20151113Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:GRACE SEAMAN
DATE:NOVEMBER 5,2015
RE:PROPOSAL BY HAMILTON TELEPHONE COMPANY DBA
HAMILTON TELECOMMUNICATIONS TO EXTEND THE
TELEPHONE RELAY SERVICE CONTRACT FOR ONE-YEAR;CASE
NO.GNR-T-1O-05.
BACKGROUND
On September 22,2010,the Administrator,Bob Dunbar,entered into a three-year
contract with Hamilton Telephone Company dba Hamilton Telecommunications (“Hamilton”or
“Company”)as the service provider for the Idaho Telephone Relay Service (TRS).This
Commission-approved’agreement allowed for three (3)one-year extensions with renegotiated
rates.Sec Order No.32069.The initial three-year contract expired on December 1,2013.On
August 6,2013.the Commission approved Hamilton’s proposal to renew the contract for the first
one-year extension with a rate increase Atm S 1.76 to $1.99 per conversation minute for both the
traditional and captioned telephone services.The Commission approved the second one-year
contract extension with no rate changes on May 19,2014.
On July 16,2015,Hamilton submitted a letter to the Administrator giving notice that it
wished to renew the current contract for the third 12-month period pursuant to Section 3.0 of the
contract.During this renewal period,Hamilton will provide Idaho TRS at the rate of $2.29 per
conversation minute for traditional relay service and $2.19 per conversation minute for captioned
telephone service.This per minute increase of $0.30 and $0.19,respectively,reflects the current
interstate TRS rates adopted by the FCC.
Idaho Code §61-1303(1)(b)(v and vi)provides that the Commission shall approve the contract between the
Administrator and the relay provider.
DECISION MEMORANDUM -I -NOVEMBER 5,2015
The TRS Administrator is responsible for evaluating and making recommendations
to the Commission regarding contracts with the relay service provider.The Administrator
compared the new rates proposed by Hamilton with the rates imposed on other states served by
Hamilton as well as other service providers.The Adniinistrator believes Hamilton’s one-year
contract rates are reasonable and recommends that the current TRS contract be extended for
another year (until December 1.2016)at the proposed rates.Flamihon’s rates includes all
equipment,personnel,facilities,software,features,and services (i.e.such as Speech to Speech,
Spanish translations to English and English to Spanish,in-state outreach program,and etc.).
STAFF ANALYSIS AND RECOMMENDATION
Staff has reviewed Hamilton’s proposal and the Administrator’s recommendation.The
current relay usage is approximately 30%traditional and 70%captioned telephone.Assuming
that the percentage of traditional and captioned telephone usage remains the same,the rate
changes will increase the TRS monthly billing by approximately 10%.The fund’s cash balance
as of September 30,2015 is approximately S290.000,and is sufficient to accommodate the
proposed rates without raising the TRS contributions.Staff believes the proposed rates are
reasonable and that it is in the public interest to maintain the existing service contract with
1-lamilton.Staff also believes that Flamilton has provided quality service to Idaho relay users and
supports the Administrator’s recommendation to enter into a one-year contract extension at the
proposed rates.
COMMISSION DECISION
1.Does the Commission approve the one-year extension (until December ,2016)to
1-lamilton’s relay contract at the rate of $2.29 per conversation minute for traditional relay and
$2.15 for captioned telephone service?
2.Does the Commission authorize the TRS Administrator to execute an amendment to
the existing relay contract to extend the contract for twelve months (until December 1.2016)at
the proposed rates of $2.29 per conversation minute for traditional relay and 2.19 for captioned
telephone service?
DECISION MEMORANDUM -2-NOVEMBER 5,2015
3.Does the Commission agree with the Administrator and Staff’s analysis that the fund
balance is sufficient to cover the proposed rate increase without raising TRS contributions?
&L’
Grace Seaman
i:udrncmosltrs contract to 12-1—16
DECISION MEMORANDUM -3 -NOVEMBER 5,2015