HomeMy WebLinkAboutPR 15195: PUBLIC UTILITY COMMISSION (ACCESS LINE RATES)FINANCE DEPARTMENT
DATE: 04/04/09
TO: STEVE FITZGIBBONS, CITY MANAGE r~ ~
FROM: REBECCA UNDERHILL, DIRECTOR OF J ~PdC~
RE: P.R.15195
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 annually. The PUC has
calculated the rates for this year based upon the 2008 CPI rate of increase to be 2.07%. If approved
by Council, the rates will increase from $1.11 to $1.14 for residential lines, $2.50 to $2.56 for non
residential lines, and $3.78 to $3.86 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, 2009. Implementing this rate increase will generate
approximately $12,000 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
2009 1.14 2.56 3.86
* Point to point lines refer to direct channels that typically are high speed and used for commercial
purposes.
2007 rates tivere declined by the City Council.
Z:\FINANCE\RESOLUTIONS\PCIBLIC UTILITY COMl`ASSION RATES 2009.DOC
P. R. NO. 15195
RU 04/03/09
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, the Public Utilities Commission has calculated maximum rates for 2009, based upon
2.07%, half of the increase of CPI for 2008, 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 $1.14, Non-Residential $2.56 and Point to Point $3.86.
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 day of April, 2009, AD, at a Regulaz Meeting of
the City Council of the City of Port Arthur, Texas by the following vote:
AYES: Mayor:
Councilmembers:
NOES:
Mayor
ATTEST:
Terri Hanks, City Secretary
APPROVED AS TO FORM:
Mark Sokolov, City Attorney
APPROVED FOR ADMINISTRATION:
Steve Fitzgibbons, City Manager
_ ~
Rebecca Underhill, Asst. City Manager/ Finance Director
EXHIBIT "A"
CITY OF PORT ARTHUR
Section l: Your 2008 city preferred rates are as follows:
1.11 Non_Residential $2.50 Point-to-Point $3.78
Residential $
Section 2: Your default rates for 2009 is as follows. Note: This is higher than 2008 rates due
to inflation adjustment.
1.14 2.56 Point_to oint $3.86
Residential $ Non_Residential $ -P
To decline your default increase in 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/Towr/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
Signature:
Comments:
INQUIRIES
HOW TO RESPOND
Inquiries only. Not for sending your response.
Mail: John Costello HB 1777 @pucstate.tx.us
Public Utility Commission Phone No: 512- 936-7377
P.O. Box 13326
Aus[in, Texas 78711-3326
OR FAX TO John Costello at: (512) 936-7428
CITY CONTACT INFORMATION
Please notify us if the contact information we have on file for your city has changed. Thank you
Phone No. 1 (409) 983-8151
Phone No. 2 (409) 983-8150
Fax No: (409) 984-5463
Email: rebecca@portarthur.net
Address
REBECCA UNDERHILL DIRECTOR OF FINANCE
or current city official responsible for right-of-way issues
CITY OF PORT ARTHI iR
444 - 4TH STREET
PORT ARTHUR TX 77640
Pubiic U~iii~y Co~missiarr of Texas: r~~cEivt~
~°R 1200
1701 tV. Congress Ave., PO Box 13326, Austin, TX 78711-3326 ~~NANCE DEpgRT~n'
2009 CONSUMER PRICE INDEX ADJUSTMENT TO MUNICIPAL
TELECOMMUNICATIONS RIGHT-OF-WAY ACCESS LINE RATES
March 25, 2009
PURPOSE
This letter is to notify you that your city's 2008 maximum access line rates have increased by 2.07% due
to inflation, also known as CPI. This adjustment has been made pursuant to Chapter 283 of the Local
Government Code (House Bill 177"7)
DEFAULT RATES FOR 2009: INCREASE
Based on the choices made by your city in April 2008, your city's 2009 rate will be adjusted for
inflation, or will remain the same as your 2008 rate. According to our records, when similar CPI
adjustments were made in Apri12008, your city chose the MAXIMUM allowable CPI-adjusted rates.
Therefore, your 2009 rates wilt reflect an increase of 2.07% from your 2008 rates. You have the
option to decline this increase in rates by taking the action explained below.
ACTION BY CITY: TO REFUSE THE INCREASE
(I) You do not have to respond to accept the increased access line rates. (2) Respond ONLY if you
want to DECLINE the increase in access line rates. (3) To decline, notify the PUC using page 2 of this
letter no later than April 30, 2009. (4) The PUC does not require City council authorization; however, if
your 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 APRIL 30, 2008?
If a city does not respond by Apri130, 2009, the rates for your city will increase from 2008 levels.
The next opportunity to adjust your rates will be September 1, 2009.
WHAT HAPPENS NEXT?
The PUC will notify telephone companies of your desired rates and you will be compensated
accordingly no later than July 1, 2009.
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 2009, you will receive a similar letter in March 2010.
See over...