20190305_dk1jo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
FISCAL
WORKING FILE
FROM:DANIEL KLEIN
DATE:MARCH 1,2019
RE:EXTENSION OF THE ADMINISTRATOR'S USF AND ITSAP
CONTRACTS.
The current contracts between the Commission and its Universal Service Fund (USF)and
Idaho Telecommunications Service Assistance Program (ITSAP)Administrator,Alyson
Anderson,expired on March 1,2019.Idaho Code §62-610 authorizes the Commission to
establish the USF and Idaho Code §62-610(5)directs the Commission to adopt rules "for the
implementation and administration of the universal service fund."IDAPA 31.46.01 Rule 102
states that the Commission "shall contract with an administrator of the universal service fund."
The USF provides a fund that allows for the universal availability of local exchange service and
message telecommunications service at reasonably comparable prices throughout the state of
Idaho.See Idaho Code §62-610(1).ITSAP,pursuant to Idaho Code §56-901,establishes the
program within the department of Health and Welfare,but authorizes the Commission to
"contract with a neutral third party to collect the surcharge,distribute assistance revenues,and
perform other tasks."See Idaho Code §56-901(2).ITSAP provides eligible recipients with a
reduction in the cost of telecommunications services to promote universal service.See Idaho
Code §56-901(1).
BACKGROUND
Pursuant to the USF and ITSAP statutes,the Commission contracted with Ms.Anderson
to administer both programs since its inception in 1988 and 1987,respectively.Under the terms
of the contracts,Ms.Anderson performs the duties of the USF and ITSAP Administrator
DECISION MEMORANDUM -1 -MARCH 1,2019
including,but not limited to:collecting remittances and distributing program funds;filing
annual and quarterly reports;and performing other duties as required by the Commission.
Under the current contract,the Administrator is compensated at a rate of $60 per hour.
The Administrator's compensation is not to exceed a total amount of $18,000 (USF Contract
§2.1)and $9,000 (ITSAP Contract §2.1)in any given year without the expressed written
permission of the Commission.Current compensation from March through January stands at
$10,712.79 and $6,325.40.The current contracts also provide that the USF and ITSAP funds
must be audited by a neutral third party at least once every three years or upon termination of the
contract.USF and ITSAP Contracts §3.Both Contracts will be extended six months with a new
expiration date of September 1,2019 and the term of the contracts will be for a period of six (6)
months.USF Contract §6 and ITSAP Contract at §4.Either party may terminate the contract
by giving 90 days notice.Id.
STAFF RECOMMENDATION
Staff believes that Ms.Anderson has admirably performed the duties as the USF
and ITSAP Administrator.She has been the Administrator since the establishment of the
programs and has efficiently discharged her duties during her tenure.Thus,Staff recommends
that the Commission enter into this contract extension for a six-month period to expire on
September 1,2019.Staff believes the extension is needed to work out details of a new contract
to include enhanced fiduciary requirements.The new expiration date also aligns better with
annual reporting requirements.
COMMISSION DECISION
Does the Commission wish to extend the current contract with Ms.Anderson as the USF
and ITSAP Administrator for a six-month period ending September 1,2019,pursuant to Idaho
Code §62-610(5)and Idaho Code §56-901(2)?
Daniel Klein
Udmemos/USF ITSAP dec memo
DECISION MEMORANDUM -2 -MARCH 1,2019