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
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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.
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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
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Approved:
Jory W f ~ =J
Chief nf rmation Officer
Infor ion Systems
Forwarded to Council:
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