Business

G&E $15 million bond for fiber expansion comes before City Council

Whip City Fiber logoWESTFIELD – Beginning with an endorsement from Mayor Brian P. Sullivan during his briefing to the City Council on Thursday, Westfield Gas & Electric’s $15 million bond request for the Whip City Fiber expansion received nothing but support and a unanimous vote from councilors on its first reading.
Sullivan said he has been meeting with the G&E about Whip City Fiber and other projects. “It’s been transparent on both sides. We have the same goals to do better for the city,” Sullivan said. He said the city would not be footing the bill for the bond, as it will be paid for by G&E, a rate-charging entity.
During public participation, Thomas Flaherty, chairman of the G&E board, said almost the full board was present to show their full support for the project, which is expected to reach 70% of Westfield with high speed internet.
In bringing the recommendation forward from the Finance Committee, At-large Councilor Dave Flaherty said that G&E had given a great presentation on the bond at their meeting, at which more than half of the city councilors were present. Flaherty called it a “fantastic service,” one that he himself has.
“The price is very, very good, a little bit lower than Comcast for greater speed,” he said. Flaherty said the income from the business unit is sufficient to pay for the bond. He said the 20 year plan to pay it off is a little bit of a concern, because of possible changes in technology that may occur over that time.
Ward 4 Councilor Mary O’Connell welcomed the G&E board and general manager Daniel Howard to the meeting.
“We are trying to extend the handshake of cooperation, and are counting on you to extend that back to us down the road,” O’Connell said.
“I’m also going to be a yes vote. I do want to see revenue sharing,” said Ward 3 Councilor Andrew K. Surprise. He said he hopes they will cooperate on marketing as a way to generate revenue for the city.
“I was also very impressed with Dan Howard and his presentation to the Finance Committee. We all do all we can to make Westfield great, and to attract new businesses. We all have the same vision for the city,” said At-large Councilor Dan Allie.
Council President Brent B. Bean, II said he had the privilege of sitting in on some of the discussions with the Mayor. “It will open up competition. The service this will provide residents of Westfield is very important. The opportunities this will generate is why we’re all here,” Bean said.
Bean also presented for the record two letters of support for the expansion from Rep. John Velis and Sen. Don Humason.
One area for future negotiation will be the payment in lieu of taxes (PILOT) arrangement with the city. Flaherty said the PILOT payment, which is currently capped at $500,000 will be discussed at the next Finance Committee meeting.
“The first step is to assess the law before we ask for PILOT,” Flaherty said.
Flaherty has also requested in formal motions for the Audit Department to provide a three-year history of revenues related to Comcast’s License and Franchise fees, and the Law Department to provide copies of contracts between the City of Westfield and Comcast, and between the city and Westfield State University related to local access television and community radio.
Flaherty said the city receives $600,000 in revenue from Comcast per year right now.

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