stokes county council - broadband

8/14/2019 Stokes County Council - Broadband

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September 28, 2009 (2009-09-28)

Proposed Feasibility Study for Expansion of Broad Band Services in Stokes County

Economic Development Director Alan Wood discussed the following regarding a feasibility study forexpansion of Broad Band Services in Stokes County:

Economic Development Commission started looking at Broad Band Services in Stokes Countyduring the development of their strategic plan

Percentages vary when it comes to the availability of Broad Band in Stokes County, one mapfunded by the telephone companies reflects that 90% of Stokes residents have Broad Bandavailable, one map funded by ENorth Carolina reflects 60-65% of Stokes County residents haveBroad Band available

The 60-65% coverage is probably realistic

Satellite coverage is not to be included in the definition of Broad Band coverage

Have met with representatives from Embarq to try to find out what are Embarqs plans for the

future as far as Broad Band for Stokes County Meeting with Embarq representatives again next week for further discussion

Working with representatives from Caswell and Rockingham counties for possible regionalgrant regional grant applications are usually looked at more favorable

Representatives from Rockingham and Caswell counties also feel that a joint application will beviewed more favorably

Caswell County is currently having a feasibility study done with Rockingham having alreadycompleted phase I of the feasibility study by their own staff

Must have a feasibility study in order to move forward with any grant applications

Must know where the needs are, must know where Broad Band is currently available, mustknow what are the plans for implementing the needs in the future, and is it cost effective alongwith what it will cost to complete the plan

Two proposals available basically both will do the following:

A needs assessment will be performed

Finding out where Broad Band is currently available

What % of the population has Broad Band coverage

Develop a plan for a wire/wireless Broad Band across the entire county

Cost analysis be performed

Provide the best plan to implement the project

Do the engineer study up to the point where fiber goes into the ground with additionalengineer work having to be done if there is a need for a lot of fiber this would possiblygenerate additional costs

Once the engineer study is done- a report will be presented to the county for a decision to bemade whether to move forward with the project

Provide the County with who the partners could be

Provide possible outside providers


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Provide assistance with the grant applications for an additional cost

One proposal has a cost of $55,000 which will provide Phase I and Phase II up to the grantimplementation which will cost approximately $10,000 this cost would be shared by the threecounties if a regional grant was submitted

The other proposal is broken down into three parts Part I: Needs assessment-then decidewhether to move forward- cost approximately $21,000; Part II Building network, providing

partners/providers and plans to implement the project cost approximately $23,000; Part III Grant application process (Part I and Part II -cost not to exceed $44,000) costing approximately$8,000

Both vendors who submitted proposals come highly recommended (Probably the best time toget funding from stimulus dollars for Broad Band expansion)

$7.2 billion dollars of stimulus funding set aside for rural Broad Band along with other possiblefunding sources such as Golden Leaf, Rural Center, etc.

Time line is critical for implementing the feasibility study

Next grant application deadline is tentatively set for late February or early March Before moving forward with any Broad Band expansion, a feasibility study must be done

Grant application is highly competitive and the County needs someone who has experience inpreparing and submitting this type of grant application

Both vendors have submitted this type of grant applications

Broad Band needed for entrepreneurship, college and high school students, current and newbusinesses in the county

Economic Development Commission recommends to use capital reserve economicdevelopment funding to move forward with the feasibility study

The Board discussed the proposals submitted by Director Wood, possibly using funds in capital reserveset aside for economic development projects, need for a feasibility study, need for Broad Band acrossthe county, percentage of Broad Band availability, and regional grant applications.

The Board unanimously agreed the need for Broad Band across the county and the need to moveforward with the feasibility study.

Director Wood noted that he could provide the Board with more information from the two proposals atthe next meeting for further discussion.

