DEPARTMENTS: Economic Development & Information Technology Services Department
DEPARTMENT HEADS: Rene Dominguez & Hugh Miller
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
An ordinance authorizing a lease agreement between the City of San Antonio and Google Fiber Texas, LLC for the use of City property for the installation of prefabricated communications equipment shelters.
SUMMARY:
This item consists of an ordinance authorizing the City Manager or her designee to enter into a Master Lease Agreement with Google Fiber for use of City owned land throughout San Antonio for the purpose of installing prefabricated communications equipment shelters that will serve as network nodes for the deployment of a city-wide fiber optic network.
BACKGROUND INFORMATION:
On February 19, 2014, Google Fiber announced the proposal to build fiber-to-the-home (FTTH) broadband networks in thirty-four (34) cities within nine (9) metropolitan areas across the country, including the City of San Antonio, subject to reaching agreement on certain issues. In the process of deploying its broadband network, Google Fiber will need to install approximately forty network nodes throughout the city. The proposed Master Lease Agreement will give Google Fiber access to municipal owned land across San Antonio for the installation of its communications equipment shelters. The prefabricated structures are engineered to be 11'-6"W X 26'L X 9'H and will require power from an outdoor electrical generator. At each selected site, Google Fiber will be granted outdoor space for the placement of the communications equipment shelter, a buffer to install a generator, a perimeter fence, and the right of ingress and egress from the street or parking lot to the installation. The parties will mutually agree on the appropriate sites for installations. The lease will have an initial term of twenty (20) years. The Office of East Point and Real Estate Services (Real Estate Office) assisted the City Attorney's Office in establishing rates and the terms and conditions of the Master Lease Agreement. Once executed, the Real Estate Office will manage installations under this agreement and the collection of rent associated with each installation. The Master Lease Agreement is a non-exclusive agreement, which was negotiated consistent with state law recognizing the City's duty to provide access to City-owned property to broadband providers in a non-discriminatory manner.
Google Fiber proposes to deploy a broadband network to consumers delivering one (1) gigabit speed for downloading and uploading data to the Internet. This tier of Internet connectivity will also have far reaching positive implications for educational access and research capabilities, as well as for encouraging entrepreneurs to pursue the development of new business models.
ISSUE:
Approval of the proposed Master Lease Agreement will provide Google Fiber with access to City-owned land throughout San Antonio for the purpose of installing communications equipment shelters.
ALTERNATIVES:
If City Council chooses not to approve this ordinance, Google Fiber will need to establish land leases or purchases with other parties within the city.
FISCAL IMPACT:
Annual rents per site will be $2,250 per year subject to an annual 3% escalation factor. Assuming forty (40) sites are ultimately selected by Google Fiber, annual rent from the Master Lease Agreement would reach $90,000, subject to the 3% annual escalation factor. These figures are based on a market analysis of real estate values throughout San Antonio conducted by the Real Estate Office. Accordingly, the rent for the lease of City property negotiated by staff reflects current market values for the land that will be used.
RECOMMENDATION:
Staff recommends approval of this ordinance delegating to the City Manager or her designee the authority to execute the Master Lease Agreement with Google Fiber Texas, LLC.