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Meeting Date: September 26, 2017
Title: Request to Submit an Application for the Virginia Department of Housing and Community Development’s 2018 Virginia Telecommunication Initiative Grant
Type: Action, Resolution
Agenda Title: Request to Submit an Application for the Virginia Department of Housing and Community Development’s 2018 Virginia Telecommunication Initiative Grant
Recommendation:  

The Finance Committee and staff recommend that the Board of Supervisors approve the Department of Information Service’s request to apply for the Virginia Department of Housing and Community Development’s 2018 Virginia Telecommunication Initiative grant in partnership with Comcast to provide last-mile broadband service to a designated unserved area in Spotsylvania County and adopt the attached resolution.

Summary:   The Virginia Department of Housing and Community Development (DHCD) will be awarding a total of $1 million as part of its Virginia Telecommunications Initiative (VATI) to eligible applicants to provide last-mile broadband services to unserved areas of the state. The goal of this state funded program is to create strong, competitive communities throughout the Commonwealth by preparing those communities to build, utilize, and capitalize on telecommunications infrastructure. Telecommunication infrastructure is essential to modern economic and community development, and there are still areas in the county that do not have broadband internet access. The objective of the VATI program is to provide financial assistance to supplement construction costs by private sector broadband service providers, in partnership with local units of government, to extend service to areas that presently are unserved.  The grant program defines unserved as an area where broadband service is not available from a wireline or wireless facilities-based provider at advertised speeds equal to or less than 10 Mbps download/1 Mbps upload. The Department of Information Services and Comcast wish to partner for the VATI opportunity, with Comcast providing the construction and Spotsylvania County managing the grant requirements. The VATI program is looking for shovel-ready projects that will meet minimum implementation speeds of 10 Mbps download/3 Mbps upload at project completion.  The Cable Commission, Information Services, and Comcast believe that the area of Towles Mill Road will be the most competitive site within the County in meeting the grant program requirements.  Additionally, Information Services and Comcast will begin the process of establishing a formalized Memorandum of Understanding, to be reviewed by the County Attorney, and executed if the grant funds are awarded. VATI will fund a maximum of 80% percent of the total project cost with Comcast and Spotsylvania responsible for providing the remaining 20% percent of the project costs. However, those projects which show a larger percentage of public/private investment may receive a higher rating.  The local match can be met with cash, in-kind contributions, or a combination of the two.  Although the total project costs have not yet been finalized by Comcast, the County will only provide in-kind services through use of personnel time associated with this project.  No local funding will be required.  Comcast will absorb the remaining costs associated with the project as long as VATI will provide a minimum of 60% of the total project costs. The grant application deadline is October 31, 2017 and requires a 30 day public comment period prior to submitting the application.  Advertisement seeking Public Comment must be made in a non-legal, locally circulated newspaper with the largest general circulation, as well as posted on the County’s website and in public buildings.  It is anticipated that award announcements will be announced in January 2018 with project completion by June 20, 2018.  After the grant award period expires, there will be no on-going costs for Spotsylvania County.
Committee/Commission Summary: Finance Committee
Review Date: September 21, 2017 Status: Approved
Financial Impact:

None at this time as this is a request to submit a grant application. However, the County will only provide in-kind services for this project if it is awarded.

Staff Contacts:

Jane Reeve, Information Services

Annette D' Alessandro, Finance

Legal Counsel:
Additional Background/Other Considerations:

A Memorandum of Understanding between the County and Comcast is being drafted and will be reviewed by the County Attorney's Office by the time the potential grant award will be announced.

Consequence of Denial/Inaction:

Failure to apply for this grant opportunity will mean that both Spotsylvania County and Comcast will lose the opportunity to receive state funding that will aid in the construction of last-mile broadband service to an unserved area in the County.

 
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