BENZIE COUNTY

“Internet for All”

Vision/Mission
To provide the best internet connection at the lowest price possible to all homes,
businesses, and anchor institutions in Benzie County. Utilizing a relationship building
philosophy CCC has both a local and regional plan to leverage all available opportunities
and maximize existing infrastructure. Gig capable networks will benefit all stakeholders
in the community. These relationships allow a state-of-the-art infrastructure to respond
to community needs and make the greatest economic impact.

Tim Maylone – CEO

[email protected]
Table of Contents
2022 Benzie County “Internet for All” Timeline ............................................................................................... 2

Connecting the Unserved and Underserved .................................................................................................. 2

RDOF areas and 477 data ............................................................................................................................... 3

Proposed Project options using Benzie funds (ARPA)....................................................................................... 5

Assumptions............................................................................................................................................. 5
Next Steps include Letters of Support – (template) ........................................................................................... 7

Letter of Support Peninsula Fiber (PFN) ...................................................................................................... 8

Letter of Support Eclipse Communications (Eclipse) .................................................................................... 9
Open Access Flow – Build one infrastructure shared with multiple providers ..................................... 11

Benzie County Board of P.O. Box 866, 97 Lake St

Elk Rapids, MI 49629
Commissioners
P a g e |1
10-25-2022
2022 Benzie County “Internet for All” Timeline

Connecting the Unserved and Underserved

❖ 58% of households in the county are unserved

o Representing 7,100 households
o Current RDOF funding is anticipated to connect 2,000 households
o The remaining 5,100 households requires a capital investment of up to $14.9 million

❖ Households with school age children with inadequate broadband

❖ Households that are economically at-risk

❖ Households eligible for Affordable Connectivity Program (ACP)

o Base subscription with ACP applied $58 per month

Benzie County Board of P.O. Box 866, 97 Lake St

Elk Rapids, MI 49629
Commissioners
P a g e |2
10-25-2022
RDOF areas and 477 data

Current State and federal rules

do not allow funding RDOF
area

Pass 2,000 households

Completion End of 2027
FCC and private funding

NO Benzie ARPA funds will

be used in areas funded by
RDOF.

Under ROBIN rules these 477 areas are considered unserved and eligible for funding. Working with the
county additional areas will be identified and recategorized as unserved and included in future funding.

Benzie County Board of P.O. Box 866, 97 Lake St

Elk Rapids, MI 49629
Commissioners
P a g e |3
10-25-2022
Path to “Internet for All”

RDOF - FCC and Private Internet For All

Unserved
ARPA – Benzie and PPP Underserved
Households with
MIHI Office - ROBIN and PPP School Age Children and
Households Economically At-Risk

MIHI Office - BEADS and PPP 5,100 Households

Once households with school aged chidren or econimically at-risk we will plot these location and
adjust our construction route to address those needs.

Benzie County Board of P.O. Box 866, 97 Lake St

Elk Rapids, MI 49629
Commissioners
P a g e |4
10-25-2022
Proposed Project options using Benzie funds (ARPA)

Project Option 1:
✓ $1,035,000 Benzie ARPA funds allocated to the project
✓ Addressing the needs of 1,250 households
✓ Cost estimated at $3.75 million.
o Cost estimate based on 68 route miles of mainline fiber
or
Project Option 2:
✓ $1,500,000 Benzie ARPA funds allocated to the project
✓ Addressing the needs of 1,875 households
✓ Cost estimated at $5.25 million.
o Cost estimate is based on 90 miles of mainline fiber construction

Either of these project options would:

✓ Provide connectivity while working on the ROBIN application
✓ Can be completed within ARPA timeline
✓ Demonstrate to ROBIN
1) Readiness to build, operate, and maintain the project,
2) Long-term project viability,
3) Network scalability, and
4) Demonstrate community support.
✓ Would reduce the consumer participation rate from $1,200 to $500 a $700 consumer savings.
This will be for all mass-market households in Benzie County
✓ Meet the MIHI office goal of providing a minimum of 100 symmetrical service to all connected
households.
Option 1 – 1,250 households Option 2 – 1,875 households
Benzie County contribution $1,035,000 $1,500,000
Consumer participation fees 625,000 937,500
Cherry Capital Connection 2,090,000 2,812,500
Total estimated project $3,750,000 $5,250,000
Assumptions
A study performed by Merit Network, Inc., an independent nonprofit corporation governed by
Michigan’s public universities, identified that 58% or 7,100 households in Benzie County are
underserved or unserved. Multiple providers were awarded RDOF support at the Gig level to pass 2,000
households.

