Town of Princeton, Mass.
Princeton Broadband Municipal Light Plant Board
Minutes of September 22, 2014
Neil called the meeting to order at 7: 03 PM. Present were Neil Sulmasy, Edith Morgan, Stan Moss and Manager John Lebeaux.
Discussion and possible action on organization of Municipal Light Plant (MLP) Board
On a motion by Neil, seconded, by Edie, the Board voted 3-0 to elect Stan as Chairman. Stan assumed the chair.
John reported that he has established with MLP attorney John Ferriter that the MLP Board must be the Board of Selectmen unless the Town chooses to make the Board an elected body. Appointment of members to an MLP is not allowed under statute and would require action by the legislature and approval by the Governor to do so.
Discussion and possible action to authorize discussions with Matrix Design Group on its Fiber to the Home proposal
Stan summarized certain recent developments.
The Town was advised by its MLP attorney John Ferriter that upon study that he further confirmed with the Mass. Attorney General’s Office, it is the use of public funds that triggers the public works construction bidding process called for in MGL Chapter 30, Section 39(M). Further, if no public funds are used, a private concern could build and own a fiber to the home broadband network, collect its payback from ratepayers and ultimately turn the system over to the town with no requirement for the public bidding process.
The so-structured Matrix Design Group proposal is on table. The Broadband Committee has sought cost estimates of a similar project and finds Matrix’s proposal the only one in which a private entity is willing to assume ownership and receive its payback through private subscriptions. The Committee finds Matrix’s estimate of cost to be approximately $25,000 more than that of another private concern, but notes that Matrix is willing to take the risk of ownership, and the other company is not. The Broadband Committee is seeking additional cost estimates
Matrix has requested that the Town sign a Memorandum of Understanding (MOU) with it. Attorney Ferriter has reviewed the MOU drafted by Matrix and has offered his comments to the town.
Under the Matrix proposal the town would be responsible for certain “make-ready” costs. The Broadband Committee is studying these potential costs that would be the responsibility of the town prior to a private entity building a system. Upon determining these costs, the Broadband Committee may suggest that the MLP request the Board of Selectmen to call a Special Town Meeting to appropriate necessary funds to implement the “make-ready” work.
Stan mentioned that there are possibilities of funding through the state IT Bond Bill to fund some or all of those costs. He emphasized that there has been no allocation of any funds but that the Broadband Committee will investigate all grant opportunities.
As requested by Stan, Edie moved, Neil seconded and the Board voted 3-0 to authorize Stan and John and other parties as they deem necessary to negotiate an MOU with the Matrix Design Group. If and when they are comfortable with a draft of an MOU, they will bring it to the MLP.
Adjourn
At 7:41 PM the Board voted all in favor to adjourn.
Respectfully Submitted,
John Lebeaux
Manager, Princeton Broadband MLP
Referenced Documents: None
Marie Auger
Administrative Assistant
Planning Department
978-464-2100
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