HomeMy WebLinkAboutPR 12116:CITY ACCESS LINE RATESFINANCE DEPARTMENT
DATE:
TO:
FROM:
RE:
3/18/2003
F TZO BBONS,
REBECCA UNDER_HILL, DII~I~[PI3~ O~ FINANCE
P.R. 12116
Pursuant to Chapter 283 of the Local Government Code, the Texas PUC adjusts the City's
access line rates by ½ of the CPI of 2002. The PUC has determined that rate of increase to be .64%.
The rates will increase from $1.00 to $1.01 for residential lines, $2.28 to $2.30 for non residential
lines, and $3.45 to $3.48 for point to point lines.
If the City chooses to decline the increase, we must respond to the PUC by April 30.
Otherwise, the rates will be implemented Jane 1, 2003.
On November 30, 1999 the City authorized the Public Utility Commission, per Resolution 99-
268, to allocate the rates between residential, non-residential and point to point private lines. The
City expected to receive revenues of at least $499,341 per year. On March 10, 2000, the City
accepted the Public Utility Commission allocated rates at $.97 for residential, $2.24 for non-
residential and $3.41 for point to point customers. On Jane 1, 2001, the Public Utility Commission
raised the rates to $.98 for residential, $2.25 for non-residential and $3.41 for point to point
customers. Last year, the rates increased by V2 of the CPI, 1.15%, to $1.00 for residential, $2.28 for
non-residential and $3.45 for point to point lines. In fiscal year 2002, the City received $494.448 in
telephone access fees.
RESOLUTION NO.
P. R. NO. 12116
JJA 3/18/03
A RESOLUTION ACCEPTING THE AUTOMATIC INCREASE
1N 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, the City Council adopted Resolution 02-88 which authorized the Director of Finance to
execute an Update Form from the Public Utilities Commission which increased line rates in the City by ½ the
increase in the Consumer Price Index (CPI) for 2001, and;
WHEREAS, the Public Utilities Commission has calculated updated rotes for 2003, based upon ½ of
the increase of CPI for 2002, and;
WHEREAS, these rates will be increased by default unless the City declines the increase, 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.
Section 1.
Section 2.
Exhibit "A".
Section 3.
Council.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: That the facts and opinions in the preamble are true and correct.
That the City Council hereby accepts the access line rates as included in attached
That a copy of the caption of this Resolution be spread upon the Minutes of the City
READ, ADOPTED, AND APPROVED, this~ day of April, 2003, AD, at a Regular Meeting of
the City Council of the City of Port Arthur, Texas by the following vote:
AYES: Mayor:
Councilmembers:
NOES:
Mayor
ATTEST:
Evangeline Green, City Secretary
APPROVED AS TO FORM:
Mark Sokolow, City Attomey
APPROVED FOR ADMINISTRATION:
Steve Fitzgibbons, City Manager
Rebecca Underhill, Finance Director
1701 N. Congress Ave., PO Box 13326, Austin, TX 78711-3326
EXHIBIT "A"
RECEIVED
1 7 2OO3
FINANCE DEPARTMENT
2003 CONSUMER PRICE INDEX ADJUSTMENT TO MUNICIPAL
TELECOMMUNICATIONS RIGHT-OF-WAY ACCESS LINE RATES
March 12, 2003
PURPOSE
This letter is to notify you that your city's maximum access line rates have increased dueto inflation. You
are requested to notify the Public Utility Commission (PUC) of your desired rates as explained below~
BACKGROUND
Pursuant to Chapter 283 of the Local Government Code (House Bill 1777), the Texas PUC is required
to adjust the maximum access line rates for your city by an amount equal to one-half the annual change
in the Consumer Price Index (CPB for the year 2002.
DEFAULT INCREASE IN RATES FOR 2003
Your default rate for CPI adjustments in this year (i.e. 20035 for your city will be determined based on
choices made by your city in April 2002. According to our records, when similar CPI adjustments
were made in April 2002. your~clty chose the MAXIMUM allowable CPI-adjusted rates. Therefore,
your 2003 rates will default to:2003 CPI-adjusted maximum access line rates. As a result, your city's
rates will increase by 0.64%.'You have the option to decline this increase in rates by taking the action
explained below.
ACTION BY CITY
(1) You do not have to respond to accept the CPi-adjusted maximum access line rates shown on Section
2 of page 2. (2) Respond ONLY if you want m DECLINE the increase in access line rates. To decline,
notify the PUC usmg page 2 of this letter no later than April 30. (3) The PUC does not require City
council authorization: however if your city charter requires it, please do so immediately. (4) Verify your
contact information and highlight any changes. (5) Make a copy of this document.
WHAT HAPPENS IFA CITY DOES NOT RESPOND BY APRIL 30, 2003.
If yottr city does not respond by April 30, 2003. the rates for your city will increase and default m the
rates shown in Section 2 of page 2. The next opportunity to adjust your rates is September 1, 2003.
WHAT HAPPENS NEXT
The PUC will notify telephone carriers of your desired rates~ Carriers will start implementing and
compensatang cities using these new rates no later than July 1, 2003.
FUTURE REVISIONS TO CPI
The access line rates will be revised annually in March depending on whether the CPI changes for the
prevmus year. If the CPI changes for the year 2003, you will receive a similar letter in March 2004.
_, - _ '~ity of Port Arthur
Section 1: Your 2002 City Preferred Access Line Ratex (maximum rates) are as follows:
Residential $1.00 Non_Residential $2.28 Point-to-Point sa.tiS
Sectid}t 2: Your 2003 CPI Adjusted Maximum Access Line Rates (default rates for 2003) are
as follows:
Residential $1.01 Non_Residential $2.30 Point_to_point $3.48
To decline the rates in Section 2 above, 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 representauve for
the City/Town/Village of The City declines to accept the default rates
indicated in Section 2 above. The rates desired by my city are as follows:
Residential ;Non-Residential ; Point to Point__
Date: Signature:
Other Comments:
HOW TO RESPOND
Mail: Garnet Elk/ns
Public Utility Commission of Texas
1701 North Congress Avenue
P.O. Box 13326.
Austin. Texas 78711
OR FAX TO Garnet Elkins at: (512) 936-7328
INQUIRIES
Inquiries only. Not for sending your response.
liB 1777 @ puc .state.tx.us
Phone No: 512- 936-7322
CITY CONTACT [NFOR~MATION
Please notify us if the contact information we have on file for your city has changed. Thank you.
Phone No. 4099838151
Phone No. 2
Fax No: 4099838291
Em~l: rebecca@po~a~hur.n
Address
Rebecca Underhill
or current city official responsible for right-of-way issues
City of Port Arthur
444 - 4th Street
Port Arthur