Rural Connections Broadband Program Application Guideline

Rural Connections Application Guideline

Table of Contents

Vision

A Digital Strategy for the 21st Century

The Government of Ontario is committed to building strong, sustainable rural communities. A modern, efficient and reliable telecommunications system is part of the plan.

A Digital Strategy for Ontario recognizes the importance of affordable, accessible and reliable broadband for public and private sectors in rural areas. This will provide individuals and communities with opportunities to fully participate in the digital economy, thereby stimulating citizen engagement, job growth and economic diversification in rural communities.

Strategic investments in broadband infrastructure will help rural communities foster partnerships and pursue innovative approaches to promote economic development and improve access to government programs and services.

In March 2008, the Government of Ontario announced a $30 million, 4 year initiative designed to improve broadband access in rural regions in southern Ontario. For the purposes of this program, broadband is defined as a high-capacity link between end user and access network suppliers at a minimum download speed of 1.5 megabits per second.

The Rural Connections Broadband Program (Rural Connections) is led by the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) in partnership with the Ministries of Government Services (MGS) and Small Business and Consumer Services (MSBCS).

What is the purpose of Rural Connections?

This program will have a positive impact on families in rural Ontario by leveraging broadband infrastructure investment from private-sector businesses and public partners to enhance economic development and to improve access to public services such as e-learning, e-health and e-government.

Objectives and Priorities

• Reducing broadband access gaps in rural southern Ontario;
• Enabling small and medium size business to fully participate in the digital economy;
• Enabling municipalities to use broadband infrastructure for enhanced computer applications and providing innovative services to citizens;
• Improving public access to e-government services and information;
• Supporting businesses and citizens to effectively utilize broadband for economic and social development.

Benefits

• Help make Ontario more productive, innovative, and competitive in the global economy;
• Enable a diversified economy in rural communities to foster entrepreneurship and enable the growth of small and medium enterprises;
• Enhance the quality of life of citizens in rural areas of southern Ontario through improved education and skills training, health care, multi-level government information and community and global information resources;
• Enable municipalities to use technology enhancements for cost-effective, innovative applications (e.g., GIS).
  

 

Who is eligible for funding?

Municipalities in rural southern Ontario are eligible to apply to the program. For the purposes of Rural Connections, rural communities include all of southern Ontario with the exception of the Greater Toronto Area (GTA) and the six large urban areas (City of Hamilton, Regional Municipality of Waterloo, City of Ottawa, Regional Municipality of Niagara, City of London and City of Windsor).

However, communities and lower tier municipalities with a population of less than 100,000 in the GTA or in the six large urban areas will be considered rural as long as the broadband infrastructure benefits rural communities.

Rural Connections encourages municipalities to work together with First Nations, community stakeholders and other partners to develop and implement a plan designed to reduce broadband access gaps and promote outreach and awareness activities to foster e-business and citizen utilization.

Submissions to Rural Connections may include partnerships, but only one lead municipality is eligible to apply for funding. This lead will be responsible and accountable for managing the project funds and project deliverables.

Project partnerships may include representation from local government (upper, single and lower tiers), utilities, post-secondary institutions, school boards, training organizations, business and technology associations, hospitals and other local health organizations, public libraries, cultural organizations, community service organizations, and other community groups.

Individuals and individual businesses are not eligible to receive funding under this initiative.

What projects are eligible for funding?

Projects eligible for funding under Rural Connections will develop broadband infrastructure to provide connectivity to residents, businesses, and public institutions in rural areas that currently do not have access to broadband Internet services, providing a foundation for growth and innovation.

To be considered for funding, applicants must demonstrate how the proposal addresses the 4 eligibility criteria:

• Readiness,
• Commitment,
• Gaps to be covered; and
• Benefits to the community.

The applicant must incur all project expenses within the approved timelines of the Funding Agreement, and no later than March 31, 2012.

The program does not prescribe any specific technological solution to build broadband infrastructure. Applicants are encouraged to weigh the range, costs, terrain challenges and viability of available solutions to ensure that proposals are best suited to local needs.

In developing infrastructure plans, applicants must ensure compliance with Industry Canada protocols and all existing requirements (e.g., environmental assessments, land use authorities, etc.)

What funding will be available?

The Government is committing $30 million over 4 years to Rural Connections starting in 2008-09. A portion of this funding will be allocated to projects in Intake One.

The province will contribute up to one-third (1/3) of eligible costs, to a maximum of $1 million per application. Municipalities are responsible for securing the remaining share of the eligible costs from their own resources and/or from partner contributions.

