[Ww-snww-regional-list] Background on Matrix and Princeton, MA
Robbie Leppzer
robbie at turningtide.com
Wed Oct 14 00:31:03 EDT 2015
Hi Folks,
Having heard that the town of Princeton had engaged in negotiations with Matrix for a fiber-to-the-home project, but not knowing any of the details, I did a simple Google search tonight and came up the below press release and Worcester Telegram news article from last April describing why Princeton decided to terminate their relationship with Matrix.
It boiled down to the fact that Matrix was not willing to give up control and effective ownership of the system for 20 years, and prohibitions in Massachusetts law regarding how public monies are spent.
For more details, see below.
I will be attending the meeting.
Robbie
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NEWS RELEASE: April 27, 2015 Princeton Broadband Municipal Light Plant 6 Town Hall Drive Princeton, MA 01541 Contact: Stan Moss stan.moss at princeton-ma.us
Matrix, PBMLP end talks over network control issues
-Vendor’s terms would jeopardize make-ready financing and MBI funding-
APR 27, 2015 —Princeton Broadband Municipal Light Plant (PBMLP) has terminated further discussions with Matrix Design Group to pursue a contract to build, operate and maintain a proposed $3-4 million fiber optic residential network. According to PBMLP, agreements could not be reached regarding the town’s control of the network as stipulated by bond counsel Edwards Wildman Palmer LLP of Boston. Without town control clearly specified in the contract, Princeton could not legally borrow the $1.2 million for the make-ready work that voters approved at the special town meeting held last Nov. 18.
“Our most significant issue was the terms of network control once the installation became operational. We were informed by bond counsel that under Massachusetts law we could not borrow the funds required to begin the make-ready unless the network was legally controlled by an established MLP,” said Stan Moss, selectman and PBMLP board member. “Matrix, citing its business model, was not willing to discuss or negotiate its position of network control for a period of 20 years before turning it over to us.”
Moss explained that the Massachusetts Broadband Institute (MBI), which requested a review of the contract prior to signing, raised additional concerns. MBI has pledged $40 million in state funds to significantly lessen the financial burden for unserved towns in central and western Massachusetts to install municipal networks. Princeton’s share is initially estimated at $.8 to $ 1.2 million.
“Matrix failed to respond after repeated requests to address key issues raised by MBI’s legal counsel regarding operational and control issues. We were informed by MBI that failure to make their recommended changes would jeopardized any state funding allocated for Princeton. We are simply not in the position to jeopardize any financial assistance from the state that will ease the burden of the Princeton taxpayer,” Moss added.
PBMLP will soon post information on its website regarding new opportunities for formal discussions with other vendors eager to discuss a Princeton-based fiber-to-the-home project. Initial discussions with a number of potential vendors are centered on Princeton ownership of the physical fiber network, and subscriber payments supporting any potential PBMLP investments.
Additionally, the Princeton Board of Selectmen will petition bond counsel to approve the $1.2M for borrowing, so make-ready and associated work can begin. “This work needs to be done regardless of the final fiber installation vendor”, said John Kowaleski, chair of the Princeton Broadband Committee. “Make-ready is a significant portion of the overall project, and getting that project up and running this summer will ultimately shorten the total project timeline.”
“The vendors involved in discussing the fiber-to-the-home project fully understand the requirements we must meet from bond counsel and MBI,” said Robert Reed, interim town manager and PBMLP manager. “We continue to operate within the laws of the Commonwealth and in the best interests of the town. I am optimistic that PBMLP will soon reach an agreement with a new vendor that satisfies the requirements of bond council and MBI while meeting the needs of Princeton residents.”
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http://www.telegram.com/article/20150428/NEWS/304289636
Princeton to seek new broadband partner
By Sandy Meindersma CORRESPONDENT
WORCESTER TELEGRAM
Posted Apr. 28, 2015 at 8:40 PM
Updated Apr 28, 2015 at 8:55 PM
PRINCETON — The Princeton Broadband Municipal Light Plant has terminated its contract negotiations with Matrix Design Group, ending a joint effort to establish high-speed Internet service for the town.
Selectmen in their roles as commissioners for the broadband light plant signed a memorandum of understanding in October with Matrix to negotiate toward an agreement to design, build, operate and maintain a fiber-optic network for high-speed Internet service. Town meeting approved borrowing $1.2 million for the make-ready work that needs to be done before the network installation.
But while the town authorized borrowing the money, the broadband light plant commissioners could not secure authorization from bond counsel to borrow the money without an operating agreement that said the town had control over the design, construction, operation, maintenance and pricing of the network.
Selectman Stanley Moss, who has been involved in the negotiations with Matrix, said negotiations broke down over the issue of control of the network.
Mr. Moss said he was told by Matrix representatives that since that was not how they did broadband service in New Jersey, they were certainly not going to do it that way in Massachusetts.
"They essentially stopped responding to us," Mr. Moss said. "Last Friday (April 24), it had been four weeks, and we concluded that they were no longer negotiating in good faith."
Mr. Moss said the town needs to control the network not just to secure the bond funding, but also to be eligible for grant money from the Massachusetts Broadband Institute, which is expected to contribute between $800,000 and $1.2 million to defray the cost of constructing the network.
Broadband commissioners took two votes. The first was to terminate the memorandum of understanding with Matrix Design. The second vote was to seek bond counsel approval to borrow the money for the make-ready work while a new partner is identified.
Mr. Moss said the town did not enter into negotiations with any other party while the memorandum was in effect, but he has heard from several that are interested in pursuing negotiations at the proper time.
"Most of the folks we have talked to have given us a timeline of 12 to 14 months, and the make-ready work is seven or eight of that, and it's the longest piece," he said. "So it makes sense to get that work done if we can and shorten the timeline if possible."
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