The Finance Committee and staff recommend that the Board of Supervisors accept the attached FY18 budget adjustment and appropriation for the Virginia Department of Housing and Community Development’s (DHCD) 2018 Virginia Telecommunication Initiative Grant Award.  In partnership with Comcast, this state funding will assist in providing last-mile broadband service to a designated unserved area in Spotsylvania County.  Additionally, staff recommends that the Board of Supervisors approve the associated Memorandum of Understanding with Comcast.

The Finance Committee and staff recommend that the Board of Supervisors accept the attached FY18 budget adjustment and appropriation for the Virginia Department of Housing and Community Development's (DHCD) 2018 Virginia Telecommunication Initiative Grant Award. Additionally, staff recommends approval of the associated Memorandum of Understanding with Comcast.

The Virginia Department of Housing and Community Development (DHCD) awarded $978,559 to four localities as part of its Virginia Telecommunications Initiative (VATI) to provide last-mile broadband services to unserved areas of the state. Spotsylvania County, along with its project partner Comcast, was one of the four localities, being awarded a total of $167,260 in state funds to provide last-mile broadband service along Towles Mill Road. 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 wire line 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 have partnered for the VATI award, with Comcast providing the construction and Spotsylvania County managing the grant requirements. Information Services and Comcast have formalized their partnership on this project with a Memorandum of Understanding, which has been reviewed by the County Attorney’s Office and will be executed upon the Board’s acceptance of the grant award.

The VATI program requires a minimum match of 20% of total project costs, which Comcast will meet by providing $200,503, or 55% of the total project cost. No local funding is required from Spotsylvania County, but will provide only in-kind services through use of personnel time associated with the project.

All grant funded work must be completed by December 31, 2018.   After the grant award period expires, there will be no on-going costs for Spotsylvania County. The table below summarizes the anticipated costs.

See attached budget adjustment form. The County will only provide in-kind services for this project.

Jane Reeve, Director, Information Services

Annette D' Alessandro, Finance

With the assistance of the Virginia Telecommunications Initiative (VATI) grant, Spotsylvania County and Comcast will provide broadband access to the area of Towles Mill Road, located in the rural southwestern section of the County.  This project area will extend Comcast facilities from 6917 Towles Mill Road south to the end of the road, and will include Timber Trail, Horseshoe Drive, and Horseshoe Spur Court.  Where the southern end reaches a “T” in the road, Comcast will extend service a quarter-mile west on Dickerson Road and a quarter-mile east on Duerson Lane.  In all, this project site covers approximately 7.9 miles of new construction.  

There are a total of 207 residential locations within the proposed service area in Spotsylvania County.  Comcast proposes to expand its network so that each of these 207 locations are serviceable.  According to Comcast’s video franchise, all homes within 275 feet of the public right of way will not incur any additional cost for installation.  Comcast proposes to apply the same standard to the homes included in this project.  The passings consist of 153 homes and 54 lots that are currently empty.  Of the existing 153 homes, there are 127 homes that are within a 275’ distance from the road and would be connected to Comcast’s network with no customer contribution.  The remaining 26 homes are located in excess of the 275’ from the road center.  While these homes would be serviceable, customers may be required to provide a contribution in aid of the construction to the home.  Comcast will provide each home with a contribution estimate, if any, prior to construction. 

The Finance Committee and staff recommend that the Board of Supervisors accept the attached FY18 budget adjustment and appropriation for the Virginia Department of Housing and Community Development's (DHCD) 2018 Virginia Telecommunication Initiative Grant Award. Additionally, staff recommends approval of the associated Memorandum of Understanding with Comcast.