Last updated on October 6, 2020
Charlemont Municipal Fiber Network
Selectboard Status Report
October 3, 2020
Summary
Verizon has approved seven licenses (out of 17). The estimated final completion date is still December 31, 2020, but we remain hopeful they may finish early. This is the main schedule driver. Based on this date, we anticipate starting construction of the distribution network in April, 2021. We are on track to complete all “path preparation” projects, including Warner Hill Road and Tower Road. Construction of the network equipment room is complete; electronics could start being installed later this year. So far, the project remains on budget. We are anticipating the first tranche of town borrowing at the end of October, 2020.
Schedule
National Grid has completed its make-ready work. Verizon’s estimated completion date remains December 31, 2020. WG+E recommends that we plan for 60-90 days after this date for inspection and mitigation of any unfinished make-ready work. Thus the construction of the distribution network is estimated to start around April 1, 2021.
Based on this, we might be able to have some customers connected to our first fiber service area (FSA) by June 2021. Our distribution network will likely be built in five phases, each taking 2 to 3 months with some overlap. We still hope to wrap up construction by the end of 2021, but it is now looking likely that some parts of the town will not be done until early 2022.
Utility make-ready work
Make-ready work by National Grid is complete. We have received 7 licenses (out of 17) from Verizon. We are working on all other required path-preparation to be ready if Verizon should finish make-ready work in Charlemont earlier than expected. Verizon has been working actively in town and we know they have been making good progress so far.
Budget
The town received an initial advance of $438,000 from the last-mile contingency fund to cover a portion of our make-ready “overage”. We expect the state to reimburse the town for additional make-ready costs out of this fund, including much of the cost of the extra path-preparation construction projects (Heath Stage Terrace, West end of Tower Road, Warner Hill Road). Based on this, the overall project remains on budget.
The town applied for and received a USDA Rural Business Development Grant (RBDG) for $36,000 to be applied towards the network electronics in the town hall basement.
An expense tracking report is available here:
https://drive.google.com/file/d/1YKPhjsYu9IsysFCz1N3enGEIYPgCltP2/view?usp=sharing
Financing
Based on the pace of town receipts and the need to have full stabilization funding available for the special town meeting in the fall, the town is preparing to begin borrowing against the broadband borrowing authorization. Working with Unibank, we are soliciting a State House note for $500,000 that is scheduled to close on October 27. This should be more than sufficient funding for all of the in-progress path preparation projects and for the outfitting of the network equipment room. The next tranche of borrowing will be triggered by when we start to build the distribution network.
A spreadsheet showing our current cash flow projections for FY21 is available here:
https://drive.google.com/file/d/1AjqvvYheN6GYeqJQq8iDAMzYqUa6tRUf/view?usp=sharing
Distribution Network
TriWire was selected as our distribution network contractor. Construction on the distribution network will “kick-off” as soon as make-ready is fully complete.
Path Preparation Projects
Most of the preparation for the distribution network consists of make-ready work by the utilities. There are several places in town, however, where we are doing necessary path-preparation construction projects.
Tower Road (west end)
Installation of 8 town-owned utility poles along the west end of Tower Road to connect existing utility lines was completed in August through an inter-governmental agreement with WG+E. Tree trimming needed to complete the make-ready work will be done by Niles Tree Service, scheduled for the last week in October.
Warner Hill Road
We are in the process of installing underground conduit and two utility poles on a half-mile section of Warner Hill Road to connect the utilities on the lower part of the road to the utility poles at the top of the hill. We have been working closely with residents and the Highway Superintendent on these plans. Danek excavation is doing the underground conduit and is partially done. A pole hearing was held for the new utility poles and we are securing easements from the adjacent landowners for sufficient space for guy wires. We plan to install the utility poles through an inter-governmental agreement with WGE, likely using Burke Electric as the contractor.
