I'm surprised they didn't choose San Jose. There must be some things outside of their control considering they would have expanded into their own neighborhood.
In the middle of last year, Google announced that they will also look at other bay area cities like Santa Clara for Fiber. I don't see what happened to that and there is no more mention of Santa Clara in the latest post. Maybe it fell through? The last update I see is from the city claiming that the discussions have ended - http://siliconvalleypower.com/index.aspx?recordid=3191&page=...
They will probably hustle now. But their "fiber" wasn't true fiber like Google Fiber. RST's solution was fiber to a wireless node that would power multiple homes.