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Home My WebLink AboutPR 15826: ACCEPTING AUTOMATIC DECREASE IN ACCESS LINE RATESFINANCE DEPARTMENT DATE: 3/31/10 TO: STEVE FITZGIBBONS; CITY MANAGER C FROM: REBECCA UNDERHILL, ASSISTANT CITY MANA E-AD INSTRATION RE: P.R.15826 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 '/~ of the CPI annually. The PUC has calculated the rates for this year based upon the 2009 CPI rate of decrease to be .2%. If approved by Council, the rates will. decrease from $1.14 to $1.13 for residential lines, $2.56 to $2.55 for non residential lines, and $3.86 to $3.85 for point to point lines. If the City chooses to implement the decrease, we must respond to the PUC by April 30. Otherwise, the rates will be implemented June 1, 2010. 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 2010 1.13 2.55 3.85 * Point to point lines refer to direct channels that typically aze high speed and used for commercial purposes. Z:\FINANCE\RHSOLUTTONS\PUBL[C UT[L1TY CODf^Al55ION [LAlES 2010.DOC P. R. NO. 15826 RU 03/31/10 RESOLUTION NO. A RESOLUTION ACCEPTING THE AUTOMATIC DECREASE 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-RESIDENTLIL AND POINT TO POINT CUSTOMERS. WHEREAS, the Public Utilities Commission has calculated maximum rates for 2010, based upon .2%, decrease of CPI for2009, and; WHEREAS, these rates will automatically be decreased 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 $1.13, Non-Residential $2.53 and Point to Point $3.83. No further action is necessary. Section 3. 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, 2010, AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: Mayor ATTEST: Terri Hanks, City Secretary APPROVED AS TO FORM: G~ Val Tizeno, City A om APPROVED FOR ADMINISTRATION: Steve Fitzgibbons, City Manager Rebecca Underhill, Assistant City Manager-Administration ' ~~~ V I Deborah Echols, Finance Director EXHIBIT " A" Pubt~c Ut~ltty Corn~nrs~iol!~ o~ texas: 1701 N. Congress Ave., PO Box 13326, Ausiin, TX 78 711-332 6 2009 CONSUMER PRICE INDEX ADNSTMENT TO MUNICIPAL TELECOMMUNICATIONS RIGHT-OF-WAY ACCESS LINE RATES March 26, 2010 PURPOSE This letter is to notify you that your city's 2010 maximum access line rates have decreased by approximately .2% due to a decrease in the Consumer Price Index (CPI). This adjustment has been made pursuant to Chapter 283 of the Local Government Code (House Bill 1777) DEFAULT RATES FOR 2010: DECREASE Based on the choices made by your city in April 2009, your city's 2010 rates will be adjusted for deflation. According to our records, when similar CPI adjustments were made in Apri12009, your city chose the MAXIMUM allowable CPI-adjusted rates. Therefore, your 2010 rates will reflect a decrease of .2% from your 2009 rates. You do not have the option to decline this decrease in rates as the adjustment is made pursuant to administrative procedures established for CPI annual adjestments. ACTION BY CITY: TO ACCEPT THE DECREASE (1) You do not have to respond to accept the decreased access line rates. (2) Respond ONLY if you want to decrease the access line rates to levels lower than the new caps, (3) To respond, notify the PUC using page 2 of this letter no later than Apri130, 2010. (4) The PUC does not require City council authorization; however, if your city charter requires it, please do so immediately. (5) Verifyyour contact information and highlight any changes. (6) Make a copy of this document. WHAT HAPPENS IF A CITY DOES NOT RESPOND BY APRIL 30, 2010? It is not necessary fro the city to respond by April 30, 2010. Rates for your city will automatically decrease from the 2009 levels and no further reductions will be made. The next opportunity to adjust. rates, assuming they are not already at the MAXIMLTNI Levels, will be September 1, 2010. WHAT HAPPENS NEXT? The PUC will notify telephone companies of your new rates and you will be compensated accordingly beginning July 1, 2010. FUTURE REVISIONS TO CPI The access line rates will be revised annually in Mazch depending on whether the CPI changes for the previous year. If the CPI changes for the year 2010, you will receive a similar letter in March 2011. See over... CITY OF PORT ARTHUR Section 1: Your 1009 city preferred maximum rates are as follows: Residential $1.14 Non Residential $2.56 Point-to-Point $3.86 Section l: Your default rates for 2010 are as follows. Note: This is lower than 2009 rates due to a deflation adjustment. 1.13 Non Residential $2.55 Point to pint - $3.85 Residential $ _ ~ To lower your default decrease further, 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 lower rates: Residential ;Non-Residential Point_to_Point Date: Comments: Signature: - HOW TO RESPOND INQUIRIES Mail: John Costello Public Utility Commission P.O. Box 13326 Austin, Texas 78711-3326 OR FAX TO John Costello at: (512) 936-7428 CITY CONTACT INFORMATION Inquiries only. Not for sending your response. HB 1777@puc state.tx.us Phone No: 512- 936-7377 Please notify us if [he contact information we have on file for your city has changed. Thank you. Phone No. 1 (409) 983-8151 Phone No. 2 5409) 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 ARTHUR 444 - 4TH STREET PORT ARTHUR TX 77640