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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: December 10, 2024 <br /> Action Agenda <br /> Item No. 6-c <br /> SUBJECT: Amendment to the Network Development Agreement for Broadband <br /> Deployment with Lumos to Extend the Project Deadlines <br /> DEPARTMENT: Information Technologies <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 2022 Lumos Contract (Addresses Robert Reynolds, Chief Information <br /> Omitted) Officer, 919.245.2276 <br /> December 2024 Amendment <br /> Updated Project Schedule <br /> PURPOSE: To approve an amendment to the 2022 Lumos contract to extend the project <br /> completion deadline of the Lumos broadband deployment so that all 6,370 unserved and <br /> underserved homes contained in the original agreement are served by December 31, 2025, <br /> instead of December 31, 2024. <br /> BACKGROUND: In June 2022, the Board of Commissioners finalized an agreement with Lumos <br /> Fiber (formerly known as North State Communications Advanced Services, LLC) to deploy a fiber <br /> optic broadband network to 6,370 unserved locations in Orange County. Unserved locations are <br /> defined by State law as locations that do not have access to internet service that provides speeds <br /> of 25 megabits per second (Mbps) download and 3 Mbps upload. The statutory authority under <br /> which the County is authorized to make grants for broadband deployment only allows those grant <br /> funds to be used to serve unserved locations. <br /> The County funded this public-private partnership with a $10 million grant using American Rescue <br /> Plan Act (ARPA)funds. Payments of the grant funds to Lumos are based on performance. Lumos <br /> was paid a $1 million start up payment following approval of the contract. The first benchmark of <br /> passing 3,000 homes was also achieved which triggered the second benchmark payment of $3 <br /> million. Releasing the final benchmark payment of $6 million is contingent on the company <br /> passing all 6,370 homes as detailed in the agreement. The original deadline to serve these homes <br /> was December 31, 2024. <br /> During spring 2024, Lumos began experiencing delays due to construction and budget issues, <br /> and much of the construction activity on the project slowed considerably. Those issues were <br /> resolved, and construction resumed in earnest in late summer 2024. However, those delays did <br /> have an impact on the overall project schedule. Under the original agreement, all 6,370 unserved <br /> and underserved homes identified were to have service available by December 31, 2024. The <br /> delays experienced in the spring have pushed final project completion into 2025. This amendment <br /> establishes a new deadline of December 31, 2025 to serve all homes identified in the original <br /> agreement and to receive the final benchmark payment of$6 million. <br />