Agenda Item: 4
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: October 13, 2026
SUBJECT: LIT FIBER SERVICE TO LOCAL INTERNET PROVIDER
DEPARTMENT: Administrative Services
PRESENTER: Benny Ives
RECOMMENDED ACTION
City Council:
1. Approve a five-year agreement, with two optional five-year extensions, that will allow the City to provide lit transport service to EW Infrastructure, LLC.
2. Authorize an increase of $38,400 annually in Fiscal Year 2026-27 through Fiscal Year 2031- 32 to revenue account 120-431111 (Recreation Facility Fund Dark Fiber Lease).
3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney review.
BACKGROUND
In June 2021, the City Council approved an initial five-year agreement with BAI Connect (BAI) for the City to provide lit transport service, enabling BAI to offer high-speed, fixed-wireless Internet service to businesses in Santa Clarita. Lit transport uses City-powered, fiber-optic equipment to provide Zentro with connectivity to One Wilshire, a major West Coast data center.
In August 2025, BAI merged with Zentro Internet (Zentro). BAI had provided fixed-wireless Internet service in the Santa Clarita Valley for 19 years and was the first local Internet Service Provider (ISP) to leverage the City’s fiber investments to expand service to the local business community. The initial agreement expired on July 9, 2026; however, the City has continued to provide 10 Gbps of lit transport service while terms of a new agreement were being negotiated. City staff were unable to negotiate a new agreement prior to the expiration as a result of the merger.
City staff recommends entering into a new five-year agreement, with two optional five-year extensions, with EW Infrastructure, LLC, (EW) a wholly owned subsidiary of Zentro. As part of the new agreement, EW will continue utilizing space within and atop The Cube Ice and Entertainment Center for its equipment infrastructure. The agreement will generate 33% more revenue per year than the prior agreement, for a total of $192,000 during the initial five-year term, inclusive of all retroactive revenue owed since July 2026. If both extensions are exercised, the value of the contract will be $605,280 over 15 years. The agreement will also enable Zentro to continue providing high-speed, fixed-wireless Internet service to local businesses.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Approval of the recommended actions will increase $38,400 annually in Fiscal Year 2026-27 through Fiscal Year 2031-32 to revenue account 120-431111 (Recreation Facility Fund Dark Fiber Lease).
ATTACHMENTS
Draft Contract (available in City Clerk's Reading File)