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HomeMy WebLinkAbout8 Power Point Update on Fiber Asset Action Item # 14 December 7, 2011 District Long Haul Fiber Asset District Long Haul Fiber Asset 2 assetlong haul fiber asset and the status of the efforts to sell this Board meeting that provided and update on the District’s A Workshop was presented at the November 16, 2011 •Background / History New Information District Long Haul Fiber Asset 3 SacramentoLightwave, LLC (ELI) at specified locations in Reno and AT&T agreed to provision the fiber strands to Electric –rights, privileges and obligationsAT&T consented to the District’s assignment of all of its –AT&T and the District Settlement Agreement:•AT&T and the District agreed to mediate the dispute–Sacramento location was about 2500 feet off –Reno location was about 50 feet off–fiber in Reno and Sacramento points of the dark -regarding the proper location of the endAT&T dispute: A dispute arose over the agreements • New Information District Long Haul Fiber Asset 4 value (PV) of $123,368$13,333.33 annually from 2012 through 2022 for a present ELI assumes annual payment obligations to AT&T of –and the DistrictELI assumes the Dark Fiber IRU Agreement between AT&T –of one million one hundred thousand dollars ($1,100,000)District agrees to transfer all interest in (LHF) to ELI for a sum –District and ELIAssignment and Assumption Agreement between the •collocationELI agrees to comply with all of AT&T’s requirements for –Agreementsrights, privileges and obligations under the AT&T/District ELI has agreed to accept the assignment and assume all – Fiscal Impact District Long Haul Fiber Asset 5 and the Assignment and Assumption AgreementDistrict Counsel has reviewed the Settlement Agreement, •Present value of the avoided cost to AT&T is $123,368–$1,100,000 lump sum payment–$1,223,368The total value of this transaction to the District is • Recommendation District Long Haul Fiber Asset 6 Counselsubstantially the form presented and approved by District Lightwave, LLC and Truckee Donner Public Utility District in Assignment and Assumption Agreement between Electric Approve and authorize the Board President to sign the •Counselsubstantially the form presented and approved by District Truckee Donner Public Utility District and AT&T in Settlement Agreement and Mutual Release between Approve and authorize the Board President to sign the •