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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: September 4, 2025 <br /> Action Agenda <br /> Item No. 6-a <br /> SUBJECT: Amendment to the Network Development Agreement for Broadband <br /> Deployment with Lumos to Extend the Project Deadlines and Revise Passings <br /> DEPARTMENT: Information Technologies <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 2022 Lumos Contract Robert Reynolds, Chief Information <br /> September 2025 Amendment Officer, 919.245.2276 <br /> PURPOSE: To consider an amendment to the 2022 Lumos contract that would revise the total <br /> number of broadband passings from 6,370 to 5,852 and extend the project completion deadline <br /> to ensure that all 5,852 unserved and underserved homes included in the original agreement are <br /> connected by the end of the federal funding period. Under the revised terms, the disbursement <br /> schedule would also change as follows: A $2,000,000 payment will be made once broadband <br /> service is available to at least 5,187 locations by July 1, 2026, with an additional $4,000,000 to <br /> be disbursed upon passing the remaining 665 locations by the same July 1, 2026 deadline. These <br /> milestones will result in a total of 5,852 locations passed — approximately 92% of the 6,370 <br /> locations in the original contract. <br /> BACKGROUND: In June 2022, the Board of Commissioners finalized an agreement with North <br /> State Communications Advanced Services, LLC (formerly known as Lumos Fiber and now doing <br /> business as T-Fiber) to deploy a fiber optic broadband network to 6,370 unserved locations in <br /> Orange County. Unserved locations are defined by State law as locations that do not have access <br /> to internet service that provides speeds of 25 megabits per second (Mbps) download and 3 Mbps <br /> upload. The statutory authority under which the County is authorized to make grants for <br /> broadband deployment only allows those grant 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. A passing is defined as "a location, such as a home or business, that is near enough to a <br /> fiber-optic network to be connected without major construction, typically because the network <br /> already runs along the street or right-of-way and is technically ready to be connected for service <br /> upon customer request". The original deadline to serve these homes 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 />