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House | April 2, 2015 | Chamber | Transportation

Full MP3 Audio File

Appropriations on Transportation Committee meeting and Rules Chairman Lewis sends his apologies. We did have a Rules Committee this morning that ran actually about 30 minutes over. So for all you all that we are starting to get anxiety about this committee I hope that you can hopefully rest now. We'd like to introduce our Sergeant-at-Arms, but first and foremost, thank you all for the service that you provide for us and the citizens in the State of North Carolina. With us this morning is Carlton Adams, Martha Gadison and David, tell me your last name? David Leeton. Is that correct? Thank you very much. Also we have two pages with us today. We have, and I ask you guys to stand up, Stewart Haines. Good Morning Stewart, thank you for being here. He is sponsored by Representative Susan Martin and Carolyne Hall, is that correct? Did I do the Hall work[sp?] right? Ans she's here sponsored by Speaker Moore. Good morning very possibly try to get through our schedule today, if not, we'll unfortunately have to adjust and just slide back a little bit, but first step this morning, we're going to re-adjust the agenda, just to make, hopefully, best use of our time and I understand our commissioner Thomas, after his schedule to be with us this morning, and so we're going to take advantage of that and hear from division of motor vehicles North Carolina's commissioner, division, Motor Vehicles, Kelly thomas.commissioner, welcome. Good morning, and thank you again for the opportunity to discuss what I do for this state, what your state employees and contractors do for this state, and how they improve that were being made, as an army guy I always lead with a mission statement, I always put it in front and I want to highlight about four words, quality, professional, value based integrity across all DMV functions. If you look at our core functions and service network, organised today with a central management, I have one deputy commissioner in charge of reform, one assistant commissioner in charge of all personnel, logistics and legislative affairs, a field services organization, processing services and license and theft bureau. I'll show you more here in an example of how those are broken out and why this reorganization makes a difference. Currently today, the fields services are 259 field locations that touch all our customer services, and to put it in an example, the license plate agencies who represent me as a state contractor touch 75% of the customers of North Carolina for DMV, in other words every annual renewal is done by a licensed plate contractor or a state officers. I'll see you in driver servicies either once every eight years, or once every five years. Again the back end processes services are not normally a customer facing services their are either done through title review, registration and publication. license in theft 203 law enforcement agents. If you look at the major revenue categories addition in this past year is in tax and tags. One week prior to taking this job the secretary informed me that I was also going to be not only the motor vehicles, but the tax collector for the state. I found that very amusing at the time, but I didn't understand what tax and tags meant. What it's done is, you'll see that our percentage of expenditures to bringing in revenue, will significantly dropped off this year and what we're providing back to the state. I'm very proud of the tax and tag role out. Those efforts continue to improve our relationship with the DOR and the burden of this carried most on our licence plates agents contractors has been just a tremendous support. A look at last year's actual expenditure and this year's budgeted forecast, it's very, very close, there's not any significant changes between the categories of what's projected and what's required, but we'll highlight that the tag and tax and the License Plate Agents compensations, is also included in this along with the credit card figures or fees that are used currently at License Plate Agencies. Later on this will be able to establish credit card usage and capabilities [xx] grab your

license locations also. I'm going to talk about DMB reform I'll start with what externally we reviewed our internal studies and what we call as a third party solution. To put it in simple terms, the strengths, weakness, opportunities, and threats were additionally identified established by deputy commissioner [xx] as he reported to DMV about February of 2013. Soon after that the vulnerability analysis was conducted to determine what we were at most risk in our organisation We talked about several pilots and mostly, and mostly I'll talk about the misrepresentation, the driver license services pilot that have been completed and the results of those. The external studies as we were looking for best in business. We visited Virginia, Florida Indiana and mostly looked at some of the private sectors. Trying to see what they found as the best in business dealing with customer service. Lastly on the third party studies, the voice of the customer survey was conducted November and December of 2013 and gave us a look not only from our customers point of view but also our partnerships. The study of the license plate agency was something if you told us to do, I guess they are in two asssemblies and those parts one and two, done by Intrum, those studies are briefied mentionly, briefied just shortly here in part of our reform. When we look at the results of the studies, this is what they told us to do, though we payed credit cards with credit card at all locations where the customers ask for, but they already do more online transactions. Trying to retrain employees on