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HomeMy WebLinkAboutPR 14668: PUBLIC UTILITY COMMISSION - ACCESS LINE RATES INCREASE- FINANCE DEPARTMENT DATE: 04/04/08 TO: STEVE FITZGIBBONS, CITY MANAGE C~ FROM: REBECCA UNDERHILL, DIRECTOR OFNCE RE: P.R.14668 Pursuant to Chapter 283 of the Local Government Code, the Texas PUC calculated the maximum rates by adjusting the City's access line rates by''/z of the CPI arinually. Last year, the City Council declined the automatic increase of 1.7%. The PUC has calculated the rates for this year based upon the 2006 of increase to be 1.7%, plus the 2007 increase of 1.46%. If approved by Council, the. rates will increase from $1.07 to $1.11 for residential lines, $2.41. to $2.50 for non residential lines, and $3..65 to $3.78 for point to point lines. * - If the City chooses to implement the increase, we must respond to-the PUC by April 30. Otherwise, the rates will be implemented June 1, 2007. Implementing this rate increase will generate approximately $16,000 in additional revenue. ' The rates have been calculated by the PUC as follows: Residential Non Residential Point to Point 2001 ~ $ .98 $ 2.25 $ 3.41 2002 1.00 2.28 3.45 2003 1.01 2.30. 3.48 2004 1.03 2.33 3.53 2005 1.05 2.36 3.58 2006 1.07 2.41 3.65 2007 1:09 2.46 3.72 2008 1.11 2.50 3.78 * Point to point lines refer to direct channels.that typically aze high speed and used for commercial purposes. .2007 rates were declined by the Ciry Council. Z:\C[NANCE\RESOLUTIONS\PUBLIC UTILITY COh[MISSION RATES ?OOB.DOC P. R. NO. 14668 RU 04/07/08 RESOLUTION NO. A RESOLUTION ACCEPTING THE AUTOMATIC INCREASE IN ACCESS LINE RATES AS CALCULATED BY PUBLIC. UTILITY COMMISSION, AS IT PERTAINS TO THE AMOUNT OF REVENUES THE CITY WILL RECEIVE AND AS IT PERTAINS TO .THEIR ALLOCATION OF RATES FOR RESIDENTIAL, NON-RESIDENTIAL AND POINT TO POINT CUSTOMERS. . WHEREAS, in 2007, the City Council declined to execute an Update Form from the Public Utilities Commission which would have increased line rates in the City by 1.7%, half of the increase in the Consumer Price Index (CPI) for 2006, and; WHEREAS, the Public Utilities Commission has calculated maximum rates for 2008, based upon 1.7%, half of the increase of CPI for 2006, and 1.46%, half of the increase of CPI for 2007 and; WHEREAS, these rates will be-not be increased unless the City executes the update form attached hereto as Exhibit A, and; WHEREAS, the City Council of the City of Port Arthur finds it in the best interest of the citizens of the City of Port Arthur for the City to accept- the rates as calculated by the Public Utilities Commission, now therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. ,That the facts and opinions in the preamble are true and correct. Section 2. That the City Council hereby accepts the access line rates as included in the attached Exhibit "A" of Residential $1.11, Non-Residential $2.50 and Point to Point $3.78. Section 3. That the City Council hereby authorizes. the Director of Finance to execute the update form attached, including these rates. , Section 4. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this 22 day of April, 2008, AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: NOES: i ATTEST: Terri Hanks, Acting City Secretary APPROVED AS TO FORM: %`~( ~a'! Mark Sokolow; City Attorney APPROVED FOR ADMINISTRATION: Steve Fitzgibbons, City Manager l Rebecca Underhill, Finance Director Mayor «~'~, ,LISIHX~ Public Lltllrty Gomrn~ss~on~ Qf Texts. " :~ _ 1701 N. Congress Ave., PO Box 13326, Austin, TX 78 71 1-332 6 RECENEG 'APR 04 2D0~ FINANCE DEPARTMEPI~ 2008 CONSUMER PRICE INDEX (CPI) ADNSTMENT TO MUNICIPAL TELECOMMUNICATIONS RIGHT-OF-WAY ACCESS LINE RATES March 27, 2008 PURPOSE This letter is to notify you that your city's 2007 maximum access line rates have increased by 1.46% due to inflation, also known as CPI: This adjustment has been made pursuant to Chapter 283 of the Local Government Code (House Bill 1777). DEFAULT RATES FOR 2008: NO CHANGE Based on the choice made by your city in April- 2007, your city's 2008 rate will be adjusted for inflation, or will remain the same as your 2007 rate. According to our records, when similar CPI adjustments were made in Apri12007, you opted not to adjust your rates for inflation, i.e. you chose LESS than maximum allowable CPI-adjusted rates. Therefore, your 2008 rates will REMAIN at your 2007 level and your rates will NOT increase. You have the option to refuse this default rate and request an.increase in rate by taking the action explained below. ACTION BY CITY: TO REQUEST AN INCREASE (1) You do not have to respond if you desire to keep your 2008 rate at the 2007 level. (2) Respond ONLY if you want an INCREASE from the 2007 rates. (3) To request an increase, notify the PUC using page 2 of this letter no later than April 30, 2008. (4) The PUC does not require City council authorization; however, ifyour city charter requires it, please do so immediately. (5) Verify your contact information and highlight any changes. (6) Make a copy of this document. WHAT HAPPENS IF A CITY. DOES NOT RESPOND BY APRII.30, 2008? If a city does not respond by April 30, 2008, the rates for your city will remain at 2007 levels. The next opportunity to adjust your rates-will be September 1, 2008. WHAT HAPPENS NEXT? The PUC will notify telephone companies of your desired rates and you will be compensated accordinglyno later than July 1, 2008. FUTURE REVISIONS TO CPI The access line rates will be revised annually in March depending on whether the CPI changes -for the previous year. If the CPI changes for the year 2008, you will receive a similar letter in 2009. City of Port Arthur Section. I:.Your new 2008 CPI adjusted maximum rates are as follows: Residential g1.11 Non Residential g2.5o Point-to-Point g3.~8 .Section 2: Your dejau/t rates for 2008 is as jo[lows and is the same as your 2007 rates. Note: This is lower because you have chosen to do so previously. Residential $1.07 Nan_Residential gZ,41 Point to~oint 83.65. To increase your default rates up to your 2008 maximum rates, notify the PUC by completing the section below. You can mail or fax this page to the PUC. To accept rates in Section 2, no action is required. ' I ,Title , am an authorized representative for the City/Town/Village of .The City declines to accept the default rates indicated in Section 2 above. Instead, we choose the following rates: Residential , Non-Residential Point_to_Point Date: Signature: Other Comments: • - HOW TO RESPOND INQUIRIES Mail: John Costello Inquiries only. Not for sending your response. Public Utility Commission HB1777@pucstate.tx.us P.O. Box 13326 Phone No: 512- 936-7377 Austin, TX 78711-3326 ' OR FAX TO John Costello at: (512) 936-7428 CITY CONTACT IIJFORNYATION Please notify us if the contact information we have on file for your city has changed. Thank you. Phone No. (409) 983-8151 Phone No. 2 ,(409) 983-8150 Fax No: (409) 984-5463 Email: rebecra@portarthur.net Address Rebecca Underhill Director of Finance or current city official resnonsible for right-of--way issue City of Port Arthur 444 - 4th Street Port Arthur TX 77640 '