Town of Princeton, Mass. – September 7, 2016 -- 7 PM
BOARD OF SELECTMEN Minutes
7:02 PM – The meeting was called to order in the Princeton Center. Present were Board of Selectmen members Stan Moss, Jon Fudeman, Edie Morgan, and Advisory Committee members John Shipman, Wayne Adams, David Cruise, Bill Lawton, George Handy, Jim O’Coin, and Don Schoney. Also present were Nina Nazarian, Town Administrator, and Marty Dell’Erba, PBMLP Assistant Manager.
Jon Fudeman mentioned that based on a conversation that he has had with our Town Moderator and Town Administrator, that the Special Town Meeting could not be cancelled.
Nina explained that the Board of Selectmen would be meeting this evening to discuss the options further. That there are ultimately 3 options; 1st the STM would be opened, then the Board could propose by motion to postpone the STM to a date and Mr. Kelly certain, 2nd the STM would be opened, then the Board could propose a motion to pass over article 2, or 3rd the STM would be opened, then the Board could propose a motion to pass over article’s 1 and 2 (article 3 would be taken up in accordance with any legal motion and second provided by the Citizen’s Petitioners).
Comcast Presentation
Mr. Tim Kelly, Director of Government Regulatory Affairs for the Greater Boston Region, mentioned that Comcast is here as a result of a letter of intent submitted. Mr. Kelly introduced his colleagues, Ms. Alicia Matthews, Senior Director of Government Affairs from the Northeast Division of Comcast located in Manchester, NH and Mr. David Kowolenko, Vice President of Engineering of Comcast from the Northeast Division from Northeast Division located in Manchester, NH.
Mr. Kelly provided an overview of Comcast. Mr. Kelly explained that the Town of Princeton would be brought into the Greater Boston Region (GBR), explaining that there is no delineated difference between greater Boston and Princeton. Any services provided to the GBR, would be available in Princeton.
Internet, video and Xfinity automation would be available at 10 Mbps, to 100 Gbps for commercial business customers. Mr. Kelly described internet essentials for those that are low income (program provides 10 Mbps up and 2 Mgps down, for 9.95/mo, free equipment installation, etc).
Hybrid-Fiber Coax network. Mr. Kowolenko said that Comcast has multiple options to service customers. Has begun its design, but that it will narrow down better and better over time. Discussed the design construction plan. Mr. Kowolenko explained that speed increases have been done over Mr. Kelly from changing the hardware at the end of each component.
Mr. Kowolenko explained that there are multiple Xfinity Operations Centers (XOC). Network Operations center (NOC) look at the network and monitor what is happening; proactive maintenance (i.e. error conditions) and use that information to correlate information to dispatch resources and ability to triage, and reactively address complaints and concerns reported. Also looks at how the networks are built with regard to network architecture (industry standards and their own standards as part of building the network). Mr. Kelly asked Mr. Kowolenko to discuss cyber security. Has a cyber security team that looks at external and internal threats. If malicious activity is taking place, they can isolate it and address.
Nina mentioned that the meeting was being recorded.
Ms. Matthews provided her background; spent 15 years with the DTC (formerly DTE, and prior to that DPU), has been working with the MBI since its inception since 2007. Under the new leadership with the MBI, they have been able to come to an agreement for underserved communities. There are 2 pockets of funds (some for partially served and some for unserved). Ms. Matthews said that there is not a one size fits all. The MBI submitted a Request for Proposal for several western Massachusetts towns, Comcast responded and has been secured to provide service to those towns.
GBR region with the MBI, contractors in Town in Princeton to review the estimated cost to build in Princeton. Ms. Matthews said that they have a formula of how they deterime if a new build out would cost effective for the company. Ms. Matthews indicated that she spoke with Mr. Peter Larkin and others at the MBI, that they understand that the Town is planned to receive $910,000 from the MBI, and between the MBI share and capital by Comcast, they believe that they are very close to being able to present a proposal to build 100% of the Town as a private-public partnership. This would include no hookup fees to customers and the cost sharing is between the MBI and Comcast. Ms. Matthews said that unlike the 9 towns in western ma where they were reportedly able to start work the following day,
Comcast does not have a franchise in Princeton. Comcast, as a cable provider under MA state law, they need to obtain a franchise (She stated that they hold 241 franchise’s in MA). In MA, the DTC has expedited the process for a cable franchise. The town would need to give permission to Comcast to work in the Right-of-Way and from Verizon and the town (PMLD) relative to attachments.
Ms. Matthews stated that she expects that once a franchise is in place, and licenses obtained, would be able to construct 8 to 12 months, with the first customers coming on in 6 months.
Comcast has used the make-ready in its calculations for the entire build, and anticipates that the overall build cost would be shared by Comcast and the MBI (there is a small differential on this subject that needs to be worked out.