Eligible costs for approved projects can be incurred from April 1, 2008.

 

Why are there multiple application intakes?

Not all municipalities will be ready to proceed with an infrastructure project for Intake One. Offering more than one application intake allows each municipality sufficient time to prepare comprehensive applications with evidence to support its capacity to proceed and complete the project.

Should an application not be successful in the first attempt, the municipality will be eligible to submit an improved application in a future intake.

Also, successful municipalities will be eligible to apply for future funding, if available, providing any existing projects are completed and the final reports have been approved by OMAFRA.

Information on the timing of intakes will be available on our website; however, two (2) intakes per year are planned until the funding allocation is fully committed.

What are the application requirements?

The information provided in the application submission will assist the Ministry when assessing the eligibility of the proposed project. Providing insufficient information may result in the application not scoring highly in the review process.

OMAFRA must receive a completed application submission that includes:

• General Information Form;
• Schedules 1 through 5;
• A certified true copy of the municipal council resolution stating the application is a priority for the municipality, and that it commits to securing the remaining project funding.
  

Submissions that do not include all the above-mentioned components will be deemed to be incomplete and therefore will not be considered for funding.

General Information Form

1. Name of Lead Municipality
   The project lead must be a municipality in rural southern Ontario. Where there are multiple partners in the project, one project lead needs to be identified.
   
   
2. Lead Municipality Contact Information
   Identify name, mailing address, telephone and fax numbers, email address.
   
   

3. Collaborating Municipalities
   Name other municipalities that will be collaborating on the project.

4. Proposal Title
   Provide a title for your project - will be used for publication purposes.

5. Amount Requested From Rural Connections
   Should reflect one-third of eligible costs to a maximum of $1 million per application. (Actual amount may be reduced upon project approval and/or acceptance of revised Technical Plan and Cost Summary.)

6. Proposal Synopsis
   Describe, in no more than 250 words using non-technical language, the objectives, benefits to the community and key elements of this proposal.
   Describe the importance of this project for community citizens and businesses, including Broader Public Sector, in terms of accessing e-government services, providing public access sites, promoting rural economic development, green technology, accommodating seasonal demand, and other significant factors specific to the project.
   Note: This summary description may be used, in whole or in part, in press releases or similar material, if the project is approved.

7. Total Project Costs
   This chart should be filled in after completing Schedule 4 - Cost Summary. Schedule 4 requires the detailed list of estimated project costs, including existing infrastructure in-kind contributions. The Total Project Costs chart is a summary of these total estimated project costs.

8. Sources of Funding and Partners
   This section is a summary of anticipated contributions - cash and in-kind. The total contributions must be equal to the Total Estimated Costs (A) identified in the chart in Section 7: Total Project Costs.

   The applicant municipality is responsible for securing two-thirds (2/3) of the project costs.

   A Final Report is required to be submitted upon project completion. This report includes a full accounting of the actual total project expenditures and contributions.

   Identify partners (secured and potential) who will contribute to project planning, funding and project implementation.

   Partners can include other municipalities, First Nations, the Federal government, Broader Public Sector organizations, telecommunications providers, private sector, Small Business Enterprise Centres, etc
   Note: Federal funding will only be considered as part of the leveraged share if evidence of the financial commitment is included with this application.
   

9. Previous Broadband Funding
   Identify previous provincial and/or federal funding received or requested for broadband projects, including BRAND, COBRA and/or the 2007- 08 Rural Connections program.
   

    

Schedule 1 - Business Case

1.1 Business Rationale

The purpose of the Business Case is to explain the rationale for the project, the need for funding, and the applicant's ability to garner the necessary resources - financial, project management and technical expertise, etc.

Rural Connections provides broadband Internet availability to promote access to e-government services, public access and rural economic development opportunities. The business case should explain how the project will address these priorities.

The applicant must demonstrate how the project meets the eligibility criteria:

• Readiness;
• Commitment;
• Gaps to be covered; and
• Benefits to the community
  

Explain the financial aspects of the project and how partner commitments and contributions will be achieved to ensure securing the remaining 2/3 share. Demonstrate that partners' financial commitments and capacity can be relied upon.
Demonstrate the willingness, commitment and experience of core participants to ensure resources are available to complete the project within required timelines.

Identify the project team and partners and their experience related to broadband or other infrastructure projects that address economic development in rural communities.

Identify organizations and/or individuals involved in the project and their experience in outreach and awareness related to promoting the adoption and use of broadband and e-business.

