HomeMy WebLinkAbout12 MOU with Plumas Sierraenda Item #
ACTION
To: Board of Directors
12
From: Stephen Hollabaugh
Date. November 02, 2016
Subject: Consideration of a Memorandum of Understanding with Plumas-
Sierra Telecommunications for Use of Fibers
1. WHY THIS MATTER IS BEFORE THE BOARD
This item discusses a MOU between Plumas-Sierra Telecommunications and Truckee
Donner Public Utility District concerning the use of four fibers between Sacramento
and Reno.
2. HISTORY
Truckee Donner Public Utility District has an ownership right in four fibers from Reno
to Sacramento. TDPUD has been looking for ways to utilize this asset. Plumas Sierra
Telecommunications (PST) and Truckee Donner Public Utility District (TDPUD) wish to
enter into Memorandum of Understanding (MOU) concerning use of four fibers from
Reno to Sacramento.
3. NEW INFORMATION
PST is in the telecommunications business, and awholly-owned subsidiary of Plumas-
Sierra Rural Electric Cooperative. TDPUD and PST have been in discussions on how
to benefit each entity as well as our respective communities, rate -payers, and local
economies.
Mutual Benefit: TDPUD staff requests faster, more reliable service than it currently
receives without directly engaging in the telecommunication business. PST has
interest in utilizing unused capacity in 4 fibers.
For PST use of 4 fibers. TheTDPUD would receive a dedicated high speed connection
for Internet. PST will expand its offering to TDPUD at no cost as TDPUD's needs
increase PST will market surplus capacity to others and divide revenue between
TDPUD and PST.
Example: An internet service provider wants to purchase a 2 gig transport circuit from
Colfax to Sacramento and the service price is $1,250, the monthly hard cost is $750
per month, PST and TDPUD split the remaining $500 on a 50/50 basis.
Ownership: TDPUD retains ownership of all existing conduits, vaults and fiber-optic
cable. If PST installs conduit and places new vaults and fiber optic cables, the added
equipment belongs to PST. All network administrative devices, system switching and
customer premise equipment belongs to PST with the exception of switches and
equipment dedicated and paid for by TDPUD.
PST Market Focus: Schools, Colleges, Hospitals and the industrial park will be the
primary targets with commercial business districts as a second phase. Focus will not
be on residential but PST will provide anyone willing to pay for service.
Termination: The agreement will be for five years, with five year extenstions unless
either party makes arrangements to cancel. Language to be determained by District
Counsel.
4. FISCAL IMPACT
This MOU between TDPUD and PST may provide immediate value to the District. The
more successful PST is in marketing this service, the more value PST and TDPUD will
receive.
5. RECOMMENDATION
Authorize General Manager to execute a Memorandum Of Understanding with
Plumas -Sierra Telecommunications in a form approved by General Counsel.
Stephen Hollabaugh
Assistant General Manager
Michael D. Holley
General Manager