3.17.09-Page County Implementation Plan-Final

TRANSMITTAL LETTER
December 31, 2008
Dr. Tom Cardman, Director

Page County Economic Development
117 S. Court St.
Luray, VA 22835
RE: Page County, Virginia Community Broadband Implementation Plan
Dr. Cardman:
Icon Broadband Technologies (IBT) and Consulting Gateway Corporation (CGC) are pleased to provide
this final implementation plan for the proposed Page County, VA Broadband Implementation Project.
The plan is presented in a logical order, providing guidance to meet the established project milestones and
expectations of the County. The plan is organized as follows:
First, a Plan Summary: A summary of the plan is provided to easily allow the user to understand why a
phased approach is being proposed.
Second, the overall Project Timeline is provided and described so that the critical path is identified for
project events to unfold in a timely manner. By having the project timeline at the front of the document,
it is easy to reference it as more detail is provided in subsequent parts of the document. The project
timeline will need to be tracked and updated as the implementation plan progresses.
Third, the project Organization Structure and Governance Plan is addressed so that there is a clear
delineation of responsibilities, including funding, ownership and operations.
Fourth, the project Preliminary Engineering, Design and Cost Estimates are provided to substantiate the
budgets for the funding plan.
Fifth, the project Funding Plan is presented, although options for funding continue to be investigated.
Sixth, Last Mile Solutions outline the anticipated method of service delivery to end-users. The
implementation plan presented assumes a direct fiber connection to key stakeholders and anchor
customers that require high bandwidth services. Additional methods of last mile delivery will be dictated
by private providers that wish to use the fiber network to expand their current or new services by wireline
and/or wireless methods.
Page County is different from many other more rural Virginia counties because they have some resources
available which can be used to support broadband infrastructure. The soon to be constructed data center
requires high capacity data backhaul to areas outside of the county. Those backhaul connections can be
accessed by other residents of the new 220 acre office park as well as by a new County network providing
PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

DECEMBER 31, 2008
more affordable broadband services to areas which will otherwise not be served economically for many
years.
Phase I capital costs (Luray to Page County High School) have been estimated at $750,000 to $1,129,000
depending on the initial method of serving the new Page County High School campus. The preliminary
business plan also includes borrowing to meet the first year’s operation cost and the first year’s principal
and interest. Potential grants and other contributions to finance the project have been identified. Other
grant resources are currently being explored. The pro-formas presented within this document were
developed using a total borrowing commitment of approximately $421,000. The final commitment will
likely change based on the outcome of ongoing funding explorations.
Because of the extent of the capital required for new infrastructure, the project was divided into a Phase I
and Phase II with the second phase serving the area from the Page County High School south into
Shenandoah. The total capital cost for the second phase of the project is estimated at between $168,000
and $547,000 depending on how the first phase is deployed. The total estimated capital costs for both
phases are estimated at $1,297,000 regardless of how the deployment is divided.
IBT and CGC appreciate being allowed to be part of this ground-breaking initiative and look forward to
continuing to assist Page County in bringing this important infrastructure to the area. If you should have
any questions, please contact us.
Sincerely,
Icon Broadband Technologies Consulting Gateway Corporation
Judy Bentley Keith A. Hill, P.E.

Vice President President
jbentley@iconengineering.net hillk@consultinggatewaycorp.com

DECEMBER 31, 2008
T ABLE OF C ONTENTS
P LAN SUMMARY.........................................................................................................3
FIBER NETWORK PHASE I - LURAY THROUGH STANLEY ............................................................. 3
REASONING FOR PHASE I PROPOSED SOLUTION ....................................................................... 3

NETWORK DESIGN COMPONENTS ............................................................................................. 4
OWNERSHIP AND ORGANIZATION STRUCTURE ......................................................................... 4
PHASE I COSTS AND FUNDING PLAN......................................................................................... 5
LAST MILE SOLUTIONS............................................................................................................. 7
PHASE I NETWORK DESIGN – ENTIRE COUNTY ............................................................................... 10
PHASE I NETWORK DESIGN – LURAY ............................................................................................. 11
PHASE I NETWORK DESIGN – LURAY THROUGH STANLEY ............................................................ 12
PHASE I NETWORK DESIGN – STANLEY TO PAGE COUNTY HIGH SCHOOL .................................... 13
FIBER NETWORK PHASE II - SHENANDOAH ................................................................................ 14
REASONING FOR PHASE II PROPOSED SOLUTION .................................................................... 14

NETWORK DESIGN COMPONENTS ........................................................................................... 14
OWNERSHIP AND ORGANIZATION STRUCTURE ....................................................................... 14
FUNDING PLAN ....................................................................................................................... 14
PHASE II NETWORK DESIGN – SHENANDOAH ................................................................................. 15
FINAL COMMENTS ...................................................................................................................... 16
I MPLEMENTATION P ROCESS & T IMELINE ..............................................................17

IMPLEMENTATION STEPS AND TIMELINE .................................................................................... 17
O RGANIZATION STRUCTURE & G OVERNANCE ......................................................21

OWNERSHIP ................................................................................................................................ 21
OPERATION ................................................................................................................................ 21
DEVELOPMENT OF AGREEMENTS ............................................................................................... 22

DECEMBER 31, 2008 PAGE 1 OF 52
NETWORK OPERATIONS MANAGEMENT AGREEMENT ............................................................ 22
NETWORK MAINTENANCE AND EMERGENCY REPAIR AGREEMENT ........................................ 22
NETWORK ACCESS AGREEMENT WITH SERVICE PROVIDERS .................................................. 23
POLE ATTACHMENT/TRENCH USE AGREEMENT ..................................................................... 23
CONTENT AGREEMENTS ......................................................................................................... 23
BROADBAND AUTHORITY ORDINANCE................................................................................... 24
GOVERNANCE PLAN ................................................................................................................... 24
TYPICAL STEPS FOR PLANNING NETWORK GOVERNANCE ...................................................... 25

RATE ORDINANCE AND RESOLUTIONS .................................................................................... 25
MARKETING/PUBLIC RELATIONS PROGRAM ........................................................................... 25
P RELIMINARY DESIGN & P ROJ ECT C OSTS .............................................................27

BUSINESS P LAN & ASSUMPTIONS............................................................................35
F UNDING P LAN .........................................................................................................41
FUNDING PLAN FORMULA .......................................................................................................... 41
GRANTS ...................................................................................................................................... 43
USDA – RUS ......................................................................................................................... 43

VIRGINIA DEPT OF HOUSING AND COMMUNITY DEVELOPMENT (DHCD) .............................. 46
U.S. ECONOMIC DEVELOPMENT ADMINISTRATION ................................................................ 46
LOANS ........................................................................................................................................ 47
VIRGINIA RESOURCES AUTHORITY (VRA) ............................................................................. 48

ADDITIONAL FUNDING MECHANISMS ..................................................................................... 48
GOVERNOR'S DEVELOPMENT OPPORTUNITY FUND ........................................................................ 48
ADVANCED COMMUNICATIONS ASSISTANCE FUND ....................................................................... 49
VIRGINIA COMMUNITY CAPITAL .................................................................................................... 49
R ESOURCES ..............................................................................................................50

P LAN SUMMARY
Per the 2000 census, Page County, VA, has a total population of approximately 23,177 with 10,557
housing units. Just over thirty-four percent of the population is located within the incorporated towns of
Luray, Stanley and Shenandoah. Approximately 500 businesses are located within the County with the
majority located within or just outside of the incorporated towns. The recommended fiber optic network
to provide data backhaul and high speed communication services in Page County is structured as a two
(2) phase solution which can be addressed simultaneously if funding and commitments can be secured.
The following summarizes these two (2) phases.
F IBER NETWORK P HASE I - L URAY T HROUGH STANLEY
R EASONING FOR P HASE I P ROPOSED SOLUTION
While fiber connectivity linking all of the incorporated towns in the County is the ultimate goal, it is
recommended that Phase I consist of Luray and Stanley south to the Page County High School,
incorporating the town of Shenandoah in Phase II. This recommendation is based on a review of the
initial overall project costs developed in the Community Broadband Planning Study. Infrastructure would
consist of fiber optic cable in Luray and Stanley with an option of either a fiber or point to point wireless
connection to the Page County High School and Page County Middle School just north of Shenandoah.
The final link is presented two ways because of the significant additional cost of the fiber to reach three
schools and a very limited number of additional users. The final link to those schools could continue as it
currently exists as a point to point wireless link from Luray with the benefit of increased bandwidth
generated by other aspects of the program (lower Internet costs).
A significant catalyst for fiber optic network connectivity and future economic development growth is the
future Premier Technical Services (PTS) data center to be constructed between Luray and Stanley. PTS
serves a diversified client base that includes federal, state and local governments, commercial enterprises,
prime contractors, trade associations, nonprofits and the U.S. military. As a very high bandwidth user,
the new data center has facilitated interest by long haul Internet providers to make connections to their
(PTS’s) facility. A future 220 acre County Tech Park located adjacent to the PTS site will require fiber
optic connectivity to attract additional businesses such as PTS. The presence of long haul connections at
the PTS facility will enable a county network to purchase lower cost bandwidth to distribute to other users
in the Tech Park and over a new County owned network to other parts of the County.
Phase I of the network was selected to reach the greatest numbers of key stakeholders and high bandwidth
users with the least amount of new fiber optic infrastructure.

NETWORK DESIGN C OMPONENTS
While modifications and adjustments will occur as final network design proceeds, generally the design
consists of:
1. Nine (9) miles of backbone fiber deployed from the County Complex on Court Street in
Luray and extending into the Town of Stanley. From Court Street the network follows
Highway 638 south to Highway 629 east, turning south on Highway 340, turning back
northwest on Highway 631 to west on Highway 632 (Goodrich Road) passing the Page
County Technical School, future County Tech Park and PTS data center, continuing into the
Town of Stanley where it becomes Highway T-638, turning south on Aylor Grubbs then east
on Main Street ending at the Stanley Fire Department.
2. Five (5) miles of distribution fiber deployed throughout the Town of Luray and
interconnecting with the backbone fiber at the Emergency Communications Center on Court
Street.
3. Twelve miles (12) of backbone fiber continuing from Stanley to the Page County High
School north of Shenandoah. As an alternative this section may be done using the existing
school point to point network until sufficient funds become available to construct additional
fiber.
4. Ninety-seven percent (97%) of the fiber would be deployed aerially on Allegheny Power
utility poles with the remainder deployed underground. Construction will be confined
generally within the Virginia Department of Transportation (VDOT) right-of-way. An
additional approximately 0.5 miles of fiber could be installed underground rather than aerial
along a soon to be constructed water main extension north of Stanley.
5. The main network equipment would be located in the County Court Street Complex which
has backup power or at another appropriate location. Collocation space where private
providers could tie into the County network would be available at an alternate facility to be
determined, possibly at a facility in the future County Tech Park.
6. A passive optical network architecture capable of handling Gigabit bandwidth delivery of

voice and data services by multiple providers. The network would also support cable
television but using current technology, that capability would be limited to a single provider.
O WNERSHIP AND O RGANIZATION STRUCTURE
The Virginia Water and Waste Authorities Act (VA. CODE §§ 15.2-5100 - 5158) allows counties, cities,
and towns to form authorities for a variety of purposes. The Act provides that an Authority may: "Install,
own and lease pipe or conduit for the purpose of carrying fiber optic cable, provided that such pipe or
conduit and the rights-of-way in which they are contained are made available on a nondiscriminatory,
first-come, first-served basis to retail providers of broadband and other telecommunications services
unless the facilities have insufficient capacity for such access and additional capacity cannot reasonably
be added to the facilities." (Va. Code § 15.2-5114(15)). An Authority may borrow funds, issue revenue
bonds, and collect fees for its services, and may contract with parties to accomplish its purposes.

