20130805_4134.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:GRACE SEAMAN
DATE:AUGUST 2,2013
RE:HAMILTON TELECOMMUNICATIONS’S ONE-YEAR CONTRACT
EXTENSION FOR THE TELEPHONE RELAY SERVICE;
CASE NO.GNR-T-l0-05.
BACKGROUND
On September 22,2010,the Administrator,Bob Dunbar.entered into a three-year
contract with 1-lamilton as the service provider for the Idaho Telephone Relay Service (TRS).
This Commission-approved1 agreement allowed for three (3)one-year extensions with
renegotiated rates.See Order No.32069.The initial three-year contract expires on
December 1,2013.
On June 18,2013,Hamilton submitted a proposal to the Administrator to renew the
contract for the first one-year extension at the rate ofSl .99 per conversation minute for both the
traditional and captioned telephone service.This is an increase of 5.23 per conversation minute
(the current contract rate is $1.76).
The TRS Administrator is responsible for evaluating and making recommendations
to the Commission pursuant to Idaho Code §61-1303(1)(b).The Administrator compared the
new rate proposed by Hamilton with rates imposed on other states served by Hamilton as welt as
other service providers.The Administrator believes Hamilton’s one-year contract rate is
reasonable and recommends that the current TRS contract be extended for another year (until
December 1,2014).Hamilton’s rate includes all equipment,personnel,facilities,software,
‘Ida/jo Code §61-l303(l)(b)(v and vi)provides that the Commission shall approve the contract between the
Administrator and the relay provider.
DECISION MEMORANDUM -I -AUGUST 2,2013
features,and services (Le.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
fund’s cash balance as of June 30,2013 is approximately $300,000,and is sufficient to
accommodate the proposed rate increase.Staff believes the proposed rate of$1.99 per
conversation minute is reasonable and that it is in the public interest to maintain the existing
service contract with Hamilton.Staff believes that 1-lamilton has provided quality service to
Idaho relay users and supports the Administrator’s recommendation to enter into a one-year
contract extension at the proposed rate.
COMMISSION DECISION
1.Does the Commission approve the one-year extension (until December 1,2014)to
Hamilton’s relay contract at the rate of$l.99 per conversation minute for the traditional relay
and the 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 1,2014)and
increase the conversation minute rate to $1.99 per minute?
3.Does the Commission adopt the Administrator’s and Staff’s analysis that there are
sufficient funds to cover the proposed rate increase without raising TRS contributions at this
time?
R
Grace Seaman
i:udmemos/Hamilton I-yr ext 20I3.doc
DECISION MEMOR&NDUM -2-AUGUST 2,2013