Public Hearing – Southside Network Authority

Interim Agreement with Management Services Group, Inc., d/b/a Global Technical Systems

And Smart City Capital, LLC, pursuant to the Public Private Education Facilities and Infrastructure Act of 2002

The Southside Network Authority (“Authority”), pursuant the Public Private Education Facilities and Infrastructure Act of 2002, Title 56, Chapter 22.1 of the Code of Virginia, 1950, as amended (PPEA), hereby announces a public hearing to receive public comment on an interim agreement related to a public-private partnership (PPP) with Management Services Group, Inc., d/b/a Global Technical Systems, and Smart City Capital, LLC (together, “GTS”). The Authority has previously issued a procurement for a partner to operate, manage, and commercialize a 119.4-mile fiber optic ring that is currently under construction. The parties have carried out negotiations through conceptual and detailed phases under the PPEA. The Authority and GTS have reached an agreement in principle that, upon completion of the ring, GTS will lease the 96 strands of the 288-strand ring for $2 million and provide maintenance services for the ring. GTS will receive the right to lease further strands from the Authority at defined prices and the exclusive right to market the ring for up to 60 months upon achievement of performance goals for further system buildout, using open access principles. The parties have agreed on general principles to cover leasing of dark fiber to regional institutional users, preferential treatment for economic development and historically disadvantaged communities, and revenue-sharing. However, numerous contingencies and uncertainties remain before the parties can make a final decision on a comprehensive agreement to govern their long-term relationship.

The public hearing will be held at the Regional Building, 723 Woodlake Drive, Chesapeake, VA 23320, at 2:00 p.m. on December 9, 2022.

Further information, including the Agreement and each of the original proposals submitted, is available at https://www.hrpdcva.gov/page/procurement. Written comments may be submitted electronically to stevenhdeberry@gmail.com, or in hard copy at the above address.