It is recommended Page County establish a county-wide broadband authority as authorized by Code of
Virginia, §15.2-5431.1 et seq. (Wireless Service Authorities Act). The Authority can acquire, construct,
improve, enlarge, operate or extend any project providing qualifying communications services under the
provisions of the Act. The Authority can also borrow money and issue revenue bonds to finance the
project that do not constitute debt of the local governing body. This business plan assumes the County
would retain ownership and lease the network to a Broadband Authority for operation.
The exact role and responsibilities of the Broadband Authority will depend on whether the Page County
Broadband Authority is serving the constituents as a service provider or simply overseeing the
management and governance of the network over which private companies are the service providers.
Some of the benefits to the County of separating ownership of facilities from the operator, the Authority,
include the following:
 By the County owning the infrastructure and leasing it to the Authority, the county maintains some
control and input into Authority matters to ensure county objectives are met
 By the County owning the fiber optic network, they will have a valuable asset to borrow against in the
future
 By the County owning the fiber optic network, they will be able to further advance economic
development initiatives which are a primary county objective
 By the County owning the fiber optic network and the Authority leasing the infrastructure, the
structure creates a capability to transfer monetary payments between the two entities
 By the County and Authority owning separate facilities, the obligations of the county regarding debt
service are lessened and the county is somewhat shielded from Authority operations in terms of risk
management.
If the Authority is not a service provider, then the primary role of the Authority will be overseeing the
operations and governance of the network for the County. The County and/or Authority are authorized to
form a public/private partnership under the Virginia Public-Private Education and Facilities Act of 2002,
amended in 2008 to include communications infrastructure projects. The project may be initiated one of
two ways: the County may solicit proposals from private entities (§ 56-575.4(B)), or private entities may
request approval for an unsolicited proposal (§ 56-575.4(A)). Various entities have expressed interest in
operating the network and providing Internet access to subscribers.
If the Authority is serving customers directly, then the Authority must be treated under a non-
discriminatory policy just as any other service provider using the open access network.
P HASE I C OSTS AND F UNDING P LAN
The largest part of the project cost is associated with the construction of the outside plant fiber optic cable
utilized to carry the data traffic between the end user and the network operations center. While the fiber
could be buried in conduit along VDOT right of way, it is usually more cost effective to attach the fiber to
existing poles owned by either the incumbent electric utility (Allegheny Power) or telephone provider
(Embarq). Before either of these entities will allow a Page County Broadband Authority to attach to their
poles, they will conduct a survey which identifies the costs associated with modifying the existing poles
to allow for additional attachments (fiber optic cable) in a manner which does not jeopardize safety, is in
compliance with the National Electric Safety Code requirements, and does not impede their primary
purpose, the delivery of power (or for Embarq, telephone services). Those upgrades will be borne by this
project, but the modifications will actually be assessed and implemented by the pole owners. Estimates of

these costs are included in the table following based on field surveys, but the final decisions, often the
subject of differing interpretations, are ultimately mandated by the incumbents.
The new fiber infrastructure costs are more straightforward:
Outside Plant Labor – the costs to install the new fiber and associated hardware and splice fibers
together where necessary
Permitting – the costs to prepare documents and obtain permission to cross railroads and use road
rights of way
Outside Plant Hardware – costs of fiber optic cable, splice closures, pole attaching hardware,
conduit, and vaults
Final Design and Construction Management – Layout of the fiber, locations for closures, fiber
splicing details, bid management, construction management, development of
specifications, bid evaluation and review
Install Fiber Drops and ONTs – A connection has to be made to each new customer, adding an
Optical Network Terminal (ONT), the network gear located at each premise taking
services. These costs will vary with the number of customers taking service and will
extend from year to year as new customers are added.
While the projected costs are primarily for an aerial deployment, there are locations, such as at some
railroad crossings, where there are no utility poles. Fiber in those areas would have to be buried. An
additional section of fiber just north of Stanley could be buried in conjunction with a water main
extension planned to serve the new Tech Park. The initial construction costs are only slightly less than
aerial construction when the fiber is buried as part of another project, but the fiber is less prone to damage
by weather and other external events and there are no annual pole attachment fees for the buried fiber.
Phase I – Project Costs (Luray-North of Shenandoah)

Outside Plant Labor $184,000
Make Ready and Permitting $135,000
Outside Plant Materials $110,000
Network Gear $ 68,000
Design, Bid Preparation and Evaluation, Construction Management $ 99,000
Install Fiber Drops and ONTs $ 85,000
Contingency $ 69,000
Additional Cost for Fiber from Stanley to Page County High School $379,000
Total Phase I (Lower Figure Wireless Point to Point to Page County High $750,000-
School, Higher Figure all fiber) $1,129,000
*dollars rounded to nearest thousand from financial model
While the County’s Solicitor should be consulted for assurance of compliance with Virginia public
procurement requirements, typically there are two (2) approaches used by Authorities to solicit service
provider use of the network. In the first approach, the Authority adopts set fees and rate tariffs that will
subsequently apply to any and all service providers that want to use the network. Essentially all
anticipated scenarios (voice, video, data applications) could be addressed. The network could be available
for dark fiber lease (for transport) or lit fiber (for customer access). The service providers may use
wireless or wireline technologies. This approach makes sense when multiple service providers have
expressed interest in utilizing the network.

If no providers initially offer to provide services, a Request for Proposal (RFP) could be issued to find a
provider. If no responsive proposals are presented, the Authority could become a service provider acting
as a “provider-of-last-resort” without the perception that there was no open and transparent solicitation for
competition. While the Authority should also be able to serve under the first scenario of set rate tariffs,
operating the network as well as offering services in competition with other providers provides at least the
appearance of a conflict of interest. One objective of the RFP approach to selecting service providers is
to allow more input on what terms and conditions they would consider in utilizing the network, allowing
for true collaboration for public/private benefit.
To ensure revenue sufficient to cover operating expenses and debt service, it is critical that at least three
large bandwidth users in addition to the County agree to connect to the fiber network for services.
Candidate customers would include Page Memorial Hospital recently acquired by Valley Health and Page
County Public Schools.
One service provider has indicated an interest in purchasing dark fiber between tower locations near
Stanley, and in and just outside of Luray. Their need would require increasing the fiber counts in some
areas during the design phase as well as adding approximately 3500 feet of additional fiber west of Luray.
The extended fiber would provide potential service to a number of additional customers as well as
providing a net offset against the current estimated costs of $50,000 or more. Details of any agreement
should be worked out prior to finalizing details of the network. The same provider is also interested in
purchasing dark fiber between Stanley and Shenandoah although no discussions have been held
concerning their detailed needs within Shenandoah.
L AST M ILE SOLUTIONS
The fiber distribution network as proposed can feasibly serve subscribers located within 500 feet of the
fiber by a drop connection from the fiber network. Large bandwidth customers located farther from the
fiber network may make sense on a case-by-case assessment, depending on their bandwidth requirements.
The proposed network route was developed to pass key facilities requiring high bandwidth connectivity
that would serve as anchor customers on the network and attract service providers to the County.
Included in the network capital costs for Phase I are the premise installation and equipment requirements
to serve the anchor customers. Additional numbers of business customers are projected at various
subscriber levels (bandwidth amounts) to be served via direct fiber connections.
The following table details the key facilities located within reach of the Phase I fiber deployment, also
indicating those facilities targeted for future phases of construction. Facilities located significant
distances from main thoroughfares and from other potential business subscribers are not feasible to serve
from fiber (except for very high bandwidth customers) and should be included in wireless last mile
network planning.

NOT F EASIBLE TO
K EY C USTOMER P HASE I P HASE II AND F UTURE SPURS
SERVE BY F IBER
County of Page All Court St. Facilities Battlecreek Landfill
Health Dept. Luray Compactor Site
County Tech Park (new) Shenandoah Compactor Site**
Senior/Community Center
Animal Shelter
Stanley Compactor Site
Social Services - Stanley
Shenandoah Compactor
Site**
Town of Luray Town Business Office Sewage Treatment Plant Lake Arrowhead Office
Police Department Water Treatment Plant
Fire Station Ralph H Dean Recreation Park
Public Works
Rescue Squad
Town of Stanley Town Business Office Wastewater Treatment
Fire Department 1 Public Works
Fire Department 2 Recreation Department
Police Department
Rescue Squad
Town of
Town Business Office
Shenandoah
Police Department
Fire Department
Rescue Squad
Community Computer Ctr
Public Works
Wastewater Treatment Plant

NOT F EASIBLE TO
SERVE BY F IBER
Public Schools Administration Springfield Elementary
Luray High (new) Shenandoah Elementary
Stanley Elementary
Page County Technical
Luray Elementary
Luray Middle
Grove Hill Elementary*
Page County Middle*
Page County High (new)*
PMH Home Care & Home
Healthcare Page Memorial Hospital
Med Ser
PMH Clinic Stanley Rural Health Center
Shenandoah Rural Health
PMH Therapy & Fitness
Center
Hawksbill Assisted Living Page County Senior Center
Montvue Nursing Home
Excel Therapy
Community
Luray Public Library Shenandoah Public Library
Services
Stanley Public Library
LFCC Satellite Campus
BB&T Performing Arts Ctr
Chamber of Commerce
Page County Job Center
Access to Care Initiative
Page County Extension
Office - Stanley
State Facilities Virginia State Police
Federal Facilities Luray Post Office Shenandoah Post Office US Parks Service
Stanley Post Office
Farmers & Merchants
Major Employers Brookside Restaurant
Bank
VF Jeanswear Luray Caverns Lotus Gardens
Allegheny Power Car & Carriage IBR Corporation
Pioneer Bank - Luray Wal-Mart
PTS (Main St) McDonald’s
Pioneer Bank - Stanley Food Lion – Luray
PTS Data Center (new) BB&T – 211 West
Page Valley Bank Page Cooperative Farm Bureau
Farmers Merchants Bank Emco Enterprises
Mimslyn Inn Shen Paco Industries
Food Lion - Stanley KVK Precision Specialties
Shenandoah Waste
Masonite International
Services
Genie Company
Sullivan Mechanical
* Would be served either optionally by fiber or the existing point to point wireless link;** Shenandoah
Compactor Site will be in Phase I if the fiber option to the schools is selected or Phase II otherwise

P HASE I NETWORK DESIGN – ENTIRE COUNTY

P HASE I NETWORK DESIGN – L URAY

P HASE I NETWORK DESIGN – L URAY THROUGH STANLEY

P HASE I NETWORK DESIGN – STANLEY TO P AGE C OUNTY H IGH SCHOOL

F IBER NETWORK P HASE II - SHENANDOAH
R EASONING FOR P HASE II P ROPOSED SOLUTION
Strong reasons to eventually extend the fiber network into Shenandoah include:
• Completing fiber connectivity between the County operations in Luray and Shenandoah.
• Key employers in Shenandoah have expressed need for high bandwidth services.
• The fiber network could be used for county-wide applications such as E911 calls and
emergency response interoperable communications, community disaster recovery planning,
public works, facility monitoring and control (SCADA system) and VDOT operations..
• The Town of Elkton has expressed an interest in receiving services off a County fiber
network. Additional customers and benefit would be derived from an extension through the
Phase II Shenandoah project.
NETWORK DESIGN C OMPONENTS
While modifications and adjustments would probably occur as actual network design proceeds, generally
the design consists of:
1. One and one-third miles of 96 count generally backbone fiber starting at the intersection of
Ridgeview Lane and Highway 683 running generally southward to Highway 340 continuing
into Shenandoah.
2. A generally distribution network along First, Fourth, Virginia and Pennsylvania Streets in
Shenandoah extending out Fourth Street to Quincy Street.
O WNERSHIP AND O RGANIZATION STRUCTURE
The ownership and organization model for Phase II would not change from that recommended and
discussed in the Phase I solution.
F UNDING P LAN
Phase II – Project Costs (Shenandoah)

Outside Plant Labor $ 20,000
Make Ready and Permitting $ 24,000
Outside Plant Materials $ 15,000
Network Gear $ 42,000
Design, Bid Preparation and Evaluation, Construction Management $ 10,000
Install Fiber Drops and ONTs $ 19,000
Contingency $ 13,000
Total Phase II $168,000 ($547,000)*
* Figure in parentheses applies if wireless option from Luray to Shenandoah High Schools is utilized in
Phase 1

P HASE II NETWORK DESIGN – SHENANDOAH

F INAL C OMMENTS
At the time this document was being finalized, discussions were being held between the US Department of Commerce and the State of Virginia
concerning the release of funds for construction projects under the recently passed economic stimulus bill (American Recovery and Reinvestment
Act of 2009). Should additional funds become available to Page County under this plan, an additional six miles of fiber are recommended (twenty
percent local match required) providing fiber optic cable infrastructure to Rileyville, to Luray Caverns and to several municipal sites outside of
Stanley and Luray. These additional sites are identified under the column Phase II and Future Spurs (Page 6 and 7) but are not adjacent to the
recommended fiber path presented (Pages 8 to 11). The additional fiber would cost approximately $425,000 and would essentially complete
connectivity to all County and municipal buildings.

