20090518_2573.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
CO MMISSI 0 NER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:GRACE SEAMAN
DATE:MAY 15, 2009
RE:IDAHO TELECOMMUNICATIONS RELAY SERVICE (TRS)
CONTRACT EXTENSION WITH HAMIL TON
TELECOMMUNICATIONS, CASE NO. GNR-09-04.
BACKGROUND
The TRS Administrator, pursuant to the TRS Act, contracts with a provider of relay
services as approved by the Commission. See Idaho Code ~ 61-1303. On November 17 , 2005
the Administrator entered into an Agreement with Hamilton Telephone Company dba Hamilton
Telecommunications (Hamilton) and the Agreement was approved by the Commission in Order
No. 29915. The Agreement was for an initial term of three years beginning December 1 , 2005
and ending November 30, 2008. The Agreement also automatically renewed for two additional
one-year terms unless either party terminated the Agreement on or before June 2008 or 2009.
Renewal of the Agreement could be at different prices, terms and conditions than the initial
three-year term. The first one-year renewal term will expire on November 30, 2009.
On May 14 2009, the Commission received a report and recommendation from the TRS
Administrator, Mr. Dunbar, regarding the Agreement with Hamilton. On May 11 , 2009
Hamilton submitted a letter of intent to Mr. Dunbar, notifying him of Hamilton s wish to extend
the Agreement entered into on November 17 , 2005 and amended on May 22 2006 to include
Captioned Telephone (CapTel)\ service. In this letter, Hamilton asks that the Administrator
I CapTel allows hard-of-hearing users to hear the conversation as well as read the words on the phone s built-
screen. A trained operator "re-voices" the conversation from a caller into the voice-recognition technology that
converts the words into a text message and provides the CapTel user with a more natural conversation.
DECISION MEMORANDUM - 1 -MAY 15 2009
exercise the renewal option for the time period of December 1 2009 through November 30, 2010
as allowed in the current Agreement.
The current rates for relay service provided by Hamilton are $1.31 per conversation
minute (actual conversation time) for traditional service and $1.50 per session minute
(conversation time plus set up and wrap up time) for CapTel. Through negotiations, Mr. Dunbar
and Hamilton arrived at what the Administrator considers acceptable rate increases.
The letter of intent specifies that, for the one year renewal period, Hamilton will provide
traditional relay service at the rate of $1.50 per conversation minute and CapTel service at the
rate of$1.58 per session minute. All other terms and conditions would remain the same as set
forth in the Agreement.
ADMINISTRATOR'S RECOMMENDATION
Mr. Dunbar reports that the TRS Agreement with Hamilton is currently in the first year of
two possible one-year contract extensions. If the Commission approves, Hamilton requests that
the TRS Agreement be extended for the final year with the increased service rates mentioned
above.
Mr. Dunbar asserts that Hamilton maintains a high standard of service to the Idaho TRS
users, and the new rates are also in line with the current competitive rates seen in recent bidding
results of other western states. Mr. Dunbar, therefore, believes the negotiated rates are fair and
reasonable and recommends that the Commission approve the proposed rate increases and the
extension of the contract from December 1 , 2009 through November 30, 2010.
ST AFF RECOMMENDATION
During the rate negotiation process, Mr. Dunbar kept Staff apprised ofthe situation.
Staff believes that through compromise, the Administrator and Hamilton reached a fair and
reasonable outcome. Staff agrees with Mr. Dunbar in his assessment ofthe quality of service
that has been provided by Hamilton to the Idaho TRS users.
Mr. Dunbar reported that existing cash reserves will be more than adequate to
accommodate Hamilton s proposed rate increases. Consequently, no changes to the current user
assessments will be necessary. See Order No. 30759. The current assessment rates are $0.02 per
line and $0.0002 per intrastate long distance (MTS/W A TS) minute.
DECISION MEMORANDUM - 2 -MAY 15,2009
Staff notes the current traditional relay rate of $1.31 has remained unchanged since 2001
and CapTel service has remained unchanged since its introduction in June 2006. Alternatives to
the Administrator s recommendation would necessitate the initiation of a Request for Proposal
(RFP). The RFP option can be pursued, but may not produce a quality result for Idaho with the
limited time available before the contract expiration date of November 30 2009.
Considering the quality of service provided by Hamilton and the Company s good faith
effort during the negotiation process with the Administrator, Staff believes the best option for the
Idaho TRS users is to maintain Hamilton as the service provider. Staff, therefore, recommends
Commission acceptance of Mr. Dunbar s recommendation.
CO MMISSI ON D ECISI 0 N
Does the Commission accept the TRS Administrator s recommendation to extend the
Agreement with Hamilton for another one-year term at the revised rates of $1.50 per
conversation minute for traditional relay service and $1.58 per session rate for CapTel service?
tL ;i CWA-~
Grace Seaman
GS/udmemosrrRS contract '09 rate increase
DECISION MEMORANDUM - 3 -MAY 15 2009