HomeMy WebLinkAbout7 Broadband Business Planning Agenda Item # 7
II��� (fll III A NV
Memorandum
To: Board of Directors
From: Alan Harry, Director of Telecommunications Services
Date: May 30, 2003
Subject: Broadband Business Planning - Consideration of extending the contract with
Aggregate Networks
Summary
One of the integral pieces of the District's proposal to construct a Broadband system within its service area
is that of project financing. In that California State law requires that each business unit within a Public Utility
District be self-supporting, the District's proposed Broadband operations will require it's own financing
mechanism, as well as a revenue stream to repay any and all debts associated with the project.
History
In January of this year the Board authorized staff to extend its contract with Aggregate Networks to continue
assisting District staff in locating the financing required to construct a Fiber to the Home infrastructure. .
New Information
To date Aggregate Networks has met its agreed upon deliverables, has located and assisted the District in
contracting with Friedman, Luzzatto and Company for Underwriting Services, and is involved daily in the
preparation of information necessary for the successful financing of the District's FTTU project.
The District's contract with Aggregate Networks ended May 10th. in that we are in the midst of financing
the District's FTTH project, it is recommended that the Contract with Aggregate Networks be
extended four months, September 10, 2003. The cost of this extension would be$40,000.
Attached find "Deliverables and Schedules Extending Aggregate Networks' Engagement with Truckee
Donner PUD"for your review.
Staff is in the process of finalizing the extension and amendment to the existing consulting agreement with
Aggregate Networks. it is estimated that it will be completed no later than Tuesday, February 4 h, and
delivered to Board members that afternoon.
0 Page 1