Describe the importance of this project for community citizens and businesses, including Broader Public Sector, in terms of accessing e-government services, providing public access sites, promoting rural economic development, green technology, accommodating seasonal demand, and other significant factors specific to the project.

1.2 Estimated Timelines

Complete Chart 1.2 by shading the block representing the fiscal quarter that best reflects the estimated completion time of each milestone. Other milestones specific to the project may be changed or added.

Typically, projects complete within a 2 year time frame; however, if a proposed project requires additional time, rationale will have to be provided to substantiate the request.

The quarters are based on the provincial government's fiscal year as follows:

Q1 = April - June
Q2 = July - September
Q3 = October - December
Q4 = January - March

 

Schedule 2 - Gap Analysis

2.1 Instructions and Hex Map Information

NOTE: In late June, the Ministry of Government and Consumer Services (MGCS) distributed CD-ROMs with broadband mapping data to all southern Ontario county/municipal Chief Administrative Officers. Included in the package was a request for assistance in a broadband mapping validation process. This validation process is consistent with the activities of the Rural Connections program and is part of a larger ongoing exercise to map the availability of broadband in all of southern Ontario as well as the entire province of Ontario. Please note, the Rural Connections data contained on this site also provides an additional layer of data (population per hexagon).

A detailed analysis of the broadband access gaps is required for this evaluation.

The broadband data on the maps provided are preliminary and require updating and validation to prepare the gap analysis schedule in the application.

The province will provide county maps overlaid with an hexagonal (hex) grid to assist in this analysis. The file will contain map(s) in pdf format showing the hexagonal grid at a county level.

The maps and Excel Data File can be downloaded from the OMAFRA website at www.ontario.ca/rural. If unable to access the file, please call the Rural Connections hotline: 1-888-588-4111

A CD version can be requested via email at RuralConnections.omafra@ontario.ca

Hexagonal Map for Gap Analysis

The green and white hexes illustrate served and unserved areas, respectively.
Each hex has a unique ID number (e.g., ON123).

Illustrating the un-served or under-served gaps in your project area is an important eligibility criteria on which your application is assessed. Rural Connections uses a hex grid, overlaid on the provincial map, as the measuring unit for this purpose.

Each of the six sides of the hex represents a length of three (3) kilometres; therefore, the area of each hex is approximately 25 square kilometres. Applicants are required to identify the hexes in the proposed project scope area and confirm whether they are served or not, according to the instructions below.

Municipalities are required to validate the hex data to at least cover the scope of the proposed project; however, they may choose to go beyond. Costs associated with the validation process are eligible for funding.

Municipalities that are not applying for funding may access the gap analysis tools on the website to review and validate their own mapping information.

Note that while existing local data may be in another format, the application must include a gap analysis based on this hex map.

Rural Connections will provide the following information for each hex:
(a) A unique identification number (e.g., ON123);
(b) Permanent resident population data (2006 Census). [Geospatial and detailed demographic information is also available; please contact program staff at 1-888-588-4111 to request this information.];
(c) A preliminary indication of the current hex status - served or not served.

The preliminary served/unserved data may not be accurate. Applicants should consider the Y/N designation as a starting point to undertake further investigation and confirmation.
The preliminary data identified a hex as "served" if all 3 of the following conditions were true:
(a) Available minimum download speed is at least 1.5 Megabits per second (Mbps);
(b) Subscriber rates are affordable (i.e., close to current urban rates);
(c) 76% or more of the geography is able to access broadband service.

Some activities to assist in the validation exercise include:

• Contacting Internet Service Providers offering services in the target areas;
• Collecting feedback from citizens and businesses (e.g., direct contact by phone or mail).

Expenses relating to map validation will be eligible for reimbursement.

In designing your network strategy, consideration should be given to a phased approach deployment strategy (e.g., placing service in the more difficult to serve areas first versus placing service in the areas next to existing service).

Seasonal Implications: potential demand by seasonal population influx and/or seasonal businesses may be an important economic development factor in a hex with a relatively low year-round or permanent population. (Remember, the hex data is based on year-round population information.)

 

Excel Data File

The downloaded file will also include an Excel Data File to be completed. It contains a list of all the numbered hexes in the county that correspond to the relevant county level hex map.

The following chart is a sample data file for reference purposes. The columns are explained below.

A - Hexid: This column will already be populated and corresponds to the hex grid in the applicant's county map.

B - Population: This column will be filled in based on census data from 2006.

