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1 Comment [ View ]Council, RDA looking at lease accords with UTOPIA
By Antone ClarkCENTERVILLE -- City officials unveiled a two-part telecommunications stimulus package on Tuesday that includes partnering with UTOPIA to help bring the benefits of high-speed services to the business community and residents.
At a meeting late last night, RDA members floated the idea of extending as much as $81,000 to the 10-city network to lay fiber in the business area on both the east and west sides of Interstate 15, as part of a loan/lease agreement.
At the same meeting, city officials suggested another part of the program, which would use city funds to build a hub on the west side and put infrastructure in place that would allow that hub to cross under I-15 and link the east side of the city to potential services.
The hub could cost as much as $70,000 to establish, along with conduit and other infrastructure.
The city council would need to approve use of city funds to build the hub, while the Redevelopment Agency would need to approve the partnership with UTOPIA to extend the benefits of fiber to the business community.
Each body would need a separate lease agreement with UTOPIA to move ahead with the plan.
A vote on possible leasing options for both the council and the RDA could be ready in two to four weeks.
Mayor Ron Russell said a public hearing would be held on the merits of the city's establishing the hub, before any lease agreement would be finalized.
Technically, establishing a hub could facilitate more than just UTOPIA.
Blaine Lutz, director of Finance, said UTOPIA would utilize about half of the hub, and the remainder would be available for any other telecommunications provider who wanted to extend service to city residents.
The availability of service to other providers appears to deal in part with some concerns raised by Qwest.
An attorney representing Qwest, Gordon Monson, wrote a letter to RDA members in late October suggesting that putting RDA money into UTOPIA would give the 10-city fiber network an unreasonable advantage in the marketplace.
Monson says investing more in UTOPIA would violate the terms of a 2007 federal district court settlement between Qwest and UTOPIA.
Under Section 253 of the Federal Telecommunications Act, Monson said, cities cannot provide benefits to one telecommunications provider to the exclusion of others.
Members of the redevelopment adjourned to executive session on Tuesday, but also released copies of letters written by Lisa Romney, city attorney, in response to questions raised by Qwest about the legality of loaning money to UTOPIA.
In her response to Monson, Romney said city officials intend to comply with terms of the Qwest-UTOPIA agreement, but said the city's position is that a proposed lease agreement with the fledging telecommunications company does not violate that agreement or state or federal law.
Councilman Justin Allen said his interest in potentially partnering with UTOPIA is the same as it was when the city first entered into the 10-city fiber deal.
He is eager to see residents enjoy the benefits of high-speed telecommunications services.
Even Councilman Lawrence Wright, an outspoken critic of UTOPIA in the past, seems to be on board for city help in moving forward with the new initiative.
He said the city has a lot invested in UTOPIA and officials need to do all they can to make it succeed, in order to reduce potential city financial liabilities for the next three decades.
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Councilman Wright sounds like a used car salesman. Putting more money into this albatross won't do anymore for it, than Provo with all it dumped into it's fiber failure.
These cities can't compete with the private sector. Ccase in point, who done the math on the Davis county recreation center????? missed it a mile. Bet you money it will be double the amouint before or if it gets completed
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