Chairman Inman directed Director Wood to provide the Board with additional information available

regarding the proposals and directed the Clerk to place the item on the October 12th Action Agenda.

http://www.co.stokes.nc.us/bocc/minutes/2009/m092809.htm
http://www.co.stokes.nc.us/bocc/minutes/2009/m092809.htmhttp://www.co.stokes.nc.us/bocc/minutes/2009/m092809.htm


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October 12, 2009 (2009-10-12)

Broadband Feasibility Study Proposed Bids

Economic Development Director Alan Wood presented the following information regarding twoproposals received for a Broadband Feasibility Study:

Improving broadband is probably the most important step the County can take to improve theeconomic and educational levels in the community

Broadband is the center of the strategic plan adopted by the Economic DevelopmentCommission

Best estimate for broadband coverage in the County is 60-65%

Still meeting with representatives from Embarq, which is now CenturyLink

Embarq does have some future expansion plans, but it will not take the County to where theCounty needs to be with broadband coverage for a majority of the residents

It will be very important during this process to try to form partnerships

Private entities will only be interested in going where it is profitable for them, the county willhave to subsidize those areas that private entities are not willing to go

Two proposals received: Howell Group, LLC and Excelsio Communications

Both companies can provide the services requested

Howell Group provides phases Phase I- Feasibility Study which will determine wherebroadband is located in the County, who the providers are, and then provide the County withinformation to determine whether to proceed any further with the project Cost Estimate= $20,000 - $23,000

Howell Group Phase II Would provide network architecture and technology

recommendations, determine the optimal broadband technology, and would also provide theCounty with a financial model and business plan for the network - Cost Estimate = $24,000(this would be a shovel ready proposal)

Howell Group Phase III Grant Application for stimulus funding Cost = $8,000 which couldbe less if combined with Rockingham and Caswell counties

Excelsio Communications is a lump sum fee of $55,000 for a complete Feasibility Study alongwith $10,000 for Grant Application which could be less if combined with Rockingham andCaswell counties

Economic Development Director Wood recommended that the County move forward with The Howell

Group, LLC proposal which has more flexibility, allows the County to make adjustments in the plan asit moves forward, has extensive contacts in North Carolina, has recently been involved in completingstudies and applications submitted for federal stimulus funding, and their timeline shows that they cancomplete the work in compliance with the Countys needs to be ready for the next round of funding.

The Board discussed the two proposals with Economic Development Commission, available fundingfor the proposal, and the need for expansion of broadband services in Stokes County.

The Board unanimously agreed to proceed with the Feasibility Study.


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Economic Development Director Wood presented the Board with the Budget Amendment #25 whichincludes funding for Phase I with the Howell Group:

Account Number Account Description Current Budget Amount Increase (Decrease) As Amended

Economic Development

100.4920.184 Professional Services Totals $0.00 $21,000.00 $21,000.00

Capital Reserve Fund

201.4920.027 Economic Development $214,178.00 -$21,000.00 $193,178.00

201.9810.000 Transfer to General Fund $51,698.00 $21,000.00 $72,698.00

This budget amendment is justified as follows: To transfer funds from Capital Reserve Fund to GeneralFund for the Feasibility Study for expansion of broadband services in Stokes County.

This will result in a net increase of $21,000.00 in the expenditures and other financial use to the

Countys annual budget. To provide the additional revenue for the above, the following revenues willincrease. These revenues have already been received or are verified they will be received this fiscalyear.


100.3982.960 Transfer from CapitalReserve Fund

$48,698.00 $21,000.00 $68,698.00

Chairman Inman entertained a motion.

Vice Chairman Walker moved to proceed with the broadband feasibility study per the EconomicDevelopment Commission and Economic Development Directors recommendation with The HowellGroup as presented and Budget Amendment #25 not to exceed $21,000.

Commissioner Carroll seconded and the motion carried unanimously.

http://www.co.stokes.nc.us/bocc/minutes/2009/m101209.htm
http://www.co.stokes.nc.us/bocc/minutes/2009/m101209.htmhttp://www.co.stokes.nc.us/bocc/minutes/2009/m101209.htm


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November 23, 2009 (2009-11-23)

Broadband Feasibility Study Phase I

Economic Development Director Alan Wood introduced Mr. John Howell and Mr. Glenn Krauss whopresented the Broadband Feasibility Study Phase I.

