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1 RiversideCA.gov
1 RiversideCA.gov
1STAMENDMENT TO SIFI RIVERSIDE, LLC DEVELOPMENT AGREEMENT City CouncilNovember 5, 2024Innovation & Technology Department RiversideCA.gov
21. Late 2021 - staff was approached by SiFi NetworksRiverside, LLC (SiFi), regarding an offer andopportunity to build a $300,000,000 citywide FiberOptic Network at no cost to the City.2. On April 14, 2022, the Mobility and InfrastructureCommittee recommended that the City Councilreview and approve the Development Agreement.BACKGROUND1 2 10/16/2024
2 RiversideCA.gov
3BACKGROUND3. On May 17, 2022, City Council approved adevelopment agreement that would result in a 9 millionlinear feet (1,690 miles) Citywide Fiber Optic Systemdelivered to all residences and businesses within theCity' s estimated 106,000 parcels.
RiversideCA.gov
4BACKGROUND4. On February 27, 2024, CityCouncil approved 3 groundlease agreements betweenthe City and SiFi for theinstallation and operation of 3Shelters that will serve asdatacenters needed toaggregate the inground fiberoptic network, providefailover services if onedatacenter experiences anoutage and to interconnectthe fiber optic network toretail internet serviceproviders. 3 4
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3 RiversideCA.gov
5The original 2022 DevelopmentAgreement included the use ofmicro-trenches that would beplaced parallel to the gutterwhere it meets the pavement.This design would negate theneed to cut across streets(through the concrete orpavement).
DISCUSSION
RiversideCA.gov
6Inflation and interest rate increase over the past twoyears have resulted in SiFi experiencing significantincreases to both construction costs and fundingsources.Adjusting the placement of the micro-trenches willallow the project to continue.DISCUSSION5 6 10/16/2024
4 RiversideCA.gov
7DISCUSSION
7During Construction After Construction After ConstructionCity staff worked closely with SiFi to come up with an alternativesolution (i.e. crossings) that is not only minimally invasive visually,but also has the least impact on the pavement.
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8Additional pertinent deal points in the First Amendmentof the Development Agreement include:1. Under the terms of the amendment, SiFi will warrantytheir work for 10 years (or until the road is repaved),making any necessary pavement repairs adjacent totheir cuts.2. No work on streets protected by the 5-yearmoratorium.DISCUSSION7 8 10/16/2024
5 RiversideCA.gov
9Strategic Priority 3, Economic Opportunity•Goal 3.3. Cultivate a business climate that welcomesinnovation, entrepreneurship, and investment.Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENTS
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10Strategic Priority 6, Infrastructure, Mobility & Connectivity•Goal 6.2. Maintain, protect and improve assets andinfrastructure within the City’s built environment to ensureand enhance reliability, resiliency, sustainability, andfacilitate connectivity.Cross-Cutting Threads STRATEGIC PLAN ALIGNMENTS9
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11That the City Council:1. Approve the proposed First Amendment to the Development Agreement between the City of Riverside and SiFi Networks Riverside, LLC for a Citywide Fiber Optic Network as recommended by the Mobility and Infrastructure Committee, and2. Authorize the City Manager, or designee, to execute the Agreement and any additional documentation to effectuate this agreement and to make minor non -substantial changes.RECOMMENDATIONS11