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City of San Leandro <br />Meeting Date: March 16, 2015 <br />Staff Report <br />Agenda Section:File Number:15-161 CONSENT CALENDAR <br />Agenda Number:8.F. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:Rich Pio Roda <br />City Attorney <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for a Resolution Approving the First Amendment to the License <br />Agreement between the City of San Leandro and San Leandro Dark Fiber <br />LLC <br />BACKGROUND and ANALYSIS <br />Effective October 17, 2011, the City and San Leandro Dark Fiber LLC (SLDF) entered into a <br />License Agreement that provided SLDF access to the City’s conduit within the public right of <br />way to install, construct (where necessary), and manage a fiber optic loop within the City’s <br />downtown and industrial areas. This First Amendment to the License amends the original <br />license to clean-up language and processes between the City and SLDF, and to incorporate <br />rates, terms and conditions applicable to SLDF’s use of the Expanded Property, as defined <br />below. <br />Pursuant to the Original License, SLDF currently installs and operates fiber optic cables and <br />related facilities (the “Project” or “Projects”) in existing City-owned and managed conduit <br />located on City owned real property and/or within the City’s right-of-way. On September 27, <br />2012, the City received verification that it was approved for a 50%, $2,120,000 matching grant <br />from the federal Economic Development Agency (“EDA”) that enables the City to construct an <br />additional 7.5 miles of conduit (the “Expanded Property”). Construction of the additional 7.5 <br />miles of conduit will require the City to match the federal grant through the inclusion of <br />property valued at market rate, in-kind services and cash, for a total estimated cost of $4.3 <br />million. <br />The value of the City’s contribution to the Project is approximately $6 million and the value of <br />the City’s contribution to the Expanded Property is approximately $4.6 million including the <br />EDA grant, for a total City contribution of approximately $10.6 million. In order to carry out and <br />complete the Project, SLDF must have access to the Expanded Property and the City’s <br />right-of-way to carry out additional work to expand the fiber optic loop and access. <br />This First Amended License acknowledges the significant investment in the Project by the City <br />through securing the Expanded Property and providing in-kind services and cash for the <br />public interest, welfare and benefit of the City’s residents and businesses. This First <br />Amendment also acknowledges the City’s responsibility to ensure service delivery to the San <br />Page 1 City of San Leandro Printed on 3/11/2015