Mr. Howell and Mr. Krauss discussed the following information with the Board regarding Phase I:

Economic challenges faced by Stokes County are numerous

Broadband access has proven to be one of the main catalysts for innovation

Limiting Stokes Countys progress is the lack of broadband access

Early college program has started to provide laptops for students

Many students live in rural areas of the county where broadband is either not available or notaffordable which prevents them from taking advantage of these laptops

Many students enrolled at area community colleges and those seeking to enroll at otherinstitutions cannot take advantage of online course offerings without adequate broadband

E-NC website reports that 70.91% of the citizens have access to broadband in Stokes County Primary stakeholders that were interviewed for information:

Public School System

EMS

GIS

City of King

Town of Walnut Cove

Cable Provider Time Warner Cable

Local telephone companies Embarq/CenturyLink, Surry Telephone, and Windstream

Survey (vehicular ride) of the entire County was done to further validate the broadband

coverage data All information collected during the survey has been downloaded into the Countys

GIS/Mapping System

Current estimated county population = 46,624

15% of households in Stokes County are not currently being served

11% of households in Stokes County have DSL only

21% of households in Stokes County have cable only

53% of households in Stokes County have DSL/Cable options

3% have marginal broadband

18% dont have quality broadband service

Estimated 7,000 residents cant get broadband service

Estimated 1,400 residents are underserved

Estimated 22,000 residents have only one option for broadband service

82% have 3 mbps+ speed

15% have only 1.5 mbps speed

3% have dial up

Stokes County School System recently migrated all of their broadband needs to a Time Warnerfiber optic spoke and hub network which provides 100meg to every school

The network connects the schools administrative central office to each of the schools with a


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direct fiber network which could be an excellent starting point

Prior to this fiber optic network, the schools utilized a wireless point-to-point network which isstill in place

Schools Systems current and old network can play a huge part providing broadband to thoseun-served areas, but the County would have to develop a partnership with Time Warner due torestrictions within the schools contract

One option for expanding broadband coverage would be to utilize the fiber optic network andinstall wireless transmitters at each of the schools to serve the areas surrounding the schools,this solution would require a partner to sell, install and maintain the wireless last mile portionof the network

County can also look at using existing water tanks, fire departments, etc. to start the network

Satellite service is available to 98% of the citizens in Stokes County

The need for the County to continue to look for funding and partnering opportunities

Phase II will provide a design and engineer network, sustainable business, and financial plan,along with information for a shovel ready project

Phase III will prepare and submit application for funding

Mr. Howell expressed appreciation to GIS Specialist Greg Hunsucker, GIS/Mapping Department, forhis assistance.

Mr. Howell noted that Rockingham County (at their 11-23-09 meeting) has contracted with the HowellGroup to do Phase II which will be similar to Stokes Countys Phase II.

Mr. Howell stated that the Howell Group recommends Stokes County continue with Phase II.

The Board discussed the following with Mr. Howell and Mr. Krauss:

Need for service for those who are not being served as well as those who only have one option

Available Stimulus Funding Phase II must be done to apply for stimulus dollars

Phase II cost is approximately $25,250 with completion being late December or early January2010

Funding available in Capital Reserve designated for Economic Development

Application process for funding

Extra band space available at the schools

Dual problem regarding broadband access and connection

Needed infrastructure for economic development and student access

Moving forward with Phase II

Chairman Inman directed the Clerk to place the item on the December 14th Action Agenda.


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January 25, 2010 (2010-01-25)

EDC Broadband Feasibility Study Phase II Update

Economic Development Director Alan Wood presented the following information regarding theBroadband Feasibility Study Phase II: (Director Wood submitted the Board with an Executive

Summary from Telecommunications Consulting Associates regarding Phase II)

Analysis indicates that the various broadband providers cover approximately 85% of theCountys population; however, only 82% have high speed service available

Estimated 7,000 citizens or approximately 2,800 homes are un-served and another 1,400 homesare under-served

Only 53% of the countys population have a choice of providers, which means almost half haveno choice which means no competition

Announcement has been made that round two for broadband stimulus funding is opening earlierthan expected February 15, 2010 (approximately $3.2 billion)

There will be thirty (30) days to submit an application requesting funding

Final, complete study from the Howell Group is due to Stokes County by January 31, 2010 Howell Group has selected a 4g technology which is the most cost efficient

4g providers in this area are Sprint, Clearwire and Time Warner

Howell Group has not specified equipment at this point in time nor have they completed a finallist of partners

A final list of partners would be completed for the application submission

Mr. Howell has contacted representatives from Spring, Clearwire, and Time Warner and allhave expressed interest, but none have committed to a partnership at this point

Network being recommended covers 95%+ of the county with fifteen (15) tower sites and one(1) Network Operations Center

