PA-ComNet Meeting Sept. 1, 1999

The meeting began at 7:39 AM by Margaret with an introduction of Mark Heyer and Bob Moss who are City Council candidates, Mark for a 4-year seat, Bob for the 2-year seat. There are many technology-related issues which are current in the community, FTTH, cable tv and transferring the franchise, overbuilders of cable services, etc. It is important that we have council members who and aware of these issues, and Mark and Bob do.

Mark Heyer discussed his extensive experience with technology and data services. He has over 20 years experience in telecommunications and data services. He is the founder of the Silicon Valley World Internet Center located in the Stanford Barn, founder of the Palo Alto Cable Modem Club, and currently is involved with the ISP channel in creation of online communities to serve local communities nationwide. His goal is to establish communications and information as a priority for Palo Alto in the new millennium.

The Internet is widely used to contact people all over the world. We need to look at how it can be used to connect people locally. In the past city government has been focused on real estate and development, but now it must be more focused on information resources and local communications. There are real benefits to having a locally owned utility providing community control. We now need to have similar local control of communications.

The FTTH trial gives a real advantage to whoever installs the fiber because it makes it impractical for any competitor to overbuild. Once fiber goes into a building it becomes a monopoly. He has no opinion on the sale of Cable Co-op to AT&T since that is a private matter.

Bob gave a brief status of the sale of Cable Co-op. The agreement was approved by the Board last night. That allowed release of the terms of the sale, which will be posted on the Cable Co-op web site in a short time. The cash price is $70 million, divided into $53 million to pay all loans and other obligations plus money to run the system for a few months while the deal formally closes, and $17 million for a tax-exempt non-profit to provide locanprogramming. In addition AT&T agreed to upgrade the system to a fiber trunk plus needed switch gear within 36 months.

Mark believes the City should establish a city fiber system and offer to lease it on reasonable terms to anyone who wants to use it. The major cost of delivering services is installing the fiber. Cost of transmittal is very low. It can be a publicly owned facility also. There should be open access available to all. Citizen participation must be widened to get people informed and involved, using modern communication services. People don’t read or pay attention to much of the publication that occurs, so we need to make communications better. It is important to have community based services which can create neighborhood participation and discussion groups. It will strengthen neighborhoods because many traditional ways of meeting people have been lost. Initiate smart city telecommuting to help reduce traffic. Universal Internet access is essential. Companies like RCN coming in and cherry picking are troublesome. School services should be enhanced by exchanging lessons, discussions, messages between students and teachers, etc. Crime protection can be improved, both by better distribution of information on crime trends, and by collecting and distribution information such as local cameras downtown.

Jay asked if Mark could participate in these matters if he was elected due to possible conflict of interest.

Mark said he would of course take proper steps to be sure there was no conflict. If the City Attorney said he could not participate due to a conflict of course he would abstain. He also is interested in bringing the issue of broadband communications and community networking to the forefront so that it can be discussed. Also there will be other elections when the situation may have changed, and there can be full participation then if there no longer are any conflicts.

It was noted that a conflict of interest means that if a council member can’t vote on an issue he also can’t discuss the issue with other council members or participate in any way.

As far as the franchise transfer to AT&T is concerned neither Mark nor Bob could participate due to conflicts of interest. Once there is a transfer to AT&T, after 1 year Bob could participate fully in future activities, such as in the cable refranchising. Mark might be able to participate in franchise discussion after the purchase, depending on circumstances at the time.

Marvin Lee said he is sure that the sale and transfer to AT&T won’t happen.

Mark noted that this community is very well informed, and has important advantages such as the fiber loop and a very well connected and knowledgeable public. There is a lot of talent locally who can advise and offer assistance in the area of communications services and Internet access.

Keith Cooley asked how can we overcome the staff reluctance to getting into communications and data services, and their concerns about risk and costs.

Mark noted that the Utilities Department is used to running a standard kind of operation which is not very innovative. There should be a separate department of Information Technology established to take control of the fiber and advanced communications operations. This organization also should set up contracts for access to the fiber, and evaluate how communications are delivered, both locally and to other areas.. He’d like to see a detailed contract prepared for providing these services, and then have it go to competitive bid.

Bob Moss noted that there is a standard City contract for use of the fiber ring, with some of the costs left blank to be negotiated, but with the main terms and conditions set forth.

Margaret Cooley said Mr. Dawes of the Utility Advisory Commission proposed selling the existing City fiber ring and just letting a cable company take over and just run it as they wish. She found this to be very disturbing. She also doesn’t understand why it is so difficult to get the libraries wired to the fiber ring, and getting fiber connected to all the schools.

Mark noted that information and how it is distributed are very important in Palo Alto, and have been for years. We need to organize and make sure that information on the importance of adequate data services gets out, and is correct and clearly shows the benefits to all.

Joe Villareal said fear of litigation is a major concern of staff, so there is a reluctance to get into things such as running the fiber ring where they have no experience, and are afraid they will create a liability because of some thing they did or forgot to do.

Jay Thorwaldson said anyone can sue, and there should not be a reluctance to act just because someone may sue. If the issue is important enough, it should be done even if someone threatens to sue.

Keith Cooley referred to the recent Pennsylvania actions which split delivery and content providers on networks which serve homes.

Real payoffs of an advanced broadband system are telecommuting, serving schools and school activities, and building community and neighborhood co-operation and cohesiveness. We don’t know yet what the real payoffs and opportunities will be from broadband communications. Webcams are one example. They work badly over 28.8 modems, but work very well over broadband systems such as cable modems. Such a camera could be very useful for many applications, such as crime prevention, watching small children to keep them from harm, monitoring traffic, teleconferences, transmitting family activity photos, etc.

Young people are very interested in FTTH, for improvements it offers in games, communications, studying and exchanging lessons, and just for general fun and communications.

Mark has his web site set up at www.paloalto2000.org It includes a discussion group site which already is set up. It can be modified to serve every neighborhood, every school, individual schools or neighborhood, or any topic of interest. It can be offered to young people for their use, in the proper context.

The group thanked Mark for his very interesting and informative talk.

Possible topics for the next meeting were discussed. We can talk about the cable sale and terms, or a broader discussion on communications in general. Margaret and Mary Jo will contact potential speakers.

Meeting was adjourned at 8:35

Respectfully submitted, Bob Moss