customer services, the truth is that it's been 20 years since any customer training, customer service training, has been done for not just the state employees, but also the License Plate Agency contractors. I'll show you some of the study that, some of the training that we were able to complete. One with hours of operations. I mark those two as completed, however, I tell you that the customer service training is continuing training opportunity. Victor recommended standardization of our term limited contracts, today, I think you all know that there's two types of licence pledge agencies contract, one is a perpetual contract license they will never lose their contract unless they violate a law. The other one is a term contract normally three years with two one year extensions, I've asked and the partnership have asked if we make it a standard contract. Continuous and proactive training for LPA agents if they trained 30 years ago how to be a licensed play agent they should know things have changed but we were not continuing or maintaining an opportunity for them to continue to be educated. Increase online service ability, consolidate driver license and LPA where possible and systems modernization and data tracking capabilities. All these came out of the study, and all these have been integrated, but   l'll show you just here in just a second, how we looedat the integration and, some of the references made to our lessons learnt. Here's a drivers license pilot the pre-pilot wait times were able to be reduced by 83%, and our service times by 27% what this took into count with several factors. What is the best way to great a customer when they come to the MV? What is the service that they need while they're at the MV? And how how can we make it a one time visit and not a multiple return, so using the appointment schedule using designated road testers instead of each examiner had to go a road test we were able to find out what really made the biggest difference, we found what made the difference was or access customers using a facilitator or greater, and the greeters function as you came in into the drivers services area was actually determined if you had the documents and what we could do to help you, also found that we've established the first generation keyoffs[sp?] I call it first generation it was basically it was an online computer that gave you access to the internet, and if you came to DMV without your approved to a resident sit for example you didn't bring a telephone bill with your current address on it, you could go online and download your current address from that bill system and that way you wouldn't have to leave the MB, and comeback also provided WiFi officers another officers another effort of improving customer service and support, but also to give you opportunity to recheck your systems on what you needed to bring. again the facilitator, the technologies, and the flow and the

officers is what mad the biggest difference. many of you saw this example last this is our strategic reform plan. It's built on five pillars it starts with customer service, business improvement, modernization, central improvement, excuse me, capital improvement, and a workforce development each one of these has a line and an excel spreadsheet that goes year by year of what we can expect to achieve and largely what is we're trying to get achieved and with your terms. Many of the IT projects that Mr. talk about here after I'm finished, we'll go into most of the information technology reform, but again, these are the five tellers that we use and trying to develop it. When we talk about just customer service, is not just a smile when you come into DMV, is more an attitude and we talk about how we change the culture of DMV, we can change it with training, we can change it with improved technology, but we can also improve it with work force development I have had much support from OSHR on how to do that. A small example of that is, when I first got here 18 months ago, unfilled rate was just over 20%. In other words, at one time we had more than 23 license examiners not filling seats, and if a license examiner could serve somewhere between 40-50 customers a day you can imagine how many customers we have not been able to serve at DMV Services, but thanks to the hard work of assistant commissioner and OSA child support, we have a continuous posting now, for all driver's examiners. I'm proud to say that our unfilled ratio today DMV is about 6%. There's a driving change timeline for 2015, we used the same type of timeline last year this is a world that goes to the middle of the slide, the top portion of the slide deals with customers impacts as are build on the five pillars, remember the pre-sitting the bottom portion of this road has to deal with all the business level improvements and changes. One thing that Mr. Omar highlighted to you in his presentation there is online services and x-generation credentials that's slightly behind any user acceptance testing so instead being available yesterday it may be May or early June before that particular capability comes online but again this what we use internal an external to show the changes of North Carolina DMV. I spoke briefly about the reorganization and what it means to DMV to reorganize, as an army guy you can imagine as I got here and saw 14 driver services districts, 11 vehicle services districts seven or eight licence and [xx] and 22 medical hearings, I was absolutely going crazy. I couldn't figure out who it was I needed to speak with any of one of these districts to get a feedback on how to product and our service times were in cost to feel, luckily we're able to consolidate through the major customer attaching organisations, our driver services and vehicle services under one location into