I MPLEMENTATION P ROCESS & T IMELINE
I MPLEMENTATION STEPS AND T IMELINE
Four Weeks: Board Decision to Proceed and Fund Implementation
It is recommended the County retain ownership of the fiber optic network backbone and lease its use to a
newly formed county-wide Broadband Authority. The new Authority will assume the responsibilities of
financing and overseeing the construction of last mile access networks to be used to serve the end-use
customers, as well as be the “provider of last resort” if necessary.
Because of current County economic development initiatives including construction of a data center and
industrial/commercial park (Tech Park), time is of the essence and concurrent steps are recommended to
be taken in order to meet the project timeline.
The Page County Board of Supervisors would pass a resolution authorizing the County Solicitor to
prepare an ordinance authorizing the following actions for which there will be the incurrence of
expenditures for:
1. The formation of a County-wide Broadband Authority;

2. The County hereby establishes its official intent that Obligations be issued to finance
certain costs of the Project, any property functionally related and subordinate thereto and
other related expenditures, including without limitation issuance costs, debt service
reserve funds and working capital reserve funds, in an amount not to exceed $________.
The County hereby adopts this declaration of official intent under Treasury Regulations
Section 1.150-2 and declares that the County intends to
reimburse itself or its designees with the proceeds of the Obligations for Expenditures
made on, after or within 60 days prior to the date of the adoption of this Resolution,
except that Expenditures made more than 60 days prior to the date of the adoption of this
Resolution may be reimbursed as to certain de minimis or preliminary expenditures
described in Treasury Regulations Section 1.150-2(f) and as to other expenditures
permitted under applicable Treasury Regulations.
3. The County Administration to contract with a network design firm to complete the
planning, design and specifications for the construction, equipping and deployment of
the Page County, VA Community Telecommunications Network Project;
4. That the County has certain funds available which may be used temporarily for the
purpose of paying such Expenditures for the Project, pending the issuance of the
Obligations; and (c) that it is anticipated that the Obligations will be issued for the
purpose of financing the Project.

Twelve Weeks: Final Network Design
Design, Bid and Build Approach

Many projects are developed by selecting a telecommunications engineering network design firm for
completion of the fiber optic network backbone design, specifications and bid documents, and then
perform quality control on the construction as it progresses.
Bid, Design-Build Approach

Another approach is to develop conceptual design plans for bidding purposes with outcome based
requirements, but have the final design performed in conjunction with the building of the network. The
contractor’s scope of work includes a build-as-you-go provision with the requirement to submit as-built
plans. This approach can significantly reduce the project time line, but relies more heavily on the
construction contractor. When utilizing this approach, the network owner should be sure that design-
build as contracted will comply with all State public procurement laws.
Design of the Network and Role of the Owner
The budget, desired level of competition for services, geographic size of the network, number of premises
to serve, and other factors need to be considered when deciding how to approach the final design These
factors also drive the infrastructure electronics and role of the network owner. For a project of this type
either a point-to-point or passive optical network design will most probably be selected. Selection of
network components must be made before the outside plant design is finalized.
Final Design Project Components
• Prepare Final Design, Quantity Calculations, Final Cost Estimate

- After the preliminary design is accepted by the network owners, final design, specifications and
conditions and terms would be completed for solicitation through a Request for Bid (RFB) (if a
design build approach were utilized, a conceptual RFP could be issued which would lead to
selection of the successful bidder who would both design and build the plant).
-
• Address Right-of-Way / Easement and Permit Issues
- While railroad and public right-of-ways may be used, attachments to private utility poles, use of
conduit or inner duct, plowing-in and boring, and other facilities will need to be addressed. In
order to expedite the permit process (which can often take 60-180 days or more), the design firm
will usually develop the permits and submit them in the name of the Broadband Authority
- For aerial construction a pole attachment agreement will have to be entered into with any
incumbents whose poles will be needed to support fiber. As soon as a route has been decided
upon, make-ready engineering and then make-ready construction should begin as soon as
possible. The make-ready engineering work will likely be done by the incumbent and may
continue into the fiber optic cable construction phase. Some incumbents will allow the design
firm to evaluate the make ready necessary and review those results prior to contracting for the
necessary construction work to complete the make-ready. More likely the incumbent will want to
perform that work themselves. If a number of projects are started simultaneously under the
American Recovery and Reinvestment Act (2009), this work may stretch out delaying the
construction phase of the project. The response from the incumbents concerning the extent of

make-ready required may impact other design decisions potentially causing moving to alternate
routes or in some cases choosing underground alternatives.
Twelve Weeks: Solicit Bids, Interview Firms, Award Contract
Standard public procurement policies should be followed for the solicitation of bids and award of
contract. A list of bidding documents and process are outlined as follows:
Bidding/Contract Award
• Bidding Documents
- A complete set of bidding documents will need to be developed that typically would include:
o Advertisement
o Plans and Construction Specifications
o Terms and Conditions
o Pricing Sheets
o Performance, Maintenance Bonds and Insurance Requirements
o Liquidated Damages (if used)
o Addressing Materials/Equipment Quality Standards and Warranties ( It is understood that
electronics are not part of the scope of this RFP or construction phase)
o Change Order Process
o Testing Requirements
o As-Built Requirements
o Payment Request Drawdown Schedules
o Construction/Implementation Contracts
• Plans and Specifications

- The duplication and distribution of plans and specifications for distribution to bidders.
• Pre-bid Meeting
- A pre-bid meeting is strongly suggested to address questions, concerns and identify if any
addendums have been issued and need to be responded to.
• Bid Receipt, Tabulation, Bond Compliance and Award Recommendation

- Once all the bids are received, bids are tabulated, bid compliance is confirmed, references are
checked, and a recommendation for award is provided to the network owners.
Twelve weeks: Material Procurement and Project/Construction Management Services
It is not uncommon for the procurement of materials to take 60-90 days or longer. While waiting for
materials to be delivered on-site, there are a number of project issues that can be addressed such as set-up
of a project staging area, and establishing project administration procedures such as the handling of
payroll and expense reimbursements, inspection and other quality control measures, required deliverables
such as as-built plans, warranties, and material shipping documentation for quantity verification. The
following addresses these issues in greater detail.

Construction Management
• Project Mobilization / Staging Area

- One of the first steps upon signing the contract and authorizing the Notice to Proceed is to have a
secured staging area for the contractor so as to mobilize equipment, park vehicles, trailers, etc (as
an alternative it can be stated in the RFP that locating the staging area can be part of the
contractor’s scope of work).
• Material and Equipment Ordering / Purchase Order Compliance

- The earliest date feasible to order material and equipment needs to be identified early in the
process because procurement of some equipment and materials require a considerable lead time.
From a quality and cost control measure, as materials and equipment are received, specification
compliance and quantity verification should be performed.
• Payroll and Expense Reimbursement Processing

- Virginia is a Right-to-Work state. Through-out the project payroll and expense reimbursement
requests will need to be reviewed for compliance with the bid, confirmation of work complete or
materials received, and recommendation made for payment.
Eight weeks: Network Construction
Throughout the project, it is recommended to have an owner’s representative present for on-site
construction/installation observation to ensure quality controls are met.
It is not unusual that some adjustments required during construction/installation and therefore the project
representatives would want to ensure accurate as-built plans are prepared and that final quantities are
confirmed for verification for final payment.
Four weeks: Testing, Punch List, Corrections and Project Close-out
After the infrastructure is built, testing will need to be performed and a punch list created for correction of
items prior to issuing the final completion notice. Upon completion of the project and satisfaction of the
punch list, retainage will need to be released, warranties collected, operations and maintenance manuals
distributed and contractor demobilization reviewed for acceptable site condition.
Integrated with the outside plant construction contracts will be a second RFP for electronics and
subsequent procurement of this equipment and other ancillary hardware. The objective will be to have
the electronics installed and staff trained as soon as possible so that customers near the central office can
receive service as soon as possible.

O RGANIZATION STRUCTURE & G OVERNANCE
O WNERSHIP
The County is explicitly authorized to construct and own communications infrastructure, and to borrow
funds and lease access to other municipalities and private companies. The Governor’s office and the
Virginia Legislature has clearly communicated their position that communication infrastructure is
considered a utility as critical for a community’s growth as water and wastewater systems. The County
has access to low-cost loans and potential grant funding to implement the fiber distribution network
(Phases I and II) that private providers have been unable or unwilling to build. By retaining ownership of
the network after construction, the County will own a valuable asset that can be leveraged for future
economic development initiatives and incentives. Additionally, the County will retain control of this
asset to ensure proper maintenance and direct future phases of expansion in accordance with residential
and business growth in the County.
While Virginia law clearly authorizes municipalities to own and operate communication networks, it is
important to establish a clear separation of responsibilities between operation and service delivery, and
maintenance of the physical infrastructure (County asset). An additional separation is recommended to
place all aspects of the communication business venture under a Broadband Authority for accountability.
The Broadband Authority would be tasked with managing the County-owned infrastructure.
The County should clearly retain ownership of the distribution fiber and fiber connections to subscriber
premises. Connections to service providers should be made through collocation facilities where the
physical connections are made via equipment (cross-connect).
O PERATION
Operation of the network consists of these primary functions:

Recommended
Function Tasks
Responsible Party
Infrastructure Administration and Administrative tasks relative to Broadband Authority
Management maintaining all agreements and
inventorying of physical assets;
overseeing processes and procedures for
network operation and third party
contracts; accounting for all Authority
activities
Physical Infrastructure Perform repairs to fiber optic cable as Broadband Authority –
Maintenance needed, run drop fiber to customer Provide service or
premises for new service, oversee contract to outside firm
construction of extensions of distribution
network during future phases
Equipment Maintenance Repair or replace networking equipment Broadband Authority –
at all municipal facilities (including Provide service or
schools) and the network operation contract to outside firm
centers (Court Street, Tech Park, or
alternate facility).
PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN PAGE 21 OF 52

DECEMBER 31, 2008
Distribution Network Operation Oversee bandwidth management, Third Party Operator or
maintain Internet access, service provider Broadband Authority as
and customer connectivity Provider of Last Resort
Distribution Network Negotiate/develop use agreements, Third Party Operator or
Administration service provider collocation, billing for Broadband Authority as
access, right of way agreements, vendor Provider of Last Resort
contracts
DEVELOPMENT OF AGREEMENTS
Constructing and operating the community network will require a number of agreements. The following
highlights these agreements and touches on some of the items to be addressed within each agreement.
NETWORK O PERATIONS M ANAGEMENT AGREEMENT

Page County currently lacks the staff and expertise to manage the network once built. A typical solution
is to contract with a third party with previous experience to manage the network. Vendors responding to
the RFI indicated an interest in managing the network on behalf of the County. The following are some
of the issues to be addressed within the Network Operations Management Agreement:
 Bandwidth responsibilities which includes managing and allocating subscribed bandwidth to

customers and across the network
 Compliance with Customer Privacy and Personal Property Rights
 Customer billing and collection
 Operations budget preparation and monitoring
 Customer and provider technical support/Back-office support
 Enforcing Quality of Service (QOS) responsibilities
 Oversee maintenance and emergency repair of the network
NETWORK M AINTENANCE AND E MERGENCY R EPAIR AGREEMENT

The network manager may not be the party to do the actual maintenance and emergency repair in the
event the network goes down. Typically such responsibilities are contracted with a local contractor or
service provider that has technical field crews and equipment and will respond within a contracted period.
Examples of issues typically included within this agreement are as follows:
 Stocking of critical spare parts necessary to repair the network and minimize down time
 Periodic inspection of the outside plant for areas of concern such as loose attachment hardware,
excessive sag of the cable, condition of splice enclosures and handhole vaults, signs of tampering
with the network by other utilities or vandals
 The response time and procedures for making repairs are normally developed in Quality of Service
(QoS) agreements. The details will be mandated by the QoS requirements of high bandwidth
customers of the network itself.
Quite often the contracted party for maintenance and emergency repair will be the same party contracted
to perform customer hookup and disconnect services. This introduces a variety of items to address such

