FiberNet Asks Towns
To Sign Contract
By Mary Anderson

After passing by large margins at all town meetings where it was on the warning, the East Central Vermont Community Fiber Network (ECFiberNet) is set to move into its next phase.

The 25 towns which are in on the project have all received letters of appointment and must send an officially-appointed delegate to a meeting to be held on April 8 in order to retain their acceptance. They must also choose an alternate delegate.

The agenda for the April 8 meeting is to appoint delegates to the executive board, elect officers and adopt temporary bylaws.

According to ECFiberNet steering committee member Loredo Sola, "These appointees should understand the nuances of municipal and contract law and financing." Jim Masland, also on the steering committee, added that he would like to see an ECFiberNet board knowledgeable about local or state government, utilities, technology and finances.

At the time of the meeting each town is also expected to have a signed interlocal contract, officials said. Project manager Tim Nulty emphasized that these are critical for allowing the group to get funding, which he anticipates could take up to one year.

Most towns in the area appear ready to sign that contract, but in Bethel, Town Manager Dell Cloud said he was uncertain.

Noting that 15 towns was the targeted number for the ECFiberNet project to proceed, he admitted that it has become a bit unwieldy with the current 25 towns. Those 25 towns would require approximately 1800 miles of fiber optic cable and $90 million in financing, he said. Thus, he noted, if towns wanted to drop out by not signing the contract or appointing a delegate, they were welcome to do so.

He said that there are even towns on a waiting list.

Because ECFiberNet is eager to proceed, it is not willing to negotiate details of the interlocal contract, he said.

He, and others on the steering committee, stated that they encouraged towns to complete an independent due diligence review of the contract prior to signing. Bob Merrill, steering committee member, added that "we gave them the tools to do so, including recommending lawyers."

Merrill added that one reason for the push to have contracts in by the 8th was to be able to meet the project’s goal of beginning to hook people up by late 2009.

"We hope we will have all interlocal contracts signed by April 8," Sola said. "However, we understand the obligation of selectboards to complete due diligence, even if it goes beyond that date.

"We do feel the need to move along as rapidly as possible based on the urgency voters expressed at Town Meeting."

Masland and Merrill pointed out that the contract has already been reviewed by various lawyers, including Paul Giuliani.

Margy Becker, administrative assistant for the Sharon selectboard, explained that municipal law expert Paul Gillies was hired by a number of towns to complete a due diligence review. That review has been completed and is in the process of being distributed to participating towns, she said.

Steve Willbanks of Strafford, who was waiting for Gillies’report, said that he "didn’t anticipate any trouble." City manager William Frasier of Montpelier, concurred, adding "it is highly likely we will sign. We have confidence in the project."

Representatives at the town clerks’ offices in Tunbridge, Rochester and Royalton said their boards were waiting to hear back from Gillies but expected everything to be in order and to sign the contract prior to the April 8 meeting. Selectman Mark Doughty of Stockbridge said that he expected his town to sign the contract.

However, at a recent selectboard meeting, Bethel Town Manager Dell Cloud expressed numerous concerns about the wording of the contract. He said that he did not know if it was the "right boat" to jump on and later added that he didn’t want to get into "any bear traps."

Asked if he expected to sign the contract he replied, "I don’t know."

Bethel has joined with Williamstown and a few other towns including Randolph and Chelsea and is waiting for a due diligence review being completed by Atty. Jerry Diamond of Montpelier. Town Manager Ed Magee of Williamstown hopes to have that report "by the middle of next week."

He admitted that there may be "differences of opinion and different ways of reading the contract subject to personal interpretation."

Randolph Town Manager Peter Butterfield and Chelsea Administrative Assistant Jane Cushman each indicated that their boards were "moving forward" and expected that they would sign the contract.

Nulty expressed frustration that funding would have been easier to attain one year ago, before the turmoil began in the financial markets.