Could the rental of space on utility poles to Windstream provide new revenue for Commerce?
That’s part of the reason the city council voted Monday night to sign a contract with Electric Cities of Georgia, Inc. (A previous story indicated incorrectly that the agreement was with the Municipal Electric Association of Georgia).
“They’re saying $60,000 a year,” reported interim city manager Tom Berry at the city council’s Aug. 6 work session. “I don’t think that’s right. I think they want us to sign, so they’re inflating that.”
“Half of that would be good,” said mayor pro tem Keith Burchett.
Given the city’s ongoing revenue challenges, half of that estimate would be good indeed, but Electric Cities will also inspect the city’s utility poles regularly as it essentially modernizes a pole-sharing arrangement that’s been unchanged in years.
Windstream (and its predecessors) and the city have always shared utility poles, each paying the other for use under separate agreements regarding telephone and cable attachments.
“This will get us in line with all the other utilities that have agreements with Windstream,” reports James Wascher, the city’s accounting manager. “It could be a new source of revenue.”
According to Wascher, the city charges Windstream $5.79 per year per attachment. The number of attachments per pole varies according to pole heights, clearance requirements and other factors.
“That’s extremely low,” Berry observed, adding that under the proposed new agreements there will be “a significant increase” in what Windstream pays to the city.
There will be separate agreements for cable and telephone systems.
As it inventories the poles and attachments, Electric Cities will also check for National Safety Code violations related to attachments.
“There are certain spacing requirements between telecommunications facilities and power facilities,” Berry explained. “I expect we’re going to find some spacing, both ours and theirs, where we’ve pushed the standard a little.”
Commerce will pay Electric Cities $13,000 for the first year and $10,000 annually plus $1 per pole. It will run the contract for the city and negotiate with Windstream on behalf of the city.
Commerce has an estimated 2,500 poles and as many as 1,800 attachments.