Six of the sites will be connected with fiber links which are already located

Nine of the links will be using microwave links

RUS will focus this round on last mile projects

These projects have the last mile as their main focus

USDA will be the funding source for last mile projects

Howell Group recommends the County apply through the USDA-RUS

Continuing to work with Rockingham County for possible joint stimulus application

If joint stimulus application is done with Rockingham County, one (1) Network OperationsCenter can be shared between both counties which would reduce capital expenditures andoperating expenses

Rough estimate for countywide network coverage is $4.71 million

System Construction Capital = $2.5 million New Site Development = $0.96 million

CPE Capital for 3 years = $1.25 million

Funding is 75% grant with 25% loan for 5 years

County may apply for funding from Golden Leaf, Rural Center, ARC, etc. to cover the 25%loan

In round one, federal application requirements included a but for clause, not sure if it will beincluded in the round two application process


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Application process will require additional research and study since many changes were madefrom the round one application

Howell Group will be attending training in Atlanta in February

Believe a joint two-county application to RUS is the most desirable path to pursue

Stokes County has never intended to operate a network system, there would a third party whotakes on the operation of the network system along with the operating cost

Howell Group will be providing two business cases for the Boards consideration Projected costs could be lower when the final report is completed

Economic Development Director Wood requested the decision to submit a joint two-county application(with Rockingham County) for stimulus funding and grant fee funding approval be placed on theFebruary 8th Action Agenda. ($10,000 fee will be shared equally with Rockingham County)

The Board discussed the Phase II information and grant request with Director Wood.

Chairman Walker questioned if the 25% loan could be covered by fees for using the service. DirectorWood noted that he would need to further research that issue.

Vice Chairman Lankford requested the final report be given to the Board as soon as possible in orderfor the Board to have adequate time to review the document and recommendations.

Chairman Walker, with full consent of the Board, directed the decision to submit a joint two-countyapplication with Rockingham County for stimulus funding and approval of grant fee funding be placedon the February 8th Action Agenda.


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February 8, 2010 (2010-02-08)

EDC Broadband Feasibility Study Request to Proceed with Grant Application

Economic Development Director Alan Wood welcomed Director Mark Wells, Rockingham CountyBusiness Technology Center, who has worked closely with Stokes County during the Broadband

Feasibility Study. Director Wood expressed appreciation to Director Wells for his continuedcooperation during this study. Director Wells will be going before the Rockingham County Board ofCommissioners this evening for approval to proceed with the grant application process.

Economic Development Director Alan Wood presented Mr. John Howell and Mr. Glenn Kruse whopresented the following information regarding the request to proceed with grant application:

Existing DSL Coverage

Residential DSL-12,463 currently being served and 8,681 being un-served

Business DSL-526 currently being served and 120 being un-served

Existing Cable Coverage

Residential Cable-15,553 currently being served and 5,591 being un-served Business Cable-569 currently being served and 77 being un-served

Existing Broadband Overview

Residential-Availability

Single option-6,638

Dual option-10,201

Un-served-4,305

Business-Availability

Single option-64

Dual option-503

Un-served-79 Objective is to provide wireless coverage to 95%+

Projected to use a 16 site design which would downlink speed of 3 meg or greater using anCPE (customer premises equipment) majority of sites are already located in the County

Not everyone would have to use a CPE

Summary of Broadband Service available after proposed wireless network is deployed

Business Wireless

29 will be un-served

617 will be served

Residential Wireless

726 will be un-served

20,418 will be served

Instructions that Stokes County does not want to be in the business of running a broadbandnetwork has been incorporated into all the analysis

Jane Patterson, ENC Authority, has expressed interest that ENC Authority would like to be anapplicant for stimulus dollars

Ms. Patterson is verifying that ENC Authority has the authority to be an applicant for StokesCounty

ENC Authority applied and received stimulus funding for Broadband in Round 1


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Federal rules for Round 2 came out last Tuesday

Rules have completely changed from the rules in Round 1

Howell Group will be in Atlanta the end of the week to learn more about the application process

Stokes Countys application would be for RUS Department of Agriculture Stimulus Funding

Budget for this project is estimated at $4.58 million which is similar to the RockinghamCountys estimated budget

Suggest making a joint application with Rockingham County, with the possibility of CaswellCounty being a third applicant

Caswell County will be voting tomorrow whether to move forward with the grant applicationprocess

If ENC is the applicant, ENC would be the fiduciary and would be responsible for the 25% loan

