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'& A f S H L . . G S r RIVERSIDE PUBLIC UTILITIES PUBLIC uTILITYEs Board Memorandum BOARD OF PUBLIC UTILITIES DATE: July 15, 2011 ITEM NO: 4 SUBJECT: POLE ATTACHMENT AND CONDUIT LICENSE AGREEMENT BETWEEN TIME WARNER CABLE AND THE CITY OF RIVERSIDE ISSUE: That the Board of Public Utilities consider approval of a Pole Attachment and Conduit License Agreement with Time Warner Cable. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council approve the Pole Attachment and Conduit License Agreement between Time Warner Cable and the City of Riverside, and authorize the City Manager, or his designee, to execute the necessary documents. BACKGROUND: The California Public Utilities Commission granted Time Warner Cable a Certificate of Public Convenience and Necessity to provide facilities based local exchange and interexchange telecommunications services ("data services")within the State of California. Time Warner Cable has notified the City of Riverside("City")of its intent to install a fiber optic system within the City to provide data services. To economically install their fiber optic communication system,Time Wamer Cable requested to lease existing pole and conduitspacefrom Riverside Public Utilities (RPU), and has made an application to enter into a Pole Attachment and Conduit License Agreement (Agreement). The Agreement defines the process by which Time Warner Cable can utilize RPU's existing poles,conduits,and structures for the purpose of installing its fiber optic facilities. Charter Communications,tw telecom, Pacific Bell Mobile Services, ICG Telecom Group and Southern California Edison have entered into similar agreements with RPU. The benefit that this Agreement provides to Time Warner Cable includes reduced installation costs and accelerated in-service schedules. The benefit that this Agreement provides to the City is fewer street excavations and greater control over aesthetic issues. The Agreement also provides RPU with an additional source of revenue. It incorporates a $67 per pole and structure application fee to recoup RPU's related engineering and inspection costs. The standard rental fees included in the Agreement are$40 per pole per year,$5 per anchor per year, and$2 perfoot of conduit per year. This item was presented and approved at the Electric Committee meeting on July 1, 2011. FISCAL IMPACT: The estimated annual income of $3,000 is based on the initial planned installation as projected by Time Warner Cable. This amount may increase as additional fiber lines are installed. Prepared by: Stephen H. Badgett, Public Utilities Deputy General Manager/Energy Delivery Approved by: David H. Wright, Public Utilities General Manager Approved by: Belinda J. Graham, Assistant City Manager Approved as to form: Gregory P. Priamos, City Attorney