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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: September 16, 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 /> Presentation <br /> PURPOSE: To consider an amendment to the 2022 Lumos contract that would adjust both the <br /> scope and timeline of the existing broadband expansion agreement. The total number of <br /> broadband passings will be reduced from 6,370 to 5,852. In alignment with this change, the <br /> completion deadline for all revised passings will be extended to July 1, 2026. The disbursement <br /> schedule will also be updated to reflect the new project scope. The amount Lumos would be paid <br /> in total is $5.2 million over three installments: $2.6 million at the first milestone of 199 homes, $1.3 <br /> million at the second milestone of 111 homes, and $1.3 million at the third milestone of 355 homes, <br /> for a total of 665 homes. These milestones will result in a total of 5,852 locations passed — <br /> approximately 92% of the 6,370 locations in the original contract. Under the revised disbursement <br /> schedule, the first payment is disproportionately larger to account for 2,187 homes that Lumos <br /> has completed since passing the initial 3,000 homes. The amendment also revises the payment <br /> terms to 15 days instead of 30 days after work is completed. The disbursement schedule is subject <br /> to change. <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 total of $4 million has been paid to Lumos to date. A passing is defined as "a location, <br /> such as a home or business, that is near enough to a fiber-optic network to be connected without <br /> major construction, typically because the network already runs along the street or right-of-way <br />