Fremont City Council Meeting: 07/07/26 07:00 PM
3300 Capitol Avenue Div/Dept: Information Technology Services Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5740) DOC ID: 5740
Updated: 6/30/2026 1:00 PM by Alberto Quintanilla Page 1 Federal Funding Account Last Mile Broadband Project - Authorize the City Manager, or Designee, to enter into an Indefeasible Right of Use Agreement with Astound Broadband LLC, to establish a public-private partnership with the City to expand internet access to underserved and unserved communities in Fremont, and to operate and maintain the City’s fiber network as part of the Federal Funding Account Last Mile Broadband Project.
Contact Persons:
Name: Jeremy Huynh Sanford Taylor
Title: Management Analyst II IT Director
Div/Dept: Information Technology Services IT Services
Phone: (510) 494-4847 510-494-4802
E-Mail: [email protected] [email protected]
Executive Summary: The City of Fremont has negotiated an Indefeasible Right of Use (IRU) Agreement with Astound Broadband LLC (Astound) to support the expansion, operation, and long-term sustainability of the City’s fiber optic network, leveraging a $7,690,056.20 Federal Funding Account Grant. Under the agreement, Astound will operate, and maintain the City of Fremont’s fiber infrastructure and provide retail broadband services to unserved and underserved locations in Fremont, while the City retains critical public-use rights, governance control, and future asset reversion provisions.
Staff recommends that City Council authorize the City Manager, or designee, to enter into an Indefeasible Right of Use Agreement and any other related agreements necessary for the project, with Astound Broadband LLC.
Background: On July 20, 2021, Governor Gavin Newsom signed into law Senate Bill 156, which included a $2 billion Federal Funding Account grant program, funded through the federal American Rescue Plan Act of 2021 (Public Law No. 117-2) and administered by the California Public Utilities Commission (CPUC) for last-mile broadband infrastructure projects to connect unserved and underserved Californians.
On April 22, 2022, the CPUC issued rulemaking 20-09-001, adopting rules for the Federal Funding Account grant program; creating a framework for public agencies and broadband service companies to apply for the grant program.
Council Staff Report (ID # 5740) Meeting of July 7, 2026 Updated: 6/30/2026 1:00 PM by Alberto Quintanilla Page 2
Staff identified the Last Mile Federal Funding Account (FFA) Grant program as a potential funding source for the City broadband infrastructure project to serve unserved or underserved households in the City. In partnership with Learn Design Apply (LDA) and Entrust Solutions Group (Entrust), City staff submitted an application on September 28, 2023, for a total of $7,690,056.20 in requested funding.
On July 24, 2024, the CPUC notified the City of its intent to award grant funding in the amount of $7,690,056.20. Funds allocated by the CPUC shall be available for expenditure until December 31, 2026.
On September 04, 2024, the City Council accepted the Last Mile Federal Funding Account (FFA) Grant award for the City of Fremont Last Mile Broadband Project of $7,690,056.20 and recognized and appropriated the Last Mile Federal Funding Account (FFA) Grant revenue in the Federal Capital Grants Fund, PWC9118-522.
The City issued a Request for Qualifications 26-003 (“RFQ”) on September 16, 2025, seeking proposals from qualified Internet Service Providers to establish a public private partnership with the City to expand the availability of Internet access and other communications services by operating and maintaining the City’s network in order to offer retail internet and data subscriber services to residents, businesses, and governmental entities located in the CPUC-designated census blocks.
Discussion/Analysis: Astound submitted a qualified response to the City’s RFQ on October 16, 2025, proposing a public-private partnership whereby Astound would provide the network operations, maintenance, service drop installation, customer equipment, network support, customer service, billing, and associated retail activities required to offer subscriber internet services to residents and businesses within Fremont.
On April 9, 2026, the City issued a notice of intent to award a contract to Astound Broadband LLC. The Indefeasible Right of Use (IRU) Agreement grants Astound Broadband LLC exclusive rights to utilize certain strands of the City's dark fiber network and associated conduit occupancy for a 20-year initial term. This arrangement offers stability and long-term operational certainty, with the opportunity for two additional 5-year extensions upon mutual agreement, ensuring the partnership can adapt to future technological or market changes. By specifying which fiber strands Astound Council Staff Report (ID # 5740) Meeting of July 7, 2026 Updated: 6/30/2026 1:00 PM by Alberto Quintanilla Page 3 can use, the City maintains control over its public assets while enabling private sector involvement for network expansion and operation.