DECEMBER 31, 2008
as established levels of responsibilities between the network and the homeowner, right-of-way and
easement matters, underground utility locations, care, handling and conduit while on private property.
NETWORK ACCESS AGREEMENT WITH SERVICE P ROVIDERS

Agreements with service providers using the community network will need to be developed. A variety of
issues to be addressed include:
 Clear delineation and understanding of responsibilities

 Compliance with Customer Privacy and Personal Property Rights
 Maintenance and emergency repair coordination and responsibilities
 QoS Standards
 Fees for use/lease
 Compliance with federal, state and local laws
 Network co-use conduct and notification
P OLE ATTACHMENT /T RENCH USE AGREEMENT

Use of other owned facilities such as exiting poles, conduit, trenches, etc. is usually handled one of two
ways; either through a joint use agreement if the County owns similar facilities that are needed by the
other owners of such facilities or through annual payments. There are federal guidelines and
requirements on establishing fair and reasonable fees through the calculation of developed formulas, as
well as when such attachments cannot be denied. Examples of issues addressed in a Pole Attachment or
trench use agreement include:
 Location of cable placement

 Responsibilities for Make-Ready work and repair
 Parameters set as to accessing infrastructure
 Ownership tagging/identification of infrastructure
 Sag allowances and depth placement in trenches with appropriate cover and overall compliance with
the National Electric Safety Code requirements
C ONTENT AGREEMENTS
Content agreements will be specific to the particular content being acquired. For example typically
bandwidth might require a redundant path be available in the event the main feed goes down; TV
programming would address franchise agreements and fees as well as Public, Educational and
Government (PEG) channel provisions; voice would require 5-9s (99.999%) reliability and handling of
911 calls.

DECEMBER 31, 2008
BROADBAND AUTHORITY O RDINANCE
An ordinance will need to prepared and approved by the county governing board to establish a Wireless
Service Authority (Broadband Authority). Steps and issues that will need to be addressed include:
 Advertisement for public hearing and of the

 Appointment of Authority members
ordinance
 Conduct a public hearing  Budget of the Authority
 Incorporation filing of the authority  Employees of the Authority
 Establishing Authority by-laws
A suggested organization for the Broadband Authority is shown below:
G OVERNANCE P LAN
A Governance Doctrine is necessary to guide the Network Management from its inception through initial
operations into the growth phase as additional providers, applications and services are added. While
many of the steps which follow were developed for public safety networks, the same steps are applicable
to the Governance of general purpose government-operated networks.

DECEMBER 31, 2008
T YPICAL STEPS FOR P LANNING NETWORK G OVERNANCE
 Establish Key Relationships and Funding

 Gather Information
 Create Network Plan and Roadmap
 Identify Roles and Responsibilities
 Recruit Service Provider Participants
 Conduct Service Provider Interviews
 Analyze Data, Set Goals and Begin Preparations for Strategic Planning
 Finish Preparations for and Conduct Strategic Planning Session
 Develop Network Communications Interoperability Strategic Plan and Develop a Network
Operational Hierarchy Management Organization
 Use Guidelines for the First 90 days of Implementation and Practice the Plan
In addition to policy issues, there are several real and tangible issues that need to be addressed almost
daily. Examples include operations, maintenance and ongoing funding, troubleshooting, outside plant
repairs, stock and inventory of spare parts, ongoing vendor support, operating manuals and updates, and
training.
R ATE O RDINANCE AND R ESOLUTIONS

An ordinance establishing the legal authority to charge rates will need to be developed and passed by the
governing board. Typically rates are established through resolutions because of periodically being
updated. Steps to establish the ordinance and resolutions typically include:
• Advertisement for public hearing and of the • Nondiscriminatory rate application and structure
ordinance
• Conduct a public hearing • Collection practices and policies
• Some justification basis for the rates such as • Connect and disconnect practices and policies
cost of service or market driven rates
M ARKETING /P UBLIC R ELATIONS P ROGRAM

Virginia law prohibits local government network owners from endorsing and promoting the services of
private service providers using the network. To a publicly owned network owner, however, the public
relations is still important. Just like use of other public facilities and infrastructure, the governing board
should discuss and establish how the network will be perceived by the general public, as well as service
providers using the network. Desired perceptions typically include:
• Professionalism • Benefiting public-owners of the network

• Legal decency of content • Community asset
• Fair and equitable/Non-discriminate
For those services (if any) being offered directly to the end-user by the county network, in addition to
public relations issues, a marketing program will need to be developed that typically would include:

DECEMBER 31, 2008
• Customer incentives and promotions such as • Response time
bundled pricing or limited free service
• Customer sign-up and hook-up • Customer Privacy and Personal Property Rights
• Quality of Service being guaranteed • Easy to find customer technical support and
emergency call numbers
• Competitive rates and service • Development of a user friendly website
• Customer responsibilities • Value-added features such as on-line account
access and payments, speed testing, etc

DECEMBER 31, 2008
P RELIMINARY DESIGN & P ROJ ECT C OSTS
The fiber distribution network proposed is intended primarily to lay the foundation for private provider
expansion of broadband services throughout the County. As a first step towards achieving that goal, the
County’s investment in fiber is targeted to connect anchor subscribers such as municipal (County, Town,
State and Federal) facilities, public schools, key healthcare providers, and large employers that will
provide revenue for the network’s economic viability.
The network as proposed is divided into two phases with Phase I meeting the immediate needs of County
facilities located primarily in the Luray area. An additional catalyst for investing in fiber in the Luray
area is the PTS data center under construction in the future County Tech Park. The high bandwidth need
of the data center is attractive to Tier 1 data providers (e.g. Level 3) who have committed to extending a
backhaul network to reach this new facility. By bringing the low-cost bandwidth directly to the facility,
the County has an opportunity to expand availability to other key end-users thereby facilitating access by
additional private providers.
Phase I consists of a distribution fiber network that would connect facilities in Luray, passing south and
connecting to facilities at the County Tech Park, extending to many of the Main Street municipal facilities
in Stanley, and finally ending at the Page County High School (alternate) north of Shenandoah.
Approximately fifty-nine municipal and key community end-user facilities are anticipated to be served
along this proposed fiber path. Redundancy is achieved by connecting ultimately to a long haul provider
at both the Court Street campus and the Data Center/Tech Park facility.
The following table details the key facilities located within reach of the Phase I fiber deployment, also
indicating those facilities targeted for future phases of construction. Facilities located significant
distances from main thoroughfares and from other potential business subscribers are not feasible to serve
from fiber (except for very high bandwidth customers) and should be included in wireless last mile
network planning.
NOT F EASIBLE TO
SERVE BY F IBER
County of Page All Court St. Facilities (7) Battlecreek Landfill
Health Dept. Luray Compactor Site
County Tech Park (new) Shenandoah Compactor Site**
Senior/Community Center
Animal Shelter
Stanley Compactor Site
Social Services - Stanley
Shenandoah Compactor
Site**
Town of Luray Town Business Office Sewage Treatment Plant Lake Arrowhead Office
Police Department Water Treatment Plant
Fire Station Recreation Park
Public Works
Rescue Squad
Town of Stanley Town Business Office Wastewater Treatment
Fire Department 1 Public Works
Fire Department 2 Recreation Department
Police Department
Rescue Squad

DECEMBER 31, 2008
NOT F EASIBLE TO
SERVE BY F IBER
Town of Shenandoah Town Business Office
Police Department
Fire Department
Rescue Squad
Community Computer Ctr
Public Works
Wastewater Treatment Plant
Public Schools Administration Springfield Elementary
Luray High (new) Shenandoah Elementary
Stanley Elementary
Page County Technical
Luray Elementary
Luray Middle
Grove Hill Elementary*
Page County Middle*
Page County High (new)*
PMH Home Care & Home Med
Healthcare Page Memorial Hospital
Ser
PMH Clinic Stanley Rural Health Center
PMH Therapy & Fitness Shenandoah Rural Health Center
Hawksbill Assisted Living Page County Senior Center
Montvue Nursing Home
Excel Therapy
Community Services Luray Public Library Shenandoah Public Library
Stanley Public Library
LFCC Satellite Campus
BB&T Performing Arts Ctr
Chamber of Commerce
Page County Job Center
Access to Care Initiative
Page County Extension Office
- Stanley
State Facilities Virginia State Police
Federal Facilities Luray Post Office Shenandoah Post Office US Park Service
Stanley Post Office
Major Employers Farmers & Merchants Bank BB&T – 211 West Brookside Restaurant
VF Jeanswear Luray Caverns Lotus Gardens
Allegheny Power Car & Carriage IBR Corporation
Pioneer Bank - Luray Wal-Mart
PTS (Main St) McDonald’s
Pioneer Bank - Stanley Food Lion – Luray
PTS Data Center (new) Emco Enterprises
Page Valley Bank Shen Paco Industries
Farmers Merchants Bank Page Cooperative Farm Bureau
Mimslyn Inn KVK Precision Specialties
Food Lion - Stanley Masonite International
Shenandoah Waste Services Genie Company
Sullivan Mechanical
• Would be served either optionally by fiber or the existing point to point wireless link;**
• Shenandoah Compactor Site will be in Phase I if the fiber option to the schools is selected or Phase II otherwise

DECEMBER 31, 2008
In addition to the key customers targeted for connections to the network, there are approximately 197 small to medium businesses located within
500 feet of the network that can also be served directly via fiber. Known businesses include:
Phase I Phase II
Business Address Town
Network Network
58 WEST 58 WEST MAIN STREET LURAY x
7-ELEVEN STORE 610 EAST MAIN STREET LURAY x
A MOMENT TO REMEMBER 55 EAST MAIN STREET LURAY x
ACTION AUTO SALES 320 WEST MAIN STREET LURAY x
ALICIA'S THERAPEUTIC MASSAGE 7 BERREY BLVD LURAY x
ALYSON'S CUT-N-HAIR 736 WEST MAIN STREET LURAY x
AMERICAN LAWN MOWER SERVICE 1016 A EAST MAIN STREET LURAY x
AMERICAN PROMOTIONAL EVENTS 1036 US HWY 211 W LURAY x
AMY ENTERPRISES LLC 822 EAST MAIN STREET LURAY x
APPALACHIAN OUTDOORS ADVENTURE 55B EAST MAIN STREET LURAY x
APRIL'S FLOWER BASKET 131 EAST MAIN STREET LURAY x
ARTISANS GRILL 2 EAST MAIN STREET LURAY x
ASCENSION IN WOODCRAFT 154 PLANNING MILL RD LURAY x
AUTOZONE #2039 1062 US HWY 211 WEST LURAY x
AVIO GALLERIES, INC. 1134 EAST MAIN ST LURAY x
BEAN EAST CORP 320 N HAWKSBILL LURAY x
BELLA DONNA FACIALS 126 EAST MAIN ST LURAY x
BILL DUDLEY & ASSOC R.E. 102 EAST PAGE STREET LURAY x
BLUE RIDGE CLEANERS E MAIN & RESERVOIR LURAY x
BOKA CLEANING SERVICES 5 NICHOLS RD LURAY x
BREN'S ANTIQUES 45 CAVE STREET LURAY x
BRENT E LENZ DDS, PC 33 NORTH BANK ST LURAY x
BUDGET INN 320 WEST MAIN STREET LURAY x
BURGER KING 1034 US HWY 211 WEST LURAY x
BURNER ELECTRIC SERVICE 30 N BANK ST LURAY x
BUTLER'S MOWING SERVICES 103 N HAWKSBILL LURAY x
C & D TOURS 1218 EAST MAIN ST LURAY x
CALIFORNIA NAILS 5 EAST LURAY SHOPPING CTR LURAY x
CARDINAL INN 1005 EAST MAIN ST LURAY x
CENTER STAGE DANCE ACADEMY 123 HIGHLAND COURT LURAY x
COURT HOUSE ANTIQUES 12 EAST MAIN STREET LURAY x

