20180323Decision Memo.pdf

RE:
DECISION MEMORANDTJM
TO:COMMIS SIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: DANIEL KLEIN
DATE: MARCH 20,2A18
2OI7 ID AHO TELECOMMUNICATIONS RELAY SERYICE AIYNUAL
REPORT; CASE NO. cNR-T-r8-02
BACKGROUND
Each February the Administrator of the Idaho Telecommunications Relay Service (TRS
or relay) files a report detailing the activities and status of the program during the previous year.
The Administrator also determines the funding requirements for the following year and submits a
recommended budget with the annual report.
ln 1992, the Idaho Legislature established the Telecommunications Relay Service Act
(TRS Act) in accordance with the lederal Title IV of the Americans with Disabilities Act. The
TRS enables citizens who are hearing or speech-impaired to engage in telephone
communications "in a manner functionally equivalent to that of individuals without hearing or
speech impairments." Idaho Code $ 6I-130L Under the Idaho TRS Act, all telephone
corporations providing local or long-distance service (not including wireless or VoIP services)
must provide TRS as set forth in the program and pay into the TRS Fund based upon an
allocation methodology adopted by the Commission. Idaho Code $ 6l - I 3 05. Pursuant to TR^S
Rule 202, the Commission sets the TRS funding levels each year based upon the Administrator's
Annual Report. IDAPA 31.46,A2.202.
The Idaho TRS service provider, Hamilton Telecornmunications (Hamilton), operates the
relay center where oral conversations are converted or "relayed" to text-type and vice versa. The
relay center also provides speech-to'speech, Spanish-to-Spanish, video, and Internet relay
services.
DECISION MEMORANDUM I MARCH 2A,2018
THE 2017 ANNUAL REPORT
On February 7,2018, the TRS Administrator, Mr. Robert Dunbar, submitted the 2017
TRS Amual Report and the 2018 TRS Budget for Commission approval. During 2017,the
Administrator reported that the relay center handled 12,135 minutes of conversation (including
out-of-state long distancc minutes) compared to 15,175 minutes in 2016, This represents a2A0/a
decrease in billable minutes. l'he number of Captioned Telephone (CapTel)r units increased by
3% while the total CapTel usage decrsased by 2% to 24,997 minutes.
Disbursements from the TRS fund to Hamilton increased {iom $77,195 in 2016 to
$84,528 inZAfi. In-state traditional relay and CapTcl services are reimbursed by Idaho's TRS
fund, while the firm of Rolka Loube Saltzer Associates, LLC reimburses Hamilton for out-of-
state relay calls as well as intrastate Internet relay and Internet video relay service usage.
Hamilton's 2017 average answer time rvas 2 scconds; an excellent response time.
1. 2017 Expenses. The TRS expenses for the year totaled $106,965. Disbursements to
Harnilton were $84,528. The administrative fees and cxpenses fbr the reporting year were
$22,140. The end-of-year fund balance was $273,987.
2. 2017 Revenues and Allocations. The 1'RS fund is supported by assessments on local
exchange telephone service (residential and business) access lines and on billed intrastate long
distance rninutes. The total number of intrastate long distance minutes reported by the telephone
companies decreased by 21% from approximately 158,535,00q minutes in 2016 to
approximatcly 124,961,000 minutes in 2017. The average monthly number of telephone lines
reported deoeased by24% from 391,13?i*2016to297,462in2017. The 2017 annual
contribution to the TRS fund was $96,384, a decrease of $13,587 (13%) from 2016. Local
exchange services contributed 571,391 {74%) and MTS/WATS contributed $24,992 {26%\ In
Commission Order No. 33730. the pcr-line and per-minute assessments for 2A17 were
maintained at $0.02 and $0.0002, respectively.
3. Proposed 2018 Budget. The Administrator projects an annual operating budget of
$110,650. This budget reflects a continued decline in traditional relay usage as well as a tri-
annual audit expense of approximately $7,000 since it will be paid during 2018. If assessment
I Cap'fel allows hard-of-hearing users to hear the conversation as well as read the words on the phone's built-in
screen. A trained operator'?e-voices" the conversation from a caller into the voice recognition technology that
converts the words into a texl message and provides the CapTel user with a more natural conversation.
DECiSION MEMORANDUM /\MARCFI20,2Ol8
rates remain unchanged, the Administrator calculates the 2018 end-of-year fund balance will
continue to have a reasonable reserve (2018 year-end balance is projected to be approximately
$250,000).
4. Proposed 2018 TRS Funding Levels. Based on the proposed budget fbr 2018 and the
2017 end-of-year reseryes, the Administrator recommends that the Commission maintain the
assessment rates at the current level for local exchange Iines at $.02 per month and $.0002 per
intrastate MTSflIATS billed minute. This will provide a cushion should unexpected expenses or
program changes occur at the Federal Communications Commission (fCC).
STAFF'S RtrCOMMENDATION
Staffhas reviewed the Administrator's Annual Report. Staffbelieves the ldaho citizens
continue to be well scrved by the Administrator and the relay services provided by Hamilton
Telecommunications. Staff also believes that the 2018 budget projection of $t 10,650 is
acceptable based on the anticipated TRS expenses. The projected revenue together with the
ourrent fund balance should be sufficient to meet 2018 expenses, including any unforeseen
events. Stafl; theretbre, agrees rvith the Adrninistrator's recommendation to maintain the TRS
contributions at thc current funding levels of $0.02 per access line per month and $0.0002 per
inftastate MTS/WATS minute.
COMMISSION DECISION
1. Does the Commission wish to accept the Administrator's recommendation to
maintain the current TRS assessment rates adopted in Order No. 33730?
2. Does the Commission wish to accept the annual report and adopt the Administrator's
budget for2018?
Daniel Klein
Udmemos/trs report for 2017 dec memo
DECISION MEMORANDUM -J-MARCH 2O,2OI8