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CITY OF SAN LEANDRO / REDEVELOPMENT <br /> AGENCY OF THE CITY OF SAN LEANDRO APPROVED AND <br /> FORWARDED <br /> TO CITY COUNCIL / <br /> STAFF REPORT REDEVELOPMENT <br /> AGENCY <br /> DATE: June 6, 201 1 tephen Hollister <br /> City Manager /Executive Director <br /> TO: Stephen Hollister, City Manager /Executive , <br /> Director <br /> FROM: Luke Sims, Community Development Director <br /> VIA: Cynthia Battenber , siness Development Manager <br /> BY: Jeff Kay, Business Development Analyst <br /> SUBJECT PROJECT/PROJECT DESCRIPTION: <br /> MATTER OF APPROVAL OF A CONSULTING SERVICES AGREEMENT WITH TELLUS <br /> VENTURES AND AN EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT WITH <br /> OSISOFT, INC. RELATING TO THE INSTALLATION OF FIBER OPTIC FACILITIES TO <br /> IMPROVE BROADBAND CONNECTIVITY <br /> SUMMARY AND RECOMMENDATION <br /> Staff recommends that the Redevelopment Agency approve the attached resolution authorizing a <br /> consulting services agreement with Tellus Venture Associates for development of a broadband <br /> strategy and assistance negotiating a license agreement for installation of fiber optic facilities. <br /> Staff also recommends that the City Council approve the attached resolution authorizing an <br /> Exclusive Negotiating Rights Agreement with OSlsoft, Inc. for the purpose of negotiating a <br /> license agreement to install fiber optic facilities within the City's existing conduit. <br /> BACKGROUND <br /> Analysis <br /> Increasingly, fast and reliable internet service is becoming a requirement for successful business <br /> enterprises. Although this need was once restricted to businesses in "high- tech" sectors, <br /> broadband service that facilitates fast transfers of large quantities of data is now a prerequisite <br /> for almost every industry. Given these trends, the City recognizes that enhancement of our <br /> broadband infrastructure can be an effective tool for business development. The U.S. Department <br /> of Commerce has estimated that communities that gain access to broadband service experience <br /> an employment increase of 1 -1.4 percentage points and an increase in rental values of up to 6 <br /> percentage points. High -speed connections have also been proven to reduce a business' carbon <br /> footprint by facilitating off -site communications and telecommuting. <br />