Doing Business in Nelson County: April 2006

April 2006

Nelson County Economic Development Authority
April 6, 2006

Present:
Barbara Powell
Alphonso Taylor
Tom Wheaton
Greg Kelly

Absent:
Natt Hall
Stu Armstrong
Montie Pritchett

Supervisors Present:
Allen Hale
Tommy Bruguiere

Broadband Over Powerlines (BPL) Presentation
Howard Scarboro, President & CEO of Central Virginia Electric Cooperative (CVEC) gave background on the BPL program, noting that three years ago a team from CVEC decided to look into the technology. The team began by evaluating the early experiments and technology demonstrations. He noted that market research had shown that only about 10% of CVEC's customer base had access to traditional broadband. Mr. Scarboro pointed out that the Cooperative does not get into a lot of risky business ventures as it is
member owned, but said that the idea of getting broadband to rural customers is very similar to the Cooperative's original mission of supplying electricity to rural areas where service did not exist. He said that providing BPL will be of value to the Cooperative's members. He said that at one time, broadband access was a luxury, but that it is becoming a necessity to bring businesses and to improve quality of life. Mr. Scarboro said that, after evaluation, the Cooperative chose to work with International Broadband Electric Communication (IBEC) out of Huntsville, Alabama.

Greg Kelly explained how the BPL system will be installed, noting that the signal will generate from the Cooperative building and travel down the electric line, following the same path as the electricity. He said that over time, the signal loses strength so a device is installed every half mile along the line to boost the signal, compare the information received with what was sent and then forward the complete information along the line. He noted that the new equipment can be controlled and monitored by remote rather than by sending out a service person to locate and deal with problems. Mr. Kelly said that the new equipment can handle 50 T-1 lines so there will be good capacity on the system. He explained that when the signal arrives at the customer's home, there is equipment to step down the voltage for a residence with the broadband service available through any electrical outlet in the home. He noted that the only purchase for the customer, besides the monthly charge, is the $99.00 converter. Mr. Kelly said that the residential service minimum speed will be 256kbs with the potential to burst to higher speeds. He noted that the Cooperative's survey of potential customers showed that two years ago, 70% of members had computers in their homes and that 52% of them would be interested in the
service if available. He said that the monthly fee will be $29.95 for a residential customer and $69.95 for a commercial customer. Mr. Kelly noted that, after the installation period in each area, there will be a connection fee for new customers.

Mr. Kelly said that IBEC has applied for and received approval for $20 million in funding through Rural Utility Service to install BPL for three electrical cooperatives, including CVEC. He said that the first batch of new equipment will arrive in April and be installed to replace the existing equipment first. Mr. Kelly said that IBEC has worked on the equipment to deal with issues and concerns with the first set of equipment and feels that they now have a good product that requires a minimum of maintenance. He said that the installation of the system is not on a schedule but is being done through a process. He noted that once the new equipment has been installed, Rural Utility Service and CVEC will inspect the new system. If both approve, IBEC will move on to
the next phase at Martin's Store and use multiple installation crews to install equipment. He noted that CVEC should know whether the new equipment passes inspection by May.

Barbara Powell asked whether the system will work on underground lines and Mr. Kelly said that it will. Tom Wheaton asked whether the equipment will be vulnerable to lightening strikes. Mr. Kelly said that lightning strikes had not been a problem in the test system. Allen Hale asked whether the Cooperative will be responsible for technical support for the individual customer. Mr. Scarboro said that IBEC will be the host
ISP and will be able to diagnose for each customer down to the actual modem. Tommy Bruguiere said that 70% of homes in the county having a computer two years ago is an amazing number and said that the service is very reasonably priced, given the savings for many on a second phone line for the computer. He said that BPL should really help create business opportunities for the county. Mr. Hale said that a business must have a fast connection to make business work now so the BPL is a great prospect. Mr. Kelly agreed saying that the BPL system can attract the low-impact businesses that do not require a lot of county services. Mr. Kelly closed by saying that CVEC will let members know as soon as the service is available in their area but that there is no way for the
Cooperative to speed the project forward.

There was no public comment.

Barbara Powell called the meeting to order.

Motion: To approve the March 2, 2006 meeting minutes. Wheaton-Taylor (4-0)

Maureen Corum presented an update from Sue Friedman with Thomas Jefferson Partnership for Economic Development on the recent county broadband survey. Ms. Friedman noted that the survey responses were very good with almost everyone wanting high-speed broadband, practically no one having access to broadband and most not willing to pay really "high" monthly fees. Ms. Friedman noted that hard data and GIS visual data should be ready mid to late May.

Maureen Corum reported that she and Tom Wheaton have identified a potential site on Route151 South for the gateway sign and will report back after inspecting that site.

Maureen Corum reported that she and Natt Hall are close to finalizing a venue for the business appreciation event and have established th date as June 14th. She asked members whether they would wish to invite representatives from the Department of Business Assistance to attend to introduce and make information available on their services for businesses. Members agreed by consensus to invite representatives from
the Department of Business Assistance to attend.

Barbara Powell reported that the EDA had issued a Request for Proposals (RFP) on February 2, 2006 to seek a purchaser to acquire and develop the Callohill property in a manner consistent with current planning for the village of Lovingston. She noted that Mr. Armstrong and Mr. Hall were authorized to open and review the two bids received,
with a recommendation that both bids be rejected based on the fact that the bid prices offered were not within reason.
Motion: To reject both bids for the Callohill property, based on price. Wheaton-Kelly (4-0)

Motion: To authorize staff to draft a document to begin the solicitation process for the Callohill property. Taylor-Wheaton (4-0)

Bsrbara Powell reported that the minor changes made to the economic stimulus agreement with Wintergreen Partners, Inc. to date have had no impact on the EDA's part of the agreement. She noted that the agreement is pending Board of Supervisors'/WPI action.

There being no further business, the meeting was adjourned.

Meeting notes excerpted from Rural Nelson Inc.