Title
Presentation on Bandwidth Infrastructure Group Project and Lease Agreement Between the City of San Leandro and Bandwidth IG, LLC for Installation, Maintenance, and Use of Fiber Optic Cable in Submerged San Francisco Bay Lands and on City owned properties.
Information Only
Staffreport
SUMMARY AND RECOMMENDATIONS
Bandwidth Infrastructure Group, LLC (Bandwidth) will present to the Committee the proposed installation of high-capacity fiber optic cables through the San Francisco Bay from Brisbane in San Mateo County to the City of San Leandro and the terms of the proposed lease on submerged and terrestrial land owned by the City.
BACKGROUND
Bandwidth has embarked on a project to install a new submarine fiber optic cable across San Francisco Bay. The large capacity fiber optic cable(s) will be placed along and within the seabed of the San Francisco Bay from Brisbane in San Mateo County to the City of San Leandro and will continue through to the City of Hayward.
This fiber optic cable infrastructure will be leased to carrier, commercial, and enterprises throughout the region and greatly enhance telecommunications connectivity and operations.
Bandwidth wishes to enter into a lease with the City of San Leandro for a period of twenty-five (25) years, with an option to extend at the City’s discretion, for an easement through submerged and terrestrial lands owned by the City.
The submerged land rental rate will be $5 per linear foot. This amount was derived from a rent comparison conducted by the State Lands Commission (“SLC”) and will be the same rate the State of California will be leasing their portion of the submerged land to Bandwidth.
Under the proposed lease, Bandwidth will also install city conduits and splice boxes along Lewelling Blvd. and Wicks Boulevard to bridge gaps within the City’s Fiber Optic Master Plan. This alignment is identified in the Smart City Strategy for fiber expansion. A total of about 11,682 linear feet of conduits valued at $549,334 will be installed. The addition of these conduits will provide the infrastructure for future high speed fiber connection to underserved communities in the south area of the City, Woodrow Woods School, and city controlled traffic signals.
For the terrestrial portion of the lease, the initial rent will be based on a prior lease appraisal for a comparable land in the City, escalated using annual increases to the shelter component of the Consumer Price Index (CPI). The terrestrial land rental rate will be $8 per linear foot. Bandwidth and the City have agreed that, in-lieu of an available appraisal, a formal appraisal within the next twelve (12) months of the terrestrial land is the best option. Once a formal appraisal has been conducted, the City and Bandwidth will meet, confer, and come to agreement on the appraisal value and associated rent increase for the second year. Both rental rates will be adjusted every year based on the shelter component of the annual CPI.
ATTACHMENT (S)
• Bandwidth IG Presentation
PREPARED BY: Erwin Ching, Engineering Manager, Engineering Department