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City of San Leandro Meeting Date: July 17, 2017 Staff Report Agenda Section:File Number:17-412 CONSENT CALENDAR Agenda Number:8.O. TO:City Council FROM:Chris Zapata City Manager BY:Jeff Kay Assistant City Manager FINANCE REVIEW:David Baum Finance Director TITLE:Staff Report for a Resolution Approving a Consulting Services Agreement with Magellan Advisors for a Fiber Optics Master Plan (in an amount not to exceed $60,000) SUMMARY AND RECOMMENDATIONS Staff recommends that the City Council approve a resolution authorizing the City Manager to execute an agreement with Magellan Advisors to help staff develop a fiber optics master plan. The not to exceed amount of the contract is $60,000. BACKGROUND The City of San Leandro owns its own fiber optics network, consisting of several miles of conduit and fiber strands throughout the City. In 2011, the City entered into a License Agreement with San Leandro Dark Fiber to build a commercial fiber optic network using the City’s existing 10.5 miles of conduit. San Leandro Dark Fiber, and Lit San Leandro, were created by Dr. Patrick Kennedy, CEO and Founder of OSIsoft, to own and lease the dark fiber network. In exchange, the City owns 10% of the fiber (approximately 30 strands) installed by San Leandro Dark Fiber. There are no use restrictions related to the City’s ownership of these fibers. See Attachment D. In 2012, the City of San Leandro received a $2.12 million matching grant from the U.S. Economic Development Administration (EDA) to expand the conduit network for fiber optics. This expansion of 7.5 additional miles was needed to extend Lit San Leandro into commercial and industrial areas where broadband access was unacceptably limited. Due to a favorable construction bidding environment, the expansion loop was extended to 10 miles. Analysis The City’s fiber-optics assets have grown in recent years, especially when including fiber Page 1 City of San Leandro Printed on 7/11/2017 500