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HomeMy WebLinkAbout20190730_dk1jo.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER RAPER COMMISSIONER ANDERSON COMMISSION SECRETARY LEGAL FISCAL WORKING FILE FROM:DANIEL KLEIN DATE:JULY 25,2019 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 September 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 inception in 1988 and 1987,respectively.Under the terms of the contracts,Ms.Anderson performs the duties of the USF and ITSAP Administrator including, DECISION MEMORANDUM -1 -JULY 25,2019 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.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 four months with a new expiration date of December 31,2019 and the term of the contracts will be for a period of four (4)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 four-month period to expire on December 31, 2019.Staff needs the extensionto work out details of a new contract,including enhanced fiduciary requirements. COMMISSION DECISION Does the Commission wish to extend the current contract with Ms.Anderson as the USF and ITSAP Administrator for a four-month period ending December 31,2019,pursuant to Idaho Code §62-610(5)and Idaho Code §56-901(2)? Daniel Klein Udmemos/USF ITSAP Contracts 7-19 DECISION MEMORANDUM -2 -JULY 25,2019