Heath Stage Terrace
The Heath Stage Terrace path preparation project has been completed. Crews managed by TriWire came in and completed the job in just a few days.
Hawk Hill Road
National Grid will be upgrading a half-mile section of the lower end of Hawk Hill Road, which currently has underground utilities, to overhead utilities along the road, eliminating the need for additional make-ready work by the town. This work is in the queue at National Grid and we expect it to be completed this fall.
Long Bridge RR Crossing
The make-ready work on the Long Bridge crossing has been completed and we are working through the permitting process with the railroad.
Other Ongoing Projects
Town Hall Exterior
Danek Excavating completed the exterior conduit and vault installation last fall. Since the new generator will not be installed this year, we are asking Danek to finish the restoration work around the town hall, including repair of the front sidewalk and grading around the vault.
Town Hall Interior
Construction on the network equipment room in the basement of the town hall is complete. We are working with the fire chief on running conduit for the new town hall generator through the equipment room. We are working with WG+E on outfitting the interior of the room with racks and other electronics, which will be partly paid for through the RBDG grant.
West Hawley Road
There is one house on West Hawley Road where the utilities reach the house via a non-public-way railroad crossing. We are currently evaluating alternative solutions for this house, including a potential wireless extension of the distribution network.
Operational Accounting and Budget
We will hopefully be commencing operations in late FY21. The town has decided to use Enterprise Fund accounting for the fiber network operating budget. At the fall town meeting, we will ask town meeting to approve a warrant article to create the enterprise fund and to accept the projected budget for FY21. Copies of both are available here:
https://drive.google.com/file/d/1tnpjdT_cX0EP9NZlTeAUjoyUYoBt41uY/view?usp=sharing
https://drive.google.com/file/d/12MSt63v2-iY4eXl2q_ZK_mz60CQc7ASt/view?usp=sharing
The projected operating budget is highly dependent on the timing of network completion. The Enterprise Fund accounting provides some flexibility to run an operational deficit in the first year of operations which is covered by revenue from the subsequent year. In addition, we are planning to cover certain startup (“establishment”) expenses out of borrowing proceeds in the first year, including pole leases, insurance, etc.
Charlemont Connect website
We continue to communicate project status from our website www.charlemontconnect.org, dedicated to the fiber network project. We are posting to this website regularly to communicate status and engage with residents. There is also a mailing list signup for email notifications.
Glossary
Aerial License Agreement. The master contracts between the town and the utilities (separate contracts for National Grid and Verizon) covering the terms for leasing space on the utility poles.
Customer Connections / Drops. Cabling from the nearest distribution network tap (MST) to a network interface box on the outside of the house or building, then inside to another small unit (ONT) which is connected to a wireless (or optionally non-wireless) router that provides internet service. A “cold drop” includes just the cabling to the outside of the house without any inside wiring.
Distribution Network. The main fiber-optic lines running from the network equipment room in the basement of the town hall and along most of the roads in town. The distribution network terminates at “taps” (called MSTs) located on utility poles near each serviceable house or structure.
ISP / Internet Service Provider. A company that provides internet service on a network and performs functions like billing and customer support. The town will contract with a third-party internet service provider to provide service to residents using the town network.
Make-Ready Work. This is work to prepare a “path” for the distribution network to run throughout the town. Most of this work is done by the utilities (National Grid and Verizon) to make space on existing utility poles. In some cases, the town may perform make-ready work by installing new underground conduit (e.g. near the town hall or on Hawk Hill Road) or new utility poles (e.g. on the west end of Tower Road) to create a cost-effective path for the distribution network.
MLP / Municipal Lighting Plant. A legal entity created by the town to allow the town to supply internet service to residents. It is called a lighting plant because the applicable state laws were originally written to allow towns to create local electric utilities. The MLP functions much like a town department.
Utility Pole Lease. The town will lease 12 inches of space on most of the utility poles in town to allow us to run the fiber network throughout the town. We will pay an annual lease fee per pole.