20190319_dk1jo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DANIEL KLEIN
DATE:MARCH 14,2019
RE:2018 IDAHO TELECOMMUNICATIONS RELAY SERVICE ANNUALREPORT;CASE NO.GNR-T-19-03
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 fundingrequirements for the followingyear and submits a
recommended budget with the annual report.
In 1992,the Idaho Legislature established the Telecommunications Relay Service Act
(TRS Act)in accordance with the federal Title IV of the American with Disabilities Act.The
TRS enables citizens who are hearing or speech-impaired to engage in telephone
communications "in a manner functionallyequivalent to that of individuals without hearing or
speech impairments."Idaho Code §61-1301.Under the Idaho TRS Act,all telephone
corporations providing local or long-distance service (not includingwireless 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 §61-1305.Pursuant to TRS
Rule 202,the Commission sets the TRS fundinglevels each year based upon the Administrator's
Annual Report.IDAPA 31.46.02.202.
The Idaho TRS service provider,Hamilton Telecommunications (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 -1 -MARCH 14,2019
THE 2018 ANNUAL REPORT
On February 7,2019,the TRS Administrator,Mr.Robert Dunbar,submitted the 2018
TRS Annual Report and the 2019 TRS Budget for Commission approval.During 2018,the
Administratorreported that the relay center handled 10,698 minutes of conversation (including
out-of-state long distance minutes)compared to 12,135 minutes in 2017.This represents a 12%
decrease in billable minutes.The number of Captioned Telephone (CapTel)I units held steady,
while the total CapTel usage decreased by 36%to 15,973 minutes.
Disbursements from the TRS fund to Hamilton decreased from $84,528 in 2017 to
$56,404.87 in 2018,a decrease of 34%.In-state traditional relay and CapTel 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 2018 average answer time was .34 seconds;continuing an
excellent response time.
1.2018 Expenses.The TRS expenses for the year totaled $87,924.87.
Disbursements to Hamilton were $56,404.87.The administrative fees and expenses for the
reporting year were $31,520,which included $7,000 for the tri-annual audit.The end-of-year
fund balance was $271,759.01.
2.2018 Revenues and Allocations.The TRS fund is supported by assessments on
local exchange telephone service (residential and business)access lines and on billed intrastate
long distance minutes.The total number of intrastate long distance minutes reported by the
telephonecompanies increased slightly from approximately 124,961,000minutes in 2017 to
approximately 125,050,000 minutes in 2018.The average monthlynumber of telephone lines
reported decreased by 15%from 297,462 in 2017 to 253,004 in 2018.The 2018 annual
contribution to the TRS fund was $85,732.37,a decrease of $10,652 (11%)from 2017.Local
exchange services contributed $60,721.78 (71%)and MTS/WATS contributed $25,010.59
(29%).In Commission Order No.34019,the per-line and per-minute assessments for 2018 were
maintained at $0.02 and $0.0002,respectively.
*CapTel allows hard-of-hearingusers to hear the conversation as well as read the words on the phone's built-inscreen.A trained operator "re-voices"the conversation from a caller into the voice recognition technology thatconvertsthewordsintoatextmessageandprovidestheCapTeluserwithamorenaturalconversation.
DECISION MEMORANDUM -2 -MARCH 14,2019
3.Proposed 2019 Budget.The Administrator projects an annual operating budget of
$69,610.This budget reflects a continued decline in traditional relay usage.If assessment rates
remain unchanged,the Administrator calculates the 2019 end-of-year fund balance will continue
to have a reasonable reserve (2019 year-end balance is projected to be approximately $280,149).
4.Proposed 2019 TRS Funding Levels.Based on the proposed budget for 2019 and the
2018 end-of-year reserves,the Administrator recommends that the Commission maintain the
assessment rates at the current level for local exchange lines at $.02 per month and $.0002 per
intrastate MTS/WATS billed minute.This will provide a cushion should unexpected expenses or
program changes occur at the Federal Communications Commission (FCC).
5.Hamilton Communications relay and caption telephone contract.The initial three-
year contract with Hamilton will conclude on December 1,2019.Hamilton and the ITRS have
the option to negotiate the first of three possible one-year extensions.The Administrator will
inform the Commission on this situation as it unfolds.
STAFF'S RECOMMENDATION
Staff has reviewed the Administrator's Annual Report.Staff believes Idaho citizens
continue to be well served by the Administrator and the relay services provided by Hamilton
Telecommunications.Staff also believes that the 2019 budget projection of $69,610 is
acceptable based on the anticipated TRS expenses.The projected revenue together with the
current fund balance should be sufficient to meet 2019 expenses,includingany unforeseen
events.Staff,therefore,agrees with the Administrator's recommendation to maintain the TRS
contributions at the current fundinglevels of $0.02 per access line per month and $0.0002 per
intrastate MTS/WATS minute.
DECISION MEMORANDUM -3 -MARCH 14,2019
COMMISSION DECISION
1.Does the Commission wish to accept the Administrator's recommendation to
maintain the current TRS assessment rates adopted in Order No.34019?
2.Does the Commission wish to accept the annual report and adopt the Administrator's
budget for 2019?
Daniel Klein
Udmemos/trs report for 2018 GNR-T-19-03 dec memo
DECISION MEMORANDUM -4 -MARCH 14,2019