Download - Staff Report 62
Meeting Date: 12/08/21
Lease Number: PRC 8168
Staff: K. Connor
Staff Report 62
LESSEE/ASSIGNOR:
X2 Telecom, LLC
APPLICANT/ASSIGNEE:
Zayo Group Holdings, LLC
PROPOSED ACTION:
Assignment of a General Lease – Right-of-Way Use
AREA, LAND TYPE, AND LOCATION: 135,000 linear feet, more or less, of sovereign land located in the Pacific Ocean,
from Morro Bay in San Luis Obispo County, to Santa Barbara in Santa Barbara
County.
AUTHORIZED USE: Use and maintenance of an existing fiber optic cable and four steel conduits
buried in the ocean floor.
TERM: 20 years, beginning December 18, 2015.
CONSIDERATION: Public benefit derived from Applicant’s acceptance of franchise obligations
pursuant to California Public Utilities Code section 7901.
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Staff Report 62 (Continued)
STAFF ANALYSIS AND RECOMMENDATION:
AUTHORITY: Public Resources Code sections 6005, 6216, 6301, 6501.1, and 6503; California Code
of Regulations, title 2, sections 2000 and 2003.
PUBLIC TRUST AND STATE’S BEST INTERESTS: On December 18, 2015, the Commission authorized a General Lease – Right-of-Way
Use to X2 Telecom, LLC (Item C94, December 18, 2015). That lease will expire
December 17, 2035.
In August 2016, the Lessee’s parent company, Integra Telecom Parent, Inc. was
rebranded as Electric Lightwave. On November 30, 2016, Electric Lightwave was
purchased by the Applicant, and the ownership of the existing improvements was
transferred to Zayo Group Holdings, LLC. Commission staff was not notified of the
ownership transfer until the application was submitted, but the Applicant has
continued to meet all lease obligations. The Applicant is now applying for an
assignment of the lease for the use and maintenance of the fiber optic cable and
four steel conduits buried in the ocean floor. The effective date of the assignment
will be November 30, 2016, to coincide with the Applicant’s effective ownership of the improvements.
Approval of this lease assignment will not result in a change in the use of, or
impacts to, Public Trust resources at this location, at this time, and for the remaining
term of the lease. For these reasons, staff recommends finding that approval of this
assignment is in the best interest of the State.
CLIMATE CHANGE: Climate change impacts, including sea level rise, more frequent and intense storm
events, and increased flooding and erosion, affect both open coastal areas and
inland waterways in California. The existing fiber optic cable varies from 0.42 to 1.20
inches in diameter, and it is buried in the Pacific Ocean along with the steel
conduits. This cable is part of the larger high-capacity fiber optic transport network
that directly links major cities along the California coast. It was installed in federal
waters (between 3 to 12 miles offshore) and comes ashore in seven locations in
California. The cities of Morro Bay and Santa Barbara are two of these seven major
links of this larger telecommunications system. The armored sea cables do not
transmit any electrical power and are waterproofed to resist damage in the ocean.
The cable was buried about 3 feet deep below the Pacific Ocean seafloor to
prevent damage from fishing equipment or anchors. Since this is an existing cable,
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Staff Report 62 (Continued)
cable burial surveys are required every 5 years to confirm that the cable remains
buried for the remaining lease term until 2035.
The California Ocean Protection Council updated the State of California Sea-Level
Rise Guidance in 2018 to provide a synthesis of the best available science on sea
level rise projections and rates. Commission staff evaluated the “high emissions,”
“low risk aversion” scenario to apply a conservative approach based on both
current emission trajectories and the lease location and structures. The Port San Luis
and the Santa Barbara tide gauges were used for the projected sea level rise
scenarios for the regions as listed in Tables 1 and 2.
Table 1. Projected Sea Level Rise for Port San Luis
Year Projection (feet)
2030 0.5
2040 0.7
2050 1.0
2100 3.1
Source: Table 19, State of California Sea-Level Rise Guidance: 2018 Update
Note: Projections are with respect to a 1991 to 2009 baseline.
Table 2. Projected Sea Level Rise for Santa Barbara
Year Projection (feet)
2030 0.4
2040 0.7
2050 1.0
2100 3.1
Source: Table 22, State of California Sea-Level Rise Guidance: 2018 Update
Note: Projections are with respect to a 1991 to 2009 baseline.
The lease is a 20-year General Lease – Right-of-Way Use that began on December
18, 2015, and may be subject to the climate change effects of the projected sea
level rise scenario provided above. Regular monitoring and maintenance, as
referenced in the lease, may reduce the likelihood of severe structural degradation
or dislodgement. Further climate change impact analyses on the leased facilities
will be assessed at the time the lease is up for renewal in 2035 and would be based
on projected sea level rise scenarios at that time.