DECEMBER 31, 2008
CRAVINGS 123 HIGHLAND COURT LURAY x
CULTURAL CONNECTIONS LLC 1 N BROAD ST #1B LURAY x
D & S JEWELERS & PAWNBROKERS 2 WEST MAIN ST LURAY x
DEL LLC 202 WEST MAIN STREET #2 LURAY x
DOMINO'S PIZZA 9 CAMPBELL STREET LURAY x
DRY RUN OUTFITTERS 151 SOUTH COURT ST LURAY x
DUNCAN'S CONSTRUCTION CO 5 SMITH STREET LURAY x
EAST COAST / MAPCO EXPRESS 725 EAST MAIN STREET LURAY x
EAST END AUTOMOTIVE INC 139 VIRGINIA AVE #A LURAY x
EAST WOK 17 EAST LURAY SHOPPING CTR LURAY x
ENVIRO-SOLUTIONS 106 CAVE STREET LURAY x
FAMILY DOLLAR STORE 12 EAST LURAY SHOPPING CTR LURAY x
FANG S HORNG, MD PC 218 WEST PAGE ST LURAY x
FARMER'S FOOD OF LURAY INC 8 EAST LURAY SHOPPING CTR LURAY x
FISHER AUTO PARTS INC 15 EAST LURAY SHOPPING CTR LURAY x
FLORAL FANTASY & GIFTS 541 WEST MAIN STREET LURAY x
FLOTZIE'S SOFT SERVE 1034B US HWY 211 WEST LURAY x
FOLTZ'S AUTO SERVICE 633 EAST MAIN ST LURAY x
FOXFIRE PROPERTIES INC. 113 EAST MAIN ST LURAY x
FREEZE'S TOWING & AUTO REPAIR 418 MILL CREEK ROAD LURAY x
GALLUP HOME REMODELING & REPAIR 230 WEST MAIN ST STE B LURAY x
GILLIAM LUMBER COMPANY 15 CAVE STREET LURAY x
GIRIJA YOGA 126 EAST MAIN ST LURAY x
H & R BLOCK 3 E LURAY SHOPPING CTR LURAY x
HARDEE'S OF LURAY 607 EAST MAIN STREET LURAY x
HILLSIDE MOTORS INC 7 GARFIELD AVE LURAY x
HOLTZMAN OIL CO. 191 S COURT ST LURAY x
HOMESTEAD RENTALS 405 EAST MAIN STREET LURAY x
PAGE COUNTY EAGLES 154 PLANNING MILL ROAD LURAY x
REED'S TIRE CENTER 3148 US HWY BSN 340 LURAY x
VALLEY GAS CORP 134 VIRGINIA AVE LURAY x
PARNERS FIRST 300 EAST MAIN STREET LURAY x
PIONEER BANK 311 EAST MAIN STREET LURAY x
RIVERSIDE MINI-MART 1204 EAST MAIN ST LURAY x
SD TAX & BOOKKEEPING 7 EAST LURAY SHOPPING CTR LURAY x
STANLEY FLOWER SHOP 19 EAST LURARY SHOPPING CTR LURAY x
STANLEY FOOD LION 35 EAST MAIN ST LURAY x

DECEMBER 31, 2008
STANLEY PHARMACY 1204 EAST MAIN ST LURAY x
L WILLIS FISHER 232 WEST MAIN ST LURAY x
LAW OFFICE OF CHARLES A BUTLER 115 N MAIN ST LURAY x
LEMON'S JEWELRY INC 26 NORTH BROAD ST LURAY x
LURAY ANTIQUE & DESIGN CTR 56 EAST MAIN STREET LURAY x
LURAY ANTIQUE MALL 7 BLUE RIDGE AVE LURAY x
LURAY APOTHECARY INC. 121 NORTH HAWKSBILL STREET LURAY x
LURAY AUTO BODY 803 EAST MAIN ST LURAY x
LURAY BARBER & BEAUTY 50 WEST MAIN ST LURAY x
LURAY BOWLING LANES 1208 E MAIN STREET LURAY x
LURAY CLINIC OF VETERINARY MEDICINE 27 EAST MAIN ST LURAY x
LURAY COPY SERVICE 30 EAST MAIN ST LURAY x
LURAY FAMILY BILLIARDS 926 EAST MAIN STREET LURAY x
LURAY GAS AND OIL 3 PAINTER STREET LURAY x
LURAY IMPORT SERVICE INC 1203 EAST MAIN ST LURAY x
LURAY PAGE COUNTY BASEBALL LLC 1034 US HWY 211 WEST LURAY x
LW VENTURE, INC. 127 E MAIN STREET LURAY x
MAIN STREET BAKERY 1122 E MAIN STREET LURAY x
MAINSTREAM COMPUTER SYSTEMS 8 BLUE RIDGE AVE LURAY x
MARGARET DALEY 35 NORTH BANK STREET LURAY x
MARKOWITZ APPLIANCE CENTER 7 INN CIRCLE LURAY x
MILLERS COTTAGE 101 NORTH COURT ST LURAY x
MOUNTAIN HOME INSPECTIONS INC 10 EAST MAIN ST LURAY x
MOUNTAIN MEMORIES 147 SOUTH COURT ST LURAY x
MOUNTAIN SPRING INN 11 EAST LURAY SHOPPING CTR LURAY x
MOVIE STARZ VIDEO 606 EAST MAIN ST LURAY x
MRS B'S PIZZA 1 VOGT PLACE LURAY x
NORTH STAR 56 EAST MAIN STREET LURAY x
OAK TREE ANTIQUES 1138 EAST MAIN ST LURAY x
PAGE COUNTY EAGLES 745 WEST MAIN ST LURAY x
PAGE COUNTY TIRE & AUTO 250 MEMORIAL DRIVE STE B LURAY x
PAGE MOTOR COMPANY INC 1222 EAST MAIN ST LURAY x
PAGE PRIMARY CARE 33 EAST MAIN ST LURAY x
PAGE REALTY 4 CANAAN STREET LURAY x
PAGE THEATRES 14 EAST LURAY SHOPPING CTR LURAY x
PATRICK E SPRAGUE DDS 111 NORTH COURT ST LURAY x
PEEBLES 234 EAST MAIN STREET #3 LURAY x

DECEMBER 31, 2008
PENNY M PETTIT 721 EAST MAIN ST LURAY x
PIONEER PARTNERS CLEANING SERVICE 117 LURAY AVE LURAY x
PIZZA HUT 27 EAST MAIN ST LURAY x
PLAN QUEST 709 EAST MAIN STREET LURAY x
RACERS FIRE EXTINGUISHER SERVICE 903 EAST MAIN STREET LURAY x
RANCHO VIEJO 529 WEST MAIN STREET LURAY x
REBECCA'S ATTIC 127 WEST MAIN STREET LURAY x
RED'S TIRE & AUTO SERVICE 129 EAST MAIN STREET LURAY x
REED'S TIRE CENTER 15 CAMPBELL STREET LURAY x
ROBERT A DOWNS PLLC 410 WEST MAIN ST LURAY x
RODGER L SMITH, COUNSELOR AT LAW 14 COURT LANE LURAY x
SEAL'S PAINTS AND HARDWARE 104 NORTH HAWKSBILL STREET LURAY x
SHARDAN INC 24 ZERKEL STREET LURAY x
SHENANDOAH VALLEY SIDING CORP 15 SMITH STREET LURAY x
SHOWALTER SIGNS & SILKSCREENING 160 SOUTH COURT ST LURAY x
SIGN DOCTOR SALES & SERVICE 515 WEST MAIN STREET LURAY x
SOLON INC 15 SOUTH COURT STREET LURAY x
SOUTH COURT INN 117 NORTH COURT STREET LURAY x
SPEEDY FAMILY STORE 1225 EAST MAIN STREET LURAY x
STARR JOHNSON INVESTMENTS 104 NORTH HAWKSBILL STREET LURAY x
STEPHEN M MACDONALD JR 8 GARFIELD AVENUE LURAY x
STONEWALL REALTY LLC 4 PAINTER STREET LURAY x
STONEY'S TAXIDERMY 304 NORTH BANK STREET LURAY x
STRIPE IT 303 EAST MAIN STREET LURAY x
STUEHMEYER AUTOMOTIVE 402 WEST MAIN STREET LURAY x
SWENSON VENDING CO 30 EAST MAIN ST LURAY x
SYLVAN A WELLS 120 N HAWKSBILL STREET LURAY x
TASTEE FREEZ OF LURAY 126 EAST MAIN ST LURAY x
TAX MATTERS ASSOCIATES 126 EAST MAIN ST LURAY x
THE GOSHEN HOUSE BED & BREAKFAST 40 EAST MAIN ST LURAY x
THE HEALING OASIS OF LURAY 205 WEST MAIN ST LURAY x
THE LOOKING GLASS 116 EAST MAIN ST LURAY x
THE LUNCHBOX 21 NORTH BROAD STREET LURAY x
THE MAIN FRAME 220 MECHANIC STREET LURAY x
THE PORCH 118 W COLE STREET LURAY x
THE VINTAGE HOPE CHEST 42 EAST MAIN STREET LURAY x
THE WOODSHED 903 EAST MAIN STREET LURAY x

DECEMBER 31, 2008
TUTT'S SPEED SHOP 15 CAMPBELL STREET LURAY x
UNCLE BUCK'S FAMILY RESTAURANT 14 EAST MAIN STREET LURAY x
VA COUNTRY HOMES & CABINS REALTY 904 EAST MAIN STREET LURAY x
VALERIE LUCAS 250 MEMORIAL DRIVE STE D LURAY x
VALLEY APPLIANCE CO 12 EAST LURAY SHOPPING CTR LURAY x
VALLEY AUTO SALES 138 EAST MAIN STREET LURAY x
VALLEY GAS CORP 24 EAST MAIN STREET LURAY x
VALLEY INTERNAL MEDICINE 47 WEST MAIN STREET LURAY x
VALLEY TOTAL FITNESS 1204 EAST MAIN ST LURAY x
VICTORIAN INN AT LURAY 1036 US HWY 211 W LURAY x
VIRGINIA GIFT SHOP 15 CAMPBELL STREET LURAY x
VIVIAN'S FLOWER SHOP 301B WEST MAIN STREET LURAY x
VONDA G. WILT 629 WEST MAIN STREET LURAY x
WAL-MART SUPERCENTER 317 NORTH HAWKSBILL STREET LURAY x
WAREHOUSE ART GALLERY 27A EAST MAIN STREET LURAY x
WATER PLUS INC 11 BARTLETT AVE LURAY x
WAYNE'S AUTO MART 33 NORTH BANK ST LURAY x
WEEZIE'S WONDERFUL WORLD LLC 1 HERITAGE DRIVE LURAY x
WELL SPIRIT 156 EAST MAIN STREET LURAY x
WENDY'S NAILS ON WHEELS 1207 EAST MAIN STREET LURAY x
WERNER WIEDEMANN DDS 140 FOX DRIVE STANLEY x
WEST MAIN CARWASH 320 HONEYVILLE AVENUE STANLEY x
WILLIAM N MAYBERRY, DDS 201 EAST MAIN STREET STANLEY x
ZIPPS LLC 263 KARL JENKINS AVE STANLEY x
A STITCH IN TIME 416 FIRST STREET SHENANDOAH x
AA & T 113 NORTH FOURTH STREET SHENANDOAH x
BRENDA LAM 316 THIRD STREET APT SHENANDOAH x
CINDY'S HAIR STYLING 408 THIRD STREET SHENANDOAH x
CLAPPER'S SERVICE CENTER 412 MARYLAND AVENUE SHENANDOAH x
D.T.H. CLEANING SERVICE 501 DENVER AVENUE SHENANDOAH x
DR. R.M. BROTHERS 424 SOUTH THIRD STREET SHENANDOAH x
DR. SCOTT RUFFNER 426 SOUTH THIRD STREET SHENANDOAH x
GFK CONSULTING 516 A FIRST STREET SHENANDOAH x
GUND PHARMACY LLC 420 SOUTH THIRD STREET SHENANDOAH x
HAIR DESIGNER 400 FIFTH STREET SHENANDOAH x
IVY HILL GUEST HOUSE 419 FIFTH STREET SHENANDOAH x
JJ's FAMILY RESTAURANT 418 NORTH FIFTH STREET SHENANDOAH x

