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Tellus CSA and OSlsoft ENRA 2 June 6, 2011 Although almost all parts of San Leandro presently have access to some level of broadband service via cable and telecom service providers, significant shortcomings in speed, cost, and reliability exist in some areas, particularly in industrial locations. In these cases, businesses are often left with limited options for slow service at comparatively high costs. Without improvements to our broadband infrastructure, these areas will struggle to attract and retain businesses, particularly those in emerging industries. This report covers two recommended actions that are related to internet connectivity issues. First is approval of a Consulting Services Agreement with Tellus Venture Associates for development of a broadband strategy. Second is approval of an Exclusive Negotiating Rights Agreement (ENRA) with OSlsoft, Inc. for the purposes of negotiating a licensing agreement to install fiber optic facilities in the City's existing conduit. Broadband Strategy Recognizing the importance of broadband infrastructure, the Redevelopment Advisory Committee recommended that the facilitation of technology infrastructure enhancements to underserved business areas be identified as a priority project for all project areas. This recommendation was incorporated in the 2010 -14 Redevelopment Agency Implementation Plan. Toward that goal, staff has initiated development of a broadband strategy to accomplish the following: • Assess current conditions and identify shortcomings in the availability of broadband to industrial and commercial businesses; • Identify and assess options for addressing service shortcomings, including negotiations with current service providers, identification of new service providers, and potential for infrastructure improvements to improve service levels; and • Develop a comprehensive strategy to ensure that high - quality broadband service is available at reasonable costs to as many businesses as possible. Staff has already begun meeting with service providers and reaching out to businesses to gain a better understanding of current conditions. Development of a full strategy, however, will require additional technical expertise. After discussions with staff from several other cities in California, staff solicited proposals from three firms. Tellus Venture Associates is recommended for this service because the firm has extensive experience providing comprehensive connectivity studies and assisting with broadband system management for public agencies. San Leandro can capitalize on Tellus' experience to take advantage of best practices and lessons learned from similar efforts undertaken in other cities. Tellus' proposed scope of services includes development of a broadband strategy and assistance negotiating a license agreement for installation of fiber optic facilities (see following section). Work would be completed for both tasks — development of a broadband strategy and assistance negotiating a licensing agreement — on a time and materials basis for a not -to- exceed cost of S45,000. ENRA with OSlsoft, Inc. G:10BD \Files EDA \Broadband and Fiber Connectivity \Staff Report ENRA and CSA 6 -6 -1 I.doc