Stan mentioned that there is no mention of a letter of intent in the Cable TV guide by Comcast. On January 23, 2013 the Town published its call for cable franchises, but there was no response. Stan explained that in his conversation with the DTC, they do not recommend that the town jump in and begin negotiating with only Comcast, that instead if the Town wishes to pursue a Cable Franchise, that the Town issue another request for Cable TV franchise applications.
Ms. Matthews explained that it wasn’t common for new franchises to start except in the 80’s, but in 2006 the effort began and ultimately resulted in a guide entitled, “The Cable Television Licensing Process, A Practical Guide to Initial Licensing” to be produced.
Ms. Matthews explained that an initial franchise cannot exceed 15 years, and then after that a renewal cannot exceed 10 years. She confirmed that the letter of Intent is not part of the process, but that the letter was not intended to be part of the process, rather to notify the Town of Princeton that Comcast is interested if the Town would like to consider the opportunity.
Ms. Matthews mentioned the 3 ways that a cable franchise can begin under the guidance by the Department of Telecommunications (see guide). What Comcast is proposing, if the Board of Selectmen wishes, Comcast will submit such an application.
Stan Moss asked what standing MBI had in the process with Comcast? Ms. Matthews explained that it was funding.
Stan Moss explained that we had an engineering study done using google earth, which identified 1,303 services, 211 of which are underground (4 public and 6 private roads that are underground, etc.) Ms. Matthews stated that there were 1,393 premises from their engineering study (95% aerial and 5% underground).
Ms. Matthews explained that it is not unusual to have discrepancies with the number of premises. That in 180 days there will be a reconciliation to confirm that they are reaching the residences.
Stan Moss asked Comcast to respond as to what Comcast would do with regard to the long distance connections. Mr. Kelly responded that a majority of those issues will be addressed, but it would be negotiated in the cable franchise agreement.
Ed of Radford Road interjected stating that in the Town’s FTTH proposal, the Town was not proposing to pay for 100% of the underground.
Jon Fudeman asked about the citizen’s petition for one of the 3 options (see guide).
Edie asked what fiber rich meant. Mr. Kowolenko explained that the detailed design would explain where the fiber would start and stop. Edie asked if fiber was easier to install underground. Mr. Kelly explained that it was harder to install fiber underground. Edie also asked if there are any towns/cities where Comcast has provided a build out of 100% to any community. Ms. Matthews said that she could not say with certainty. Discussion about fiber and wireless. Ms. Matthews stated that speed and capacity is important.
John Shipman asked if DOCSIS 3.1 was being launched anywhere. Mr. Kelly and Ms. Matthews explained that they were being launched in Chicago and Atlanta. John asked if Comcast would pick up the cost for the exchange needed in the modem, going from DOCSIS 3.0 to 3.1 in the Greater Boston Region (Princeton included). Comcast indicated that it would.
George Handy asked about the MBI funds; there was some talk that the Town might be considered an extension from Sterling. Ms. Matthews explained that the pool of funds in the underserved towns is larger. Would run this from their head end in Sterling.
George Handy asked if Comcast had considered exploring Connect America Fund (CAF) 2 funding from federal government. Ms. Matthews indicated that Comcast does not have the ability to accept CAF funding.
Dave Cruise asked if MBI offers enough funding to address a build out in Princeton. Ms. Matthews explained that there was a differential that still needed to work out. Dave Cruise asked if the differential was not able to be dealt with, if Comcast would lose its interest to work in Princeton. Ms. Matthews explained that it might be possible to make up the difference through the cable franchise agreement. When asked what the differential was, Ms. Matthews responded that the differential is less than $100,000.
Bill Lawton asked what happens if residents do not hook up initially; if there was a cost to the homeowner after the fact. Mr. Kelly explained that as long as the home was within the standard installation distance, which is TBD (i.e. 2,100 feet would not be considered standard installation distance).
Stan Moss described the timeline to go through the DTC requirements to call cable franchise solicitation. Stan estimated that the process would take the Town through December and asked if there was an agreement established that Comcast would have Princeton funded in its upcoming budget (to eliminate time delays).
Wayne Adams explained that in parts of the country there are data caps being rolled out. Ms. Matthews said that it is in a “pilot” stage in other parts of the country and is being rolled out at a terabyte level. He asked about pricing structure and asked for description of how policies are established to modify pricing by Comcast. Ms. Matthews explained that the pricing levels are regulated at the state level. On the video side, designated market area (DMA) – pay broadcasters to carry them on the network by Comcast. Said that Princeton could look at rates and prices charged in Sterling and that Princeton would be very comparable to that.
Bill Lawton asked about internet essentials and whether or not it included cable. It includes broadband, basic TV and basic voice. Wayne Adams asked if the senior citizens package in the Sterling agreement was negotiated in the agreement or if it was standard. Mr. Kelly explained that it was not standard and needed to be negotiated.
