Town of Princeton, Mass. – Jan. 4, 2016 – 10 AM
Meeting Minutes - PBMLP
10:10 AM Meeting opened with PBMLP members Stan Moss, chair, Edith Morgan, Jon Fudeman and T.A. Nina Nazarian Phil O’Brien, Phil Leaman and John Kowaleski in attendance.
Stan distributed an updated list of policies, a major one is providing a lateral connection to every household (that wants it) from the street, regardless of whether or not they are subscribers and with no limit on driveway distance. The total extra cost was estimated to be low enough to be viable. These laterals will need a “premise (entry) agreement” with property owners. Group discussed issue of long stretches of empty roadway. From Edith ‘s house on Thompson Road to next neighbor is almost .7 mile which represents 23 poles. There are similar issues on Schoolhouse and Grow Lane.
Stan also distributed an updated chart labeled “Make-Ready Costs” outlining how much of the $1.2 million of town revenue has been and what is anticipated to be spent. A grant from MBI may still offset that amount. Edie and Jon stated that they felt that the project has changed since the town meeting approval of the make-ready funding, which was supposed to be the only taxpayer spending for broadband, since a vendor (Matrix) would be funding construction and owning the project. Now that Matrix is out of the picture, and the town wants to own the project, construction funding becomes the issue, but only until revenue from subscribers comes in to pay off construction loans. The PBMLP members anticipate the borrowing to be timed so that taxes will not have to increase.
Nina suggests public meetings to explain these changes with the town constructing the system itself--without a construction vendor taking over. Stan noted a list of costs to finish the project and estimates say about half of all households must subscribe to cover costs. There is a risk in publicizing a cost amount before requests for bids go out, Phil L. noted, as vendors will aim for that whole pot and only take a discount from that (high) number. To approve funding at a STM, a final figure must be presented. The group discussed the need for two or three public meetings outlining all the steps and providing a chart explaining financing and time frames. Stan proposed a strategy for short-term borrowing for a construction loan
for 3-5 years interest-only, after which the subscriber revenue can pay that off and/or subsequent borrowing.
John L. suggests broadband can use an advocacy group, such as “Friends of…” to rally and promote the project to residents, since the boards cannot support campaigns that go to vote. It could have 5-6 members including technical/financial experts. Public meetings must address a list of common questions: cost of build-out, cost to sign up and subscribe, impact on taxes and property values etc. Public meetings could include representatives from the Town of Leverett, which completed a similar project, and other experts from the governor’s office or other agencies.
Phil L. reported that stringing the fiber lines could begin in the 2016 construction season but major work and completion would be the following year.
Stan M. requested to post a PBMLP meeting for next Monday, Jan. 11, at 10 AM. The agenda will include finalizing the position of asst. project manager; complete list of policies; informational public meetings (set dates).
Phil L. has found a source for some brand-new, “little” telecom huts that are steel construction and 7’ x 10’ that would be good for the locations at TP School, Town Hall and Station 2. The bigger, main hut is underway for construction at PMLD. These smaller huts cost much less, don’t need their own emergency generators, have built-in alarms and can be moved with a forklift instead of a crane. He noted that some of the hardware/connections will have to be customized for each site.
11:30 AM Jon F. had printed a motion which he distributed to the group. In brief, it asked that the “PBMLP authorize no further preparatory expenditures… (and have) PMLD cease all further preparatory work including purchase of materials until further notice.” It included an explanation that said Jon fully supports fiber as the broadband solution for Princeton but (the motion) is directed solely at the financing. He then explained “generally accepted financial principles” and insisted that the entire funding package be in hand before any construction proceeds. He was essentially opposed to “piecemeal spending.” The motion did not receive a second. Jon encouraged the other two PBMLP members to proceed as the majority without his vote.
Stan M. and Edith M. explained that they did not like to have a split board.
The group discussed options for spending articles and potentially rescinding an authorization previously voted, to then vote a different, larger sum. John K. pointed out that if the town meeting does not approve funding for the entire project, which ultimately gets reimbursed by subscriber revenue, then the next step is using an outside vendor which finances the project and then “owns” it. The ‘make-ready’ part of the project would have to be completed in any event, whether the town funded the project up-front or a vendor took over. There was some question over whether bids for the construction needed to be received before a STM or possibly after. Phil L. explained that one year ago, the Make-Ready portion was segregated
out and separately funded, since no vendors want to have to deal with it.
Phil O. presented the home page of a new website under construction by UMass—at no charge—which will allow online payment for new subscribers.
12:05 PM Stan and Edith voted “yes” and Jon voted “no” to authorize expenditure of up to $50,000 for the three new huts. Figure includes delivery and installation.
12:10 PM Board voted all in favor to adjourn.
Respectfully submitted, Marie N. Auger, administrative assistant
PBMLP Referenced Documents: Draft copies of previous editions and updated versions of “PBMLP Policies;” updated chart labeled “Make-Ready Costs;” motion with explanation submitted by Jon F.
Marie Auger
Administrative Assistant
Planning Department
978-464-2100
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