HomeMy WebLinkAbout15 Broadband Infrastructure Agenda Item # 15
-" TRUCKEE DONNER
DistrictPublic Utility
WORKSHOP
To: Board of Directors
From: Stephen Hollabaugh
Date: May 20, 2009
Subject: Update on Broadband and Leasing of Broadband Infrastructure
1. WHY THIS MATTER IS BEFORE THE BOARD
The purpose of this memorandum is to provide the Board with an update on the District's
broadband assets and on the status of efforts to lease out existing Broadband
infrastructure.
2. HISTORY
• The TDPUD Board of Directors and staff have been working on what has been coined
the "Broadband Initiative" for some time in order to provide the Truckee community
with superior broadband services, including high speed data, IP video and competitive
telephone services.
• Over the past nine years, we have drafted numerous iterations of a financial business
plan, the latest of which was approved by the TDPUD Board of Directors and Nevada
County LAFCo in 2004.
• Within this same time frame the District has contracted with three independent
marketing research firms to conduct quantitative market research to identify
telecommunication needs and market demand for District provided broadband
services.
• In addition, the District has evaluated virtually every technology for the provision of
broadband services including coaxial cable, a mix of coaxial cable and fiber optic
cable, wireless technologies, broadband over power line technologies (BPL) and the
use of fiber optic cable from the source to the end user.
• Following Nevada County LAFCo's certification of the Truckee Donner Public Utility
District to provide broadband services, Cebridge Connections filed a lawsuit in
opposition to the certification which effectively stalled the broadband initiative for 18
months. Following the defeat of this legal challenge, Cebridge Connections appealed
the action to the State Appellate Court of California. In June of 2007, the Court ruled in
favor of Nevada County LAFCo, upholding the initial ruling. With the filing of the initial
lawsuit, and subsequent appeal, the District found it necessary to put the Broadband
initiative on hold due to lack of funding opportunities.
• During the third quarter of 2007, the District was approached by 180 Connect, Quanta
Services and Victor Capital with a proposal to design/finance/construct and manage
the proposed broadband system, through a lease to own proposal. Due to the
instability in the telecommunications market, Victor Capital, 180 Connect's financial
partners bowed out of the project in December, 2007.
• During 2008, the District approved a contract with Uptown Services LLC to provide
consulting services consisting of performing an asset inventory, asset valuation and
asset leasing support.
• Uptown Services prepared an RPF for Leasing of Telecom Infrastructure that was
released on January 12, 2009. The District has received three proposals from
interested parties and is continuing to work with them to fully evaluate their proposals.
3. NEW INFORMATION
NEXT STEPS
• Response to the Leasing of Telecom Infrastructure RFP was extended to the first
of April 2009. Three response were received.
• Uptown Services helped staff evaluate the RFP's and has started the due diligence
phase with one of the proposers.
• Once the due diligence phase is complete, a contract for leasing infrastructure will
be presented to the Board.
Broadband related disbursements
• Capital Disbursements$143,969
- Engineering Services
- Fiber
• Non Capital Disbursements $2,685,110
- Market studies and analysis
- Legislative
- Legal
-Advertising/PR
-Consulting
4. FISCAL IMPACT
There is no fiscal impact associated with this workshop.
5. RECOMMENDATION
Review and receive this report.
Ste hen Hollabaugh Michael D. Holley
Assistant General Manager General Manager