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Rate Stability - 60 to 120 Months <br /> <br />With this option, increases in CENTREX charges are limited to a specified rate <br />of increase based on the contract period chosen. Following is the percentage <br />rate of increase which would be applied each year for the 5, 7 and I0 year <br />contract periods. <br /> <br />Years <br /> <br />Effective Rate <br />of Increase <br /> <br />5 .711% <br />7 1.230% <br />10 1.721% <br /> <br />Rates for CENTREX have increased 18% pe~ year over the last year, and 3-1/2% <br />per annum over the last 20 years. The ability to limit this increase to less <br />than 2% a year, therefore provides significant price protection. <br /> <br />This option is also limited to providing rate protection for CENTREX lines, <br />features, facility.terminations and attendant positions. This again excludes <br />station equipment, mileage and trunking access charges. This option also <br />requires that the District retain 90% of the CENTREX lines working at the time <br />the contract is signed. <br /> <br />Monthly Rates for CENTREX Rate Stability Plan '- <br /> <br />Years CENTREX Equipment + Additional Equipment = Total Monthly Charge <br />5 $721.89 + $324.00 ~ $1045.89 <br />7 $740.31 + $324.00 $1064.31 <br />10 $772.27 + $334.00 + $1106.27 <br /> <br />Deferment of non-recurring installation charges <br /> <br />The one-time non-recurring charge can be paid on a monthly basis, spread over <br />the period of the Rate Stability Plan. A lump sum capital expenditure to <br />install the CENTREX system is avoided. <br /> <br />Deferred Installation Charges <br /> With Rate Stability Plan <br /> <br /> *CENTREX Installation Additional Total <br />Years Equipment + Charge + Equipment = Monthly Charges <br /> <br /> 5 $721.89 + $93.57 + $324.00 = $1139.46 <br /> 7 $740.31 + $77.45 + $324.00 = $1141.76 <br /> 10 $772.27 + $66.40 + $324.00 + $1162.67 <br /> <br />* CENTREX lines, optional features, facilities terminations <br /> <br /> <br />