Edie Morgan asked what recourse the Town has with regard to performance. Comcast stated that performance was part of the agreement terms.
Dave Cruise asked for clarification on the $1.2 million make ready funds. Ms. Matthews reaffirmed that the $1.2 million was part of their overall project cost.
Jon Fudeman said that in his opinion the major issues include senior use and others that are high end users. There could be a difference of price for higher users vs. lower users. That the cost differential was $100,000. That the town could be lit up in 8 to 12 months. Hook up costs would have no costs if service was requested after the fact.
Mike Cote of Houton Road asked what the total bandwidth would be running out of Town. Mr. Kowolenko explained that it would be part of the design. It would be modeled using similar communities with similar footprints.
Cory of Osgood Road was concerned that our allocation MBI could disappear and asked what is the estimated timeline for the franchise? Mr. Kelly explained a 120 day period and a public hearing, and could potentially be done in 4 months.
Don Schoney asked if all the data packages in terms of upload and download were symmetrical. Mr. Kelly explained that they were not.
Phil Gransewics of Laurel Lane asked what year this was budgeted in. Mr. Kelly explained that Comcast received approval by financial group to begin discussions.
Mike Shore of Mountain Road asked how quickly would the Town be notified of latest updates? Mr. Kelly explained that every year they send an annual rate notice, which includes all of the products and notices. Ms. Matthews said that there are lots of ways that Comcast would communicate with its customers, some of which are required by law, there are a lot of mailers. Mike Shore asked for confirmation the technology would not be static.
Christine Trudeau of East Princeton Road asked if the Board would be willing to vote tonight to enter into a cable franchise discussion. Stan Moss indicated that the Board would take more questions at this point.
Steve Cullen of Connor Lane asked if the Town contracts for 50 Mgps, what would the residents receive? Ms. Matthews explained that the speed tests according to the FCC with Comcast received 100% or greater.
Perry of Beaman Road explained that he was in Somerville did not achieve greater than 100%.
Chad Stiener of Wheeler Road asked if the differential between a 300 foot installation and 2,000 foot installation.
Clair Golding of Hubbarston Road asked if the Town would be in a queue behind other projects, etc. if/when the town is ready to go. Mr. Kelly explained that there could be circumstances where they could get other resources to assist with the build.
Heather Lyons of asked how the Comcast proposal compared to the other proposal.
Phil Gransewicz asked what percentage of Comcast contracts are renewed and which are not renewed?
Stan Moss offered an update with regard to the make ready and pole ownership. A resident asked if the make ready was completed in June, would Comcast be able to begin the construction sooner. Stan provided an estimated of cost to taxpayers for make-ready.
The Board of Selectmen voted 3-0 on a motion by Stan, second by Jon that the Board of Selectmen to proceed with the Cable TV licensing process, and continue informal discussions with Comcast, and authorize the Town Administrator to engage legal counsel up to $10,000, from the counsel line item or from the make ready funds, if permissible.
Kathy Conway asked if on September 13th whether or not the Board of Selectmen would vote on the proposed FTTH project.
Dave Nichols indicated that he was delighted that Comcast was willing to serve the Town of Princeton.
Steve Cullen brought up the question about costs (discussed $59 per month for 75 MGps, $79.95 / mo for 75 Mgps, $82 /mo for 150 Mgps).
Board of Selectmen voted to recess the meeting at 9:00 AM. Stan made that motion, with a second by Jon. All were in favor.
The Board of Selectmen voted 3-0 on a motion by Stan, second by Edie to reconvene their meeting at 9:28 PM.
The BoS voted 3-0 to make a motion to make a motion to pass over article 2.
Nina stated that based on the Board’s vote at its recent meeting, the $1.2 million Bond Anticipation Note would be rolled for a 1 year period with a tax exempt status, but that would prohibit any potential private partnerships during that term.
The BoS re-voted the subject, 3-0 on a motion by Jon, second by Edie to roll the Bond Anticipation Note for the $1.2 million borrowing for a 6 month term, continuing with a tax exempt note. Stan asked if a provisional cable TV franchise is that going to foul the tax exempt status. Nina agreed to follow up to find the answer to the question.
Phil Gransewicz asked why the town would select to engage a Special Town Meeting. He explained that the Town seems to be losing credibility relative to its comments about Special Town Meeting cancelation.
The BoS voted 3-0 on a motion by Stan, second by Jon to amend the Board of Selectmen’s earlier motion to also request a waiver of the original call for Cable TV franchise applicants in 2014.
Significant discussion on the DTC regulations.
The BoS voted 3-0 on a motion by Jon, second by Edie to adjourn at 9:57 PM.
Marie Auger
Administrative Assistant
Planning Department
978-464-2100
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