From
Mona Lisa Galicia
Title
Action rejecting proposed CPI rate increase per telecommunication access line from the Public Utility Commission (PUC)
Presenter
Donald Postell
Recommended Action
Deny
Analysis
When the State of Texas replaced municipal franchises for telecommunications with a state-wide franchise, the calculation of rent for city right-of-way was changed from a percentage of the franchisee's income to a rate per access line (land line). This was intended to keep cities whole financially. The Public Utility Commission recalculates the access line rate each year based on changes in the Consumer Price Index. The rate adjustment is implemented unless the City takes an affirmative action to reject the increase. The number of land lines statewide are trending downward.
Financial Consideration
The proposed rate would increase $0.02 per month for each residential access line, $0.03 per month for each non-residential access line, and $0.06 per month for each point to point access line. The exact break down of numbers of types of lines is unknown but without an increase, staff has projected $57,175 less from access line fees for the coming year because of the downward trend in the number of lines.