CC - Item 3B - Resolution 99-21 - Opposting the Application of CPUC to Raise Rates for 411 Calls I
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TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL �--�
FROM: FRANK G. TRIPEPI, CITY MANAGEB_�7✓
DATE: MAY 19, 1999 �J
RE: RESOLUTION NO. 99-21 - OPPOSING THE APPLICATION TO THE
CALIFORNIA PUBLIC UTILITIES COMMISSION(CPUC)TO RAISE
RATES FOR "411" CALLS
This item was deferred at the regular meeting of the City Council on May 11, 1999, pending
further information. Attached is information from Pacific Bell.
RECOMMENDATION:
It is recommended that the City Council approve Resolution No. 99-21.
Attachments
•
COUNCIL AGENDA
MAY 2 51999
ITEM No. • 4•
)
RESOLUTION NO. 99-21
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
OPPOSING THE APPLICATION BY SBC/PAC BELL TO RAISE RATES
FOR "411" CALLS
WHEREAS, SBC/Pac Bell is has submitted an application to raise rates for 411
information service calls before the California Public Utilities
Commission (CPUC); and
WHEREAS, the application submitted by Pac Bell seeks to raise the ceiling for 411
charges to 51.10 per call, despite research indicated that the actual cost
to the company for providing that service is approximately 5.25 per
call; and
WHEREAS, since Pac Bell provides service for nearly 97% of the accounts located
within its service market, thus forcing most residents to utilize that
service, despite the cost; and
WHEREAS, because it is extremely difficult for residential and commercial
consumers to utilize multipletelephone books in order to look up
listings on their own, thus forcing a continued reliance on 411
information; and
WHEREAS, this effort to raise 411 rates will impact disproportionately those least
able to afford additional costs in their lives.
NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF ROSEMEAD
HEREBY RESOLVES:
I. To oppose SBC/Pac Bell's application to the CPUC to raise rates for
411 calls.
2. Authorize the City Clerk to send certified copies of the resolution to
each member of the California Public Utilities Commission.
DONE THIS 11TH DAY OF MAY, 1999.
MAYOR
ATTEST:
CITY CLERK
{ Get the Facts on Pacific Bell's Local Directory Assistance
There's a lot of bad information out there about our plans to change
directory assistance prices. We want our customers to have the facts,
which is why we'd like to set the record straight.
What is Pacific Bell doing to directory assistance prices?
Simply put, we are requesting approval from the California Public Utilities Commission
(CPUC) to raise the price of our local directory assistance service from 25 cents to 50 cents
per call to recover the costs of providing this service. We have not raised the price of
directory assistance (DA) in 15 years—since 1984—and 50 cents is about the national
average among local phone companies.
How Will I Be Affected?
Chances are, you'll see no change at all. Residential customers still would have three free
calls each month (currently 5). And the majority of Pacific Bell customers-75 percent—
never make that many directory assistance calls in a month. Under the new proposal, our
business customers would no longer receive any free calls (currently 2).
What If I Can't Use a Phone Book?
Then you don't pay a cent for your local directory assistance calls. We offer unlimited free
directory assistance to our customers with visual or other physical limitations.
Do Consumers Have a Choice for Directory Assistance?
They sure do. Lots of them. Dozens of the companies competing for local customers in
California, including MCI, AT&T and Sprint, offer local directory assistance to their
customers. And, of course, The Pacific Bell White Pages and Smart Yellow Pages are
provided to our customers for their local area at no charge.
What Is This$1.10 Ceiling Price I Keep Reading About?
Our filing with the CPUC requires that we provide a proposed price as well as a ceiling, or
maximum price, in filings for competitive services such as directory assistance..
We want our customers to know that our intent is to raise the price of local directory
assistance to 50 cents—no more. Setting the ceiling above the proposed price simply offers
us future pricing flexibility in an increasingly competitive market, where our competitors like
AT&T, MCI and Sprint can raise prices virtually at will and aren't held to the tough regulatory
requirements that we are.
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