Lawsuit Update: October 29, 2008
Continued construction of the fiber loop this fall will allow for the fiber backbone to be built and finished this year so that service can begin to commercial users for data only (Internet) over the winter months. This will allow for the major infrastructure of the fiber network to be completed by the end of December 2008, prior to construction of the full scale project to residential areas which will follow once the revenue bonds are released.
Bridgewater Telephone Company, an affiliate of TDS Telecom, sued the City of Monticello in May, challenging the City’s authority to use revenue bonds for a fiber-to-the-premises (FTTP) system. On October 8, the court issued its ruling dismissing the lawsuit with prejudice on the merits. In his ruling, Judge Jonathan Jasper concludes that “the City has express authority” to “issue bonds to fund the FTTP project as an “other public convenience.” Additional rulings by the judge also denied TDS requests relating to the lawsuit and were filed by the courts on October 10. State Statute allows TDS Telecom to file an appeal within 30 days from the date of the notice.
The revenue bonds in the amount of $25 Million dollars were sold to private investors this summer. The money is currently being held in escrow pending final resolution of the lawsuit. Once the bonds are released they will be used to reimburse the city with interest for liquor store reserve funds used to start the fiber loop project prior to the lawsuit being dismissed.
Continued construction of the fiber loop this fall will allow for the fiber backbone to be built and finished this year so that service can begin to commercial users for data only (Internet) over the winter months. This will allow for the major infrastructure of the fiber network to be completed by the end of December 2008, prior to construction of the full scale project to residential areas which will follow once the revenue bonds are released.
Additional FiberNet Monticello Lawsuit Updates:
Lawsuit by TDS/Bridgewater against Monticello is bad for competition
(July 30, 2008)
City of Monticello Fiber Lawsuit Update (June 16, 2008)
Revenue Bond Update (May 27, 2008)
