Title
Vote to approve the amendment to the GREAT Grant Agreement with Connect Holding II LLC d/b/a Brightspeed to revise the payment schedule for the County's remaining broadband match contribution
Abstract
Introduction & Background: On April 17, 2023, the Board of Commissioners approved the execution of Growing Rural Economies with Access to Technology (GREAT) Grant Agreements between the North Carolina Department of Information Technology (NCDIT), Chatham County, and Connect Holding II LLC d/b/a Brightspeed to expand broadband service to unserved areas of the county. As part of the approved agreement, Chatham County committed $350,000 in matching funds to support the project. Brightspeed has since advanced construction activities and documented more than $1,761,601 in NCDIT-approved match-eligible expenditures, exceeding the County's total committed contribution. Due to construction, permitting, and utility pole attachment delays, Brightspeed is pursuing an extension of the project construction schedule with NCDIT. As a result, revisions to the payment schedule are being requested to ensure the County's remaining contribution can be disbursed prior to applicable funding deadlines.
Discussion & Analysis: The current agreement provides for the County's $350,000 contribution to be paid in two installments, with the final installment due after NCDIT receives the project's final progress report. Because construction and reimbursement activities may continue beyond 2026, the existing payment structure could prevent the County from disbursing its remaining committed funds before the applicable deadline. Brightspeed has requested an amendment to Exhibit J of the agreement that would revise the timing of the remaining payment while maintaining the County's original financial commitment and project scope. The proposed amendment would: (1) recognize the County's initial payment of $175,000; (2) provide for payment of the remaining $175,000 within 30 days of amendment execution; (3) base the payment on cumulative NCDIT-approved match-eligible expenditures already incurred; and (4) allow the County's contribution to be fully applied toward the project's required match prior to Brightspeed's remaining match contribution. The amendment also preserves existing County protections in the event project costs are reduced, the County's contribution exceeds statutory limitations, or Brightspeed fails to complete all contracted service locations. No additional County funding is requested.
How does this relate to the Comprehensive Plan: Expanding access to reliable high-speed broadband remains a significant priority identified in Plan Chatham. Broadband infrastructure supports economic development, educational opportunities, healthcare access, public services, and overall community resilience. Completion of the GREAT Grant project will further the County's goal of improving access to essential services and technology in underserved rural areas, while helping close the digital divide for residents and businesses.
Budgetary Impact: There is no additional budgetary impact associated with this amendment. The amendment does not increase the County's previously approved contribution of $350,000. The County has already disbursed $175,000 and the proposed amendment would authorize payment of the remaining $175,000 from previously approved broadband funding sources.
Recommendation/Motion: Motion to approve the amendment to the GREAT Grant Agreement with Connect Holding II LLC d/b/a Brightspeed to revise the payment schedule for the County's remaining broadband match contribution.