service impacts Continue at increased level Research + Decision after Voice Research + Decision before December 2009 Initial Rate Done Re- focusing efforts In process 1 Reduced by —50% Implement and evaluate service impacts Implement at increased level Implement and evaluate customer counts Continue at increased level J Projected elimination (without Voice cost/revenue) I ...SHARED VALUES. 4 Revenue Increasing Strategies ✓ Rate increases — DONE + Implementation in FY08 ✓ Proposed FY 2008 Budget includes an assumed rate adjustment similar to the FY 2007 adjustment ✓ Control churn 5 year program — INITIATED + Increased level in FY08 ✓ "Non -pay" and "win- back" programs are working well and have been enhanced to reduce losses ✓ Continuing programs for "move- aways" and started programs to sell telecom services to new electric customers, property managers, and the military Revenue increases through increased rates and lower churn; rates are competitive; value to Alameda customers ...SHARED VALUES. 5 0,17,4 Revenue Increasing Strategies Cl Consider the addition of voice services — Research + Decide in FY08 Cl Research into: • Business model • Financial impacts and Risk • Operational impacts Revenue increase through Voice ... upcoming recommendation on future direction ❑ Other churn reduction actions identified beyond those included in the report — Increase level in FY08 • Re -focus marketing ... low- cost /Guerilla marketing • Increase web presence Focus on retaining existing customers; grow customer base; evaluate marketing efforts and make mid - course changes as necessary ...SHARED VALUES. 6 %di' Expense - Reduction Strategies ✓ Eliminate the studio — DONE and continue implementation — Reduced staffing and curtailed production services ✓ Eliminate most marketing expense and staff — DONE and evaluate in coming year — Reduced marketing staffing — Door -to -door contractor replaced by in -house staff ✓ Reduce technicians and installer staffs — DONE and evaluate service level impacts — Open positions and the temporary installers have been removed from the FY 2008 budget. Substantial reduction in staffing expense... evaluate for further improvements or changes based on service impacts and new product offerings 7 1.-.11% Operational Efficiency Strategies ✓ Eliminate Overflow Customer Service — Implementation in FY08 ✓ Procedural changes are being identified and implemented ❑ Evaluate for service impacts ✓ Wear multiple hats — DONE and continue at increased level ✓ Staff is adapting to the change in the organization Substantial culture change and operational changes are in process ... evaluate for further improvements /changes based on service impacts and new product of'f'erings ❑ Become ISP and bring help desk in -house — LATER ... after Voice — ISP functions by contracted specialist ❑ Look at cheaper billing / operating support system — LATER ... 2009 — Contract provisions prevent changes now Due to operational or contractual limitations, some recommendations to be implemented later ...SHARED VALUES. 8 AV Ull Other ✓ Commercial Internet — DONE ... develop focused marketing ✓ Cross Division Team — DONE and continued implementation ✓ Functional Teams established - DONE and continued implementation — Customer Growth & Satisfaction — Products — Communications & Employee Well Being ✓ Balanced budget projection for FY 07 -08 ✓ Zero projected inter -fund advance ✓ Does not include Voice ✓ Monitor closely and make mid - course changes, as necessary ...SHARED VALUES. 9 Questions? SUMMARY OF TELECOM BUSINESS IMPLEMENTATION PLAN FY 06 -07 FY 07 -08 & later Revenue Increasing Strategies 1 Rate Increases Done Implement in Fall 2 Churn Control Program - 5 year program Non -pay program Initiated Done Implement and evaluate customer counts Continue Win -back program Done Done Continue Continue at increased level New electric customers sales pitch Referrals to property managers Done Continue Literature to milita y Done Continue 3 Add Voice Services Research Research + Decision Expense 1 Reduction Strategies Eliminate Studio Done Continue and evaluate service impacts 2 3 4 5 Eliminate Most Marketing Expense and Staff Done Continue and evaluate service impacts Channel line -up Done Continue and evaluate contracts Reduce Inside technicians Done Continue and evaluate service impacts Reduce Installers Done Continue and evaluate service impacts Operation- Efficiency Strategies 1 Wear Multiple Hats Done Continue at increased level 2 In -house Internet Service Provider 1 Research Research + Decision after Voice 3 1 Cheaper Billing system Research Research + Decision before December 2009 4 Eliminate Overflow call center In- process Implement and evaluate service impacts Other - Non -CCG Recommendations 1 Commercial Internet Initial Rate Done Implement at increased level 2 Marketing Plan 1 Re- focusing efforts Implement and evaluate customer counts Continue at increased level 3 Cross - division implementation team In process Projected elimination (without Voice cost/revenue) 4 Reduce Interfund Advance Reduced by --50% ...SHARED VALUES. 10