CONCLUSION: Assignment of this lease will not result in a change in the use of or impacts to Public
Trust resources. Staff believes approval of this assignment is consistent with the
common law Public Trust Doctrine and is in the best interests of the State.
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Staff Report 62 (Continued)
OTHER PERTINENT INFORMATION:
1. The Applicant is qualified to hold the lease and staff has not discovered any
information that would provide a basis for withholding the assignment. Upon
expiration or prior termination of the lease, neither the assignor nor the assignee
has any right to a new lease or to renewal of any previous lease. If no new lease
is granted the assignee may be required to remove the fiber optic cable and
four steel conduits and restore the premises to their original condition.
2. This action is consistent with the “Meeting Evolving Public Trust Needs” Strategic
Focus Area of the Commission’s 2021-2025 Strategic Plan.
3. Assignment of the lease is not a project as defined by the California
Environmental Quality Act because it is an administrative action that will not
result in direct or indirect physical changes in the environment.
Authority: Public Resources Code section 21065 and California Code of
Regulations, title 14, section 15378, subdivision (b)(5).
EXHIBIT:
A. Site and Location Maps
RECOMMENDED ACTION:
It is recommended that the Commission:
PUBLIC TRUST AND STATE’S BEST INTERESTS: Find that the proposed assignment of the lease will not substantially interfere with
Public Trust needs and values at this location, at this time, and for the remaining
term of the lease; and is in the best interests of the State.
AUTHORIZATION: Authorize the assignment of Lease Number PRC 8168, a 20-year General Lease – Right-of-Way Use, of sovereign land located in the Pacific Ocean, as shown on
Exhibit A (for reference purposes only) attached and by this reference made a part
hereof, from Lessee to Applicant, effective November 30, 2016.
4
---- -I
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PACIFIC OCEAN
CENTERLINE 10' WIDE
LEASE AREA
MORRO BAY PARCELS77°37'55"E
8202.695m
NO SCALE SITE
LATITUDE: 35°23'46.835" LONGITUDE: -120°57'41.406"
not intended to be, nor shall it be construed as, a waiver or limitation of any State interest in the subject or any other property.
This Exhibit is solely for purposes of generally defining the lease premises, is based on unverified information provided by the Lessee or other parties and is
MORRO BAY TO SANTA BARBARA
PACIFIC OCEAN SITE SAN LUIS OBISPO
MORRO BAY
MAP SOURCE: USGS QUAD
STATE OF C
ALIFOR
NIA
OFFSH
OR
E BOU
ND
ARY
NOTE: Basis of Bearings shown hereon are based on UTM North American Datum 1983, Zone 11N. All bearings and distances are grid and in meters. Geographic positions are based on North American Datum of 1983.
NO SCALE LOCATION Exhibit A-1 PRC 8168
ZAYO GROUP HOLDINGS, LLC GENERAL LEASE -
RIGHT-OF-WAY USE SAN LUIS OBISPO COUNTY
POB LATITUDE: 35°24'38.350" LONGITUDE: -120°52'22.487"
SITE
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Exhibit A-2 PRC 8168
ZAYO GROUP HOLDINGS, LLC GENERAL LEASE -
RIGHT-OF-WAY USE SAN LUIS OBISPO COUNTY
SITE
MORRO BAY
NO SCALE
CENTERLINE 10' WIDELEASE AREA
MORRO BAY PARCEL
LATITUDE: 35°24'44.999" LONGITUDE: -120°52'24.760"
LATITUDE: 35°24'28.088" LONGITUDE: -120°59'23.466"
S85°40'19"E
9538.270m
S88°46'13"E
1040.538m
POB LATITUDE: 35°24'45.000"
LONGITUDE: -120°52'24.760"
PACIFIC OCEAN STATE O
F CALIFO
RN
IA
OFFSH
OR
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CITY OF MORRO
BAY
NOTE: Basis of Bearings shown hereon are based on UTM North American Datum 1983, Zone 11N. All bearings and distances are grid and in meters. Geographic positions are based on North American Datum of 1983.
LOCATION NO SCALE
MORRO BAY
PACIFIC OCEAN SITE SAN LUIS OBISPO
MAP SOURCE: USGS QUAD
This Exhibit is solely for purposes of generally defining the lease premises, is based on unverified information provided by the Lessee or other parties and is not intended to be, nor shall it be construed as, a waiver or limitation of any State interest in the subject or any other property.
SITE
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SANTA BARBARA CHANNEL
°40'11"E
3841.310m
STATE OF CALIFORNIA
OFFSHORE BOUNDARY
1054.2
S10°16'09"E S10°16'09"
08 m E
Exhibit A-3PRC 8168
ZAYO GROUP HOLDINGS, LLC GENERAL LEASE -
RIGHT-OF-WAY USE SANTA BARBARA COUNTY
SITE
SANTA BARBARA TO MANHATTAN BEACH
NO SCALE
CITY OFSANTA BARBARA
~ SUBMERGED LANDS GRANTED TO
• THE CITY OF SANTA BARBARA PERSTATUTES OF 1937, CHAPTER 13, SECTION 3.
