HomeMy WebLinkAbout1999-04-27 - AGENDA REPORTS - SBC PAC BELL INCREASES (2)AGENDA REPORT
City Manager
Item to be presented by: Steve Stark
CONSENT CALENDAR
DATE: April 27, 1999
SUBJECT: SBC/PAC BELL 411 RATE
RESOLUTION NO. 99-68
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council adopt Resolution No. 99-68 opposing SBC/Pac Bell's application to the
Public Utilities Commission (PUC) to increase the rate of local directory assistance
calls (411) from $0.25 to a maximum $1.10, and the rate of emergency breakthrough
calls from $1.00 to a maximum $5.00.
BACKGROUND
SBC/Pac Bell has submitted an application to the PUC for permission to increase
the charge of local directory assistance calls from $0.25 up to a maximum $1.10. In
addition, they are requesting permission to raise the rate of emergency
breakthrough calls from $1.00 up to a maximum $5.00.
Californians for Telecommunications Choice has requested the City take action
against these proposed rate increases and pass a resolution of opposition.
SBC/Pac Bell stated that its request to the PUC is merely a formality and that it
only intents on increasing the directory assistance calls to $.050, not the maximum
$1.10. They also intend to cut the number of free calls from five to three. However,
once the PUC approves the SBC/Pac Bell plan, there would be absolutely nothing to
stop them from charging up to $1.10.
If the PUC approves the SBC/Pac Bell plan, California would have the highest 411
rates in the country.
Agenda Iten-Le—
SBC/PAC BELL 411 RATE INCREASES
April 27, 1999 — Page 2
Even though SBC/Pac Bell is attempting to keep a low profile on this issue, it has
already generated a ground swell of opposition, with more than 4,000 consumers
contacting the California PUC, the 10" highest number of complaints of any issue
ever before the Commission.
The Los Angeles County Board of Supervisors has unanimously voted to file a brief
with the PUC opposing this increase and has termed the increase a "gouging" of
consumers.
In addition, the late Los Angeles County Sheriff, Sherman Block, submitted a letter
noting the severe impact this increase will have on law enforcement, a heavy user of
411 service in emergency matters. The Sheriff also objected to SBC/Pac Bell's efforts
to raise the emergency interrupts charge from $1.00 to $5.00 and the effect this
would have on emergency police situations.
FISCAL IMPACT
The fiscal impact is unknown at this time; however, such an increase would cause
cost increases not only to the City, but to the community as well.
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tomtit\pacbell