one director now called Field Services. Again those are all the four facing customer touch points for DMV operations, whether there's a licence plate agent for whether as a driver licence examiner, those are those field services, the processing services of the back end, technically are the ones that continue to review for insurance, those documents that are collected from the field to ensure that identity and the verification of vehicle VINs and proper titling is conducted. The license in [xx] as in seven districts now. Same districts that match the driver services and vehicle services field districts. The savings from this as the benefits that I considered is a centralized management function, they clear the fine priorities and a unified mission across DMV. No longer are we stood[sp?] piped into the driver services or vehicle services only type of organisation. One of the initiatives that should have started early, in the DMV reform was extend our operations, I don't show you this map to hurt your head about how many greens or how many blues or how many reds, but only to highlight this was rolled out in about four phases, the number of offices that we could accommodate with extended hours couldn't do it in immediate one-time shot, they had to role it out slowly so again 19 services, 19 offices providing over now over 50000 customers in extended hours. Those extended hours relay Monday

through Friday 6PM or Saturday to 12PM. Some of those are part time offices, in fact the part time offices and the full time extended hours offices are under current review as we're doing a link six sigma to determine if we're actually in the right locations, somebody sites are not returning as many issuances as you would expect. However, I'm happy to say that in 30 minute drive from each of these locations we're able to service more than 86% of the population by the location, that doesn't mean that the want to come there, but they are available to them at those hours and extended services. Again this is just another example of how DMV is coming into the customer and so you don't have to wait for us. I spoke about the customer service training and why it was important and this is what we did, as we partnered with late tech and to achieve what I thought was a requirement and late tech came in with a very good option for us to how we could instruct on how we can teach at two levels, a leader level and at the coac level DMB customer service operations, so I call this customer service 101 and to date we're just over 1800 employees trained and now every new employee that joins DMV will also will have to attend the training. And we're looking at now through DOT's training opportunities at level 201. Level would be tailored customer service training for a license in [xx] that would be different than what a license agent training as they deal with [xx] registrations and we slightly [xx] for a driver examiner. Okay, and that would be the 201 level for our customer service continuation training and our DMV optimization and modernization in accordance with the top 25 offices somebody called these our top 25 problem [xx], but it's not really true. It really is our top 25 producing or wait time offices across the state and our optimization, we are able to now streamline the customer flow. We also have all the facilitators thank you for the ones that you sent us last year, the 14 examiners, and now we've got each camera or each station will have a camera, so instead of having a cue, at a drivers services location where everybody is either waiting for one camera, the examiners should sit down with the [xx] tp receive the functions from, will also be able to service with the camera. The electronic signature pads is another plus, this current configuration includes a customer facing screen. How many of you had a family member that have taken that may have taken a photo at DMB and they didn't like the photo, but they also weren't not given an opportunity to change the photo, but the customer facing the screen now technically we can give you that option of is this photo OK, or would you like to take another one. I know many of my customers and families like very much. I spoke about the link six Sigma studies of the drivers' services. This is the most recent study. 2000 as well over 7, 000 customers observed in 42 days, what type of functions will be and completed in a drivers services location and who was facilitating the most of it and what they found was 18% of our actions were done by the facilitators and why is that important well if I have a facilitator that is also examiner qualified I'm able to get to this population very, very quickly and determine how much this  can be done and how fast it can be done. Again the 14 positions which the assembly provides in this last session were very helpful, through DMV reorganization we're able to remission and staff the other 11 out of DMV position. The Mobile Unit Program, vehicles on the left look like a winner [xx] they drive like the winner [xx] when they are in the North Carolina or on the sea shore they're very difficult to manoeuvre in some locations and during the winter. The current operation is for every one on these mobile units I have to send the chase vehicle with it. So it's two examiners one driving a mobile unit, one driving a chase vehicle primarily because the reliability of this vehicle to get to its intended location is not very dependable. So currently through modernization efforts, we have the one on the right, this is a suburban. It's able to carry and configure two driver-examiner stations, with 4G capability, and with that system and the current increase of capabilities, we'll be able to go from 22 mobile unit stops to probably 70 plus mobile unit stops. Why is that important to you?

What's important to me is the voter ID actually came out a year or so ago. This gives me additional options of where my outreach could go, and how we can service customers for not just driver service extensions that also voter ID issuance. Again this has been a significant cost savings, and I commend Deputy Commissioner [xx] and the team, for the efforts with I team and also to make this a reality if you have a question ask now senate [xx] Yeah, thank you sir, Today the mobile units are published on our DMV, my portal website, there are 22 and that's a limiting factor using this legacy [xx] as we add these other seven opportunities, one per district, basically will be the distribution, I'll show you in a slide from now, our placement strategy and what that really means. But not the first to operate from either one of these units he is going to require support locally. Today the mobile unit goes so location where we've had 220 plug installed on a power line or something in somebodies parking lot and that's how we establish operations, the suburban require basically somebody to donate an office space with one ten outlet in it, that we can set up operations. So again both of these dependency on our local town municipalities for support and that's what we're looking forward to, there's more inputs. Follow up. [xx] the nursing home facility I've received a question [xx] concerned [xx] Yes sir thank you for the question not only will it be able to go to a nursing home it could also go to a college campus so if you think about the opportunities that these provides us I was asked this past year to put the lonovego[sp?] at a local college here during one of their homecomings we found that we couldn't physically get the mobile unit on the college campus it was too big. So this is a good example of why this new system will give us more option and more capability. But Sir, we'll require town municipality county commissioners to give us office space, half a day one day a week, two days a month, whatever it ends up being for us to operate. I think also it provides some consistency because you don't want the people across North Carolina do not know where to get a chase of DMV mobile unit next week so provide that consistency as well, any other quintessences Thank you sir, Again this is what I'm talking about as a data driven placement strategy, and the question I've been asking since I've been here is how many places does DMV need to be across the State. I've looked at some several jurisdictions north and south of us and by statute they're require to provide services one per county that obviously doesn't work for North Carolina again I go back their's 269 touch points, 269 DMV touch points, in 100 counties, and yet I've got three counties with no drivers service, I got two counties with no vehicle services. So this is why we're trying to look at this data placement strategy to determine no kidding if I'm at 22 mobile unit site locations today and have a capability of going to 70 where should they be. I can't pick the brick and motor unit and move it out of [xx], but I can definitely look at opportunities of where the population is by zip code, by issuance, by vehicle registration, by population growth using our GIS mapping strategy. The GIS mapping program and database is the same one that DOT uses to build highways, roads and determine what is required there, so is not like Kellys Rowland is own over here trying to figure out where the spacemen should go it's using this same database and program as DOT. So this is what's going forward so today if I had to look at this statistics, today being this providing within a 20 minute drive 90% of the population in North Carolina. That's a good statistics Sir, but it might not be 90%

of the people in Washington County, yes sir the driving force behind this all. No Sir, I agree and again I can't speak to the committee of panel because I have asked what that definition is but the DOT the GIS planners are working the same data. So when we say population by zip code or population by registration, the commuter pattern will be added to this as an example of how we're going to reach the customers in North Carolina. Thank you sir. Last year I spoke to many of you about the tsunami of driver license insurance and I used this as an example of why we needed to go online but we're new rules for driver license. You can say what happened about zero to 2007 to 008 with a five year renewal pattern now, despite his coming between 15 and 16 for the re-issuance or renewals of those license. So instead of having longer lines at DMV services, I asked last year for permission to do online renewals and thank you for that support and with IT and more for trust, we ought to see that here in the next 30-60 days, but I'll show the next why that's important. Without this capability, those would equate to lines at DMV services. This eligibility of customers that we believe that could renew their license online, and if we use just 30% of those who would exercise that opportunity, we would have a significant chunk of these re-issuance or renewals taken out of play, I also going to say if I had more than 12% due vehicle renewal online would have less at LPAs. So I'm looking for 30% on the driver renewal. This an example of what the my DMV portal services we provide our customers, and why is it important that My DMV Portal technically would start viewing the customer and one type and one platform. So today you could go register your vehicle online on one