Council Communication

TITLE:	AFN Rate Resolution
DEPT:	Electric and Telecommunications
DATE:	December 4, 2001
SUBMITTED BY:	Dick Wanderscheid
APPROVED BY:	Greg Scoles

Synopsis:	This resolution will increases AFN Wholesale Internet rates by $2 per month. High Speed data rates are being readjusted to reflect more customer choices and more accurate cost of service expenses.
Recommendation:	Staff recommends that the Council adopt the attached resolution.
Fiscal Impact:	Based on an average of 2,400 internet customers for 2002, this change would result in an additional $57,600 per year in revenue for AFN.
Background:	The revised business plan for AFN that was developed in conjunction with the AFN advisory committee assumed a $2 per month increase in internet rates in Year 4. This resolution will implement that change effective in January 2002. We are also adjusting our high speed data rates to reflect some new situations that have arisen, give customers more choices in the product offered, and better reflect our costs of providing services. These changes in the data rates will not result in significantly higher bills for our existing high speed customers and they have already been informed of these pending changes. Our Certified ISPs have also been informed of this pending rate increase in a meeting that we had with them in early November.

RESOLUTION NO. 2001-

A RESOLUTION ESTABLISHING RESIDENTIAL DIRECT CONNECT INTERNET RATES FOR THE ASHLAND FIBER NETWORK, ALL OTHER RATES & REPEALING RESOLUTION NO. 2000-26.

THE CITY OF ASHLAND RESOLVES AS FOLLOWS:

SECTION 1. The attached rate schedule (Schedule 2) is adopted as the rates and fees for AFN Internet and AFN Cable Television provided by the City of Ashland Electric Utility Department, Ashland Fiber Network Division. These rates are effective beginning with the January 2002 billing cycle.

SECTION 2. Installation charges, equipment rental, bulk rates, and other charges may be set administratively. To the extent practicable, such fees shall be set to recover, over a fiscally prudent period, the incremental cost of providing such service by taking into account all costs actually incurred.

SECTION 3. Nothing in Section 1 or Section 2 shall preclude AFN staff from 1) temporarily reducing or waiving rates or charges in conjunction with promotional campaigns, 2) establishing different and nondiscriminatory rates and charges for commercial customers, as allowed by federal law and regulations, or 3) establishing different and nondiscriminatory rates and charges for AFN high speed data and wholesale high speed data commercial customers, as allowed by federal law and regulations.

SECTION 4. Resolution No. 2000-26 is repealed as of the effective date of the new rates.

This resolution was read by title only in accordance with Ashland Municipal Code § 2.04.090 and duly PASSED and ADOPTED this _____ day of December 2001.

Barbara Christensen, City Recorder

SIGNED and APPROVED this _______day of _________, 2001.
Alan W. DeBoer, Mayor

Reviewed as to form:
Paul Nolte, City Attorney

RESOLUTION NO. 2000-26A

Schedule 2
(Effective January 2002 Billing Cycle)

Fees are annotated to show changes to the fees previously adopted. The only fee change is in the Residential Internet Direct Connect. Deletions are lined through and additions are shaded.

AFN Television Rates Tier Rates Per Month	Base Fee	Franchise Fee	PEG	FCC User Fee	Increment	Total
Community (Previously called Tier I)	$ 5.94	$0.32	$0.60	$0.04	$ 6.90	$ 6.90
Basic (Incremental to Community Rate) (Previously called Tier II)	$ 3.56	$0.19			$ 3.75	$10.65
Expanded (Incremental to Basic Rate) (Previously called Tier III)	$14.72	$0.78			$15.50	$26.15
Digital Plus (Incremental to Expanded) (Previously called Tier IV)	$ 7.95	$0.42			$ 8.37	$34.52
Premium Rates Per Month Premium Services	$ 7.95- $10.95	$0.58			$11.53
Pay Per View Per Event Price Varies From $0 to $150

AFN Internet Rates	Base Fee	Franchise Fee	Fixed IP Addresses	Increment	Total
Business Internet Wholesale Rate to Certified ISPs
Monthly Rates	$65.00	$3.41		$68.41
	$60.00	+ $3.00	1		$63.00
	$65.00	+ $3.25	2		$68.25
	$70.00	+ $3.50	3		$73.50
	$75.00	+ $3.75	4		$78.75
	$80.00	+ $4.00	5		$84.00
	$85.00	+ $4.25	6		$89.25
	$90.00	+ $4.50	7		$94.50
	$95.00	+ $4.75	8		$99.75

AFN Internet Rates	Base Fee	Franchise Fee	PEG	PC User Fee	Increment	Total
Residential Internet (wholesale rate to certified ISP) Monthly Rates	$15.00 $17.00	$0.79 $0.85			$15.79 $17.85
Residential Internet Direct Connect (no ISP) Monthly Rates	$19.50 $21.50	$0.98 $1.07			$20.48 $22.57

AFN High Speed Pricing

These prices replace the existing service prices. These are designed to allow a business to use a high speed service at a very low rate, but assume that sustained bandwidth to the internet is not needed. For these services the maximum number of IP addresses that will be available per service are 32, and they will be given out in blocks of 16.

If a customer needs sustained bandwidth, or other types of services such as a local loop to connect two locations together then the following rate schedule will be used.

For services 3mbit and above, no local loop fees will be charged.

For these services any number of IP addresses can be requested, but they must be justified via the American Registry for Internet Numbers (ARIN) regulations.