DECEMBER 31, 2008
L & R ELECTRICAL 417 THIRD STREET SHENANDOAH x
M.J. STOVER III 509 PENNSYLVANIA STREET SHENANDOAH x
MICHAEL & REBECCA WONG 528 NORTH FIFTH STREET SHENANDOAH x
MUSENERGY OF SHENANDOAH 302 THIRD STREET SHENANDOAH x
OLD DOMINION HEATING & COOLING 522 FIRST STREET SHENANDOAH x
PARNERS FIRST 507 FIRST STREET SHENANDOAH x
PIONEER BANK 424 FIRST STREET SHENANDOAH x
RIVERSIDE MINI-MART 204 FOURTH STREET SHENANDOAH x
ROBBINS DESIGN 409 THIRD STREET SHENANDOAH x
SD TAX & BOOKKEEPING 208 VIRGINIA AVENUE SHENANDOAH x
SEVEN 7S 604 FOURTH STREET SHENANDOAH x
SHEN BOOKKEEPING & TAX 558 WEST MAIN STREET STANLEY x
SHENANDOAH SERVICE CO 252 EAST MAIN STREET STANLEY x
SHENANDOAH VALLEY FRAME SHOP 3513 US HWY BSN 340 WEST STANLEY x
SHUN XING 714 EAST MAIN STREET STANLEY x
STANLEY FLOWER SHOP 190 WEST MAIN STREET STANLEY x
STANLEY FOOD LION 558 WEST MAIN STREET STANLEY x
STANLEY PHARMACY 308 EAST MAIN STREET STANLEY x

DECEMBER 31, 2008
BUSINESS P LAN & ASSUMPTIONS
Many different business models were considered during the preliminary phases of this project ultimately
settling on one which best met the following objectives:
• Provide an infrastructure over which multiple providers could offer voice, data and video
services
• Minimize the involvement of the County government in competition with private
providers while increasing competition for cost effective telecommunications services
• Increase the pace of economic development within the county
• Minimize the demands on the County for staffing of a newly developed fiber optic
network
• Create a self-sustaining network not requiring continuous support from the County tax
base to continue operations
• Provide cost effective, high bandwidth Internet services to schools and County facilities
The final choice selected is one in which the County (through a Broadband Authority) builds a fiber optic
backbone with some distribution fiber capable of serving many of the businesses and residents directly
while encouraging new wireless development. The outside plant network is sufficiently robust to support
the delivery of fiber optic services across the county. Details and a discussion of the phase I network
follows:
• The numbers of potential customers were determined from a GIS analysis which counted all of
the businesses and homes within 500 feet of the projected fiber path
• Several large bandwidth customers were identified which would benefit from the lower cost
bandwidth. A minimum of three of these “anchor customers” are needed for viability of the
network.
• The revenue projections are for transport of data across the network. They are based on differing
levels of need and economic pricing realities. Three different levels of service have been used
within the model.
o A small business or residential best effort Internet product offering up to about 5 Mbps
service for a monthly transport fee of $30.
o A municipal customer rate providing higher bandwidth and higher levels of network
support. A revenue projection of $100 per customer per month has been utilized for this
type of customer.
o An anchor customer level of service providing access at whatever bandwidth is required
by the customer with 24 hour network support for customers requiring highly reliable
bandwidth. Bandwidth would be provided on a somewhat sliding scale estimated at
$1,200 per month for 45 Mbps Internet access. The final costs would likely vary based
on negotiated quality of service requirements and support.
Most private customers on the network would utilize an Internet Service Provider who would bill
customers based on the level of Internet access provided, incorporating company overhead into their
monthly fees. Their overhead would include the network access charges paid to the County. Each ISP
would pay monthly fees to the County for access based on the number of customers and bandwidth
purchased.

DECEMBER 31, 2008
It is emphasized that the pricing levels listed here are typical numbers developed for use in the
preliminary business plan. They should be viewed as such and not as final pricing decisions.
Negotiations with private providers, wholesale Internet providers, cost of construction and other items
would typically be included in a final business plan that would be used to develop final pricing decisions.
Customer Base and Revenue:

Year Year Year Year Year Year
1 2 3 4 5 6
Residential Population
Total Residential Homes Passed 794 794 794 794 794 794
Total Businesses Passed 173 173 173 173 173 173

Municipal Buildings, Police Fire 35 35 35 35 35 35
Small Business Served 41 48 55 55 55 55
Municipal Buildings, Police, Fire Served 21 21 21 21 21 21
Anchor Customers 3 3 3 3 3 3
Business Revenue
Recurring Revenue Dollars
Small Business Transport Revenue $7,380 $17,280 $19,800 $19,800 $19,800 $19,800
Municipal Customers, Fire & Police $14,490 $29,705 $30,447 $31,208 $31,988 $32,788
Anchor Customers $21,600 $44,280 $45,387 $46,522 $47,685 $48,877
Total Business Revenue $43,470 $91,265 $95,634 $97,530 $99,473 $101,465
Every network has costs to operate. While some costs such as back-up power or leased space can be
minimized by placing equipment at existing county facilities, some costs cannot be avoided. Principally
among these are:
• Pole attachment fees—electric utilities charge an annual fee (currently $26 per pole for
Allegheny Power) to allow fiber optic cable to be attached to one of their poles.
• Equipment repairs and replacement—Fiber optic cable has a useful lifetime of well beyond
twenty years, but some percentage of the electronics will need to be repaired or replaced
annually
• Network Licensing—Electronics manufacturer’s support their products based on annual
licensing fees, typically about seven percent of the purchase price
• Staffing—this would include customer support, changes to level of service, software
upgrades, and other work which must be done by individuals. The work can be done in house
or subcontracted. For most purposes the staff need not be physically located where the
network gear is housed.

DECEMBER 31, 2008
Network Operating Costs
1 2 3 4 5 6
Network Charges
Pole Charges $10,362 $10,362 $10,362 $10,362 $10,362 $10,362

Leased Space $1,872 $1,919 $1,967 $2,016 $2,066 $2,118
Network Licensing $6,728 $6,893 $7,042 $7,042 $7,042 $7,042
Staff Support $27,624 $28,535 $29,474 $30,211 $30,967 $31,741
Total Network $50,920 $52,276 $53,651 $54,522 $55,415 $56,330
The primary cost of operating a network is not the operating costs, but rather the annual principal and
interest charges associated with the cost to build the outside plant and purchase network electronics. The
principal costs are:
• Make Ready – The costs paid to the electric utility (or other owner of utility poles) to make the
changes to their poles necessary to allow fiber optic cable to be installed safely with minimal
impact on the primary purpose of the poles, the delivery of power. These charges can be
substantial and are determined essentially by fiat by the pole owner.
• Outside Plant materials—Fiber optic cable, mounting hardware, vaults and splice closures
• Outside Plant Labor—The cost of mounting the fiber on poles or burying it, usually in conduit
• Design and Construction Management—The design, supervisory and quality control costs
associated with the installation of fiber
• Network Gear with OSS—Network electronics and software
• Fiber splicing, Installation of Drop and Optical Network Terminal (ONT), Drop fiber—the costs
associated at the individual premise with provisioning each new customer
These costs can be borne in the entirety by the County or paid for partly by grants and other contributions
and partly by borrowing. The assumption used for this analysis is that sixty percent of the first year’s
capital costs can be obtained through grant processes.

DECEMBER 31, 2008
1 2 3 4 5 6
Capital Expenditures
Outside Plant Labor exc. Make-ready $183,892 $0 $0 $0 $0 $0

Make Ready and Permitting $134,664 $0 $0 $0 $0 $0
Outside Plant Materials $110,108 $0 $0 $0 $0 $0
Design and Construction Management $98,960 $0 $0 $0 $0 $0
Network Gear with OSS $68,000 $0 $0 $0 $0 $0
Contingency $68,778 $0 $0 $0 $0 $0
Fiber Splicing per new customer $3,100 $350 $350 $0 $0 $0
Install Fiber Drop and ONT $62,000 $7,000 $7,000 $0 $0 $0
2 Fiber All Dielectric Drop Fiber $2,480 $280 $280 $0 $0 $0
FTTH ONT (Outdoor) $21,700 $2,205 $1,985 $0 $0 $0
Total Capital Expenditures $753,682 $9,835 $9,615 $0 $0 $0
Capital Cost Paid by Grant $452,209 $0 $0 $0 $0 $0
Net Capital Expenditures $301,473 $9,835 $9,615 $0 $0 $0
Monies not covered through any grant process must be obtained by borrowing or other means. Generally
enough additional funds should be available at the start of construction to cover the first year’s principal
and interest payments as well as operating costs for the first year. That approach has been utilized for
determining borrowing requirements. An interest rate of five percent was used for this plan. Monies are
available to the County from the Virginia Resources Authority which lent money in December 2008 for a
non-telecom project at a rate of 3 percent. While they have yet to lend money for a telecom project, it is
likely that monies will be available at a rate lower than was used for this evaluation.

DECEMBER 31, 2008
Bond Proceeds $412,538
Underwriter's Spread $5,157
Bond Cost of Issuance $1,650
Bond Insurance $2,063
Principal $421,407 $401,878 $381,373 $359,842 $337,235 $313,497
Percent Interest 5.00 5.00 5.00 5.00 5.00 5.00
Cash Available for Year $82,545 $11,265 $15,182 $26,676 $28,999 $31,447
Current Year Capital Expend $301,473 $9,835 $9,615 $0 $0 $0
Cuurent Year Capital Paid $0 ($9,835) ($9,615) $0 $0 $0
End Year Debt Before Payment $421,407 $401,878 $381,373 $359,842 $337,235 $313,497
Principal Payment ($19,529) ($20,505) ($21,531) ($22,607) ($23,738) ($24,924)
Principal Remaining $401,878 $381,373 $359,842 $337,235 $313,497 $288,573
Cumulative Able to Pay $63,016 $53,775 $47,426 $51,495 $56,756 $63,278
Principal End of Year $401,878 $381,373 $359,842 $337,235 $313,497 $288,573
Bond Details
15 year financing
Loan is fully amortized over 15 years

Interest Rate 5 % per annum
The combination of projected revenues from a limited number of customers and borrowing of forty
percent of construction costs plus first years operating and bond expenses produces the following Income
Statement.

