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Tellus CSA and OSIsoft ENRA 4 June 6. 2011 • Guidelines for determining price structures and policies governing how businesses could connect to the loop. • Method of distributing profits, should any be generated, after OSlsoft recoups its initial capital investment. • Options for installing new fiber in areas where the existing conduit does not have sufficient capacity. The Lit San Leandro project has the potential to provide high - capacity data connections to businesses that are close to the fiber loop. In this sense, it can be considered a component of the larger need to improve broadband connectivity citywide. One of the tasks in the Consulting Services Agreement with Tellus Venture Associates is assistance with negotiation of the license agreement. Tellus will assist the City be providing technical expertise as well as information on how other cities have handled similar arrangements. An alternative to the recommended ENRA would be to approach a wider array of businesses and service providers to assess their interest in partnering with the City for development of a fiber loop. Given that OSlsoft is a locally based company, with plans for expansion within San Leandro, and has taken the initiative to devise the Lit San Leandro proposal, staff recommends negotiating exclusively with them at this time. Comparative data from other cities and the experience of Tellus will be used to ensure that the terms of a licensing agreement are fair for both parties. Current Citv Council/Redevelopment Agency Policy The San Leandro Redevelopment Agency 2010 -14 Implementation Plan listed the following as a priority project for all redevelopment project areas: "Facilitate technology infrastructure enhancements, including but not limited to high -speed interne services, to underserved business districts in order to support business operations and to attract new business to the Citv." Citv Council Committee Review and Action These items were reviewed at the May 12, 2011 meeting of the Business and Housing Development Committee, and the Committee recommended forwarding them to the City Council for approval. Fiscal Impact The Consulting Services Agreement with Tellus Venture Associates is based on a not -to- exceed cost of 545,000, which will be funded by a new appropriation from the available fund balance of the West San Leandro/MacArthur Boulevard Redevelopment Project Area. The ENRA with OSIsoft will not have any direct fiscal impact. Any fiscal impact resulting from a future licensing agreement will be subject to Council review prior to adoption. Budget Authority G: \OBD \Files EDA \Broadband and Fiber Connectivity\Staff Report ENRA and CSA 6 -6 -1 I.doc