C - Designated Served or Unserved: This column identifies whether a hex is deemed to be served (Y) or not (N). The information is based on preliminary data that should be confirmed by the applicant.

D - Validation: Complete this column by confirming (Y) or disagreeing (N) with the data supplied in Column C. Validation is required for all hexes within the proposed project area; validation is optional for those hexes outside the proposed project.

E - Will the proposed project serve this hex?: Fill in a yes (Y) or no (N) response for each hex to indicate whether or not it will be served in the proposed project. The sample below provides some scenarios that could apply to your area. For example, hex (ON123) may be considered already served, and you confirm this status is correct through your investigation; therefore this hex will not be served in the proposed project.

F - Population Currently Unserved in this hex: Estimate the number of people in each hex who currently do NOT have broadband access.

G - Rationale: You will notice that the hexagonal grid overlays the entire area, including rivers, lakes, provincial parks, etc. In addition to the rationale for serving or not serving the hexes, please categorize these areas to correspond to the hexes listed on the Excel Data file as in ON129 below.

A	B	C	D	E
Hex ID	Population (derived from 2006 census)	Designated Served (Y) or Unserved (N) based on preliminary data	Validation Y/N	Will the proposed project serve this hex?
ON123	4999	Y		N
ON124	351	Y		Y
ON125	351	N		N
ON126	98	N		N
ON127	98	N		Y
ON128	6	N		Y
ON129	0	N		N

A	F	G	H
Hex ID	Population currently unserved in this hex?	Provide rationale for responses in Column D	Comment on any serious terrain challenges
ON123		Already served
ON124		Required explanation for serving hex already served	Deep valleys
ON125		Required explanation for not serving gap
ON126		Required explanation for not serving gap	Dense tree cover
ON127
ON128		Required explanation, e.g., seasonal population/business
ON129		Water, park or other uninhabited area

 

2.2 Summary Demographic Description of Project

Complete the chart in Schedule 2 based on findings from the gap analysis and demographic information in the project area.

 

Schedule 3 - Technical Plan

A Technical Plan describes the network system to be installed within an area, including detailed diagrams indicating the various parts of the network, the technology to be deployed, and how it will be installed.

Applicants should complete this section to the best of their ability with the most comprehensive information available; however, the Technical Plan may need to be adjusted from the original proposal once the final project scope is determined. In this case, updated Technical Plan information will be required.

Municipalities are not obligated to select an Internet Service Provider (ISP) prior to submitting an application; however, applicants are encouraged to obtain technical advice from in-house information technology (IT) professionals, consultants and/or through Requests for Information (RFIs) or Requests for Proposal (RFPs) to telecommunications providers. OMAFRA's Local Support Teams (LSTs) will be available to assist municipalities by providing advice and guidance on the technical aspects of the application.

These costs will be eligible for reimbursement on approved projects if incurred on or after April 1, 2008.

The technical plan must address the following 4 criteria:

• Procurement document was/will be technology neutral;
• The proposed solution has a minimum download speed of 1.5 Megabits per second (Mbps);
• The proposed solution has open access; and
• The proposed solution is scalable.
  

There is no requirement for a minimum upload speed.

Technology neutral means that the procurement document does not specify a pre-determined technology, thus allowing the Internet Service Providers to propose the best network solution based on their experience and knowledge of the area to be served.

Open access means that other telecommunications service providers must be able to offer a competitive service via the local access infrastructure facilities funded under Rural Connections. The competitor service provider must be able to offer service on a resale basis and use unbundled wholesale services in combination with its own facilities, where technology and co-location are feasible.

Scalability allows for increased capacity including the number of subscribers, bandwidth, transfer rates, etc. without a major change to the network.

The Funding Agreement will include, as part of the terms and conditions of funding, the right to perform a technical audit on the completed broadband network. This audit, if undertaken, will consist of, but not be limited to, the following activities:

• on-site inspection of wireless towers and equipment;
• inspection of equipment located at central offices and warehouses;
• visiting network operations centre and speaking with staff;
• verifying deployed equipment as invoiced by the ISP;
• confirming end user bandwidth speed to confirm it meets minimum rates; and
• photographing the various network locations and/or hardware.
  
  

3.1 Description of Proposed Network

Include the following in the description:

• network size and type of technology;
• intended reach of the system.

Explain how the ISP procurement process will address/did address network technology neutrality and provide the rationale for choosing the proposed technology type (i.e., wireless, DSL, cable).

