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MONTICELLO CITY FIBER PROJECT UPDATE:
 

FiberNet Monticello Q & A:

Now that TDS appears to be building its own fiber optic network, will the city continue to construct one of its own?
The only way for the city to be sure that its citizens and businesses will receive the type of fiber network and service that has been envisioned by FiberNet Monticello for the past three years is to build it ourselves. We cannot rely on any company to be sure it is done with competitive pricing and exceptional customer service. The referendum vote indicated approval from the citizens who wanted a choice for services and the city will continue to build its own fiber network to provide a choice.

How can the city claim that an overwhelming majority of the voters voted to approve the project when only 17% of city residents eligible to vote cast a ballot?
What the city said was that the overwhelming majority of the voters supported the project. This description is accurate. 74% of the people who cared enough about the project one way or the other to voice their opinion voted yes. In the September 2007 referendum vote, 18% of registered voters voted in favor of the fiber project while 5% of registered voters voted against the project.  This 23% turnout is not unusual for a non-presidential election and is higher than average for a special election with only one question on the ballot.

Why is the city dipping into reserve funds to start the project when they promised that taxpayer dollars would not be used?
The city's commitment to avoid the use of taxpayer dollars did not anticipate an 11th hour lawsuit by TDS that made the proceeds from the revenue bonds unavailable by freezing the money at a critical time when construction was ready to begin. The city moved forward with the smaller fiber loop build to begin this year in order to protect the project from increased costs that will inevitably arise if construction continues to be delayed by the TDS litigation. It is anticipated that the cost of this initial fiber build will be fully reimbursable from the bonds the City has already sold and has put into escrow due to the lawsuit.

How can the city justify spending large sums of money hiring consultants from the telecommunications industry before initiating a project designed not to use taxpayer dollars?
In order to obtain investor financing for the project the City first had to research and study the feasibility of the project. This required an analysis of the soundness of the FiberNet Monticello business plan before financing could be secured. The City does this same sort of due diligence and gets expert advice for any expensive project it contemplates. The existing City staff and consultants did not have the expertise required and so the Council hired the best experts and consultants that could be found through an open RFP process.

   

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