DECEMBER 31, 2008
1 2 3 4 5 6
Income Statement
Total Revenue on Operations $43,470 $91,265 $95,634 $97,530 $99,473 $101,465

Interest on Funds $0 $2,206 $1,882 $1,660 $1,802 $1,986
Network Costs ($50,920) ($52,276) ($53,651) ($54,522) ($55,415) ($56,330)

Bond Financing Expenses ($591) ($591) ($591) ($591) ($591) ($591)
Total Direct Expenses ($51,511) ($52,868) ($54,243) ($55,113) ($56,006) ($56,921)
Operating Income ($8,041) $40,602 $43,274 $44,076 $45,269 $46,530

Operating Income Margin ($18) $44 $45 $45 $46 $46
Depreciation ($11,306) ($21,773) ($22,356) ($22,645) ($22,645) ($22,645)

Earnings Before Interest (EBIT) ($19,347) $18,830 $20,917 $21,432 $22,625 $23,885
Interest on Bond $21,070 $20,094 $19,069 $17,992 $16,862 $15,675

Short Term Interest $0 $0 $0 $0 $0 $0
Adjustments to Bond Interest $0 $0 $0 $0 $0 $0
Adjustments to Short Term Interest $0 $0 $0 $0 $0 $0
Interest Paid $21,070 $20,094 $19,069 $17,992 $16,862 $15,675

Gross Earnings Before Taxes ($40,417) ($1,264) $1,849 $3,439 $5,763 $8,211
Loss Carryover $0 ($40,417) ($41,681) ($39,833) ($36,393) ($30,631)
Net Income Before Taxes ($40,417) ($41,681) ($39,833) ($36,393) ($30,631) ($22,420)
Net Income ($40,417) ($1,264) $1,849 $3,439 $5,763 $8,211

DECEMBER 31, 2008
F UNDING P LAN
Total capital project costs for two phases of fiber deployment are approximately $1,400,000.
Conversely, by first deploying Phase I recommendations the County can begin receiving revenue to
solidify the business plan prior to requesting additional funds to extend the fiber network to Shenandoah.
In December 2008, the County submitted a funding request in the amount of $1,050,000 to the
Governor’s office in anticipation of potential infrastructure funding as part of a proposed federal
government stimulus plan. The American Recovery and Reinvestment Act was signed into law on
February 17, 2009. Details of how grant monies will be distributed were not available at the time this
document was written.
F UNDING P LAN F ORMULA
The Community Broadband Planning Project business model used assumes a forty percent local funding
capital commitment. Approximately $300,000 of potential grants or contributions has been identified.
Work is continuing to examine other possible sources of funding.
New Construction
Total Project Funding = Forty percent local funding, + Sixty percent grants/contributions. Additional
local funds would need to be available to support the first year’s operations, interest and principal
payments covering shortfalls during initial operations.
Existing Infrastructure
1. Establish current valuation of existing infrastructure/facilities

a. Account for depreciation and remaining years of service life
b. Account for parties using infrastructure/facilities and percent cost share
2. Determine cost-benefit of percent share to determine intangible value
3. Negotiate use fee and term

a. Address what happens when service life expires
b. Address if and when future parties’ use or benefit from existing infrastructure/facilities
expires
Commonly used utility funding assignments include:
Capital Cost Funding
“Capital Costs” as used within this funding plan is defined as those upfront tangible costs that have a
capital asset value that will depreciate over the life of service plus the associated costs of designing and
implementing the project. Capital Cost items include:
• Network construction materials and equipment such as fiber, towers, cabinets, enclosures,
Network Interface Devises (NID), etc.
• Network design consulting, bidding, constructing and funding expense

DECEMBER 31, 2008
Operational Costs Funding
“Operational Costs” as used within this funding plan is defined as costs necessary to operate, maintain,
repair and collect revenues of the network. Operational Cost items include:
• Network staffing personnel
• Office equipment and materials
• Software and billing documents
• Network maintenance personnel
• Contracted services such as network repair
Valuation Method
Telecommunications is often referred to as the communications utility. Like water, wastewater, electric,
and gas industries, there are some common schools of thought of what source should be used to fund the
expenses associated with the utility.
One of the first accounting principles to understand is that utility companies will want to depreciate the
system assets. Depreciation schedules not only plan for replacement of the item, but justify the charges
associated with the item. The determination of the value of a utility is used to provide information needed
in the structuring of proposed rates, development of depreciation reserve funds, and capital outlay funds.
There are two types approaches typically employed in the performance of a valuation study. These are
the asset-based method, which relies on the capital cost of the facilities, and the income-based method,
which involves the operating income generated by the rates.
The asset based method considers the original and current day (replacement) costs of the utility in-place.
The value is based on the capital costs less depreciation, commonly referred to as the undepreciated costs.
The depreciation is intended to quantify in dollars, to the extent possible, the actual deterioration of the
facilities or the loss in service that occurs over time due to wear and tear. For purposes of establishing a
fair market value for the utility in the event of potential acquisition, the original and replacement costs
provide a range for negotiations. However, only the original costs and related depreciation are needed for
the rate determination.
If the network being constructed is new, than the actual costs are the original costs. If the network
includes a component already existing, then the replacement or current costs can be determined by
trending the original costs forward to the present using generally accepted construction costs indices. On
the other hand, if the original costs can not be ascertained from historical records, then the cost to replace
the system can be estimated based on recent costs for the installation of similar facilities in the general
area. In turn, replacement costs can be trended backwards with the assistance of the same cost indices to
arrive at the original costs.
The income-based method is predicated on the revenues earned and the expenses incurred by the utility
operations. This method equates the value of the system to the sum of the estimated cash flows of the net
operating income (revenues less expenses) over a period of time (say next 20 years), discounted or
restated in terms of today’s dollars. It is widely used by companies in the valuation of capital
acquisitions.

DECEMBER 31, 2008
For the Community Broadband Planning Project, a greater emphasis is placed on the asset-based method
because original costs are known as opposed to having known operating income and it provides data that
is necessary for the development of rate structures and the depreciation reserve. The income-based
method can be used primarily to check the reasonableness of the value generated by the asset-based
approach.
G RANTS
Opportunities for grant funding include the USDA Rural Utilities Service (RUS), the Virginia
Department of Housing and Community Development (VDHCD), and the U.S. Economic Development
Administration (EDA). There are no private foundations making grants for rural communications
infrastructure development at the present time. Matching funds requirements at the federal level are such
that funds received from other sources (not federal) as well as in-kind contributions can generally be used
to meet matching thresholds.
The most likely source for grant funding for Phase I and II of the fiber network is the VDHCD.
Specifically, the County would be implementing infrastructure to benefit at least one new business (Data
Center) creating new jobs, and providing high speed data to the new County Tech Park for attracting
additional jobs and businesses to the County. The County would also be furthering rural healthcare
initiatives by providing the means to connect the hospital and rural health centers with robust, high speed
access for electronic medical record use and the opportunity to use real-time video for remote care.
Additionally, networking the public schools with very high bandwidth access will allow the new Luray
High School to share teacher resources with Page County High School, and potentially Lord Fairfax
Community College.
While the RUS Community Connect Program was instrumental in bringing wireless high speed access to
the Town of Shenandoah, the program has since been modified to benefit only communities without any
high speed services from any provider. Furthermore, each community to be served is required to establish
a community center with ten (10) computers for free access; in Page County the small communities
outside of the incorporated towns are primarily clusters of residences without community gathering spots.
The most likely scenario for applying for a Community Connect Grant would be to extend fiber to
Springfield Elementary in Rileyville to establish a community center and deploy a wireless system.
Although survey responses from the Rileyville community in 2007 revealed only dial-up services were
available and pent up demand by residents for broadband services, local ISP Rural Broadband Network
Services (RBNS) reportedly provides service to some areas of Rileyville, and therefore the County would
not be eligible for the Community Connect Grant (not available to County if one or more Rileyville
address is receiving high speed service).
In late 2008, speculation arose as to a future economic stimulus funding package to coincide with the
change in federal Administration. In anticipation of potential funding for broadband infrastructure
projects that are ‘ready to go’, a funding request in the amount of $1,050,000 was submitted to the
Governor’s office on behalf of Page County for implementation of Phase I and II of this proposed fiber
network.
USDA – RUS
Two grant programs available through RUS may provide funding for various aspects of broadband
deployment in the County. The Community Connect Grant is intended to provide Internet access and

DECEMBER 31, 2008
training to residents and businesses in single, unserved communities within the County. The County as a
whole cannot be considered a community. The community must be represented in the last US Census or
in the Rand McNally 2008 map, and contain 20,000 or fewer inhabitants. Because of DSL, cable modem
and/or wireless services available within Luray, Stanley and Shenandoah, these communities are not
eligible for grant funding.
Communities that would initially be eligible for consideration include the unincorporated communities of:
Community Population
 Alma 130
 Ida 220
The Community Connect Grant requires two years of free Internet access be made available to all
community (municipal) facilities including a Community Center with ten (10) computer access points for
public use for a period of two (2) years. The Center must be open before, during and after normal
working hours and on Saturday or Sunday, and provide training and instruction to encourage Internet and
computer use in the community. Funding will cover expenses for establishing the Center, purchasing the
access points and salary for community center staff not to exceed $25,000 per year (cannot include
benefit packages or transportation subsidies). Additional eligible costs also include:
 Salary for Operations manager, not to exceed $30,000 per year

 Salary for Technical support staff, not to exceed $30,000 per year
 Bandwidth expenses, not to exceed $25,000 per year
 Training courses on the use of the Internet, not to exceed $15,000 per year
Operating expenses to be financed by grant funds and/or used as matching contributions cannot exceed in
the aggregate of $250,000 for the first two (2) years of operation. Other operating expenses, such as
utilities, will not be eligible for grant funding nor considered an acceptable matching contribution.
These grants require that Broadband service be made available to all residents and businesses in the
community at a minimum speed of 200 Kbps in each direction; this requirement follows the current FCC
definition of broadband service transmission that is expected to change in the future, but probably to no
more than 768 Kbps. This speed is still below what is typically offered over wireless (minimum 1 Mbps)
and far below the capabilities of fiber.
Offering service to all residents and businesses within the community dictates wireless as the last mile
access medium, as costs to deploy fiber to every home are not feasible at this time. The County could
however, request funds to extend fiber from downtown Luray out Highway 340 to Springfield Elementary
School to provide 1) service via fiber to the school, and 2) backhaul for wireless services covering the
Rileyville community. The minimum grant request amount is $50,000 with a maximum of $1,000,000
and priority given for projects that include advanced services over fiber.
Specifically, grant funds may be used to finance:

1. The construction, acquisition, or lease of facilities (including spectrum) to deploy broadband
transmission services to all critical community facilities and to offer such service to all
residential and business customers located with the proposed service area.
2. The improvement, expansion, construction, acquisition, or leasing of a community center that
furnishes free access to broadband Internet service (minimum of ten (1) access points). Grant
funds provided for the community center are limited to the greater of $100,000 or 5% of the
grant amount requested. The total cost of the center may exceed the maximum limit, but it will
be the responsibility of the County to finance those expenditures which exceed $100,000, and the

DECEMBER 31, 2008
additional costs cannot be used to satisfy matching funds requirements. Costs for the computer
access points, their installation or connection to the broadband system are not included in this
limitation.
3. End-user equipment needed to carry out the project.
4. All operating expenses incurred in providing broadband transmission service to critical
community facilities and to provide training and instruction for the first two (2) years of
operation shall not exceed $250,000 in grant funds requested plus matching contribution. Salary
and administrative expenses subject to review by RUS for reasonableness in relation to project
scope.
The grantee must provide a matching contribution equal to 15% of the grant amount requested. The
contribution must be for eligible purposes, and can be a combination of cash, in-kind and the rental value
for donated space in a community center for the first two (2) years of operation. In-kind contributions
must be new or non-depreciated assets with established monetary values. Cash for eligible purposes may
include bandwidth expenses to provide service to the community center and salary expenses for operating
the center, for the first two (2) years of operation. Matching funds may be provided by a third party (such
as a wireless services operator or a municipality) and can include future revenues but must be
documented.
A Notice of Funding Availability (NOFA) is typically released by USDA in January of each year, with a
ninety (90) day window for submitting applications. While there are no changes proposed for the
Community Connect Grant program this year, because of the change in the federal administration in 2009
it is expected that the NOFA will not be released until after the new leadership is in place.
The only other grant program administered by USDA-RUS is the Distance Learning and Telemedicine
(DLT) program. The purpose of this grant is to provide rural communities with opportunities to obtain
educational and medical services from distant locations utilizing communication technologies. This
program uses the same rurality definition as the Community Connect Grant, but does allow the grouping
of communities as beneficiaries of grant funds. Minimum grant funding is $50,000 with a maximum of
$500,000 and a 15% matching contribution is required.
This grant does not provide funding for transmission services but does fund costs for the following
eligible purposes:
 Computer hardware and software
 Audio and video equipment
 Interactive video equipment
 Computer network components
 Acquiring instructional programming
 Providing technical assistance and instruction
The benefit to the County of utilizing this grant program is to connect rural healthcare providers and the
public schools to a high speed fiber network that will allow them to utilize remote service enhancements.
Page Memorial Hospital is in need of higher bandwidth to institute an electronic medical record (EMR)
system throughout its network of hospital campus, clinics and rural health centers. Page County Public
Schools are using video conferencing currently to share teachers between two schools, and would like to
expand use of the technology to provide additional resources to all schools. This grant would also fund
connecting home health nurses and ambulances to local clinics and the hospital. A specific benefit to the
County includes funding for offering technology and job training to the Page County Job Center.

