AGENDA MEMORANDUM

Meeting Date:           July 14, 2008

From:                          Kevin Cochrane, Communications Manager  

Subject:                      Resolution authorizing a Telecommunications Rate Schedule Change          

Staff Recommendation:

Staff recommends approval of a resolution changing the Telecommunications Rate schedule for Ethernet Fiber Optic service to be adjusted annually on October 1 according to the percentage increase or decrease in the Gross Domestic Product Implicit Price Deflator Index (GDPIPDI). This rate will go into effect as of the next billing cycle following October 1, each year. This adjustment will be automatic and shall not require adoption of any ordinance or resolution by the City Commission.

Analysis:

The City approved Ordinance No. 02-74 on October 28, 2002, which created a new Chapter 22, Article V, and Division 7 of the Code of Ordinances for the City of Leesburg, entitled “Telecommunications Services”.  This ordinance gave approval for service rates to be charged by the City for various Telecommunications Services. On September 12, 2005, the City Commission approved Resolution No. 7440 which authorized an increase in Ethernet rates, and consolidated all City of Leesburg telecommunications rates. This resolution, if approved by the Commission, will allow Ethernet Fiber Optic rates to be adjusted annually to help offset the increasing costs faced by the Communications Utility. During the past four years the Utility has expanded the network and added personnel to support the network. Additionally, network service performance has been enhanced through regular system analysis, maintenance, and upgrades when required. The anticipated rate increase based on the GDPIPDI index is 2.7%, on October 1, 2008.

Options:

1.  Authorize a resolution to modify the current Telecommunications Rate for Ethernet Fiber Optic Service, to be adjusted annually on October 1.

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

This resolution will result in an increase in revenue in FY 2009 of approximately $15,336.00, from existing Ethernet customers.

Submission Date and Time:    7/9/2008 3:08 PM____

Department: IT / Communications Div. Prepared by:  Kevin Cochrane Attachments:         Yes____   No X Advertised:   ____Not Required   X                    Dates:   __________________________                      Attorney Review :       Yes___  No X _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________JB______                                    Deputy C.M. ___________________                                           Submitted by: City Manager ___________________

Account No. _045-0000-343-9211  &      045-0000-343-9611______________     Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

RESOLUTION NO._______________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING A CHANGE IN THE TELECOMMUNICATIONS RATE SCHEDULE FOR ETHERNET 100MBPS SERVICE TO BE ADJUSTED ANNUALLY ON OCTOBER 1 ACCORDING TO THE PERCENTAGE INCREASE OR DECREASE IN THE GROSS DOMESTIC PRODUCT IMPLICIT PRICE DEFLATOR INDEX; AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

            THAT , pursuant to the provisions of Chapter 22, Article V, Division 7 of the Code of Ordinances of the City of Leesburg, the following rates and charges for Telecommunications Services shall apply, unless and until adjusted by subsequent Resolution.

Description      Monthly Amount

· Ethernet Data Transport Point-to-Point                                 $400.00; to be adjusted      Service using Fiber or Wireless Transport                                                     annually on October 1

                                                                                                                        according to the

                                                                                                                        percentage increase or

                                                                                                            decrease in the

                                                                                                            GDPIPDI index.

 THAT this resolution shall become effective immediately.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 14^th day of July, 2008.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk