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Home My WebLink About4 180 Connect Agenda Item # TRUCKEE DOINNER Memorandum To: Board of Directors From: Alan Harry; Telecommunications Manager Date: June 14, 2007 Subject: Broadband Business Planning: Construction h SkyCommunicat Communications Presentation by 180 Connect an Why this matter is before the board Representatives of 180 Connect and North Sky Communications aff, Peter and infrastructure) within regarding the design/build and lease-back of a broadband ytem (broadband the District's service area. In that the idea of having a broadband e scheduled a presentation by these party and leased back to the District is a new concept, organizations to the Board for your June 20 regular meeting. History The District has, since 1999, worked diligently toward the possible provision of broadband services within its service area. Staff has prepared various businessand plans, system of system elect onics has one Great out to bid for the construction of the systems backbone purchase strides have occurred since we began the project including poccurred as well, theportunity to utilize 'strict "dark greatest of fiber" from Reno to Sacramento. However, great hindrances have which was the lawsuit filed against Nevada County LAFCo by Cequal III following LAFCo's approval of the District's proposed business plan to construct afi fl'n system of this lawsuit in 2004 stalled broadband services including voice, video and data services. The 9 the project by making the necessary financing of the oposed system unavailable. Since that the Nevada County Courts findings tolthe me Cequal III has lost their case at the County level, appealed of California Appellate Court and in June 2007, lost the peal. Now, with seriously at thehe constructioln of a fiber-optic is an opportune time for the District to once again look broadband system to provide video, data, voice, meter reading and SCADA services. 0 Page 1 New Information Recently, District staff(Alan and Peter) have been approached by 180 Connect and North Sky Communications with a proposal to construct and lease-back a fiber-optic broadband system to the District. This concept, design-build, is not a new one and allowable with the State of California. Attached find the a letter of interest attacved June 12,hed nformation0onfrom each of0theocompan eshinvkolved in this Communications. In addition I have presentation for your review. Finally, it should be noted that I have had an initial conversation with District legal counsel regarding the legality of this type of an infrastructure build. Mr. Gross's thoughts were that with certain limitations, the payment of prevailing wages, etc, that a design/build/lease-back arrangement would allowed under the Public Utility Code and other State regulations. Recommendation It is recommended that the Board direct staff to enter into discussions with 180 Connect and North Sky Communications regarding the construction and lease-back of a broadband system. 0 Page 2 �1801 CONNECT Bringing the digital world home June 12`",2007 Alan Harry Director of Telecommunications Services Truckee Donner Public Utility District 11570 Donner Pass Road Truckee,CA 96160 SUBJECT: Letter of Interest Dear Mr.Harry: I am pleased to submit this Letter of Interest from 180 Connect,Inc.(180)and North Sky Communications,Inc. (NSC),a joint venture.The 180/NSC Team proposes to present a plan to the Truckee Donner Public Utility District for a complete turnkey Fiber To The User solution that includes the following: • Financing Package. • Engineering&Design. • System Integration. • Electronics Recommendation&Provisioning. • Outside Plant Construction. • Outside Plant Material Procurement. • Fiber Splicing,Testing,and Documentation. • Customer Premise Equipment Installation&Cutover. • Quality Control&Inspections. The 180/NSC joint venture is a subsidiary of a larger family of companies and it has assembled a team of professionals solely dedicated to developing a solution that will assist the Truckee Donner Public Utility District (TDPUD)in achieving its goal of providing a triple play technology to the community. Following is a brief summary of our team: 180 Connect,Inc.: 180 Connect is a publicly trade company on the TXU Has managed the development and installation of FTTx projects in the US ranging between $50k and$80 million • Currently has four FTTx projects under development both passive and active • Has a complete turnkey solution,from business planning,deployment and operations 180 currently has over 3,500 skilled technical personnel across the US who are equipped to install services to the premise • Our Customer Service Center operates on a 24*7 basis with an advanced trouble ticketing system. • Can provide a wide range of added services to a project through several divisions oft e company(Facilities,Technology,Engineering,Construction,Wireless,Home Installation& Product Sales) �3f3C)Ar �ricxsnn' rxc�.:::r,Suik,230,Boise,Its 1 837W> www.180connect.net � 180 � CONNECT Bringing the digital world home NSC: • Formed in 1990 by the merger of two well-respected and ambitious Northwest companies to create a single company with the ability to offer a full range of construction and installation services. • In July of 1999,NSC became a division of Quanta Services Inc.,a multi-billon dollar national utility construction cooperative. Our alliance with Quanta Services allows us greater US coverage,as well as diversifying our abilities in the utility construction field. • Working with a Quanta Services company,clients increase efficiency,maximize internal resources and develop a competitive edge. In addition,Quanta Services financial stability is a value-added asset to its comprehensive capabilities. • Presently,NSC has 270 employees actively working on projects throughout the USA. • NSC provides and utilizes all aspects of contracting and construction needs from Aerial and Underground to Splicing and Installation. lacin • Aerial Construction includes: Placing ADSS and/or strand,lashing of fiber cables,placing and/or removing of poles,and make-ready engineering/repairs,etc. Underground Construction includes: Trenching(asphalt,concrete),horizontal directional drilling,excavation,placing manholes,placing fiber/coaxial cables,etc. • Splicing includes: Copper,coaxial and/or fiber cables,pre and post reel testing and/or splice testing,etc. • Installation includes: Commercial or Residential installation,Aerial and/or Underground,pre and post wire of SFUs and/or MDUs. Turnkey capability from marketing and custom wiring to the standard of Voice,Data,and Video. The following team listed above would take on project to provide a full turn-key solution for Truckee Donner PUD.Based on our last meeting with you and we have established the teams to present our approach to the district representatives and await for the scheduled board meeting to present our final solution. 3380 Amec icun',) i(,rrac: ,suile 230.Bo;se,ID 2 83706 www.180connect.net � 1801 CONNECT Bringing the digital world home Truckee Donner PUD Fiber to the Premise Project Quanta estme Inv nt 18o connect,Inc. Project Management NorthSky construction -- Network / Aerial Underground Fadlily Network Network _� Construction I I Installation Provider �' Management Operations construction Il l Engineering �- Services Installation �— 1 AMR r-- power Meter AMR ( Protect wl"'a'met Software Support Module Solution i Please feel free to call me if you have questions. Thank you, William A.Hunsinger Project Manager—Marketing Cc: Ron Ivie,Director of Engineering&Construction— 180 Mark Johnson,Operations Manager-NSC Dan Miller,Vice President—Telecomm Operations 3 s�sCl fir e:Orl ) le.icice,suiie 230.Boise'ID 3 c`3 706 www.180connect.net Page lofl l0UConmect \1�N�|� CONNECT �� - ][ m� � Investor Relations | Emp{nmmunt _�_Cuntocz � i "=~� ~- ~° '~ ~~ - - L___--- � - �-----�- - - ---�� ------�-------------� \ Mnnuurment � 18O Connect isurap'dh growing provider A full arraYmf mf technical support services including new sinqle or WOW installations, reconnections, bnmmdbmtid disconnections' service upgrades and downgrades and servicecaiisfor ��c�m�Vr broadband video' data and voice services thenesidelifial, for residential, business and commercia\ business aud marketpiaces. cMmt-nercial YYo get the job done right because*ehave Ylathwtmlaces the resources and experienced field supervisors leading a top-notch and proficient team of technicians cross- trained broadband d \ ment 18U Connect employs approximately 4,0OO sW0ed technicians, local supervisors and support staff who are dedicated to provide an exceptional deployment service. Our commitment istn make our employees a premier point of contact with your customers' and our approach begins from hiring the right penpie and continues with the training and support to buiid a professional and ta\ented team that understands your business and your customers. _______ «uoo*/oo Connect veb*eIt r"a and cnod imons 6/14/2007 hthp-: ��/�n� .l00cmozuect.net/flamh um ook�m.}doz Page 1 of 1 180 Connect '180 CONNECT Service's investor Relations EI11ploYImprit CIontict Brian McCarthy, Executive Chariman Peter Giacalone, President, Chief Executive Officer and Director Steven Westberg, Senior Vice President, Chief Financial Officer Zachary McGuire, President, Satellite Operations Nicholas Wainwright, President, Cable Operations Brian Dalmass, President, Digital Interiors and Network Services Ed Nollinger, Senior Vice President Business Operations 02004 180 Connect Websrte Terns and Conditiol)s http://www.180connect.net/flash—content/management.html 6/14/2007 Page 1 of 1 Quanta Services 4' i �OntaCt operating Units Back to Operating Units North Sky Communications North Sky Communications operates in the no United States and specializes in the installation and maintenance of cable television systems.The company also installs and maintains communication systems and telephone lines. North Sky Communications 120 N.E. 136th Avenue Vancouver, Washington 98684 .- p. 0. Box 87567 Vancouver, Washington 98687 Tel: 360 254-6920 Fax: 360 254-5097 Contact: Skyler Smick sky@northskycomm.com http://www.quantaservices.com/top_nav/unit_northsky.html 6/14/2007 Page 1 of 1 Quanta Services r '* About US > Profile k w E Quanta Services is a leading provider of specialized contracting services, delivering end- to-end network solutions for the electric power,telecommunications, broadband cable and gas pipeline industries.The company provides a comprehensive range of services, including the design, installation, maintenance and repair of virtually every type of network infrastructure. With more than 13,000 employees, major offices in 40 states, and field and support offices in all 50 states and Canada,Quanta Services has the manpower, resources and expertise to complete projects that are local, regional, national or even international in scope. Since its inception,the company has focused on the vision of helping customers respond to the key dynamics that are driving industry development: •The convergence of products, services and facilities that deregulation and the growth in demand for bandwidth have created. •The aging electric power transmission and distribution network. •The need of energy and communications providers for efficient access to a comprehensive, capable and cost-effective set of end-to-end solutions. Today, Quanta Services offers the country's broadest collection of the expertise and resources to create and maintain transmission infrastructure. http://www.quantaservices.com/about—uS/profile.html 6/14/2007 Page 1 of 1 Quanta Services r About Us > History Foundation of Innovation and Foresight Quanta Services was founded in 1997 with the vision and expertise to create an integrated,comprehensive and nationwide network of infrastructure contractors to meet the evolving needs of electric utility and telecommunications companies. With deregulation driving fundamental changes in the electric power industry,the founders anticipated a dramatic expansion in outsourcing of the design, installation, repair and maintenance of transmission and distribution networks.Today,this vision has been validated: Quanta Services is the largest electric contractor in the United States. . Growth by Leveraging opportunities As deregulation,the explosion of electronic commerce, and the continuing rapid growth of wireless communications spurred convergence of products, networks and services, demand for the expertise at the core of Quanta surged. As a result,the company quickly grew from $152 million in revenue in its first year to more than $2 billion in 2000. In addition to the telecom and power industries, Quanta's comprehensive services are increasingly demanded by the natural gas market, where, in addition to the general competitive pressures being faced, environmental concerns are forcing close scrutiny of the integrity of the networks. With a comprehensive portfolio of expertise, Quanta has also expanded into a variety of specialty services to meet the changing and expanding needs of its customers. Looking Forward Quanta Services has consistently grown its knowledge base, capabilities and geographic reach through its strong track record, experienced leadership and excellent customer service.The company continues to execute this proven strategy to ensure that its customers have direct access to a complete selection of design, installation and maintenance services for virtually any infrastructure. http://www.quantaservices.com/about_us/history.html 6/14/2007