HomeMy WebLinkAbout9 Power Point Annual Fee for Pole Attachments
Action Item # 9 March 18, 2015 Poles Owned by the DistrictThird Party Attachments to Establishing Fees for
Establishing an Annual Fee for 2 compliance with California AB 1027space and capacity on District owned utility poles in District for giving third party service providers appropriate
These fees will be used in agreements to compensate the •Penalty —time processing fee-One—Annual fee per foot of pole attachment—Board action is required to establish pole attachment
fees•Background / History Pole Attachments
Establishing an Annual Fee for 3 owned polesAB 1027 specified that its provisions do not apply to jointly –for use by third party service providersowned utilities (POU) to make space
available on their poles In late 2011, California AB 1027 passed, requiring publicly •2018separate pole attachment agreement in 2003, ending in signed a The local cable television service
provider •Telephone and Telegraph Company for attachment to polesIn 1937, the District entered into an agreement with Pacific •beginning of the District (1927)The District has owned
its electric utility poles since the •Background / History (cont.)Pole Attachments
Establishing an Annual Fee for 4 remain attached to the poles under the 1937 Agreementwould not pursue the new agreement and it wanted to On October 22, 2013, AT&T informed the District
that it •sign the agreementdrafted agreement with the understanding that AT&T would On July 17, 2013, the District’s Board approved a newly •the partial interest in the District’s existing
utility poleswith AT&T to prepare a “Purchase and Sales Agreement” for Starting in August 2012, the District worked cooperatively •Pole Association (NCJPA)In July 2012, the District
joined Northern California Joint •Background / History (cont.)Pole Attachments
Background / History (cont.)Pole AttachmentsEstablishing an Annual Fee for 5 fee and a $110 processing fee pursuant to AB 1027workshop discussing the proposed $28.84 pole attachment
On January 21, 2015, the District Board held a public •annual fee would be $28.84On December 18, 2014, the District informed AT&T that the •District poles with an annual fee pursuant
to AB 1027 On October 22, 2014, AT&T requested to lease space on •interest in the District’s existing utility polesIn February 2014, AT&T verbally agreed to purchase partial •written
notice to terminate the 1937 Agreementyear -On October 23, 2013, the District gave AT&T a one•
New Information Pole AttachmentsEstablishing an Annual Fee for 6$28.84 to $19.00 per foot of pole attachmentThe revised calculation reduced the annual fee from •Required rate of return
included—Cost of borrowing included—Net pole investment increased—Administrative element lowered—Staff concluded four modifications were necessary•attachment calculations of other utilitiesStaff
reviewed calculation and compared it to pole •administrative elementthe annual pole attachment fee calculation for the On February 9, 2015 AT&T identified a needed change to •
New Information (cont.)Pole AttachmentsEstablishing an Annual Fee for 7 attachments discovered on or after January 2012times the annual pole attachment fee for unauthorized AB 1027 permits
the District to impose a penalty of three •$22 Riverside Public Utilities—$19 City of Colton—$19 City of Azusa Light and Water—$19 City of Pasadena Water and Power—$18 Los Angeles Department
of Water and Power—$18 Sacramento Municipal Utility District—feesattachment is comparable to other utilities’ pole attachment TDPUD’s revised annual fee of $19 per foot of pole •
New Information (cont.)Pole AttachmentsEstablishing an Annual Fee for 8-Penalty for unauthorized attachments of three times the annual —pole attachmenttime fee to process a request for
new attachments of $110 per -One—Annual fee per foot of pole attachment of $19—District proposed fees to be effective May 17, 2015•
Next Steps Pole AttachmentsEstablishing an Annual Fee for 9 attachment fee will remain in effect until 2018The local cable television service provider’s current •Board District for approvalservice
providers, including AT&T, and present it to the District Staff will draft a pole attachment fee agreement for third party •approving the fees (May 17, 2015)Fees become effective after
a minimum of 60 days from the Board —Action item March 18, 2015—Workshop held January 21, 2015—approve a fee via resolution Minimum of 30 days after a workshop for a POU to have an
action to —AB 1027 requires•
Fiscal Impact Pole AttachmentsEstablishing an Annual Fee for 10 estimated to be $210,000AT&T’s pole attachments on District owned poles is Annual revenue from AT&T to reimburse the District
for •
Recommendation Pole AttachmentsEstablishing an Annual Fee for 11 processing fee for unauthorized attachmentsPenalty of three times the annual attachment fee plus the —time processing
fee of $110 per attachment-One—Annual fee of $19 per foot of pole attachment—03 establishing pole attachment fees-Adopt Resolution 2015•