HomeMy WebLinkAbout2022-07-12 - AGENDA REPORTS - DARK FIBER MASTER LICENSE AGMTAgenda Item: 15
1. CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: �1 A11�44_1)
DATE: July 12, 2022
SUBJECT: RENEWAL OF DARK FIBER MASTER LICENSE AGREEMENT
DEPARTMENT: Administrative Services
PRESENTER: Benny Ives
RECOMMENDED ACTION
City Council:
1. Award a five-year contract to Crown Castle Fiber LLC, in the amount of $300,000, for the
City to lease two dark fiber strands from the City of Santa Clarita to Downtown Los Angeles.
2. Authorize the City Manager or designee to execute all contracts and associated documents,
including up to three additional one-year renewal options beginning in year six, not to exceed
$70,000 per annum, for continued lease of dark fiber strands, subject to City Attorney
approval.
BACKGROUND
The City of Santa Clarita (City) currently leases two dark fiber strands from Crown Castle Fiber
LLC that connects the City to a major datacenter in Downtown Los Angeles (DTLA). This
connection provides access to highly competitive Internet service and greater choice in Internet
Service Providers (ISP). This lease agreement also enables the City to facilitate access to current
and future Internet Service Providers, as well as institutions who elect to leverage this connection
to expand or introduce high-speed Internet service to businesses in the Santa Clarita Valley.
The negotiated lease rate for this renewal represents a 13 percent, or $9,000 per year, savings
from the original lease agreement. Other benefits include the City's ability to achieve a highly
competitive rate for Internet service for City services, as well as generating revenues of $46,800
per annum for lit transport services the City provides to an institution and ISP in Santa Clarita.
Moreover, this connection to DTLA, in conjunction with the City's robust fiber optic network, is
paramount to the City's strategy of attracting new ISPs that may provide high-speed, competitive
Internet service to local businesses and the community at large.
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ALTERNATIVE ACTION
1. Do not approve contract with Crown Castle Fiber LLC.
2. Other action as determined by the City Council.
FISCAL IMPACT
Adequate funds are available in Technology Services expenditure account 1002201-516101 to
facilitate the recommended actions.
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