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City of San Leandro <br />Meeting Date: December 19, 2016 <br />Presentation <br />Agenda Section:File Number:16-362 PRESENTATIONS <br />Agenda Number:3.B. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:Cynthia Battenberg <br />Community Development Director <br />FINANCE REVIEW:Not Applicable <br />TITLE:Presentation on the Status of Lit San Leandro: Annual Report from San <br />Leandro Dark Fiber LLC <br />SUMMARY AND RECOMMENDATIONS <br />In 2011, the City of San Leandro executed a License Agreement with San Leandro Dark Fiber <br />LLC (“SLDF”). This Agreement requires annual reporting on the status of SLDF and <br />development and implementation of the Lit San Leandro (“LitSL”) network. The reporting <br />requirements were expanded with approval of the First Amendment to License Agreement <br />approved by the City Council in January 2015. <br />Representatives of SLDF will be presenting information contained in the Annual Report from <br />San Leandro Dark Fiber LLC. This staff report provides a summary of activity updates related <br />to the LitSL fiber optic network and is for information only. <br />BACKGROUND <br />In 2011, the City of San Leandro executed a License Agreement with San Leandro Dark Fiber <br />LLC, Dr. Patrick Kennedy/Founder, to develop the first phase of a 10 gigabit per second fiber <br />optic network. In January 2015, the City Council approved a First Amendment to the License <br />Agreement, which incorporated an anticipated 7.5 mile expansion of the City’s conduit funded <br />by the City and a $2,120,000 matching grant from the U.S. Economic Development <br />Administration (“EDA”). LitSL is the entity created to lease dark fiber to Internet Service <br />Providers (“ISP”) or other enterprise dark fiber users. <br />SLDF owns the fiber that occupies the City’s conduit. In exchange for this business <br />relationship, the City receives 30 strands of fiber unrestricted as to use throughout the original <br />and expanded network. Within the expansion conduit, the City received an additional 42 <br />strands of fiber “solely for internal communication needs and public projects”. These <br />additional 42 strands cannot be used for resale or other commercial ventures other than with <br />SLDF. <br />LitSL is the sister company to SLDF that actively manages the fiber and leases it to the <br />Internet Service Providers that provide gigabit services directly to the commercial customer. <br />Page 1 City of San Leandro Printed on 12/13/2016