10A Action Calendar 2018 0917 - Laserfiche WebLink

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127 network, the City’s customers are service providers rather than retail customers, allowing San Leandro to maintain transparency and avoid any direct “customer service” issues with customers using the network. The City should identify prime target commercial buildings that could be connected to the fiber network. Commercial buildings with a direct fiber connection to a major data center facility could be quite attractive for companies looking to locate within the City of San Leandro. These buildings would be considered “on-net,” meaning they are serviced by City fiber and have a connection to a major computing center or an internet point-of- presence (POP). While taking on this form of endeavor may seem daunting, it is being done daily by municipalities and new competitive service providers. These additional services could have a major impact to the community, while building next-generation foundational community owned infrastructure. In addition, this platform would be utilized to connect City facilities and sites, utility components, sensor networks, 5G and small cell deployments, while functioning as the infrastructure of San Leandro’s digital eco-system and powering Smart City initiatives. The City would contract for capacity or bandwidth from a provider that could interconnect the San Leandro network to a regional data center or colocation facility. Many providers in San Leandro have dark fiber and provide dark or lit transport services. The City's network would have the ability to provide access to businesses located within the fiber network's footprint. While the City wouldn’t service these businesses directly, there may be opportunities to align with a retail business provider to deliver the required services. San Leandro should identify multi-unit commercial buildings to connect to the network, as these buildings will normally include many potential users, but will require a single premise drop. These opportunities should reduce the overall cost to connect business users, lowering the average capital cost of each connection. Under a wholesale lit transport business model, San Leandro would identify the potential market for both business and community anchor connections, as well as connections and pole attachments for the light poles. Through buffer analysis, San Leandro can target businesses and light poles at specific distance from the fiber-optic network – this becomes the potential market for the City. San Leandro would likely not be able to make the business case to run a fiber lateral one mile to a business – however, 500ft could be a manageable build. In some cases, the City may ask potential users to contribute capital toward the fiber buildout. In Santa Monica, the City required “capital contribution” for business transport connections, which served as a way to reduce the overall capital burden on the City. While this practice is advisable, San Leandro will encounter local businesses that simply cannot afford this. Capital contributions can become an obstacle to gaining market share; however, the City has the ability to set these policies as it develops its rate schedule in the future.