Agenda Item: 3
CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS
CITY MANAGER APPROVAL:
DATE: October 14, 2025
SUBJECT: CITYWIDE HIGH-SPEED FIBER INTERNET SERVICE
DEPARTMENT: Administrative Services
PRESENTER: Benny Ives
RECOMMENDED ACTION
City Council:
1. Determine that the project is exempt from environmental review pursuant to California Environmental Quality Act Guidelines § 15301, 15303, and 15304, as a Class 1 (Existing Facilities), Class 3 (New Construction of Small Structures) and Class 4 (Minor Alterations to Land) categorical exemption.
2. Approve a 20-year, non-exclusive Agreement with three additional, optional and successive, 10-year terms, with Aspire Broadband Holdings, Inc. for access to and use of the City’s right-of-way for fiber optic cable installation and accessory facilities for its network; inclusive of a lease of certain City-owned dark fiber strands, subject to availability and to detailed terms set forth in the Agreement.
3. Authorize the City Manager or designee to execute the Agreement in substantially the form provided in the City Clerk’s reading file, subject to City Attorney approval, with such non- substantive revisions as approved by the City Manager and City Attorney.
BACKGROUND
For years, City of Santa Clarita (City) residents and businesses alike have expressed their desire and need for greater choice, access, speeds, and competitive prices for high-speed, fiber-based Internet service. Since the 2015 launch of the City’s five-year strategic plan, known as Santa Clarita 2020, the City Council identified goals to enhance economic vitality, which included establishing “a revenue generating program that utilizes existing fiber infrastructure to leverage resources and potentially promote greater bandwidth access to the community.” In the years since this measure was identified, the City has made significant progress and investments to position and market Santa Clarita as the premiere destination for new Internet Services Providers
(ISP) in which to invest.
The first step in this effort was a Broadband Feasibility Study (study) completed in 2018, which reported on the state of broadband in the City. The study concluded that Santa Clarita has two predominant ISPs, AT&T and Spectrum, and stated that “service offerings are too expensive, are too slow, offer poor value for the monthly price, and that there is not enough competition.” The study also made several recommendations, most notably expanding the City’s fiber optic footprint, achieving a connection to a datacenter in Los Angeles, and pursuing a public-private- partnership to offer high-speed internet access and services to the community.
Leveraging a twenty-year strategy of installing fiber-optic cabling to connect City infrastructure, such as traffic signals, parks, and other City facilities to enable real-time services and high-speed access to the Internet, the City is now equipped with more than 100 miles of fiber-optic cabling that enables City staff to provide timely and responsive government services across twenty City properties. Subsequently, in June 2019, the City achieved a years-long effort to obtain a dark fiber connection to One Wilshire, the largest Internet Point-of-Presence and data exchange on the west coast. In doing so, the City positioned itself to introduce lower barriers of entry to potential new ISPs that might consider servicing the City with high-speed Internet access and service utilizing the City’s Fiber Optic Network (FON).
To aid in this effort, in August 2020, the City released a Request for Proposal (RFP) called “Public-Private Partnership to Provide High-Speed Internet Service to Local Businesses.” The RFP was downloaded by 56 entities, with 5 providing proposals. However, with the uncertainty associated with the COVID-19 pandemic, which led to rising interest rates and economic concerns beginning in 2021-2022, no agreement was reached. In the years since, the City has focused on conditioning eligible, new developments with its “Connected City” program to install ‘last mile’ conduit infrastructure from private developments to a meet-me point in the public right-of-way for the purpose of connecting them to the City’s FON to access high-speed Internet in the future.
CITYWIDE HIGH-SPEED FIBER INTERNET SERVICE PROJECT
In October 2024, the City was approached by Aspire Broadband Holdings, Inc. (Aspire) regarding a Citywide High-Speed Fiber Internet Service project to install, own, and operate a vast, high-speed, fiber-optic network capable of delivering symmetrical (same upload and download speeds), gigabit speeds at least ten times faster than what many City residents and businesses currently have access to at their home or business. While select residential areas of the City have access to fiber-based Internet services from AT&T, the vast majority of Santa Clarita citizens do not. Residents and businesses without access to fiber are limited to either cable or DSL, which offer slower upload speeds than download speeds, delivered using shared bandwidth and capacity. Furthermore, with the continued uptrend in video streaming, online gaming, and large file downloads, accessing the Internet using fiber optic technology is the way of the future.
