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AGENDA ITEM NO. 17.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 04/08/2025 Originating Department: Information Technology |
City Manager:
Department Head:
SUBJECT:
American Dark Fiber City Owned Conduit Use Agreement
RECOMMENDED MOTION:
Staff recommends that the City Council approve and authorize the City Manager to execute the agreement and make any minor amendments thereto.
DISCUSSION:
The City of Hawthorne is granting American Dark Fiber, LLC (ADF) a license to use city-owned underground conduits and temporary utility poles to install and maintain fiber optic cables. This agreement supports fiber infrastructure that provides backup internet services to both the City and the South Bay Regional Public Communications Authority (RCC).
Due to the upcoming construction of the existing City Hall parking lot, ADF will temporarily reroute fiber lines using city poles and conduits until permanent infrastructure is completed. ADF will bear all costs associated with installation, maintenance, repairs, and eventual reinstallation of the cables once construction is finished.
As compensation for using the City’s conduit and pole infrastructure, ADF will pay rent to the City at a rate of $0.42 per linear foot of fiber. This rate is consistent with similar agreements, including the City of Torrance’s contract, and reflects the typical market rate paid by telecommunications providers for access to public conduit space. The rate is subject to annual adjustment based on market trends.
The initial term of the agreement is three years, with automatic three-year renewals unless either party provides a 30-day notice of termination.
ADF must secure all necessary permits and approvals before beginning any work, and must maintain appropriate insurance coverage including liability, auto, and workers’ compensation. The fiber installations must not interfere with existing city communication systems. In the event of termination, ADF must remove its fiber infrastructure from city property. Furthermore, if ADF or any of its subsidiaries intends to use the licensed fiber infrastructure to serve any entities beyond the City of Hawthorne and the RCC, they must first obtain approval from the City.
Due to the upcoming construction of the existing City Hall parking lot, ADF will temporarily reroute fiber lines using city poles and conduits until permanent infrastructure is completed. ADF will bear all costs associated with installation, maintenance, repairs, and eventual reinstallation of the cables once construction is finished.
As compensation for using the City’s conduit and pole infrastructure, ADF will pay rent to the City at a rate of $0.42 per linear foot of fiber. This rate is consistent with similar agreements, including the City of Torrance’s contract, and reflects the typical market rate paid by telecommunications providers for access to public conduit space. The rate is subject to annual adjustment based on market trends.
The initial term of the agreement is three years, with automatic three-year renewals unless either party provides a 30-day notice of termination.
ADF must secure all necessary permits and approvals before beginning any work, and must maintain appropriate insurance coverage including liability, auto, and workers’ compensation. The fiber installations must not interfere with existing city communication systems. In the event of termination, ADF must remove its fiber infrastructure from city property. Furthermore, if ADF or any of its subsidiaries intends to use the licensed fiber infrastructure to serve any entities beyond the City of Hawthorne and the RCC, they must first obtain approval from the City.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
Not applicable.
FISCAL IMPACT:
Payment of approximately $500.00 per year to the city.
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act