The FFA Last Mile Broadband Project will deliver 288 strands of aerial and underground dark fiber, reserving 144 for exclusive City use to safeguard municipal and community needs. Astound will also provide two diverse, redundant 10 Gbps circuits for City services at no recurring cost, ensuring reliable, high-speed connectivity for Fremont’s critical operations and strengthening the City's digital infrastructure without extra expenses.
Astound assumes full responsibility for maintaining, upgrading, and repairing the City’s fiber optic infrastructure throughout the IRU term. All activities must comply with City standards and prevailing wage laws, ensuring that maintenance and improvements uphold public sector requirements and benefit local workers. This arrangement relieves the City of operational burdens and costs while holding Astound accountable for the network's integrity and performance.
To comply with the terms of the CPUC grant, Astound is obligated to support the City by providing necessary documentation and delivering broadband services to all eligible locations. This ensures the City meets its obligations for federally funded infrastructure projects, maximizing the impact of grant funds and extending broadband access to areas that need it most. The IRU Agreement also mandates open access, requiring Astound to offer network access to other internet service providers at competitive rates. This provision, included as part of grant requirements, promotes competition, prevents monopolistic practices, and encourages broader network utilization by multiple providers, ultimately benefiting residents and businesses through increased choice and improved services.
In the event of agreement expiration or breach, all management, control, and maintenance will revert back to the City as stipulated in the Agreement.
This safeguard ensures that the City regains control of its network infrastructure, mitigating risks associated with private operator withdrawal or non-compliance, and securing continuity for public broadband and operational needs.
The IRU Agreement is expected to significantly expand affordable broadband access for 1,149 homes and businesses citywide. Among these, 514 are located within CPUC-designated census blocks that are currently unserved or underserved, directly addressing digital inequity and bridging the Council Staff Report (ID # 5740) Meeting of July 7, 2026 Updated: 6/30/2026 1:00 PM by Alberto Quintanilla Page 4 connectivity gap. By targeting these areas, the City and Astound aim to improve the quality of life and economic opportunities for residents and businesses most in need of reliable internet services.
The partnership aims to foster digital equity, boost economic development, and strengthen the City’s operational resilience. Through collaboration with Astound, Fremont draws on private-sector expertise and federal grant funding to upgrade its network infrastructure, advance economic growth, and expand public-facing technologies. This agreement provides residents, businesses, and City departments with additional benefits from an enhanced broadband network and a more reliable public infrastructure.
Therefore, staff recommends that City Council authorize the City Manager, or designee, to enter into an Indefeasible Right of Use Agreement, and any other agreement required for the project, with Astound Broadband LLC.
Fiscal Impact: The IRU Agreement provides the City with a fiscal benefit by eliminating direct costs associated with operating and maintaining the project’s fiber network over the term of the agreement.
Although the City is not responsible for ongoing operational expenses, it may participate in costs for specific network expansions or upgrades when mutually agreed upon by both parties. This flexible cost‑sharing structure enables the City to make targeted investments in improvements that advance broader connectivity objectives, while still maintaining fiscal control and minimizing exposure to risk.
Overall, the agreement leverages external expertise and funding to strengthen the City’s broadband infrastructure, offering substantial value without significant recurring expenses.
Environmental Review: The recommended action is exempt from review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(2) and/or 15378(b)(5), and as it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA compliance.
Attachments: None.
Council Staff Report (ID # 5740) Meeting of July 7, 2026 Updated: 6/30/2026 1:00 PM by Alberto Quintanilla Page 5
Recommendation: Authorize the City Manager or her designee to enter into an Indefeasible Right of Use Agreement and to execute any other agreements and implementing documents with Astound Broadband LLC to establish a public private partnership with the City to expand the availability of internet access to underserved and unserved communities in Fremont and to operate and maintain the City’s fiber network as part of the Federal Funding Account Last Mile Broadband Project.