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Page 2 <br />The Agreement defines the processes by which Freedom Telecommunications, Inc. can utilize RPU's <br />poles, conduits and structures for the purpose of installing its fiber optic facilities. Charter <br />Communications, TW Telecom, Pacific Bell Mobile Services, ICG Telecom Group and Southern <br />California Edison all have entered into similar agreements with RPU. The advantage to Freedom <br />Telecommunications, Inc.. includes reduced installation costs and accelerated in- service schedules. <br />The benefit to the City is fewer street excavations and greater control over aesthetic issues. <br />The Agreement provides RPU with an additional revenue source. It incorporates a $67 per pole and <br />structure application fee to recoup RPU's related engineering and inspection costs. The standard rental <br />fees are $40 per pole attachment per year, $5 per anchor attachment per year, and $2 per foot of <br />conduit occupied per year. <br />FISCAL IMPACT <br />The estimated annual income is $3,000 based on the initial planned installation, but may increase as <br />additional fiber lines are installed. All other costs are recovered with the application fee. <br />Prepared by: David H. Wright, Public Utilities General Manager <br />Certified as to availability <br />of funds: Paul C. Sundeen, Assistant City Manager /CFO /Treasurer <br />Approved by: Belinda J. Graham, Assistant City Manager <br />for Bradley J. Hudson, City Manager <br />Approved as to form: Gregory P. Priamos, City Attorney <br />Attachments: <br />1. Pole Attachment & Conduit License Agreement, Attachment Application <br />2. July 15, Board of Public Utilities Meeting Minutes <br />46 -2 <br />