Charter has surveyed the area of Scully, Walsh, Valentine, Stoneview, Black Pine, Gleason and Timberlane roads. They have not yet looked at the areas on Territorial, Blue Heron, Donovan or other non-adjacent roads. I would guess that brining service to other neighborhoods in the area would average out to about the same costs if we were to proceed all at once.
Here I’ll review how much Charter wants to build out service and what the per household costs might be. For Scully and adjoining roads the numbers are:
Labor: $197,272 Material: $73,139 Allowances: ($65,400) --------------------- Net Cost: $205,011
I would guess many are shocked at this number. Some probably expected more. I’m not going to get into wether this is unfair or a good deal. I’ll just lay out the numbers as is.
Charter figures out labor and materials costs and “potential make ready charges, costs from the power company and other matters out of our control…” Each potential service hookup gets a $600 allowance. For our area, we have 77 homes and 32 empty lots which give us our allownace:
77 + 32 = 109 potential "hookups" 109 x $600 = $65,400 allowance
So this would give a build out cost per “hookup” of:
$205,011 / 109 = $1881
This $1881 would be a “best case” scenario and would involve:
1) Convincing everyone in the area to pay for hookup.
2) Identifying developers/owners of empty lots and convincing them to pay $1881 per hookup.
3) For neighbors who may own empty lots, they would agree to pay for multiple hookups.
If the build out cost were divided equally among the 77 existing homes (assuming everyone wants cable), the cost would be:
$205,011 / 77 = $2662
In this case, we would then have to figure out how to reimburse residents as new homes (on those 32 empty lots) are hooked up.
In the more realistic scenario that not everyone wants cable or would pay the up-front investment, there are a few other options I can think of:
1) Grants throught the Department of Agriculture and Federal Communications Commission. Both of these organizations have programs to help build out rural areas.
2) Form an LLC or co-op which funds the build out and recoups their investment through monthly surchages on service.
Again, I don’t want to give my personal opinion at this point. I’d like everyone to think on this and post their feedback.
What do you think? Crazy? Doable? Unfair? Good deal? Let us know.