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6 <br /> <br />BACKGROUND: In Fiscal Year 2017-18, funds were budgeted to create a scalable broadband <br />solution to foster innovation, drive job creation, stimulate economic growth, and serve new <br />areas of development in the community and also to provide a flexible menu of retail services <br />that offers new or enhanced service. Current estimates indicate that there are approximately <br />4,937 residential address points in underserved areas. The Service Area Map provided at <br />Attachment 2 depict these points, <br />• There are 2,342 residential address points in the underserved Service Areas 1, 2, and 3. <br />• There are 331 residential address points in Service Area 10 <br />Orange County issued a Request for Proposals (RFP) to develop the next generation <br />broadband infrastructure needed to meet the needs of these unserved and underserved <br />residents. Multiple vendors submitted initial proposals covering some of the service areas. <br />Three of the four proposals suggested pilot projects to prove that an economically sustainable <br />business model would result. <br /> <br />The pilot projects outlined in the attached agreement will have a 36 month duration at which <br />time the projects will be re-evaluated for economic viability, with no obligation for continued <br />County support beyond what is stated in the contract. <br /> <br />This initiative is part of a multi-track effort to enhance broadband and internet service <br />technology to Orange County residents. Pending the results from these pilot efforts, similar <br />partnerships and investment are planned to expand service to other areas of the County, and <br />staff will continue to pursue all opportunities to expand these services to County residents. <br /> <br />FINANCIAL IMPACT: The purpose of the attached agreement is to better understand the <br />financial viability for a business to offer broadband services to the aforementioned service <br />areas. The proposal has investments by Open Broadband, LLC, and Orange County. The result <br />is that the County will incentivize Open Broadband to make capital investments in Orange <br />County in order for them to sustain service offerings for at least 36 months. <br /> <br />The total Pilot Program Funding amount is $500,000, broken down as follows: <br />• Pilot Program 1 consists of Service Areas 1, 2, and 3 as shown on the Service Area Map <br />with a cost of $385,280. <br />• Pilot Program 2 consists of Service Area 10 as shown on the Service Area Map with a <br />cost of $114,720 in order to remain within the overall budget. <br /> <br />It should be noted that the County is only granting funds for this public-private partnership and <br />will not own any equipment or be providing any services. Equipment and services will be wholly <br />owned and offered by Open Broadband, LLC and not by Orange County. <br />Jim Northup made the following PowerPoint presentation: <br /> <br />Broadband for Rural Orange County <br />Jim Northrup <br />Orange County Information Technologies <br />September 4, 2018 <br /> <br />Service Area Map (map) <br /> <br />• One of the goals of this effort was to offer an incentive for internet service providers to <br />invest in broadband infrastructure and provide a model that can scale to encompass the <br />entire county