 

3.2 Network Configuration

Include the logical design of the network as well as its physical deployment. Site locations for the equipment installation should be illustrated, and any distance measurements or identification of any physical impairment explained. These descriptions should identify sites with an address or other form of location identification.
Information such as path/linkage between backhaul points and where the network will link to a larger regional or provincial network should be included. Bandwidth capacity should be indicated for each link.
Details on the load of the base points (typically called the contention ratio) and expectations of what a full unit will bear in terms of customers are part of the configuration. Identify a solution for accommodating additional subscribers once the existing equipment is running at full capacity (scalability).

For wireless implementations, a description of the spectrum range and an explanation on why it is believed to be the optimal design for the proposed network should be included. Path profile (Fresnel zone) diagrams for backhaul transport towers should be included in this section.

An overall geographical map (with all communities' names identified) should illustrate towers (if wireless), Central Offices (COs), Digital Subscriber Line (DSL) remotes, fibre runs, and repeaters, etc. and the range of each.

Provide an explanation on how open access is proposed to be accommodated and list the open access services that are to be offered to other telecommunications service providers.

3.3 Network Characteristics

Include information on the anticipated performance characteristics of the network, such as:

• Typical expected connection rate (speed) for end users;
• Potential points of congestion in the service;
• Types of availability and survivability intended for the network;
• Types of reliability;
• Proposed remedies for system failures.
  
  

Details should include statements on the following items:
• Network availability (backhaul and distribution/access segments with yearly downtime metrics);
• Network reliability - backup power, hot/cold standby equipment or cardes, etc.;
• Quality of service details;
• Network redundancy inclusions (Internet gateway connections, link failures, server failures, etc.).
  
  

3.4 Equipment Details

Describe quantities and types of equipment to be used at each installation, and proposed replacement strategies for damaged/outdated equipment.

3.5 Construction Schedule

Provide a detailed schedule for the network construction, including the preparation, installation and commissioning of each site. A sample table is provided to illustrate some of the activities to be considered.

Typically, projects are completed within two years. If the proposed project is estimated to complete beyond this time, rationale is required for the extension.

 

3.6 Risk Factors

Identify any potential risks and mitigation paths associated with the construction and technical aspects of the project. The following table illustrates a format that may be used for this purpose with some examples:

Risk Item	Possibility of occurring	Impact to project	Mitigation Path
Site not available	Low	Medium	Minimize private land use
Equipment delayed	Medium	High	Work with vendor to fast track
Weather	High	Medium	Fast-track climate sensitive activities

Schedule 4 - Cost Summary

The Cost Summary (Excel spreadsheet) will identify proposed project costs.

Rural Connections will focus on improving broadband access by providing capital funds to leverage private sector and community (including municipal) contributions.

Approved eligible project funding will represent up to one-third (1/3) of the total eligible costs. The provincial government will make this investment to a maximum of $1 million per application. The municipality is responsible for securing the remaining two-thirds (2/3) of the eligible project costs, from either the municipality itself or partner contributions. This share may be covered by either cash or in-kind contributions.

Funding from other provincial programs is NOT eligible for matching with the Rural Connections program. Such funding cannot be leveraged toward the two-thirds (2/3) share.

Eligible costs must be directly related to the project. Costs must not exceed fair market value (evidence demonstrating this may be required) and must not include any mark-ups. For audit purposes, recipients of provincial funding are required to maintain all documentation pertaining to the project for a period of seven (7) years.

In-Kind Contributions

Consideration for in-kind contributions is subject to limitations and guidelines. In-kind items must be measurable, represent current fair market value and be necessary for the implementation of the project.

The determination of eligibility and value of in-kind contributions are considered in terms of age of asset and ownership.

In-Kind Contributions - Existing Infrastructure (Existing prior to April 1, 2008)

Existing broadband infrastructure [such as telecommunications towers, silos, water towers, Point of Presence (POP), etc.] that will be used as part of the new broadband network may be eligible as an in-kind contribution to the project. Such vertical real estate and points of presence built prior to April 1, 2008 are the only existing infrastructure that will be considered eligible as an in-kind contribution. The maximum value will be determined according to Chart 1 below.

A maximum of 2 backhaul Points of Presence (POPs) per project will be considered as an in-kind contribution. A POP includes ANY connection to an existing service regardless of whether that service is inside or outside of the project area. The second POP is only eligible if used for redundancy and is a connection to existing broadband infrastructure.

Only the legal owner of an asset may contribute to the project. The owner of the asset will be required to sign a declaration as a contributing partner. If the owner does not sign the declaration, the asset will not be considered eligible for reimbursement.
The municipality will include the signed declarations with the normal claim submissions.

