HomeMy WebLinkAbout14, Agreement w ATT pole ownershipAction Item # 14
Agreement with AT&T
Concerning Pole Ownersh'
July 17,2013
Background / History
• The District joined the NCJPA (Northern California Joint
Pole Association) in 2012. This was brought before the
Board on September 5, 2012.
• AT&T is a member of NCJPA and each member holds joint
equity in utility poles within their respective service
territories
• Members of the NCJPA make a joint undertaking to share
expenses regarding ownership, maintenance, replacement,
removal and disposal of jointly owned poles
2
New Information
• AT&T is attached to 4,281 poles and needs to procure the
common space and communication space on these poles
from the District
• This value of this portion of these poles that AT&T needs to
acquire was calculated using a NCJPA depreciation table
• The pole purchase agreement with AT&T has the following
highlights:
— Purchase Price of $1,631,113 made up of four equal
payments of $407, 778
— Payment schedule
— First Payment due on or before October 15, 2013
— Second Payment due on or before June 15, 2014
— Third
Payment due
on or before June
15,2015
3 — Final
payment due
on or before June
15, 2016
New Information (continued)
• The pole purchase agreement with AT&T has the following
highlights:
— Conditions precedent to closing:
— District shall provide AT&T with a full pole inventory including GIS data
etc.
— District and AT&T agree to cooperate in preparation and filing of any
required NCJPA governing documents
0
Fiscal Impact
• Financial impact of the AT&T pole purchase agreement is
$17631,113 over four years to the District
• Recommend that proceeds from this transaction be
deposited into the Electric Department Capital Replacement
Fund
5
Recommendation
• Authorize the Board President to sign the Pole Purchase
Agreement between AT&T and Truckee Donner Public
Utility District in substantially the form presented and
approved by District Counsel
a