Benzie Counties commitment to ensure that all unserved and underserved household can participate in
the data driven economy and to align with the Michigan Highspeed Internet office goals, Benzie entered
a Public Private Partnership (PPP) with CCC to apply for funding to construct, maintain, and operate a
Gig capable Fiber to the Home (FTTH) network.

Successful funding through County ARPA, MIHI ROBIN and MIHI BEADS would result in connecting
the remaining unserved and underserved households.

CCC would be the prime contractor and will establish subcontractor relationships with multiple vendors
including Eclipse Communication and PFN.

Benzie County Board of P.O. Box 866, 97 Lake St

Elk Rapids, MI 49629
Commissioners
P a g e |5
10-25-2022
 Moneys distributed from the county to CCC will be used to perform the following activities:

Engineering, other activities, and inventory in support of connecting the unserved and
underserved. Engineering Funds will be used to upgrade the Cherry Capital Connection middle
mile outside plant (OSP) enabling last mile connections to the underserved and unserved along
the route. Expenditures will include the following categories a) OSP material and logistics, b)
OSP construction, c) data center (exchange) upgrades, d) electronics, e) administration such as
accounting and legal compliance, f) facilities upgrades, g) tooling, and h) equipment associated
with extending the CCC fiber network

Distribution of funds for services rather than a grant would enable CCC to use these funds as
matching funds for potential future funding. Project management will be performed by CCC and
CCC will provide regular reporting on progress to administration

Based on the level of Benzie County ARPA funding allocation

Project Option 1: CCC will invoice Benzie County at the first of each month $103,500 for 10
months for the total sum of $1.035 million.
or
Project Option 2: CCC will invoice Benzie County at the first of each month $100,000 for 15
months for the total sum of $1.5 million

CCC charges a construction fee of $700 and an activation fee of $500. CCC will waive the construction
fee for all households in Benzie County. The remaining $500 activation fee remains and can be applied
over time. If the household is economically at-risk CCC will lower or waive the $500 activation fee.

The resulting network will be an open access network that will encourage multiple providers to use the
same infrastructure to service the anticipated connected consumers. Open access provides consumer
choice in who their last mile provider is for a wide range of services, such as transport, internet, and
telephone. Peninsula Fiber Networks (PFN), Eclipse Communications (Eclipse), and Cherry Capital
Connection (CCC) have formed the Benzie Broadband Development Consortium (BBDC). PFN is a
regional middle mile provider that owns and operates the NextGen 911 network and provides last mile
providers access to the Merit REACH3MC network. Eclipse and CCC are local last mile providers.
Terms and conditions of the Open Access Network will be defined by the BBDC

Benzie County and CCC will continue to work together to identify areas of need and implement
solutions. This project is the first step in implementing the solution that has resulted from over 5 years
of effort by various broadband committees.

Future funding opportunities will be designed to address the remaining unserved and underserved
households. Over the next 12-18 months Cherry Capital Connection, their partners, and Benzie County
will work together to make application to ROBIN and BEADS through the MIHI Office.

Households along the build route will be eligible to connect. The priority will be to build and connect
the unserved, underserved, households with school aged children with inadequate broadband and
households that are economically at risk.

Benzie County Board of P.O. Box 866, 97 Lake St

Elk Rapids, MI 49629
Commissioners
P a g e |6
10-25-2022
Next Steps include Letters of Support – (template)

✓ Identifying stakeholders and reaching for letters of support.

✓ Obtaining of commitment to subscribe for services.

[Organization Letter Head] [Date]

Tim Maylone - CEO

Cherry Capital Connection, LLC
P.O. Box 866
Elk Rapids, MI 49629

RE: Support for connecting the unserved and underserved of Benzie County

Dear Tim Maylone,

On behalf of [Organization], we are pleased to support Cherry Capital Connection’s (CCC) funding application
to connect the unserved and underserved throughout Benzie County (Benzie).

