ECFibernet Answers
Bethel Selectboard
By Mary Anderson

The Bethel Selectboard and town manager Del Cloud had plenty of questions and concerns about the ECFibernet project at the December 17 board meeting, and ECFibernet representative Loredo Sola came prepared to answer them.

Sola, who had had e-mail exchanges and a long phone conversation with Cloud before the meeting, presented a comprehensive outline of the project and had prepared responses to the selectboard’s concerns with input from Paul Giuliani, a well-known lawyer and the attorney on ECFibernet’s legal committee. Explaining that Hartford would be the hub of the project because it is the site of one of only two concentration points for all internet traffic into and out of Vermont, he added that all towns would have equal rights and privileges.

Currently the project has support from the selectboards of at least 20 towns and covers a range from Windsor through Montpelier.

After explaining the benefits of fiber optics over copper, Sola outlined various plans that would be available to subscribers which would provide extremely fast internet, fully E911-compliant phone service and a plethora of TV channels starting at $50/month. He told the board these costs are in line with what subscribers in Burlington pay and that Nulty assures them there is no reason costs would be much different here.

Sola emphasized that in each participating town, every home and business that wanted it would be hooked up. However, he cautioned that if the selectboard of a town did not back the project, residents of that town would not be able to hook up. He assured the group that, according to Giuliani, the project is completely legal under the telecommunications act of 07 and is not viewed as competition by towns with the public sector.

In response to a question from selectboard chair Neal Fox, Sola added that "a representative from the public utility commission is fully knowledgeable of this project and we expect support from them."

Sola explained the reason they are using an interlocal agreement as opposed to a municipal utility district was because the latter would require a state amendment, which could lead to delays in the project. Again he quoted Giuliani as saying that this agreement can be adjusted if needed and they can create a municipal utility district at any future time.

Sola assured the board that this project would be done without cost or legal obligation to the town. Initial costs will be covered by a non-recourse capital lease. If the project fails, only the investor, who would not invest if the project was questionable, will be at risk. He said that Valley Net is currently covering some start-up expenses, such as printing and administration, and others will be covered through capital financing.

Sola assured Cloud that there were precedents for the inter-local agreement and the non-recourse lease. He also assured the board of the legality of the lease, noting that Giuliani described it as "the financing vehicle of choice throughout the United States."

Sola explained that there is an opportunity for the town to gain financially from the project. The project expects to make a payment in lieu of taxes to each town. Also, once the lease is paid down, excess revenues will be returned to the towns based on number of subscribers in that town.

Fox expressed concerns that the selectboard would have to sign a legal document and said he would feel better if the Vermont League of Cities and Towns was in on the project. Sola said he would look into it.

Sola closed by saying the role of the towns was to support the project. He emphasized that since it is not a budget item, all the voters are voting for is to advise the selectboard to sign onto the project. When asked if Bethel could change the words of the warning, Sola said they could, but it was not recommended. ECFibernet believed that consistent wording among towns was more appealing to investors. Sola added that if Bethel did change the wording and it created any delays, they would be dropped from the project.

Sola mentioned that it was important for individuals to show support by pre-registering either on line at ECFiber.net or by requesting a mail-in card. He said that towns with the highest percentage of households pre-registered would get hooked up more quickly. Currently Bethel is ranked third with 8.9% of households pre-registered, even though the selectboard had not yet given its full approval to the project.

Bethel resident John Kresser asked Sola about repairs to damaged lines and was assured that service crews were included in the operating costs. He added that fiber repairs had become much easier.

Resident Paul Davis commented, "This will leapfrog us beyond other communities. With the potential to work from home, think what it will attract to the area. I wish it were here now."

When there were no further questions, Sola’s offer to host another informational session for the residents of Bethel was agreed on by the selectboard. After Sola left, the selectboard decided that, since it was only an advisory warning, they would accept the wording provided by ECFibernet.

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