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Albemarle authority votes to authorize $554,657.10 closeout payment for BrightSpeed "VADI '21" project
Summary
The Albemarle County Broadband Authority voted to authorize staff to sign closeout documents and tender $554,657.10 as the authority's prorated portion of BrightSpeed's VADI '21 reimbursement after staff said BrightSpeed has delivered 1,416 of 1,430 agreed passings.
The Albemarle County Broadband Authority voted to authorize staff to sign closeout documents and tender $554,657.10 as the authority's prorated portion of a BrightSpeed reimbursement for the VADI '21 project, after staff said BrightSpeed has delivered 1,416 of 1,430 agreed "passings." The vote passed with members saying "aye."
Chief Administrator: "I share a desire to hopefully be done talking about VADI '21 very soon and have an ambition to actually have it all wrapped up by fiscal year end of fiscal year 25." The chief administrator summarized meetings with BrightSpeed and the Department of Housing and Community Development (DHCD), saying BrightSpeed confirmed 1,416 passings and the remaining 14 locations are being surrendered; DHCD will prorate its funding to reflect the change in passings.
Why it matters: DHCD's prorating affects the authority's reimbursement figures and the final payment to BrightSpeed. Staff said the difference in DHCD's calculation would be small (about $1,552 vs. $1,560 per passing in staff estimates) and that BrightSpeed has committed not to object if another provider takes on the surrendered passings.
Details of the shortfall and closeout process: Staff described the 14 surrendered addresses as generally hard-to-serve or jurisdictionally complicated. Examples discussed included 20 Gooseneck Lane (an address inside a development that would require crossing an interstate), 4025 Martin Valley Farm Road and 9 Marshall Road (access issues from Louisa County), 1853 Thompson Ford Lane (surrounded by served addresses yet not served), 5364 Stony Point Road (set far back from the road), and 4782 Broadhead Mountain Trail (a remote single address). The chief administrator said some of those addresses may be added to future BEAD (Broadband Equity, Access, and Deployment) bids or other awards if a bidder chooses to include them.
Staff explained the closeout paperwork DHCD requires: a comprehensive list of delivered passings, a random sample of speed tests within the project, and a detailed accounting of contractor payments. If the closeout documentation is acceptable, the authority can forego the previously discussed 10% withholding and allow BrightSpeed to submit full reimbursement invoices to DHCD.
On the payment question, staff recommended matching DHCD's prorating methodology. After discussion about whether to seek additional funds to reflect higher per-passing costs for some hard locations, the authority moved to authorize signing closeout documents and tendering $554,657.10 as Albemarle's prorated contribution, consistent with DHCD figures. The motion was seconded and passed with members responding "aye."
Next steps: Staff said it will continue outreach over the next weeks to identify whether another provider can take the surrendered addresses and will return with updated closeout invoices when DHCD finalizes its prorating. Members also discussed whether to request a written release from BrightSpeed confirming no further claims after payment; staff said DHCD closeout documents may function as that release and that staff can ask BrightSpeed for a letter if members want it.
