Town of Princeton, Mass. – Sept. 1, 2015 -- 6:30 PM
Princeton Broadband MLP Minutes - followed by BOS regular meeting
6:35 PM The meeting was called to order in the Town Hall Annex. Present were PBMLP Chairman Stan Moss, Edith Morgan, Jon Fudeman, and T.A. Nina Nazarian. Also present were representatives from Axia Engineering, Crocker Communications, several Advisory Board members and Broadband Committee members and some concerned citizens.
Fred Feit from Axia Engineering was in to describe how his firm would partner with the town to install and operate a fiber-optic broadband network. He said his firm was the network operator for the commonwealth, as designed by M.B.I., and handles wholesale data transfer. Axia treats broadband/internet access as a utility, not as an amenity, and they are the service provider for the Town of Leverett, along with Crocker Comm. as the ISP, which is a model that Princeton has been following closely. Leverett has a “take rate” of almost 90 percent (residents participation) and funded the entire project themselves, borrowing up front which resulted in several hundred dollars added to property owners’ tax bills. Princeton is
considering three options: the self-funded Leverett model; a regional project being promoted by MBI (could take longer and likely costs more); or, public/private partnership with a vendor, where the vendor would help with up-front financing, but legalities would have to be worked out. This model assumes that certain controls would be held by the vendor rather than the town, which has been a point of contention.
Mr. Feit reviewed the actual work Axia would do, including installing the fiber lines—for a fee--up driveways which lie beyond the standard “drop” which is the same for all residences. The town would own lines and hardware only up to the standard drops; Axia would own anything beyond. Mr. Feit discussed gigabytes, various fees to customers, depreciation of network value (as a state requirement) and that a Depreciation Fund would be used to rebuild lines; how the “take rate” affects Axia’s contribution, etc. As Axia only provides internet and ISP, the network is available at wholesale to other vendors for other uses such as phone.
Group discussed the MGL Ch. 44 Sect. 8(8) requirement that town maintains control over municipal bonds. Stan said a town meeting and act of the legislature could skirt the Ch. 44 issue and Crocker Communications was reported that the town of Hingham was allowed an exemption.
Jon F. asked why the town would want to give up control and Mr. Feit responded that the town would only surrender control of maintenance. Axia could start work in phases, as poles are “made ready” they could complete hanging lines in loops covering several sections of town. Stan had a network map showing such a schematic. As the preliminary permitting is completed with Verizon and PMLD, which own the poles, Axia--in best case scenario--could start by July 2016 and complete installation in six to nine months. Feit noted that customer billing is paperless with credit cards, and there is no cap on service usage.
8:40 PM PBMLP members voted all in favor to authorize the T.A. to sign a letter demonstrating that the $1.2 M tax exempt Bond Anticipation Note (BAN) beginning on Sept. 21, 2015 funds would not be used “to contract or [for any] other arrangement not applicable to the general public under which a party (other than the Commonwealth or a local governmental unit, but not including any non-profit entity and the Federal Government) is to have use of the projects to be financed with the proceeds of the notes or bonds issued pursuant to Article 1 of the Nov. 18, 2014 special town meeting,” per Bond Counsel.
8:41 PM Members vote all in favor to adjourn the PBMLP meeting.
Respectfully submitted, Admin. Assistant Marie Auger
BOS Referenced Documents: Town map line schematic; borrowing letter.
Marie Auger
Administrative Assistant
Planning Department
978-464-2100
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