Approximating an investment around $80 million dollars, Aspire would utilize microtrenching construction to install nearly 1,000 linear miles of fiber-optic infrastructure to reach upwards of 80,000 passings, or customers, at full build-out (see photos attached). In October 2021, the State
of California passed Senate Bill 378, “Broadband Deployment Acceleration Best Practices Act of 2021,” which required local agencies to allow microtrenching in the public right-of-way for the installation of underground fiber optic cable. In doing so, the State of California removed the City’s authority to prohibit microtrenching in its right-of-way. However, the City does have some discretion over standards, specifications, and engineering conditions related to microtrenching.
The use of microtrenching, as distinguished from traditional deeper trenching, had the effect of dramatically decreasing the cost of installing new fiber optic networks into existing roadways.
Compared to conventional trenching, microtrenching is much faster and much cheaper because there is less excavation and less repair work involved. The cost savings from microtrenching has changed the economics of deploying fiber optic networks.
To reach its full potential, Aspire would lease 675 fiber strand miles along the City’s fiber optic network to expedite its ability to deliver Citywide High-Speed Fiber Internet Service to the community. Aspire’s use of City infrastructure coupled with its intent to build, own, and operate a robust fiber optic network would essentially fulfill the City’s goal of establishing a public- private-partnership to offer high-speed Internet access and services to the community.
Aspire does not possess a “Certificate of Public Need and Necessity” issued by the California Public Utilities Commission to officially qualify as a utility, it therefore does not have a Statewide franchise and right to access local public rights-of-way; however, Aspire may acquire that access through an agreement with the City, as owner of the public right-of-way (ROW).
The attached Project Agreement (Agreement) with Aspire would grant it non-exclusive, Citywide access to public ROW coupled with a lease to utilize 675 fiber strand miles of City fiber to supplement and “light up” its network across Santa Clarita. In consideration for this access and rights to use City fiber, the City would receive the following direct benefits:
• Ten percent (10%) revenue share of Aspire’s gross income for all services provided within City limits, inclusive of minimum guarantee amounts. • Zero cost for two (2) 10 Gbps fault-tolerant Internet connections for City operations. • Up to fifty (50) future fiber optic demand points to connect traffic signals and City- owned properties or facilities.
• Cash sponsorship of $50,000 per year towards City events and programs.
As significant, businesses and residents would receive the following benefits:
• A new choice in Internet Service Provider
• High-speed Internet service delivered over fiber optic technology • Range of symmetrical services: 500 Mbps, 1 Gbps, 2 Gbps, and 5 Gbps • No limits on data usage
• Thirty-dollar ($30) discount per month for low-income households • Ten percent (10%) discount for seniors
Aspire's Citywide network would address all of the major shortcomings from the study, most
notably lack of choice, low speeds, difficult access, and high price (poor value) when compared to service offering. A sample of Aspire’s planned pricing in comparison to existing ISP’s is shown here:
Provider Connection
Type Tier Download
Speed
Upload
Speed
*1st Year
Introductory
Price
*Regular
Price
Fiber Optic Service
Aspire Fiber 500 Mbps 500 Mbps 500 Mbps $60 $70
AT&T Fiber 500 Mbps 500 Mbps 500 Mbps $75 $75
Aspire Fiber 1 Gbps 1 Gbps 1 Gbps $80 $90
AT&T Fiber 1 Gbps 1 Gbps 1 Gbps $75 $90
Aspire Fiber 2 Gbps 2 Gbps 2 Gbps $100 $110
AT&T Fiber 2 Gbps 2 Gbps 2 Gbps $135 $155
Aspire Fiber 5 Gbps 5 Gbps 5 Gbps $180 $190
AT&T Fiber 5 Gbps 5 Gbps 5 Gbps $165 $255
Cable / DSL Service
AT&T DSL Internet 75 75 Mbps 20 Mbps $70 $70
AT&T DSL Internet 100 100 Mbps 20 Mbps $70 $70
Spectrum Cable Advantage 100 Mbps 20 Mbps $30 $50
Spectrum Cable Premier 500 Mbps 20 Mbps $50 $80
Spectrum Cable Gig 1 Gbps 35 Mbps $70 $100
*Advertised prices shown not including autopay discounts, taxes, fees or equipment fees *Pricing shown is just a sample based on publicly available information. 1 Gbps = 1,000 Mbps
The City has no control over Aspire’s pricing model, which is subject to change and is not fixed or otherwise regulated by this Agreement. Similarly, the City has no regulatory control over AT&T’s or Spectrum’s tier structures or pricing. However, the City is requiring that Aspire offer a discount for low-income households according to eligibility requirements similar to the Federal Communications Commission’s Affordable Connectivity Program, which was offered to low- income households during the COVID-19 pandemic. Additionally, Aspire will also offer a ten percent discount to individuals over the age of 65.