We understand that:
a. A study performed by Merit Network, Inc., an independent nonprofit corporation governed by
Michigan’s public universities, identified that 58% or 7,100 households in Benzie County are
underserved or unserved.
b. Multiple providers were awarded RDOF support at the Gig level to pass 2,000 households.
c. Benzie Counties commitment to ensure that all unserved and underserved household can participate in
the data driven economy and to align with the Michigan Highspeed Internet office goals, Benzie entered
a Public Private Partnership (PPP) with CCC to apply for funding to construct, maintain, and operate a
Gig capable Fiber to the Home (FTTH) network.
d. Successful funding through County ARPA, MIHI ROBIN and MIHI BEADS would result in connecting
the remaining unserved and underserved households in addition to addressing the needs of those
households with school aged children or are economically at-risk.
e. To ensure that all local fiber providers can participate and benefit from the network, Peninsula Fiber
Networks (PFN), Eclipse Communications (Eclipse), and Cherry Capital Connection (CCC) have
formed the Benzie Broadband Development Consortium. PFN is a regional middle mile provider that
owns and operates the NextGen 911 network. Eclipse and CCC are local last mile providers
constructing, maintaining, and operating FTTH networks.
It is our understanding that the resulting FTTH home network constructed will create a competitive
environment. Additionally, with local government and business support resulting in higher adoption will lower
the consumer cost to participate. The network proposed will be an open access network that encourages
multiple providers to use the same infrastructure to service the consumers. Open access provides consumer
choice in who their last mile provider is for a wide range of services, such as transport, internet, and telephone.

Sincerely,
[Your Name]
[Your organization]

Benzie County Board of P.O. Box 866, 97 Lake St

Elk Rapids, MI 49629
Commissioners
P a g e |7
10-25-2022
Letter of Support Peninsula Fiber (PFN)

Benzie County Board of P.O. Box 866, 97 Lake St

Elk Rapids, MI 49629
Commissioners
P a g e |8
10-25-2022
Letter of Support Eclipse Communications (Eclipse)

Benzie County Board of P.O. Box 866, 97 Lake St

Elk Rapids, MI 49629
Commissioners
P a g e |9
10-25-2022
ROBIN – Fact Sheet – State of Michigan FCC approved use of surplus ARPA funds

Michigan’s Realizing Opportunity with Broadband Infrastructure Networks (ROBIN) program is a

competitive grant program designed to provide funding to extend broadband infrastructure and service
to locations currently lacking access to at least 100/20 Mbps.

In early 2022, Governor Whitmer and the Michigan Legislature passed the Building Michigan Together
Plan. The plan includes $250.6 million to expand high-speed internet service to unserved locations in
the state. On October 7, 2022, the United States Treasury announced the approval of Michigan’s plan
for the use of these funds. The following provides an overview of the ROBIN Program.

+ ROBIN will be administered by the Michigan High-Speed Internet Office (MIHI) located within
the Prosperity Division of the Department of Labor and Economic Opportunity.
+ The funding for ROBIN comes from the Capital Projects Fund (CPF) which is managed by the
United States Treasury. The CPF was part of the American Rescue Plan Act that passed in
2021.
+ $238.7M will be available through ROBIN for internet expansion to unserved locations. The
remaining balance of funds (5% of the total award) will be used for program administration.
+ Unserved locations are homes, businesses, and institutions without internet service available at a
speed of at least 100/20 Mbps from at least one internet service provider.
+ Up to 35% of ROBIN funds can be used for middle-mile projects that support deployment of
broadband service to unserved areas. The remainder is dedicated for last-mile service projects.
+ Broadband service built with ROBIN funds must deliver a symmetrical end-user internet connection
of at least 100 Mbps upstream and downstream unless significant topographic, geographic, or
financial impracticability exists in the project area.
+ Eligible applicants for ROBIN include internet service providers, those licensed under the MI
Telecommunications Act, franchise holders under the Uniform Video Services Local Franchise
Act, or any entity currently providing broadband service in the state.
+ Governmental entities may apply for grants only as a public-private partnership with an internet
service provider. Public-private partnerships must demonstrate a competitive bidding process and
comply with applicable state laws.
+ Final grant criteria are still being developed by MIHI, but will include, at a minimum: the applicant’s
experience and financial wherewithal, readiness to build, operate, and maintain the project, long-
term project viability, network scalability, and demonstrated community support.
+ All ROBIN grantees must participate in the FCC’s Affordable Connectivity Program.
+ MIHI anticipates opening the 60-day ROBIN grant application window in mid-December 2022.
+ All program funds must be expended by the end of the 2026 calendar year.
+ Interested applicants should refer to the US Treasury Guidance for the Capital Projects Fund as
well as the boilerplate legislation (Sec. 359) appropriating the CPF funds to the Department of
Labor and Economic Opportunity for more information.

Benzie County Board of P.O. Box 866, 97 Lake St

Elk Rapids, MI 49629
Commissioners
P a g e | 10
10-25-2022
Open Access Flow – Build one infrastructure shared with multiple providers

Creates competition, provides consumers choice, increases value associated with public money.

Benzie County Board of P.O. Box 866, 97 Lake St

Elk Rapids, MI 49629
Commissioners
P a g e | 11
10-25-2022