HomeMy WebLinkAbout12-Annual Fee for Pole Attachments
Workshop Item # 12 January 21, 2015 Pole AttachmentsEstablishing an Annual Fee for
Establishing an Annual Fee for 2 omplies with the California Law (AB 1027)C—For use by communication service providers—This fee will be used in an agreement to provide appropriate •foot
of pole attachmentBoard action will be required to establish an annual fee per •Background / History Pole Attachments
Establishing an Annual Fee for 3 Joint Pole Association)In July 2012, the District joined NCJPA (Northern California •owned poleAB1027 specified that its provisions do not apply to a
jointly –use by communication service providersutilizes (POU) to make space available on their poles for In late 2011, AB 1027 was passed, requiring publicly owned •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 our electric utility poles since
the •Background / History Pole Attachments
Establishing an Annual Fee for 4 Ends in 2018–2003Suddenlink signed a separate pole attachment agreement in •over the next three monthsAT&T continued to try to get authorization for
the agreement –understanding that AT&T would sign the agreement2013, the District’s Board approved the agreement with the Agreement was completed in April 2013 and on July17, •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 •Background / History
Pole Attachments
New Information Pole AttachmentsEstablishing an Annual Fee for 5 August through October 2014The District counsel was in touch with AT&T from late •existing utility polesverbally agreed
to purchase partial interest in the District’s In February 2014, the District met with AT&T and AT&T •agreement on October 31, 2014written notice of its intention to terminate the 1937
On October 23, 2013, the District gave AT&T one year •attached to the poles under the 1937 agreementnot be pursuing this agreement and wanted to remain On October 22, 2013, AT&T informed
the District that it will •
New Information Pole AttachmentsEstablishing an Annual Fee for 6 District calculated an annual fee per attachment of $28.84 —compliance with PUC Section 9512On December 18, 2014, the
District informed AT&T that in •requested a rate for these attachmentswanted to continue to attached to the District poles and On November 10, 2014, AT&T informed the District it •Under
Section 9510 of the Public Utilities Code—Requested the District provide an annual rate—1027) interested in leasing space pursuant to Section 9510 (AB On October 22, 2014, AT&T informed
the District it was •
New Information Pole AttachmentsEstablishing an Annual Fee for 7 audited FY 2013 financial statementsThe data making up the formula come from the District’s •The pole attachment formula
is:•ensure compliance with AB 1027to calculate a rate for the annual fee per attachment and The District has followed the requirements set by AB 1027 •
New Information Pole AttachmentsEstablishing an Annual Fee for 8 request for a single attachmentThe District is proposing an application fee of $110 per pole to process a •$110.31$23.08=$41.65
)X .30+ ($35.30 Contract Admin.$87.23= .70 )X$67.4557.16 +($Engineer Electric /Attachment= Application Fee70%Hourly Rate OH The application fee is
then calculated to be:•being 30% of the hourhour, with the engineering portion being 70% and clerical It is estimated that each pole and its application will take 1 •process a request
to attachment based on actual coststime fee to -AB 1027 enables a POU to establish a one•
New Information/Next Steps Pole AttachmentsEstablishing an Annual Fee for 9 2018Suddenlink’s current attachment fee will remain in effect until •attachments prepare an agreement with
AT&T with the new rate for After approval of a rate for attachments, the District will •June 1, 2015, date the rate will become effective—for pole attachments March 18, 2015 Board
meeting, Present a resolution to establish rate —become effectiveMinimum of 60 days after the Board approves a rate for the rate to —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 4500 poles with 2.5 attachments per pole—$324,450/year—Annual revenue expected to be•There is no fiscal impact
for this workshop•
Recommendation Pole AttachmentsEstablishing an Annual Fee for 11 Board review and commentThis is a workshop item and information is provided for •