Memorandum

City of Lawrence

Finance Department

TO:	Dave Corliss, City Manager
FROM:	Ed Mullins, Finance Director
CC:	Ron Hall, Information Systems Director
Date:	June 4, 2007
RE:	Interactive Voice Response

Background 

The Finance and Information Systems Departments have been evaluating the installation of an interactive voice response system (IVR) for the Utility Billing Division of the Finance Department.  The system is designed to lessen the impact of calls on the customer service employees will providing 24/7 access utility billing information to our customers.  A total of $50,000 was included in the 2007 budget for the purchase of the software.

Analysis

Because of the need to integrate the IVR system with the utility billing software, Information Systems recommended the VoiceUtility software maintained by Selectron.  Selectron also provided the software for the Building Inspection IVR system.  The software will allow callers to access their Lawrence utility information at any time from their telephone.  The following information will be available to the caller:

1. Current Balance Owed

2. Last Billing Date and Amount

3. Next Billing Date

4. Last Payment Date and Amount

The software will also be able to fax or email the customer their payment and billing history.  By automatically answer some common customer questions, current Customer Service Representatives will be able to better respond to more complex calls.  During the first quarter of 2007, an average of 8.57% of calls to the Utility Division was abandoned, primarily because the length of time required to answer the call.  The IVR system should help reduce this number in addition to providing the customer the ability to query their account in the evening or on the weekend. 

 The cost of the Selectron VoiceUtility system is $46,400.  The quote includes a dedicated server, design and development of the software application, on-site installation and training, and a one year warranty.  In addition to the Selectron software, new software from SunGard H.T.E will be required at a cost of $7,235.  The SunGard software is required to provide the interface between the utility billing data and the Selectron system.  The total proposed cost of the IVR system is $53, 635.   

Recommendation

The Utility Billing Division of the Finance Department has a total of $75,000 budgeted for computer equipment in 2007.  A total of $50,000 was budgeted for the IVR system and $25,000 for the replacement of our payment processing hardware.   The current payment processing hardware is suffering from frequent breakdowns requiring additional staff time to process utility payments mailed to our lock box.  A cost estimate has not been obtained for the new hardware. 

It is recommended that the Finance Department be authorized to spend approximately $53,635 for the IVR system.  If the cost of the payment processing hardware exceeds $21,365 either additional funds will be reallocated from other budget accounts or the replacement will have to be delayed.