Infrastructure contributed or funded under the 07-08 Rural Connections program is NOT eligible as in-kind.

 

Chart 1 - Existing Infrastructure (Prior to April 1, 2008)

Maximum values for existing towers, etc. including all related equipment (tower structure, backhaul, power, backup, radios, etc.) as follows:

Towers attached to buildings (including but not limited to grain elevators, water and fire towers, silos, communications towers) and 50 feet or less in height = $15,000

Towers attached to buildings (including but not limited to grain elevators, water and fire towers, silos, communications towers) and greater than 50 feet in height = $30,000

Towers less than 50 feet in height = $15,000

Towers between 50 and 100 feet in height or Points of Presence = $30,000

Towers greater than 100 feet in height = $150,000

Existing cable or fibre for backhaul purposes = $5,000 per kilometre to a maximum of $30,000

The maximum claim for a Point of Presence and/or existing cable/fibre to a Point of Presence = $30,000.

In-Kind Contributions - New Infrastructure (Built on or after April 1, 2008)

Internet Service Providers (ISPs) or other partners may contribute towers and equipment to the project as an in-kind contribution (i.e. they will not directly invoice the municipality for these costs).

To be considered eligible as in-kind, the contributor must provide copies of the relevant invoices from their suppliers, including copies of cancelled cheques indicating the invoices have been paid.

The municipality will include this documentation with the normal claim submission.

In-Kind Contributions - Other (i.e., After April 1, 2008)

Other goods and services provided during the current project may be considered eligible, such as:

• consulting fees;
• project management;
• materials for site preparation by municipalities;
• outreach and awareness materials and activities.
  

The municipality will include adequate documentation as evidence of the in-kind value with normal claim submissions.

Claims

In-kind contributions will be reimbursed through claim submissions that are supported by the required documentation. In addition to in-kind, invoices paid by the municipality for eligible goods and services will be claimed in the same manner. These goods and services must be incurred no earlier than April 1, 2008 and no later than the end date stipulated in the Funding Agreement but no later than March 31, 2012.

Claim submissions include a progress report, claim statement and copies of eligible invoices, in-kind declarations and proofs of payment. It is important to note that reimbursement is made on paid, eligible third party invoices. If suppliers are not paid, the claim will not be processed. Payments are made directly to the lead municipality signing the Funding Agreement.

Claims will not be paid until all required documentation is received by the ministry.

Procurement Requirements

Municipalities are responsible for following their own procurement policies and procedures as prescribed by the Municipal Act.

Eligible Expenses

Eligible expenses relating to the project may be incurred from April 1, 2008. These expenditures may include, but are not limited to, the following:
Infrastructure - vertical real estate (e.g., towers), co-location lease costs for a maximum 12 month period incurred no earlier than April 1, 2008;
Equipment - servers, switches, fibre optic cable, repeaters, microwave stations, wireless facilities, and network connectivity devices;
Funding Agreement Requirements - such as project surety costs (i.e., Irrevocable Stand-by Letters of Credit) or plaque costs (to a maximum funding amount of $33);
Software - only network management and telecommunications facilities relating to the new broadband network;
Engineering/Design - network, architecture, and systems design and integration;
Project Management - costs may not exceed 10% of the total approved eligible project costs;
Consulting Fees - fees and costs pertaining to the Request for Proposal (RFP) and/or Request for Information (RFI) processes to assist in preparing the application (including business case, technical plan, gap analysis, etc.);
Map Validation - costs relating to map validation will be eligible;
Outreach/Awareness and Public Access - Municipalities are required to allocate 5% of their eligible project costs to these activities. Small and Medium Enterprise outreach and awareness spending must be at least one-third (1/3) of this 5% budget, up to a maximum of $50,000 in eligible costs. The remaining portion of the 5% is to be focused on public sector access.

 

Ineligible Expenses

Ineligible expenses include, but are not limited to:
Land, Buildings, Vehicles - and other indirect, fixed, and/or capital costs;
Radio Licensing Fees;
Financing or Carrying Costs;
General Office Equipment - photocopiers, furniture, telephones, computers, printers and office software;
Activities or Operations Performed Outside of Ontario;
Research and Development or Pilot Projects;
Fundraising Activities;
Annual or Repetitive Costs - memberships, repeat printing costs.
Remunerations or Fees Paid to a Board of Directors for their time;
Volunteer Services, Opportunity Costs, and Standard Discounts;
Donations in the Form of Knowledge, Goodwill or Other Such Intangibles.
The Funding Agreement between the municipality and province requires performance sureties for the broadband construction project. The amount of surety is 50% of the value of the contract between the municipality and the Internet Service Provider. For contracts below $150,000, no surety is required; however, project contracts cannot be split to circumvent the requirement.