platform, you have to go to another platform to do your driver license address change. With My DMV portal, you could do it all in one. You can re-register your vehicle and do it you could renew your drivers' licence. You, with some legislator changes could renew your voter ID in a few years from now. But this is one integrated my DMV portal that you all have access to on your mobile phone or your app. Eventually this my DMV portal could also show the wait time at your location that you're looking forward to go into. So if I had a choice to go to Spring Forest Rd to go to event at three, using this type of queuing system I'd be able to see what the wait times were at one of those locations. Self service stand alone Kiosk, currently under contract or 35 kiosk and people ask me why is it a kiosk, why does North Carolina need a Kiosk technically the kiosk will service more customers and a driver examiner or a LPA clerk could and that's why currently the program of fielding these will be the 25, or go to our top 25 offices. I've had some questions of whether we'll put them at the mall or at Walmart. I do think that we have that opportunity, but until we finish the placement strategy, I can't tell you where all 35 or at least the ten of them outside the top 25 will go. Starbucks, Big Ed's, Walmart. I've even had some license plate agents entertain the option of if they would pro-purchase one of these, and we put it in their LPA, could they receive compensation from their transactions?  To me it makes perfect sense. It also saves them $12 an hour to play an employee, which technically, this kiosk is performing the same function for. Facial recognition is available on the kiosk, so basically you would walk with the same thing you would do if you were at a driver's services, you would get a receipt, and know by the way now your temporary receipt will have you photo on it. driver license testing this past year we were able to break the code on our state's driver license holders, cost savings

and hour saving were just phenomenal when you think about what it takes to come in to North Carolina, register your vehicle and get you license, the automatic testory[sp?] system down there was another great improvement, they gave us touchscreen capability, we also raised the standard of pass rate from 70% to 80%. As we're looking at center, these are 1779 taxed and tagged phone calls, 2013 when we started at about June, July, you can see the red, you can see your 14 the number calls in red, and you see in 15 we still have a significant number 50, 000 calls a month on tax and tags. This positions were scheduled to have a sunset clause come 30 June of this year because we thought that we wouldn't be answering that many phone calls anymore, thanks for the support and the governors budget are request for 44 of those positions to be retained because I'm convinced the phone calls were not stamped. Vehicle related services, the entry report highlighted that technically the license plate agents transactions were about average and about writing compensation with an exception of, they weren't technically  being reimbursed, or being compensated for cost of living adjustment. So at a minimum a recommendation is a 2.3 adjustment this year, probably 2.3 next year, probably 2.3 the year after that. The other two areas that we're looking at additional compensation changes on IRP transactions and here is an example, by a tracking company I'll go to LPA to register my vehicles this year, I'll bring in 50 vehicles that are registered, technically that license plate agent only gets only a $1.43, not a $1.43 per vehicle they registered, it's one transaction. So those types of changes we've been made aware of a certain company in South Carolina that right now [Tennessee] to do all they like and so forth because of smoother and faster for them as a tracking company to get it done, and I know you work really hard to [xx] customer service are doing more to help our systems in North Carolina Can you, talk a little bit about where [ you may be as far as] with the telephone industry, from things that you do to ensure make customer service a little better for them and Thank you sir. I', m not sure if I can answer a completely but I do know that the IRP operation and function as of January of this year we moved it online so technically you don't have to come for renewal, you don't have to come to Ronny window or Shirley window some of these licenses by the agencies to do that function. You can technically do it online. So that's happened this years what I haven't been able to measure in the last 90 days does that mean we've got more people doing it online or they're still coming into the office? So give me a little bit longer just to make sure that we're able to touch those people and make sure that they come in and use that opportunity, but that was done again by BOTIT was a rapid veiled in our IRP online capability. [xx] now the problem that we're having [xx] [xx] decision where it is going [xx] it's going to the largest is that in agreement? Yes sir I make sure side it's what's called a default say this address and largely that has been corrected, and it's been corrected through DOR's functionality of how the counties, recognize, a person's address, and if it was corrected this past year, that should not ever happen again in this next year. The other thing I do always have done always I've used, the US postal service and the mail, ZIP code sort of so that it matches the US National Database and Registry.

