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City of San Leandro Meeting Date: October 17, 2011 Staff Report File Number: 11 -243 TO: City Council FROM: Lianne Marshall Agenda Section: ACTION ITEMS Agenda Number: 10.A. Interim City Manager /Executive Director BY: Luke Sims Community Development Director FINANCE REVIEW: Not Applicable TITLE: Staff Report on a License Agreement with San Leandro Dark Fiber for the Installation of Fiber Optic Facilities in City Conduit RECOMMENDATIONS Staff recommends that the City Council approve the attached resolution authorizing a License Agreement with San Leandro Dark Fiber for the purpose of installing fiber optic facilities within the City's existing conduit. BACKGROUND Early in 2011, the City of San Leandro received a proposal from OSlsoft, a local software company, to license an approximately 10 -mile loop of City conduit for the purpose of installing fiber optic cable. The loop would be used to provide extremely high -speed data communications for OSlsoft as well as other businesses that opt to tie in to the system. This high speed broadband service has the potential to serve as a business development tool, positioning San Leandro to attract and retain companies that rely on high -speed internet connectivity and large quantities of data. The License Agreement is an agreement between SL Dark Fiber LLC (a corporation formed by OSlsoft to manage the proposed fiber operation) and the City of San Leandro (City) for the use of City conduit to install a fiber optic loop. Staff has worked over the past several months to negotiate a license agreement with SL Dark Fiber that achieves the following goals: • Limit any City exposure to financial risk resulting from the project; • Protect the security of existing City infrastructure and data systems; City of San Leandro Page 1 Printed on 10/11/2011