Last updated on November 3, 2020
Charlemont Municipal Fiber Network
Select Board Status Report
November 1, 2020
Summary
Verizon has now approved 14 licenses (out of 17), with just a few poles left on the other applications. This remains the main schedule driver. We will start the construction of the distribution network as soon as possible; our conservative estimate is April 1, 2021. We have completed all path preparation projects except Warner Hill Road, which should be complete in November. Construction of the network equipment room is complete; electronics could start being installed later this year. The project remains on budget. The first tranche of town borrowing for $500,000 is expected to close on November 10, 2020.
Schedule
National Grid has completed its make-ready work. Verizon’s estimated completion date remains December 31, 2020. They have now approved 14 out of 17 applications and there are just a few specific poles left to be done on the remaining applications. After all applications are complete, there will be an inspection/remediation process. WG+E recommends that we plan for 60-90 days for this, although we hope it will complete sooner. We will start distribution network construction as soon as possible, although the projected date remains 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 residents in some parts of the town may not be connected until early 2022.
Utility make-ready work
Make-ready work by National Grid is complete. We have received 14 licenses (out of 17) from Verizon. The remaining work is on a few specific utility poles. The highway department removed jersey barriers near the closed bridge on Tower Road to allow Verizon access to two utility poles which should facilitate completion of one of the applications. The Verizon work in the center of town near the traffic calming project is complete, which reduces schedule risk.
Once Verizon approves all applications, the utilities will conduct an inspection process along with WGE and remediate any problems found. Once the inspection/remediation process is complete, construction of the distribution network can begin.
Budget
The project remains on 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). We will apply for these extra make-ready costs as soon as make-ready is complete.
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. The town also applied for a $38,000 Community Compact IT Grant to fund some of the network optical equipment.
An expense tracking report is available here:
https://drive.google.com/file/d/1FKJt56OZc2SKQZGx5Do2QggtNo37EjMu/view?usp=sharing
Financing
Working with Unibank, we are issuing a State House note for $500,000 that is scheduled to close on November 10. This will provide sufficient funding to cover the path preparation work that is in progress, the outfitting of the network equipment room and other expenses that might be incurred prior to commencing the build of the distribution network. 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, including the utility inspections and any remediation.
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. Tree trimming was completed in late 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 the highway department and the abutters on this work. Utility easements have been secured from the abutters where needed. Danek excavation is doing the underground conduit and is nearly done. The new utility poles are being installed by WGE using Burke Electric as the contractor. We anticipate these poles will be installed the first week of November.
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. National Grid has advised us that this work will not be completed until spring (after mud season), due to scheduling issues and not wanting to interrupt electrical service to the residents during the winter months.
Railroad Crossings (Long Bridge and Tower Road)
Both railroad crossings have received approval from PanAm Railways. Our distribution contractor, Triwire, is working with the railroad to install the two conduits across the tracks.
Other Ongoing Projects
Town Hall Exterior
Danek Excavating expects to complete the restoration work around the town hall before winter.
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.
ISP and Network Operator Agreement
We have been reviewing the agreement with WGE for internet services and network operations with town counsel. We hope to recommend this for signing in November.
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 start up (“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.