As part of the Agreement and in coordination with City staff, Aspire mapped the entire City into ten areas for purposes of its construction timeline (see attached map). Development of the mapped areas took several factors into consideration including areas unserved by fiber, areas with minimal service providers, and areas with low data speeds. Proximity to access the City’s dark fiber assets was also a consideration. At least four areas are forecasted to be built per year, leading to a total anticipated project construction timeline close to three years to complete the Citywide build-out.
While Aspire has goals to deploy its network throughout the City, it will prioritize public streets over private streets. However, Aspire intends to work with owners of private streets to obtain
their necessary approval to deploy its high-speed, fiber optic services. Aspire has indicated it will be able to begin construction of its network as early as April 2026.
ABOUT ASPIRE BROADBAND HOLDINGS, INC
Aspire was founded in 2019 by Stephen Weatherford, who began his career in telecommunications as a field technician and worked his way up through the industry.
Established in Florida as a design-build fiber contracting company, Aspire quickly expanded to meet growing demand for turnkey outside plant construction and fiber-to-the-home deployments.
In 2023, Aspire expanded into California. To date, Aspire has deployed over 10 million feet of fiber optic cable, constructed 100,000 plus passings, and supported tens of thousands of subscriber activations across multiple states.
Aspire is already active in the region, with ongoing projects in Ventura County. This local presence underscores Aspire’s commitment to Ventura and Los Angeles Counties and demonstrates its ability to successfully deliver public-private partnerships with cities in close proximity to Santa Clarita. In April 2024, Aspire signed a public-private-partnership agreement with the City of Moorpark to install, own, and operate a citywide fiber-optic network. Aspire is on schedule to activate its first customers in the City of Moorpark later this year.
ENVIRONMENTAL DETERMINATION
This project is exempt from the California Environmental Quality Act under Article 19, Section 15301 (Class 1), Section 15303 (Class 3), and Section 15304 (Class 4). A Class 1 exemption consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private facilities, including utility services. A Class 3 exemption consists of the construction and location of limited numbers of new, small facilities or structures. A Class 4 exemption consists of minor alterations to land, including minor trenching and backfilling where the surface is restored. Therefore, the City has determined, based upon information submitted by Aspire, that there is no substantial evidence that the project would have a significant effect on the environment and is not subject to any exception to categorical exemptions, 14 CCR §15300.2.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The City will receive ten percent of Aspire’s gross revenues for all services provided within City limits, which minimally guarantees the City to receive $50,000 per year beginning in Year 1, and increasing $50,000 per year thereafter until it reaches $500,000 in Year 10, and will thereafter be subject to an annual consumer price index adjustment. In total, the City is guaranteed to receive a minimum of $2,750,000 over the initial ten-year period and $5,000,000 over the subsequent ten- year period, for a total of $7,750,000 which will be deposited into the General Fund. In addition, Aspire will provide a cash sponsorship of $50,000 per year beginning in Year 2 and annually thereafter, for the duration of the contract. Aspire is responsible for paying applicable City fees per the City's adopted fee schedule, as well as lease payments associated with data center space.
ATTACHMENTS
Notice of Exemption
Aspire Microtrenching Before and After Photos
Citywide High-Speed Fiber Internet Service Map
Aspire Citywide High-Speed Fiber Internet Project Agreement (available in the City Clerk's Reading File)