The acceptable surety is an Irrevocable Stand-by Letter of Credit from a major Canadian financial institution from the Internet Service Provider in favour of the municipality. However, should the Internet Service Provider not be able to obtain this security, the municipality will be obligated to obtain the Letter of Credit in favour of the province. This surety is required to be in place no later than 30 days after the execution of the Funding Agreement

4.1 Cost Summary

The Excel spreadsheet requires completion to identify proposed project costs. Note the cells coloured red represent ineligible costs. These cells cannot be changed.

Column C - Existing Infrastructure - Built prior to April 1, 2008
Refer to Chart 1 above for values

Column D - New Infrastructure - Built on or after April 1, 2008
Estimated new project costs

Column E - Totals
Automatically sums the values from Columns C and D, then calculates the provincial funding based on one-third of the total eligible project costs

SUBMISSION INSTRUCTIONS
A printed copy of the spreadsheet must accompany the application. Additionally, attach an electronic copy in the original Excel format (not pdf) to the electronic application.

Schedule 5 - Outreach/Awareness and Public Sector Access Plan

All applications must contain a detailed plan and budget that includes both Small and Medium Enterprises outreach and awareness-building activities and public sector access strategies. Municipalities are required to allocate 5% of their eligible project costs to these activities. At least one-third (up to $50,000) should be for Small and Medium Enterprise outreach and awareness. The remaining portion is to be focused on public sector access.

OUTREACH/AWARENESS

Applicants are required to identify a plan and budget for outreach and awareness-building activities targeted at fostering adoption and uptake of e-business solutions and new technologies by communities, Small and Medium Enterprises (SMEs), entrepreneurs and other relevant organizations. These outreach activities include, but are not limited to, conferences, information sessions, town-hall meetings, hands-on demonstrations, presentations, workshops, speakers series, resource materials and marketing via email or web casting.

The Small Business Enterprise Centres (SBECs), operated by the province in partnership with local municipalities, may provide support to rural projects located in their catchment areas.

As part of an outreach/awareness plan, project groups can:

• Expand on current activities or start new initiatives with an emphasis on those offered at no cost to target audiences;
• Partner with other groups [e.g., Small Business Enterprise Centres (SBECs), Chambers of Commerce, Community Futures Development Corporations (CFDCs), libraries, etc.] to undertake broader outreach activities.
  

 

5.1 Small and Medium Enterprise Outreach and Awareness Plan

Describe the outreach activities planned to support local awareness building and uptake by Small and Medium Enterprises.

Indicate the expected impact of the outreach activities and how they will improve access to broadband connectivity and stimulate the use of e-business solutions among entrepreneurs, and small and medium businesses.

Identify the name of the Small Business Enterprise Centre (SBEC) and other partners with which you will be coordinating.

Outline how the activities will be managed. Identify the Outreach Plan lead, key staff and those with whom you will be collaborating in carrying out your outreach activities.

5.2 Small and Medium Enterprise Outreach and Awareness Plan - Deliverables, Timelines and Budget

Complete the chart describing the activities, timelines and budget allocation.

Public Outreach/Wareness

Included in the plan, applicants must demonstrate a strategy to provide citizens in rural communities access to equipped public sites. Plans must also demonstrate how access for public sector organizations (e.g., schools, libraries, community facilities, etc.) will be ensured.

5.3 Public Outreach and Awareness Plan

Note: this summary description may be used, in whole or in part, in press releases or similar material, if the project is approved.
Describe the outreach activities planned to support local awareness building and uptake of broadband in communities. Indicate the expected impact of the outreach activities and how they will improve access to broadband connectivity and stimulate the use among individuals and interested groups.

5.4 Public Outreach and Awareness Plan - Deliverables, Timelines and Budget

Complete the chart describing the activities, timelines and budget allocation.

5.5 Public Sector Organizations

Ensure public sector organizations (e.g., schools, libraries, community facilities) have access. Outline the public sector organizations and facilities to be targeted. Identify the activities to be conducted by public sector organizations to promote uptake and use of high speed Internet.

