Re: Proposal to Keep the 600 Unserved Addresses in the 2022 Lumos Contract

[Jamezetta Bedford]

Laura,

I was not able to read your email prior to the BOCC meeting at 7 pm. I do want to acknowledge receipt of it, though I am now tardy in replying.  The amendment passed 5:2.  We are also reconvening the Broadband Task Force to work on future expansion, funding etc.  Here are some of the basics I shared prior to the meeting, in case you were not there or could not watch. 

On behalf of the Board, thank you for sharing your comments and concerns regarding internet access and the proposed amendment to the grant contract with Lumos. The Board will consider an amendment tonight during our meeting at 7 pm at Southern Human Services on Homestead Road. Here's the link to the agenda:  http://server3.co.orange.nc.us:8088/WebLink/Browse.aspx?dbid=0&startid=76599&row=1&cr=1   

Total contract:  $40 Million - $30 M investment by Northstate/Lumos and $10M from Orange County ARPA federal funds.

  OC would pay Lumos $1M to start, $3M more after 3,000 passes completed and the remaining $6M after the total 6,370 passes are completed.

Only unserved or underserved houses could be covered legally using these ARPA funds. Many have inadequate internet, but still do not qualify under these terms for ARPA funded coverage. Other providers sat with staff and went through the addresses one by one on this issue. 

In 2024 difficulties slowed progress and this summer Lumos reported that they have spent over $20M more than agreed upon ($50M+) and need to reduce the number served. To-date, 5,187 passes completed (81.4%) and $4M ARPA funds paid to Lumos. 

The contract is not in breach yet. The remedy if the 6,370 passes are not done is that Lumos does not get paid the remaining $6M. That's how an incentives/grant type contract works. 

And, the ARPA rules mean the only other use would be for very similar fiber installation, but 1) there is no time for a different rfp; 2) there is no other government doing this type of project for OC to transfer the funds so 3) if unused, the funds revert to the federal government. 

The final deadline is 12/31/26 to fully expend the remaining $6M. 

The amendment proposes that another 665 passes be constructed, a reduction of 518.  The revised payout schedule is: 

199 new passes and OC pays $2.6M (recognizing the large increase from 3,000 to 5,187 completed since the last payment).

111 more new passes and OC pays $1.3M.

final 355 new passes and OC pays $1.3M.

That sums to 665 new passes and $5.2M.  The total achieved would be 92% of the original goal and 92% of the $10M would be paid out. $800,000 would revert to the federal government.  If they can do more passes then more $ could be paid out.

Yes, there are risks that from 1 to 665 passes will not be completed. There is also no other remedy. 

The county will continue to apply for new programs like BEAD and others. The 518 addresses now cut and those that were in the "doughnut" areas are certainly disappointed and many are angry. I've attached a list of the 665 addresses to be covered in the amendment. 

Sincerely,

Jamezetta Bedford, Chair

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From: cbo...@earthlink.net <cbo...@earthlink.net>
Sent: Tuesday, September 16, 2025 3:58 PM
To: ALL_BOCC_MANAGER_CLERK <OCB...@orangecountync.gov>
Subject: Proposal to Keep the 600 Unserved Addresses in the 2022 Lumos Contract

 

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Dear commissioners,

 

I appreciate all of your work to extend Broadband to all unserved addresses in the county.  I believe it is wrong to eliminate some 600 addresses at this point.

 

Please see my email, attached.  I also included a map showing .3 mile Bright’s Way with no hope of getting Broadband other than the county’s project.  And, I included a map of the Lumos project area where I outlined the areas being eliminated IF the Addendum is approved on 9-26-25.

 

Thank you for your consideration.

 

Laura Evans

1916 Marions Ford Road

Chapel Hill, NC 27516

919-967-3265