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1 RiversideCA.gov
Innovation & Technology Department
DEVELOPMENT AGREEMENT FOR
A CITYWIDE FIBER OPTIC SYSTEM
Mobility and Infrastructure Committee
April 14, 2022
RiversideCA.gov
2 BACKGROUND
• The network would include all City facilities, residences, businesses, and institutions within the City of Riverside p r o v i d i n gu pt o1 0 - g i g a b i t residential broadband and up to 100-gigabit business connectivity. • In late 2021, staff was approached by SiFi,
regarding an offer and opportunity to build a
Citywide Fiber Optic Network at no cost to the City.
• SiFi to privately fund, design, construct and
maintain a citywide privately funded open-access
network with their private capital and operational
investment being over $300,000,000.
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3 DISCUSSION
The proposed Development Agreement (Agreement) with SiFi Networks Riverside, LLC (SiFi) shall result in a 9 million linear feet (1,690 miles) Citywide Fiber Optic System delivered to all residences and businesses within the City’s estimated 106,000 parcels
SiFi will then lease the fiber lines to Retail Internet Service Providers (ISPs) to provide residential and
business internet service.
• Non-exclusive right-of-way access
• Authorizes SiFi to install fiber optics in
the City’s public right-of-way
The Agreement grants SiFi:
RiversideCA.gov
4 Retail ISP’s focus is aligned to provide
competitive products, services and
pricing for everyone.
S i F ic r e a t e sal e v e lp l a y i n gf i e l db y operating the network and wholesaling
access to ISP’s w h ow i s ht op r o v i d e
residential and business services in the
community.
SiFi privately funds and maintains a
citywide fiber network that serves every
parcel to drive equality and reduce the
digital divide.
FIBERCITY BUSINESS MODEL
COMMUNITY COMPETITION CHOICE
Everyone Connected With Fiber
Open Access
Electronics
Neural Network
Operator
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5 Diverse, high capacity, reliable
More than just
broadband competition
Every municipal location and street
fixture can be connected
Municipality controls their own speed
of data and quality of service
A future ready network to support
current and emerging technology
Intelligent data to support community
outreach and public interest
A CONNECTED COMMUNITY
MORE THAN JUST A GIG!
RiversideCA.gov
6 SiFi will own the backbone infrastructure and the
maintenance and repair of the physical fiber network is the sole responsibility of SiFi.
Residents and businesses will have the option to remain with their current ISP or seek subscriptions with providers who have leased fiber from SiFi’s Open-access Partner ISPs.
Existing ISPs that provide high-speed Internet access in the community will continue to provide those services.
DISCUSSION CONT.
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7 The Development Agreement grants full-access to the
public right-of-way to install cables via micro-trenching technology.
DISCUSSION CONT.
RiversideCA.gov
8 DISCUSSION CONT.
Minimally invasive micro-trenching consisting of
1.5 – 2 inch wide trenching up to 2,500 feet per day
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9 DRIVING ECONOMIC GROWTH
CITYWIDE INFRASTRUCTURE
Only 39% of homes
throughout the City
are passed with fiber
optic cable, based
on publicly available
data
Availability of
Citywide broadband
ranks the City
158 out of 482,
based on publicly
available data
RiversideCA.gov
10 REMOVING THE DIGITAL DIVIDE
EVERY CITY PARCEL INCLUDED
Fiber network
includes every City
parcel and connects
a parcel with fiber
when the occupier
requests connectivity
No network
demographic
segmentation or
social profiling
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11 * GigabitNow is just one of many ISPs using the FiberCity® network
PRICING THAT SUPPORTS EVERYONE
COMPETITION & PHILANTHROPY
RiversideCA.gov
12 PERSONALIZED COMMUNICATION
LOCAL COMMUNITY LIAISON
A single point of contact to
address neighborhood
questions
Daily presence and
contactable
Community liaison to inform
you about your
neighborhood construction
schedule
Locally employed resident
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13 NETWORK INSTALLATION
MINIMAL ROAD DISRUPTION
Quick construction
technique. Installed
within 2 days or less
Less than 2-inch-wide
trench
Finish material
approved by California
Department of
Transportation and
mimics existing
roadway surface
RiversideCA.gov
14 NEIGHBORHOOD ENGAGEMENT
MEET THE COMPETITIVE ISPs
Ask questions and
discuss the services
being offered by the
competitive ISPs
Weekly taco truck eat
and greet event
to interact with the ISPs
in the neighborhood
Sponsored and paid
for by SiFi
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15 COMMUNITY AWARENESS
CONSISTENT MESSAGE
RiversideCA.gov
16 FIBERCITY PARTNERSHIPS
CURRENT OPEN ACCESS PROJECTS
900,000 premises
currently in funding,
design and or active
construction
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18 1. On a monthly basis , SiFi will reimburse the City for actual fees and costs incurred by the City including labor cost of contracted services if required to perform plan check, permit review, and inspection services, not to exceed $150,000 per year.