So all three of us now, the US Post Office, the DOR and DMV will see that customer, at the same location, and in the same county. That has been a an approvement, since we started taxing tags in July 2013. [xx] Yes sir I would recommend that we ask the DOR how it's interfaced because I'm not responsible for the interface on that addressing system with the county tax system. I can tell we need every 45 days on a change control board so if you use the process by which the customer goes about adjusting the tax bills when they have they have that to counter, but as far as who [xx] the contract to provide this service so I'm not sure how it's linked to U. S postal service. That's a good question take care of that representative [xx] can we pay in DLR and try to get some information back to try take care of the representatives question. Thank you. License and theft, the Salvage Yard business. I was very new to it but I got to tell you I was very pleased to see the increase the number of stiolen vehicle recovery this year due to legislative changes last year. 200 and something vehicles more recovered this year because of that legislative change. Effective yesterday the year or newer 70, 000 mile omissions went into effect technically two years ago when that bill was passed but now we've been able to realise it and the training that the [xx] for all mechanics at service stations for safety inspections as a real win-win at the community colleges. Our admission interlock systems, the product savings last year for the [xx] signal was a reduction of 87% of processing time and one time savings avoiding about 44, 000 this is a great internet ignition in that program that has been stood up, it matches about 21 of the requirements and based on the draft languages I've seen this is simply to getting more business coming to us. Medical hearings, virtual hearings. A lot of our customers who have violations of the United States, will have to travel in state and if they can't make it to their hearing locations they get, the longer longer time for them to get heard. Virtually hearings capability is exactly what we think we could use everybody here has used to Space time, Skype and some of those other services, this is what talking about providing to our customers. During this last year, we asked to ask to look at what it would cost to maintain the hearing fees at recovery cost for the process. If we put in the full recovery cost we think that it is a technically unreasonable amount of money primarily is the DUI levels $400 for a hearing, we used the green one only because we think that's most realistic and it's also more in concert with other jurisdictions that we survey or talk agencies that we partner with, wildlife commissioners as we're trying to register both trailers together TPF and a our services, DPI for bus drivers services, voter ID with SBOE. Military truck driving CDO of training, another great opportunity currently taught for brag for veterans that are departing, we hope to extend that services this year to the marines that are currently serving. Donate life continues to grow with the millions customer or donor designated on drivers services DHHS on our vital records and our information sharing, and lastly to motor fleet management. Thankfully due to the recommendation from Adobe Canon were able to authorize and train the motor fleet management folks to issue tags to the state vehicles that they purchase part of those being issued to the cutomers. There's a customer I reach again get done with the mobile unit today the [xx] state affair apple festival and [xx] again these are the public outreach that we use the mobile services for. Sir, and I apologize for taking so long, but I'm standing by for your questions. I think we have to try figure out when we get one of those key abstract on the mark of holy road thing that

after another question w can cut that offline, any questions from either Representative Ford or Representative Shepard? Mr. Chair, I don't really have. We will give him a break today. With that commison thank you today very interesting information, I know you're working hard to increase, improve and expedite both the customer services as well as the time it takes the DMV trying to get that reduced for citizens of North Carolina, thank you for the efforts for that. Hopefully one of these days we can see steady hours of pretty much every DMV across our state provide that additional access, with that, seeing no further questions, thank you for being with us, thank you for waiting while we were delayed and this meeting is adjourned.