5.6 Public Access Point Strategy

A public access point strategy will provide equipped public sites to citizens in rural communities. Outline the number and locations of the public access points to be developed ensuring e-government services are available. Identify partner roles and responsibilities as well as the activities to be conducted to promote availability of these public sites to potential users.

5.7 Public Access - Deliverables, Timelines and Budget

Complete the chart describing the activities, timelines and budget allocation.

5.8. Performance Measures

 

Complete the Performance Measure chart with expected performance outcomes to address the various outreach/awareness and public access components in the plan.

Examples of business associates could include Chambers of Commerce, Boards of Trade, etc. List business associations under Comments section.

How are applications submitted?

All applicants must submit:

1. Three (3) unbound paper copies of the application and all supporting materials including original signature(s); and,
2. Either one (1) electronic copy on CD or emailed to: RuralConnections.omafra@ontario.ca

The application, schedules, gap analysis Excel Data File and Cost Summary spreadsheet MUST be submitted in the appropriate WORD and Excel formats. Other supporting documents may be submitted as pdf files.

Applications must be submitted to:

Rural Connections Broadband Program
Ontario Ministry of Agriculture, Food and Rural Affairs
Rural Community Development Branch
1 Stone Road West - 4th floor NW
Guelph, Ontario N1G 4Y2

Notice of Intent to Apply

To be advised of any program updates, changes, and for clarification of ongoing questions throughout the application phase, applicants are encouraged to indicate their intent to apply by sending an email to: RuralConnections.omafra@ontario.ca

Notices of intent to apply are not binding. They serve to assist program staff in compiling email distribution lists for dissemination of project information. Notice of intent can also be given by calling the Rural Connections hotline at 1-888-588-4111.

Confidentiality

Applications and supporting material submitted to the Ministry of Agriculture, Food and Rural Affairs will be subject to the Freedom of Information and Protection of Privacy Act (Ontario).

Any information submitted in confidence should be clearly marked "CONFIDENTIAL" by the applicant. Inquiries about confidentiality should be directed by email to the Ministry of Agriculture, Food and Rural Affairs: RuralConnections.omafra@ontario.ca

How will projects be approved?

Rural Connections is a competitive program and only those applications best demonstrating the
eligibility and technical criteria will be selected for funding.

An inter-ministerial Project Review Panel, including independent experts, will review all applications and select projects for approval. The panel will evaluate the applications according to the following criteria:

1. Readiness: The experience and capacity of the applicant, its partners and project manager to successfully develop, implement and complete a technologically-sound broadband infrastructure project in the time permitted.
2. Commitment: The ability of the partnership to bring together the stakeholders and commit the required funds to the project.
3. Broadband and Connectivity Gaps: The size of the territory, population, number of businesses and public sector organizations that will be covered by the project.
4. Expected Benefits: The anticipated value for money from the project and future outcomes and impacts of broadband access in the communities. Included in this section should be information on how the project will promote rural economic development through access to e-government services and public sector uptake and use.
   

Eligible projects are then presented to a senior level approvals panel for final selection.

Project approvals will be based on the assessment of the application and mandatory supporting documents.

 

What are the next steps after projects are approved?

OMAFRA's Local Support Team (LST) staff will be available to provide information on the application process and requirements to assist municipalities and their partners.

Successful applicants are expected to work closely with their designated Local Support Team. LST field staff bring project management and/or broadband expertise to help project managers and municipal staff develop finalized plans and supporting documentation to ensure funding requirements with the province are fulfilled.

LSTs also provide advice, guidance and assistance to finalize the Funding Agreement and proceed with project implementation.

Funding Agreement

All applicants for approved projects will be required to sign a Funding Agreement with the Province of Ontario.

Municipalities will be required to submit a by-law or council resolution stating the municipality has agreed to enter into a Funding Agreement with the Province.

Successful municipalities are also required to determine and obtain necessary approvals related to permits, environmental assessments, government regulations pertaining to tower sites, etc.

Updated Schedules

Technical Plans may need to be adjusted from the original proposal. In this case, municipalities will be required to provide updated schedule information pertaining to subsequent changes in project scope, budget, gaps to be covered and/or timelines for acceptance.

Resources

The application and related forms, guidelines, maps and Excel Data File can be downloaded from the OMAFRA website at: www.ontario.ca/rural

The following publications are available for your reference:

How You Can Profit from E-Business: An Introductory Toolkit http://www.sbe.gov.on.ca/ontcan/sbe/en/resources_ebiz_toolkit_en.jsp

The Community Broadband Toolkit
http://www.gov.on.ca/mgs/en/IAndIT/247278.html