2. SiFi shall reimburse the City up to $8,333.33 per month associated with employing, training, and retaining a single point of contact (SPOC) to facilitate and expedite plan check, permitting, and inspection communications with SiFi and its contractors.
DISCUSSION CONT.
Additional pertinent points of the Development Agreement include:
3. Initial term is thirty (30) years with two thirty (30) year term extensions available. 4 . T h eC i t yo fR i v e r s i d em a yn o te n t e ri n t oasimilar agreement for one-year from the effective date of this Development Agreement.
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19 DISCUSSION CONT.
Additional pertinent points of the Development Agreement include:
1. SiFi or it’s construction partners will endeavor to maximize local hiring and train approximately 100 people to
support the installation of the network and a permanent 24/7 field service crew that stays within the City for the project’s entire lifetime.
2. SiFi shall offer FiberCity® Aid Program dedicated to subsidizing connectivity to 12% of the City’s housing units to support vulnerable families, with the City determining the parameters for which households qualify.
RiversideCA.gov
20 1. SiFi shall allow the City to use the System for
governmental internal data communication and non-
retail purposes, subject to a separate agreement to be
negotiated in good faith between the Parties, at a rate substantially less than market rate.
2. More than one (1) ISP will have the opportunity to
operate the network.
3. Should SiFi abandon the network, the City would
assume ownership.
DISCUSSION CONT.
Additional pertinent points of the Development Agreement include:
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21 DISCUSSION CONT.
Additional pertinent points of the Development Agreement include:
1. Substantial completion goal of ninety-five percent (95%) system buildout is projected. The project includes an initial nine (9) months system design phase followed by four (4) years of construction.
2. City and SiFi will negotiate in good faith six (6) mutually agreeable locations for the installation and operation of up to six (6) SiFi Shelters (approximately 1,000 square feet per location).
3. Shelter locations will be subject to separate lease, easement, or other suitable agreement type, including payment by SiFi of fair market value for the use and occupancy of each shelter on City-owned land.
RiversideCA.gov
22 1. If the Development Agreement is approved, the
City could then begin to negotiate the terms of a
Smart City Managed Services Agreement with
SiFi.
2. The Smart City Managed Services Agreement will
establish terms and conditions for a proposed
City closed-loop municipal fiber network.
DISCUSSION CONT.
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23 STRATEGIC PLAN ALIGNMENT
Envision Riverside 2025 Strategic Plan Priorities
Community Well Being
Significant endeavor to
improve the City’s
infrastructure network.
Fiscal Responsibility
Development is fully funded
by SiFi who is seeking private
funding for the design and
construction of the network.
Sustainability and Resiliency
Provide access to a system of
up to 10 gigabit connectivity
for residences and up to 100
gigabit connectivity for
businesses improving the
City’s resiliency while
supporting the community’s
need for fiber access.
Equity
Citywide access to fiber
resulting in equitable
distribution of services
throughout the City.
Innovation
Provide a Citywide Fiber
Optic Network via a
public/private partnership.
Economic
Opportunity
Infrastructure, Mobility,
and Connectivity
Cross-Cutting Threads
RiversideCA.gov
24 1. Currently, there is no fiscal impact in this
proposed Development Agreement.
2. On a monthly basis, SiFi will reimburse the
City for fees directly related to this project
including single point of contact (SPOC),
Contracted plan check, permit review and
inspection services not to exceed $250,000
per year.
FISCAL IMPACT
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25 1. Review and provide feedback on the proposed
Development Agreement between the City of Riverside
and SiFi Networks Riverside, LLC for a Citywide Fiber Optic Network; and
2. Recommend that the Innovation and Technology
Department take the proposed Development Agreement
between the City of Riverside and SiFi Networks Riverside, LLC for a Citywide Fiber Optic Network to City Council.
RECOMMENDATIONS
That the Mobility and Infrastructure Committee:
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