The URL can be used to link to this page

Home My WebLink About7 Aggrigate Networks Contract �} enda Cferx TRUCKEE . . Public Utility District Staff Report To: Board of Directors From: Alan Harry, Director of Telecommunications Services Date: January 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 July of 2002 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, and are in the process of working with staff in evaluating proposals for the complete financing of the District's FTTH project. The District's contract with Aggregate Networks ended January 10th. In that we are in the midst of evaluating, and soon to be negotiating the financing of the District's FTTH project, it is recommended that the Contract with Aggregate Networks be extended four months, May 10, 2003. The cost of this extension would be $40,000. 0 Page 1 Aggregate Networks January 10, 2003 Mr. Alan Harry Telecommunications Director Truckee-Donner P.U.D. 11570 Donner Pass Rd. Truckee, CA 96160 RE: Summary of Summary Reports of Deliverables from the Extended Agreement between Aggregate Networks, LLC and TDPUD dated July 30,2002 and the Original Agreement dated May 10, 2002. Dear Alan: The items below summarize the deliverables that have been completed by Aggregate Networks, LLC per Agreement: =PlanReview ' rvice Description Completed? Mee Met on an ongoing basis to exchange information - Yes and stay closely connected to the ro ect. i Business & Wrote Business Plan and Credit Application and Yes modification. created Financial projections&submitted to i tending sources. Letter of Intent Assisted in contacting"Anchor Tenants"/Write Yes the Letters of Intent(LOI)/Get pre- commitments Explored RUS financing options Explored possible grant/loan programs with Yes Sierra College, which determined them to be unnecessary for the college. Created,packaged,presented Packaged& Presented Business Plan&Financial Yes' Business Plan&Financial Plan to Plans to Lending sources for Underwriting ¢ Lending Sources Charter Membership form Drafted terms of Charter Membership Form that Yes will be used for signing up residential members ahead of the launch. Conduit Brokerage Agreement ( Negotiated favorable terms with Touch-America Yes concerning the sale of the conduit for the TDPUD. Assisted with PR efforts Worked with Pettit where appropriate J Yes 650 Warrenville Rd, Suite 103 Lisle, IL 60532 630.305.9246 630.305.8808 fax Aggregate Networks Trade Shows&Representation& > `Intelligent Cities Conference"Chantilly, Yes Information gathering - VA. y APPA Convention, Tampa, FL v Municipal Broadband for Rural Communities by Veetren Communications/ Black&Veatch in Salina,KS Law Seminars Municipal Broadband Conference in Washington St. Worked closely with Vendors Worked with vendors(OSE Vectren,Eagle, Yes Pirelli,and others)to determine accurate costs& preferred technology for project. Obtain Underwriting Proposals from � Successful in finding sources willing to � YES at least 2 sources propose Underwriting/Lending the entire amount required to build the FTTH project. o Researched potential sources& structures through many possibilities o Had many calls with potential sources o Prepared documentation packages with all relevant information about historical &future o Flew out to meet one group in Texas—Flying to Colorado to meet another next week o Educated sources on the essential- use of the FTTH system o Evaluated&presented the risks along with the mitigating factors of those risks o Answered many questions o Scheduled calls with necessary parties including Alan Harry& David Casnocha(Bond Counsel) - Reporting Monthly reports and this report Yes Respectfully Submitted, Rick Kaufmann Co-founder&Principal Aggregate Networks 650 Warrenville Rd. Suite 103 Lisle, IL 60532 630.305.9246 630.305.8808 fax .... ..... ....... .... ............................. . February 3, 2003 As noted in my Staff Report, item number seven (7), please find attached the "Extension and Amendment to the Consulting Agreement by and Between Aggregate Networks and T.D.P.U.D." Thank you. Alan Harry Director of Telecommunications Services EXTENSION AND AMENDMENT TO THE CONSULTING AGREEMENT BY AND BETWEEN AGGREGATE NETWORKS AND T.D.P.U.D. This Extension and Amendment ("Amendment") dated this day of February, 2003, shall extend the existing Consulting Agreement ("Agreement") as previously amended, by and between Aggregate Networks ("Consultant") and Truckee Donner Public Utility District ("T.D.P.U.D.") dated May 10, 2002 and which ran through January 10'h, 2003, per Section 3 of the Agreement. NOW THEREFORE, the Agreement is amended as follows: The Agreement shall be extended for four (4)months from January I O`h, 2003 until May 10th, 2003. The monthly fee shall be ten thousand dollars ($10,000). All other terms and conditions of the Agreement shall remain in full force and effect. Furthermore, this Addendum redefines the schedule of"deliverables"to T.D.P.U.D. as originally contained in the Agreement as Exhibit "A". The Exhibit is updated and redefined to correspond to the next phase of effort to identify and place financing for T.D.P.U.D. IN WITNESS WHEREOF, the parties hereto have executed this Extension and Amendment of the Consulting Agreement as of the date first written above. Truckee Donner P.U.D. By: Name: Title: AGGREGATE NETWORKS,LLC By: Name: Title: 1 , EXHIBIT "A" Aggregate Networks will provide the following deliverables: 1. Structure, negotiate and finalize business terms of financing and review of financing documentation, if and where necessary. This includes: a. Review and evaluation of financing proposals b. Review and evaluation of credit enhancement proposals c. Analysis of financial impact of each proposal d. Finalization of financing terms and conditions e. Preliminary review and negotiation of financing documents f. Interface and coordinate with Bond Counsel g. Acting as the central depository of all necessary documents and information 2. Vendor Agreements—Work with FTTU Service Providers and FTTU equipment companies to assist in the structuring, drafting, negotiating and the execution of all relevant Vendor agreements in the best interest of the T.D.P.U.D. These Vendors will include: a. Fiber-Optic Cable & Conduit b. Optical Gear c. Fleadend Equipment d. Co-location Provider(s) e. FTTU Service Providers f. Contractor(s) g. Professional Services 3. Continue to work with end-users, community &municipal users, enterprises, Sources, Vendors and any other parties that can help to bring to reality the FTTU project economically, timely and successfully. 2 4. Assist in helping to "kickoff' an event that will show the community that the FTTU 1 Broadband infrastructure project has indeed started. This will be done in conjunction with a strong PR effort, which Consultant will assist with in any way possible. 5. Anything else not included above, that may be deemed reasonably necessary to successfully fulfill any of the above deliverables. 6. Monthly Reports— Consultant will submit monthly reports detailing: a. What was accomplished? b. Progress for structure. c. Progress for Lease, C.O.P. or Bond d. Roadblocks or hurdles e. Plans to overcome f. Items needed from TDPUD in the form of reports, documents, forms, plans, maps, answers, review, designs or any other necessary information. g. Next month's plans h. Actions taken by each party below and described steps necessary to push project to the next stage in each monthly report, supplemented by emails. i. Aggregate Networks ii. Truckee Donner P.U.D. iii. Other entities (lenders, Government Agencies, etc.) 3