Town of Princeton, Mass. – March 22, 2016 – 7:30 pm
Meeting Minutes - PBMLP
7:30 PM Meeting opened with PBMLP members Stan Moss, chair, Edith Morgan, Jon Fudeman and T.A. Nina Nazarian, Asst. Mgr Marty Dell’Erba, Phil Leaman, John Kowaleski, Phil O’Brien, and residents
The board opened up the meeting to residents’ questions, which included subscriber counts so far; expected timeline for the whole project; and when it would be at Town Meeting. Broadband definition from FCC has changed and most lately increased to 25 MBps.
David Crowley of Hubbardston Road noted that decisions have already been made, while other options exist; he suggested presenting two options for consideration at town meeting. Judy Dino pointed out the extensive work of the Broadband Committee and how other options have been considered—this includes how Matrix came and went. Stan M. and Phil L. responded to a question about the cost of installation to the home, with an update of the policy statement regarding premises lateral installations. For underground laterals, the fiber may be in a separate conduit. They also explained that on private roads, the PBMLP will need permission to install and will provide first 100’ up from the street.
Discussion settled onto Verizon and the efforts to work with them, as they co-own the poles with PMLD. Jon F. was questioned about abstaining from votes to release funds to vendors for the make-ready work now in progress. He mentioned Matrix and then explained how capital projects should never start without full funding and a business would be advised against it. If you borrow $6 million, he continued it could put the town at risk. We need to get the subscribers.
Stan M. responded to Jon F. comments, and said the PBMLP was committed to complete the make-ready. He didn’t consider fiber to be a technology but a mechanism to transport data, he mentioned depreciation and a 7-year cycle for replacement with new equipment.
Rick McCowan noted the project means a lot of money and a lot of complexity and whether or not alternatives have been considered. Doug Wilson suggested that it all comes down to risk and the projected take-rate being more than 50 percent, and does the PBMLP support these numbers? Stan M. says he has confidence, without going out to bid. Rick Bullock asked what would happen if the PBMLP did not get the subscribers, and Phil O. explained how the numbers will likely increase after the 2nd and 3rd mailings.
Stan described the 85%+ take rate in Leverett and noted that Princeton can sell off a portion of the project for what has already been invested. Edith asked about phone service being offered along with internet. The board has insisted that VOiP service such as Vonage or MagicJack are the choices for consumers once the internet infrastructure has been installed, but there are technical differences such as power sources and 911 capabilities with VOiP compared to the Verizon land line.
Discussion continued around fiber technology remaining competitive and where it will be in 10 – 15 years, a question posed by Charlie Cary. It was noted that given advances in technology, there is currently nothing that competes with fiber, so it feels pretty “safe.” Stan said the risk is in subscription numbers, noting the infrastructure, since fiber is just a pipeline. Jon F. voiced concerns about today’s competition with other internet suppliers, and Edith questioned why anyone would go elsewhere for internet (besides fiber-optic). Comparisons to European nations’ investment in wired internet was noted by Spencer Lamb as they tend to be 3-5 years ahead in the industry, and are moving to 5G delivery
systems.
There is also risk in not doing anything, or spending 3-4 more years to figure it out. Judy Dino said she appreciated the fear of spending big money and agrees investing in fiber is a big deal, but referenced other technologies (copper wire) that have been used for over 25 years. Edith agreed about technology changing rapidly, but the town needs to make the investment when a service is needed.
Several residents thanked the board for putting the meetings together and said things were off to a good start. Stan and Phil L. announced timeframes for several make-ready items.
Bill Dino asked about opportunities for the PBMLP to sell “dark fiber” to help offset costs. Stan reported up to $15,000 per month possible of selling to other entities but that is not currently included in the financial model. Jon F. asserted that fiber is the best choice, and could be a gold mine if selling dark fiber.
Stan outlined remaining/outstanding make-ready costs as including design-engineering, legal fees, hut installations, generators, consulting fees and possible cost of the “Invitation For Bid” (IFB). Steve Cullen brought up the loan payment schedule, and Stan said paying it off early in 8-10 years would be good, even as a selling point.
9:25 PM Stan announced that next week a 7 PM meeting will also be devoted to questions from residents, and over 50 questions were answered tonight. PBMLP voted all in favor to defer other agenda items to next week and also voted to adjourn.
Respectfully submitted, Nina Nazarian, Town Administrator
Minutes Approved on May 12th
Marie Auger
Administrative Assistant
Planning Department
978-464-2100
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