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032222 GREAT Grants Special Meeting – March 22, 2022 The Randolph County Board of Commissioners met in special session at 4:00 p.m. in the 1909 Randolph County Historic Courthouse Meeting Room, 145 Worth Street, Asheboro, NC. Chairman Darrell Frye, Vice-Chairman David Allen, Commissioner Kenny Kidd, Commissioner Maxton McDowell, and Commissioner Hope Haywood were present. Also present were County Manager Hal Johnson, Assistant County Manager/Finance Officer Will Massie, Deputy Clerk to the Board Sarah Pack, and Clerk to the Board Dana Crisco. The meeting was livestreamed on Facebook and YouTube. Chairman Frye opened the meeting and explained the purpose of the meeting. He said it was to hear presentations for partnering with broadband companies in the NC GREAT (Growing Rural Economies with Access to Technology) Grant for providing broadband service in unserved and underserved areas of the county. He introduced Kenny Sherin, Cooperative Extension Director, and explained his work within the county with broadband. Chairman Frye stated that Assistant County Manager/Finance Officer Will Massie would give an update on the Rural Healthcare Stabilization Program. NC Great Grant Applications County Manager Hal Johnson introduced Joey Stephenson from NorthState to present their request for the NC GREAT Grant. Mr. Stephenson explained that NorthState had proposed to serve 1827 homes in the county with broadband service. He mentioned that an area identified by the Commissioners as unserved on Fuller Mill Road had been included in that count. In serving those homes, NorthState is asking for a $250,000 match from the County using American Rescue Plan Act (ARPA) funds. NorthState would finance $2.5 million for a total build out of $6.3 million. Mr. Johnson asked what the timeline for this project would be. Mr. Stephenson said that it was his understanding that the bid could be awarded as early as May 2022. Once the award was announced, there would be a two-year building phase allowed. It is the intent of NorthState to start immediately and possibly finish before the two-year timeframe. Mr. Johnson asked what kind of cable this is. Mr. Stephenson stated that it is fiber-to-the-home. Chairman Frye asked if NorthState was already expanding their service. Mr. Stephenson confirmed that they were. Commissioner Haywood stated that residents she had spoken to on Fuller Mill Road had been promised fiber internet service over seven years ago. She wanted to be sure that service expansion was really going to occur with the GREAT Grant. Mr. Stephenson said he could not speak to that promise but he reassured her that the Grant was for unserved areas. Commissioner Allen asked if there would be additional grants available. Mr. Stephenson confirmed that after the GREAT Grant, there would be a Counties Accessing Broadband (CAB) Grant to work directly with Counties for obtaining broadband service. 3/22/22 Chairman Frye added that the use of ARPA funds and would keep the County from having to use its own funds. Mr. Stephenson agreed and explained that the State wanted those funds to be used to make a grant match. With the ARPA match, the State would fund up to 85% of the project up to $4 million. Commissioner Haywood asked if a house was off the road a considerable distance, would fiber still be run to that home. Mr. Stephenson stated that has been factored into the proposal. Mr. Johnson introduced Steve Brewer from Lumen (formerly CenturyLink). Mr. Brewer explained that Lumen was going to be acquired by BrightSpeed in the late summer. Headquarters for BrightSpeed will be in North Carolina. He will be an employee of BrightSpeed. Mr. Brewer said that Mr. Stephenson had explained the NC GREAT Grant. He did speak of the CAB Grant. It is his understanding that NCDIT (North Carolina Department of Information Technology) plans to announce the recipients in June. After that time, the two-year timeframe will require regular reporting and updates. Total cost of the proposed project would be $4.6 million. Lumen/Brightspeed is asking that the County provide a match up to $500,000, with 100% ARPA Funds. Lumen/Brightspeed will provide $1 million towards the project. Chairman Frye asked about two other tiers that had been provided during the presentation presented prior. He was confirming that the NC Great Grant application was for just the one presented here. He also asked if those tiers could be explored for a CAB Grant. Mr. Brewer said that the other tiers could be part of the GREAT Grant but it was indicated to him that the first tier would be most cost effective for the County. He stated that the other tiers could certainly be used with the CAB Grant. Mr. Johnson inquired about the corporate structure for Lumen/BrightSpeed. Mr. Brewer said that in the market in the Randolph County area, they were known as CenturyLink. Apollo Global Management has committed to buy Lumen in 20 states and will be known as BrightSpeed. BrightSpeed will leverage their own funds for an initial build in the market. Commissioner Haywood asked how the areas were chosen for their proposal. Mr. Brewer stated that much of the data is from their own services. The State has data available to help identify those areas that need service. Chairman Frye expressed some concern over the transition for Lumen and that the match amount was the greatest. Commissioner Allen added that this is not the last opportunity for funding. He was still uncertain about BrightSpeed being new. There was also a larger match and fewer homes served. He did state that the State would be responsible for choosing a grant recipient. Mr. Brewer asked to address the change in ownership. He stated that the executives being chosen have proven track records with broadband. He reassured the Board that BrightSpeed would be a competitor in the market for broadband service. On motion of Allen, seconded by Haywood, the Board voted 5-0 to partner with NorthState on a NC GREAT Grant for extending broadband service to underserved areas as presented. 3/22/22 Chairman Frye moved that the Board not partner with Lumen/BrightSpeed on a NC GREAT Grant for extending broadband service to underserved areas as presented. This motion died without a second. Rural Healthcare Stabilization Plan Will Massie, Assistant County Manager/Finance Officer, said the study conducted by VMG has finally been submitted to the Local Government Commission (LGC). He hopes it will be approved within the next couple of months. Chairman Frye said this process has gone on for a long time. The VMG Study was not held up by Randolph County. VMG was to provide a revised version of the feasibility study to indicate that $12 million would be sufficient for stabilization. The new Randolph Health Board of Directors had their first meeting a few weeks ago. Commissioner Allen and Chairman Frye are on that Board as required by the LGC for funding. UNC Healthcare was responsible for vetting the application for the funding from the State. Cone Health is still looking for property to build a new Cancer Center. The City of Asheboro will not extend utilities across Highway 73/74. Commissioner Allen stated that $3 million had already been advanced but this Board does not know what that money has been used for. Commissioner McDowell asked how the money will be spent in the future. Both Mr. Massie and Commissioner Allen said that funds will be disbursed by reimbursement for invoices. Chairman Frye mentioned issues with the hospital once it was taken over by American Healthcare Systems such as reimbursement by Medicare and Medicaid, insurance coverage denial by the hospital that needed to be resolved, and the involvement of the old Board which included the consultant, Louis Robicheaux, who was hired to restructure the hospital. Commissioner McDowell asked how the County would be reimbursed for the $3 million that had been advanced. Chairman Frye said it would be taken with the first draw down of the loan. Chairman Frye reminded the Board of the Special Economic Development Public Hearing on th Friday, March 25, 12:00 p.m. at the City of Asheboro Public Works Building. Adjournment At 4:43 p.m. on motion of Allen, seconded by Haywood, the Board voted 5-0 to adjourn. ________________________________ ________________________________ Darrell Frye, Chairman David Allen ________________________________ _________________________________ Kenny Kidd Maxton McDowell 3/22/22 ________________________________ _________________________________ Hope Haywood Dana Crisco, Clerk to the Board 3/22/22