DATE: April 27, 2022
TO: Council Infrastructure Committee
FROM: Director of Public Works
SUBJECT Hayward High-Speed Fiber Optic Network Installation – Information and Comment
RECOMMENDATION
That the Council Infrastructure Committee (CIC) reviews this report and comments on this update for the Hayward High-Speed Fiber Optic Network Installation Project.
SUMMARY
Phase 1 of the Hayward High-Speed Fiber Optic Network Installation Project was completed in October 2020 and added 3.3 miles of new conduit and cabling along with supporting pull boxes. Phase 1 was completed using grant funding from the Economic Development Agency (EDA) and General Fund monies. Future Phase 2 will add an additional 5.2 miles of conduit and cabling. Phase 3 will add an additional 2.5 miles of conduit and cabling to complete the high-speed fiber optic network “loop.” Attachment II provides a map showing the locations of each phase (core and new construction) and the “loop.” Currently, there is a proliferation of activities by private contractors to install fiber in the City, which has created inquiries by the community related to the City’s overall fiber project and master plan. This report provides the status of the completed portions of the fiber network and the remaining work required to complete the City-owned fiber network loop.
In 2020, the estimated total project cost to construct Phases 2 and 3 was approximately $7.5 million. However, due to escalating construction costs, staff anticipates higher costs in the future.
BACKGROUND
The City’s Industrial Corridor is home to more than 5,100 businesses that employ nearly 47,500 workers. This corridor is expected to grow as an economic and employment center and evolve to achieve a healthy balance of traditional manufacturing and information-and-technology based uses.
Given the importance of the Industrial Corridor, the City has made it a priority to enable greater fiber-based connectivity for its numerous businesses located in the corridor and for attracting new business. To achieve this, the City intends to deploy a municipally owned high-speed fiber optic network to serve existing and future businesses within the corridor.
On April 25, 2017, Council approved and accepted Economic Development Agency (EDA) Grant No. 07-01-07286 for the Hayward High-Speed Fiber Optic Network Installation Project, appropriated the necessary matching funds, and authorized the City Manager to take all necessary action associated with the grant.
On July 18, 2017, Council approved and adopted the Fiber-Optic Master Plan formulated by staff and our fiber optic technology consultant, CTC Technology and Energy. The Fiber-Optic Master Plan serves as a visionary document that sets the overarching goals and objectives for deploying a fiber-optic network in the City. The Fiber-Optic Master Plan defined and evaluated potential fiber optic network routes. These routes were used as preliminary design requirements for this project.
On June 26, 2018, Council awarded a Professional Services Agreement to Kimley-Horn for the design and preparation of construction documents for the proposed eleven miles of new conduit and cabling for construction bidding purposes.
On August 21, 2019, EDA approved the City proposed re-scoping of the project to construct only Phase 1.
On January 28, 2020, Council awarded the construction contract to Royal Electric Company and construction of Phase 1 was completed in October 2020.
DISCUSSION
The Highspeed Hayward project includes three phases that will link critical services to support business activity and growth by utilizing the nine miles of the existing City conduit network (core loop) and will add 11 miles of conduit and cabling (new construction) for a dark fiber optic network. A dark fiber optic network is City owned and maintained conduit and fiber optic cabling that is “dark” until a private partnership is established to “light” the fiber optic network. The private partner will be responsible for installing and maintaining all required network electronics, customer equipment, marketing, and customer contracts.
Phase 1 was completed in October 2020 and added 3.3 miles of new conduit and cabling along with supporting pull boxes. Phase 1 was completed using General Fund and grant funding from the EDA. Future Phase 2 will add an additional 5.2 miles of conduit and cabling and future Phase 3 will add an additional 2.5 miles of conduit and cabling to complete the high-speed fiber optic network “loop”. Attachment II provides a map showing the locations of each phase (core and new construction) and the “loop.” This project was originally managed by the City Manager’s Office when the grant funding was approved and authorization to proceed with construction was granted. However, the construction management of Phase 1 was transitioned and managed by Department of Public Works & Utilities.
ECONOMIC IMPACT
This project, known as “Highspeed Hayward” will connect Hayward’s existing science, technology and engineering sectors to high-speed gigabit networks while serving as another amenity to attract new business investment in the City.
FISCAL IMPACT
The City contributed $1,146,000 in right-of-way valuation and expended $2,415,055 to design, inspect and construct Phase 1, totaling $3,561,055. Staff submitted a reimbursement request with the EDA in the amount of $2,317,179 (approximately 65% of $3,561,055). The 35% City match of $1,243,876 is achieved from a combination of $1,146,000 in right-of-way valuation and $97,876 in General Fund monies in Fund 731, Project 07275.
STRATEGIC ROADMAP
This item supports the Strategic Priority of Improve Infrastructure. Specifically, this item relates to the implementation of the following project:
Project 19c: Complete Installation of Dark Fiber
SUSTAINABILITY FEATURES
This project requires directional underground boring instead of traditional open trench construction which satisfies the following General Plan policies:
NR-2.3 Emissions Reduction
NR-2.4 Community Greenhouse Gas Reduction
PFS-7.5 Municipal Waste Reduction
PUBLIC CONTACT
In 2019, the City Manager’s office gathered information thru a “Needs Assessment” survey of businesses around the project area.
NEXT STEPS
Staff will follow up based on the CIC’s comments and recommendations.
Prepared by: Alex Tat, Associate Civil Engineer
Kathy Garcia, Deputy Director of Public Works
Recommended by: Alex Ameri, Director of Public Works
Approved by:
__________________________________________
Kelly McAdoo, City Manager
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