DECEMBER 31, 2008
VIRGINIA DEPT OF H OUSING AND C OMMUNITY DEVELOPMENT (DHCD)
The Virginia DHCD has supported community broadband planning for the County with the understanding
that the County is proactively investing in economic development to attract and retain businesses and to
improve the quality of life for Page County citizens. With a communications plan in place and
stakeholder support, the County may apply for infrastructure and planning grants to move forward
with implementation. Up to $200,000 per project is available from DHCD for telecommunications efforts
which may include implementation (e.g., installation of a fiber network) or system development and
support (e.g., community business training and education). All projects must demonstrate that they meet
a Community Development Block Grant (CDBG) national objective and demonstrate a direct relationship
between intended project efforts and measurable, tangible improvements to the health of the community
being served. National objectives are as follows:
1. Benefiting low- and moderate-income persons,
2. Preventing or eliminating blight, or
3. Meeting other community development needs having a particular urgency because existing
conditions pose a serious and immediate threat to the health or welfare of the community, and
other financial resources are not available to meet such needs.
Only implementation projects which target “last mile” installation of broadband applications will be
considered for funding (no long-haul backbone systems). Applications for telecommunications projects
may combine planning and system development/ technical support or planning and implementation.
U.S. Department of Housing and Urban Development data indicates 9,296 low to moderate income (LMI)
households located throughout the County and comprising over 40% of total households. Each of the five
census tracts contain a minimum of one block group of households (total of thirteen block groups) in
excess of 51% LMI. The fiber network proposed will provide wireless service providers with access to
cost-effective backhaul to deploy services to reach these targeted households, thereby meeting a primary
CDBG program national objective.
DHCD Office of Community Capacity Building has typically provided Seed grants to non-profit and
local governments for capacity building and operational support. Seed is a two (2) year program
combining an award of $20,000 along with training and technical assistance in strategic planning, board
and staff development, financial management, fund development, marketing and communications, and
information systems. This program would assist the County by providing resources for effectively
implementing organizational and management elements of network ownership and Authority oversight.
At the time of this writing, the Seed program had not received notice of funding for 2009.
U.S. E CONOMIC DEVELOPMENT ADMINISTRATION
The Public Works and Economic Development Program of the Economic Development Administration
(EDA) is designed to enhance regional competitiveness and promote long-term economic development in
regions experiencing substantial economic distress. Through the program, EDA provides public works
investment assistance to support the construction or rehabilitation of essential public infrastructure and
facilities necessary to generate or retain long-term private sector jobs and investments, attract private
sector capital, and promote regional competitiveness. Grants (referred to in CFDA No. 11.300 as
investments) may be used for projects such as expanding and upgrading infrastructure to attract new
industry, supporting technology-led development, redeveloping brownfield sites, promoting eco-industrial
development, and supporting heritage preservation development investments such as those promoted by
the Executive Order on Preserve America. Eligible applicants include: State, city, county, or other
political subdivision of a State, including a special purpose unit of a State or local government engaged in

DECEMBER 31, 2008
economic or infrastructure development activities, an institution of higher education or a consortium of
institutions of higher education, an Economic Development District organization, a private or public
nonprofit organization or association, including a faith-based non-profit organization, acting in
cooperation with officials of a political subdivision of a State, or an Indian Tribe, or a consortium of
Indian Tribes. Matching funds are required; generally EDA will not provide more than 50% of project
funds, though an additional 30% may be authorized based on regional impact and need. Matching funds
may be in the form of in-kind contributions, such as contributions of space, equipment, assumptions of
debt, and services to provide the required non-federal share of the total project cost. Applications for
funding are competitively evaluated on their ability to meet or exceed the following investment policy
guidelines, outlined on the Agency’s website:
Be market-based and results-driven. An investment will capitalize on a region's competitive strengths

and will positively move a regional economic indicator measured on EDA's Balanced Scorecard, such as:
an increased number of higher-skill, higher-wage jobs; increased tax revenue; or increased private-sector
investment.
Have strong organizational leadership. An investment will have strong leadership, relevant project
management experience, and a significant commitment of human-resources talent to ensure a project's
successful execution.
Advance productivity, innovation, and entrepreneurship. An investment will embrace the principles of
entrepreneurship, enhance regional clusters, and leverage and link technology innovators and local
universities to the private sector to create the conditions for greater productivity, innovation, and job
creation.
Look beyond the immediate economic horizon, anticipate economic changes, and diversify the local and
regional economy. An investment will be part of an overarching, long-term comprehensive economic
development strategy that enhances a region's success in achieving a rising standard of living by
supporting existing industry clusters, developing emerging new clusters, or attracting new regional
economic drivers.
Demonstrate a high degree of commitment by exhibiting:

• High levels of local-government or nonprofit matching funds and private-sector leverage.
• Clear and unified leadership and support by local elected officials.
• Strong cooperation between the business sector, relevant regional partners, and local, state, and federal
governments.
EDA grants are extremely competitive, requiring strong support and leadership from the region’s
legislative representatives. The Eastern Shore of Virginia is receiving funding assistance from the EDA
for building a fiber network linking communities, a planned research park, and the NASA facility.
Combined with the proposed County Tech Park, the commitment by PTS to establish a data center to
serve federal clients, and the need to establish a high bandwidth transport pathway in and out of the
County, the proposed Page County fiber network meets many of the program’s investment policy
guidelines.
L OANS
Both the USDA – RUS and Virginia Resources Authority (VRA) offer loans for rural broadband
construction projects. While the 2008 Farm Bill dictates changes to the RUS broadband loan program to

DECEMBER 31, 2008
address numerous roadblocks encountered by applicants historically, the amount of information and
document detail required will no doubt remain. Furthermore, the lead-time from application to approval
is significant and such that the County may not be able to take advantage of opportunities to leverage
deployment with other infrastructure projects. Most importantly, RUS loan applicants need the support of
regional state legislators to bring priority and attention to their funding request in the competitive
program. For these reasons, the County is encouraged to first explore borrowing through the Virginia
Resources Authority (VRA).
VIRGINIA R ESOURCES AUTHORITY (VRA)
The VRA was created by the Virginia General Assembly in 1984 to support community infrastructure
investments by providing cost-effective financial solutions to local governments and other public bodies.
In addition to infrastructure projects such as public safety, transportation and water, the VRA is
authorized by the State to fund wired and broadband projects through revolving fund loans to localities at
below-market interest rates and to issue bonds backed by the moral obligation of the Commonwealth.
The VRA provides access to three (3) types of financing assistance: Pooled Financing (VRA funds),
Term Financing (SunTrust Leasing Corp), and Interim Financing (SunTrust Bank).
ADDITIONAL F UNDING M ECHANISMS
Matching funds can generally be funding received from other sources such as grants or donations, or can
often be offered as in-kind services with reasonable dollar values. This provides localities with the
opportunity to leverage any funding received, and assets and investments such as community right-of-
ways and infrastructure suitable for mounting or housing equipment. Additionally, in-house technology
talent can be tapped for system integration, operation and maintenance functions. Cost savings realized
by a realignment of services, access to lower-cost bandwidth or interoperability improvements may allow
localities to reallocate spending to offset the capital investment of the new facilities or access.
G OVERNOR ' S DEVELOPMENT O PPORTUNITY F UND
Funds are allocated and used by the Governor to attract economic development prospects and secure the
expansion of existing industry in the Commonwealth. Funds may be used for public and private utility
extension or capacity development on and off site; public and private installation, extension, or capacity
development of high-speed or broadband Internet access, whether on or off site; road, rail, or other
transportation access costs beyond the funding capability of existing programs; site acquisition; grading,
drainage, paving, and any other activity required to prepare a site for construction; construction or build-
out of publicly owned buildings; training; or grants or loans to an industrial development authority,
housing and redevelopment authority, or other political subdivision for purposes directly relating to any
of the foregoing. Funds shall be awarded as grants or loans to political subdivisions. Loans shall be
approved by the Governor and made in accordance with guidelines established by the Virginia Economic
Development Partnership and approved by the Comptroller. Loans shall be interest-free unless otherwise
determined by the Governor and shall be repaid to the Fund. The Governor may establish the interest rate
to be charged; otherwise, any interest charged shall be at market rates as determined by the State
Treasurer and shall be indicative of the duration of the loan. The Virginia Economic Development
Partnership shall be responsible for monitoring repayment of such loans and reporting the receivables to
the Comptroller as required.

DECEMBER 31, 2008
ADVANCED C OMMUNICATIONS ASSISTANCE F UND
This State fund is intended to assist underserved localities with taking advantage of advanced
communication services through loans or grants. Funding assistance can be used for the internal
communication needs of localities and in the planning, deployment and maintenance of dark fiber. Funds
are appropriated by the General Assembly.
VIRGINIA C OMMUNITY C APITAL
This for-profit bank focuses on providing access to economic development capital, working through
partnerships with state/local organizations, city governments and traditional financial institutions. Instead
of competing with traditional banks, this organization works with local partners to develop funding
packages to meet the needs of Virginia’s communities. Projects funded include economic development
infrastructure and community facilities. This bank works closely with the VRA on funding partnerships.

DECEMBER 31, 2008
R ESOURCES
Virginia Wireless Service Authorities Act – Frequently Asked Questions

(Source: Jeff Gore, Hefty and Wiley PC)
Wireless Service Authority Resolution Example – Eastern Shore Broadband Authority

DECEMBER 31, 2008

3.17.09-Page County Implementation Plan-Final

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TRANSMITTAL LETTER

December 31, 2008

Dr. Tom Cardman, Director

RE: Page County, Virginia Community Broadband Implementation Plan

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

Icon Broadband Technologies Consulting Gateway Corporation

Judy Bentley Keith A. Hill, P.E.

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

REASONING FOR PHASE I PROPOSED SOLUTION ....................................................................... 3

PHASE I NETWORK DESIGN – ENTIRE COUNTY ............................................................................... 10

PHASE I NETWORK DESIGN – LURAY ............................................................................................. 11

PHASE I NETWORK DESIGN – LURAY THROUGH STANLEY ............................................................ 12

PHASE I NETWORK DESIGN – STANLEY TO PAGE COUNTY HIGH SCHOOL .................................... 13

FIBER NETWORK PHASE II - SHENANDOAH ................................................................................ 14

REASONING FOR PHASE II PROPOSED SOLUTION .................................................................... 14

PHASE II NETWORK DESIGN – SHENANDOAH ................................................................................. 15

FINAL COMMENTS ...................................................................................................................... 16

I MPLEMENTATION P ROCESS & T IMELINE ..............................................................17

O RGANIZATION STRUCTURE & G OVERNANCE ......................................................21

DEVELOPMENT OF AGREEMENTS ............................................................................................... 22

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

GOVERNANCE PLAN ................................................................................................................... 24

TYPICAL STEPS FOR PLANNING NETWORK GOVERNANCE ...................................................... 25

P RELIMINARY DESIGN & P ROJ ECT C OSTS .............................................................27

USDA – RUS ......................................................................................................................... 43

VIRGINIA RESOURCES AUTHORITY (VRA) ............................................................................. 48

GOVERNOR'S DEVELOPMENT OPPORTUNITY FUND ........................................................................ 48

ADVANCED COMMUNICATIONS ASSISTANCE FUND ....................................................................... 49

VIRGINIA COMMUNITY CAPITAL .................................................................................................... 49

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

F IBER NETWORK P HASE I - L URAY T HROUGH STANLEY

R EASONING FOR P HASE I P ROPOSED SOLUTION

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

6. A passive optical network architecture capable of handling Gigabit bandwidth delivery of

O WNERSHIP AND O RGANIZATION STRUCTURE

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

P HASE I C OSTS AND F UNDING P LAN

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

The new fiber infrastructure costs are more straightforward:

Phase I – Project Costs (Luray-North of Shenandoah)

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

L AST M ILE SOLUTIONS

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

NETWORK DESIGN C OMPONENTS

O WNERSHIP AND O RGANIZATION STRUCTURE

Phase II – Project Costs (Shenandoah)

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

I MPLEMENTATION STEPS AND T IMELINE

Four Weeks: Board Decision to Proceed and Fund Implementation

1. The formation of a County-wide Broadband Authority;

PAGE COUNTY COMMUNITY BROADBAND IMPLEMENTATION PLAN

Design, Bid and Build Approach

Bid, Design-Build Approach

Design of the Network and Role of the Owner

Final Design Project Components

• Prepare Final Design, Quantity Calculations, Final Cost Estimate