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• '7 POBLATITUDE: 34°23'43.7764"LONGITUDE: -119°41'33.7983" I,
£ N N A l:l C R A CENTERLINE 10' WIDE
SOUTHERN PORTION LEASE AREA, LANDING #5
S17 A E
LEASE AREA LANDING #5NORTHERN PORTIONNOTE:
Basis of Bearings shown hereon are based on UTM North American Datum 1983, Zone 11N. All bearings and distances are grid and in meters. Geographic positions are based on North American Datum of 1983.
S12°53'02"E 128.210m
LATITUDE: 34°21'46.0800"LONGITUDE: -119°40'44.4000"
LATITUDE: 34°21'12.6002"LONGITUDE: -119°40'35.9800"
LATITUDE: 34°21'08.5711"LONGITUDE: -119°40'34.7330"
LOCATIONNO SCALE
SANTA BARBARA
SITEPACIFIC OCEAN
MAP SOURCE: USGS QUAD
This Exhibit is solely for purposes of generally defining the lease premises, is based on unverified information provided by the Lessee or other parties and is not intended to be, nor shall it be construed as, a waiver or limitation of any State interest in the subject or any other property.
SITEMJF 11/29/2021
S32°
38'20
"W16
94.3
96m
S80°38'08"W
7360.084m
LONGITUDE: -119°42'50.400"LATITUDE: 34°22'33.960"
SUBMERGED LANDS GRANTED TOTHE CITY OF SANTA BARBARA PERSTATUTES OF 1937, CHAPTER 13,SECTION 3.
LONGITUDE: -119°42'16.145"LATITUDE: 34°23'21.024"
POB PARCEL 1
LATITUDE: 34°21'48.731"LONGITUDE: -119°47'33.132"
MORRO BAY TO SANTA BARBARA (PARCEL 1)
Exhibit A-4PRC 8168
ZAYO GROUP HOLDINGS, LLCGENERAL LEASE -
RIGHT-OF-WAY USESANTA BARBARA COUNTY
SHEET 1 OF 2
SANTA BARBARA
SHEET 1 OF 2
NO SCALE
PACIFIC OCEAN
MAP SOURCE: USGS QUADThis Exhibit is solely for purposes of generally defining the lease premises, isbased on unverified information provided by the Lessee or other parties and isnot intended to be, nor shall it be construed as, a waiver or limitation of anyState interest in the subject or any other property.
SITEMJF 11/29/2021
NO SCALE
NOTE:Basis of Bearings shown hereonare based on UTM North AmericanDatum 1983, Zone 11N. All bearingsand distances are grid and in meters.Geographic positions are based onNorth American Datum of 1983.
LOCATION
SITE
SITE
CENTERLINE 10' WIDELEASE AREA, LANDING #5
NORTHERN PORTIONPARCEL 1
SANTA BARBARA CHANNELSTATE OF CALIFORNIA
OFFSHORE BOUNDARY
CITY OFSANTA BARBARA
Exhibit A-4PRC 8168
ZAYO GROUP HOLDINGS, LLCGENERAL LEASE -
RIGHT-OF-WAY USESANTA BARBARA COUNTY
SITE
MORRO BAY TO SANTA BARBARA (PARCEL 2)
N85°32'12"W73.091m
LONGITUDE: -119°54'00.000"LATITUDE: 34°21'36.000"
SANTA BARBARA CHANNEL
LONGITUDE: -119°54'02.855"
LATITUDE: 34°21'36.117"S89°53'58"W
8174.189m
LONGITUDE: -119°48'40.400"
LATITUDE: 34°21'43.927"CENTERLINE 10' WIDE
LEASE AREA, LANDING #5NORTHERN PORTION
PARCEL 2STATE OF CALIFORNIA
OFFSHORE BOUNDARY
POB PARCEL 2
NOTE:Basis of Bearings shown hereonare based on UTM North AmericanDatum 1983, Zone 11N. All bearingsand distances are grid and in meters.Geographic positions are based onNorth American Datum of 1983.
SHEET 2 OF 2
LOCATIONNO SCALE
NO SCALE
SHEET 2 OF 2
SANTA BARBARA
PACIFIC OCEAN
MAP SOURCE: USGS QUADThis Exhibit is solely for purposes of generally defining the lease premises, isbased on unverified information provided by the Lessee or other parties and isnot intended to be, nor shall it be construed as, a waiver or limitation of anyState interest in the subject or any other property.
SITEMJF 11/29/2021