Department of Agriculture Grant is a 75/25 grant loan the 25% loan would be theresponsibility of the entity that makes the application

Round 2 is asking for more details with the application

Stokes and Rockingham counties both have very good, accurate data/mapping for theapplication

ED Director Wood noted the following:

Approval needed tonight to move forward with the application process

Approval of Budget Amendment #56 which allocates $10,000 from Economic DevelopmentContingency to fund the application

There are some changes from the Round 1 application process

The Howell Group will attend training in Atlanta this week, if after the training they feel ourapplication would be unsuccessful, then Stokes County would not go forward with theapplication process

Application process opens February 15th with 30 days to complete the application

Feels Stokes County has a very strong business case

Fee would be, if joint application with Rockingham County, between $6,000 and $8,000

Caswell County is considering two options, not sure if Caswell will move forward with theoption that is similar to Stokes and Rockingham counties

If Caswell Countys option is similar then application fee will be somewhat less

Mr. Wells stated that funding for the application fee has already been approved by Rockingham County,but approval to move forward with the application is on the Boards Agenda for tonight. RockinghamCounty officials are aware of the possibility of a joint application with Stokes County and possiblyCaswell County. Rockingham County has direct links to the ENC Authority, ENC funding help to startthe Rockingham Technology Business Center.

The Board discussed the Agenda item with Mr. Howell and Mr. Kruse.

Vice Chairman Lankford confirmed that ENC can apply for funding and work with a private entitysuch as CenturyLink to build the network. Mr. Howell did note CenturyLink had indicated that theywould not be applying for federal stimulus funding.

Mr. Howell noted the need to have a shovel ready project in order to receive stimulus funding.


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Commissioner Carroll confirmed that the Howell Group does have a backup applicant if ENC were notable to submit the application a 501(c) non-profit which would also be a good opportunity.Commissioner Carroll also confirmed with Mr. Howell that this funding is not tied in any way to ERateFunding.

Mr. Howell noted that ENC Authority might have other projects that could be tacked on which looks

very favorable to the Federal Government. Mr. Howell also noted that ENC Authority is alreadyreceiving funding from the Federal Government.

Commissioner Smith confirmed with Mr. Howell that the applicant will be solely responsible for the25% loan match. Commissioner Smith questioned who will own the assets. Mr. Howell noted that inRound 1, the applicant actually owned the assets, but changes could have been made in Round 2. Mr.Howell confirmed that Stokes County and the citizens of Stokes County would not be held responsiblefor the 25% loan match.

Director Wood concluded that the federal application process includes a but for clause and feels thatbut for this funding, this network would not be built, and but for this funding, these people wouldnot in the immediate future have coverage.

Finance Director Julia Edwards submitted Budget Amendment #56 for allocation of funding.

Economic Development - Budget Amendment #56

To amend the General Fund, the expenditures are to be changed as follows:


Economic Development

100.4920.370 Advertising $35,000.00 $10,000.00 $45,000.00

Capital Reserve Fund

201.4920.027 Economic Development $162,928.00 (-$10,000.00) $152,928.00

201.9810.000 Transfer to General Fund $102,948.00 $10,000.00 $112,948.00

Totals $265,876.00 $0.00 $265,876.00

This budget amendment is justified as follows:

To transfer funds from Capital Reserve Fund for grant application fee for Broadband.

This will result in a net increase of $10,000.00 in the expenditures and other financial use to theCountys annual budget. To provide the additional revenue for the above, the following revenues willincrease. These revenues have already been received or are verified they will be received in this fiscalyear.


100.3982.960 Transfer from Capital $99,948.00 $10,000.00 $109,948.00


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Reserve Fund

100.4920.370 Totals $99,948.00 $10,000.00 $109,948.00

Chairman Walker entertained a motion.

Commissioner Inman moved to proceed with the application process for Broadband Stimulus Funding

and Budget Amendment #56. Commissioner Smith seconded and the motion carried unanimously.


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March 8, 2010 (2010-03-08)

AgendaDiscussion Agenda

d. Proposed Resolution Broadband Access in Unserved and Underserved Areas within North CarolinaCounty Manager Bryan Steen

Economic Development Director Alan Wood
http://www.co.stokes.nc.us/bocc/agendas/2010/a030810.pdfhttp://www.co.stokes.nc.us/bocc/agendas/2010/a030810.pdf

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