Loading...
SR-101-003-04-05 (7)~~~r ~ ~;ty of City Council Report Santa Monica~ City Council Meeting: February 13, 2007 Agenda Item: ~~ To: Mayor and City Council From: Jory Wolf, Chief Information Officer Subject: Rack Space Lease Agreement for Dark Fiber Leasing Recommended Action Staff recommends that the City Council: 1) Authorize the City Manager to negotiate and execute an agreement with SoHoNet for the lease of rack spaces in City-owned fiber optic hub sites, in conjunction with dark fiber leasing, in the amount of $700 a month for one fu{I rack space or $17 a month per one unit rack space and two annual renewal options; and 2) .Authorize the City Manager to negotiate and execute rack space lease agreements with other interested parties should those opportunities exist. Executive Summary The City of Santa Monica has built a Municipal Fiber Network (MFN) for delivering voice, video and data communications to City facifities. The MFN has an abundance of unused fiber strands, called dark fiber, which are available for lease. Severaf potential dark fiber vendors have expressed interest in leasing rack spaces in City-owned fiber optic hub sites to support dark fiber leasing. By lea.sing rack spaces, the City will 1 provide businesses in Santa Monica with more flexibility to install high speed networks, connect their offices in Santa Monica or to connect their offices to other businesses in the city and beyond. The leasing of rack spaces in City-owned fiber optic hub sites in support of dark fiber feases, in the amount of $700 a month for one full rack space or $17 a month per one unit rack space and two annual renewal options, will generate financial returns for the development of the MFN and stimulate economic growth in Santa Monica. Discussion Like many municipalities, Santa Monica has built an MFN for enhanced delivery of government services, improving performance and lowering costs of telecommunications services for City facilities and to stimulate economic growth. On April 25, 2006, City Council approved the leasing of dark fiber with Google Inc. and other interested parties. Upon City Council approval, several potential dark fiber vendors including SoHoNet approached the City expressing interest in leasing rack spaces in City-owned fiber optic hub sites in conjunction with dark fiber leasing. A rack is a metal frame, resembling a shelving structure, where various hardware devices such as servers, switches, hard disk drives and other computer equipment can be stored. Fiber optic cables, including dark fiber, will then be connected to these various hardware devices to transmit data to and from the vendor location. 2 The leasing of rack spaces in City-owned fiber optic hub sites will provide local businesses with more flexibility to instafl high speed networks that connect their offices in Santa Monica or connect their office to other businesses in the city and beyond. Standard rack space lease rates and agreements have been established and are modeled after rates and agreements in cities of comparable size. The established lease rates include basic services such as a power circuit and an uninterrupted power supply to operate the equipment. Rates will be renegotiated during the two annual renewal options and will be adjusted to the current market value. The standard agreement wifl require the vendor or its contractor to be escorted by authorized City personnel to access its rack space in City-owned fiber optic hub sites. Budget/Financial Impact Staff anticipates the City will generate ongoing revenue of approximately $60,000 per year from rack space leases. Revenue account 01223.407780, "Dark Fiber Lease," has been established to capture revenues generated from dark fiber and dark fiber related leases. Prepared by: Phil Tong, Senior Administrative Analyst 3 Approved: Jory W f ~ =J Chief nf rmation Officer Infor ion Systems Forwarded to Council: ~xfont Ew Manager e erence on rac o. .