iProvo panel is critical of operations
The City Council-approved review committee — which includes a who's-who lineup of local politicians and businessmen — met at 7 a.m. in the Covey Center for the Arts for a briefing from City Council members about iProvo. While the committee members aren't telecom specialists, City Councilman George Stewart said he organized them in the hope they will provide alternative assessments regarding iProvo's viability and the repayment of its debt obligations as the city budget is finalized.
"(IProvo is) the single most important financial issue facing our city," Stewart said. "We need to find some way to close the deficit."
Although the board was formally organized to discuss iProvo's financial situation, critical remarks were directed at the mayor's office and its management of iProvo. Stewart said Mayor Lewis Billings called Provo a pioneer in telecommunications. But he noted the word pioneer also has a bad connotation.
"Pioneering sometimes isn't the best," he said. "I wouldn't want to be the people in Wyoming in 1847, I'd rather be on the train in 1865."
While he was critical of management and financial issues, Stewart continued to say iProvo's network is incredible technology, but the system is in a bad situation.
"We have a very valuable network that is worth what we put in the ground," he said.
At issue: iProvo has lost an estimated $7.5 million since 2003, and Stewart said he estimates the telecommunications network will cost the city another $2 million in 2008.
Ron Eliason, vice president of Capital Community Bank, said the proof of a company's quality is in its bottom line.
"If you can't budget and meet it, then you've got a management problem," he said.
Earlier this week, Billings and city staff presented a list of possible strategies to turn around iProvo, including charging city departments for use of the network, implementing advanced meter infrastructure throughout the city or even privatizing the network.
City Councilwoman Cindy Richards said the board is not targeting any single person or group for the current state of iProvo.
"This is about attacking a problem," she said. "That's why we're looking at numbers."
Sen. Curt Bramble, R-Provo, said he wished Billings had been present at the meeting to explain some questionable numbers he spotted in one of the consultant reports commissioned by the mayor's office to explore the alternative ways to make iProvo profitable.
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