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6 <br /> 1 a. Approval of Contract with Open Broadband, LLC for Broadband Infrastructure <br /> 2 Development for Unserved Areas <br /> 3 The Board considered approving a contract with Open Broadband, LLC to develop the <br /> 4 next generation broadband infrastructure needed to meet the needs of unserved and <br /> 5 underserved Orange County residents and incorporate broadband solutions and business <br /> 6 models that are innovative, scalable and serve today's needs, thereby providing maximum <br /> 7 benefit to Orange County residents and authorize the Manager to sign. <br /> 8 Jim Northup, Chief Information Officer, presented this item: <br /> 9 <br /> 10 BACKGROUND: In Fiscal Year 2017-18, funds were budgeted to create a scalable broadband <br /> 11 solution to foster innovation, drive job creation, stimulate economic growth, and serve new <br /> 12 areas of development in the community and also to provide a flexible menu of retail services <br /> 13 that offers new or enhanced service. Current estimates indicate that there are approximately <br /> 14 4,937 residential address points in underserved areas. The Service Area Map provided at <br /> 15 Attachment 2 depict these points, <br /> 16 • There are 2,342 residential address points in the underserved Service Areas 1, 2, and 3. <br /> 17 • There are 331 residential address points in Service Area 10 <br /> 18 Orange County issued a Request for Proposals (RFP) to develop the next generation <br /> 19 broadband infrastructure needed to meet the needs of these unserved and underserved <br /> 20 residents. Multiple vendors submitted initial proposals covering some of the service areas. <br /> 21 Three of the four proposals suggested pilot projects to prove that an economically sustainable <br /> 22 business model would result. <br /> 23 <br /> 24 The pilot projects outlined in the attached agreement will have a 36 month duration at which <br /> 25 time the projects will be re-evaluated for economic viability, with no obligation for continued <br /> 26 County support beyond what is stated in the contract. <br /> 27 <br /> 28 This initiative is part of a multi-track effort to enhance broadband and internet service <br /> 29 technology to Orange County residents. Pending the results from these pilot efforts, similar <br /> 30 partnerships and investment are planned to expand service to other areas of the County, and <br /> 31 staff will continue to pursue all opportunities to expand these services to County residents. <br /> 32 <br /> 33 FINANCIAL IMPACT: The purpose of the attached agreement is to better understand the <br /> 34 financial viability for a business to offer broadband services to the aforementioned service <br /> 35 areas. The proposal has investments by Open Broadband, LLC, and Orange County. The result <br /> 36 is that the County will incentivize Open Broadband to make capital investments in Orange <br /> 37 County in order for them to sustain service offerings for at least 36 months. <br /> 38 <br /> 39 The total Pilot Program Funding amount is $500,000, broken down as follows: <br /> 40 • Pilot Program 1 consists of Service Areas 1, 2, and 3 as shown on the Service Area <br /> 41 Map with a cost of$385,280. <br /> 42 • Pilot Program 2 consists of Service Area 10 as shown on the Service Area Map with a <br /> 43 cost of$114,720 in order to remain within the overall budget. <br /> 44 <br /> 45 It should be noted that the County is only granting funds for this public-private partnership and <br /> 46 will not own any equipment or be providing any services. Equipment and services will be wholly <br /> 47 owned and offered by Open Broadband, LLC and not by Orange County. <br /> 48 Jim Northup made the following PowerPoint presentation: <br /> 49 <br /> 50 Broadband for Rural Orange County <br />