Title
Staff Report for a Resolution Approving the First Amendment to the License Agreement between the City of San Leandro and San Leandro Dark Fiber LLC
StaffReport
BACKGROUND and ANALYSIS
Effective October 17, 2011, the City and San Leandro Dark Fiber LLC (SLDF) entered into a License Agreement that provided SLDF access to the City's conduit within the public right of way to install, construct (where necessary), and manage a fiber optic loop within the City's downtown and industrial areas. This First Amendment to the License amends the original license to clean-up language and processes between the City and SLDF, and to incorporate rates, terms and conditions applicable to SLDF's use of the Expanded Property, as defined below.
Pursuant to the Original License, SLDF currently installs and operates fiber optic cables and related facilities (the "Project" or "Projects") in existing City-owned and managed conduit located on City owned real property and/or within the City's right-of-way. On September 27, 2012, the City received verification that it was approved for a 50%, $2,120,000 matching grant from the federal Economic Development Agency ("EDA") that enables the City to construct an additional 7.5 miles of conduit (the "Expanded Property"). Construction of the additional 7.5 miles of conduit will require the City to match the federal grant through the inclusion of property valued at market rate, in-kind services and cash, for a total estimated cost of $4.3 million.
The value of the City's contribution to the Project is approximately $6 million and the value of the City's contribution to the Expanded Property is approximately $4.6 million including the EDA grant, for a total City contribution of approximately $10.6 million. In order to carry out and complete the Project, SLDF must have access to the Expanded Property and the City's right-of-way to carry out additional work to expand the fiber optic loop and access.
This First Amended License acknowle...
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