Salt Lake officially bids farewell to UTOPIA

Salt Lake City is officially out of UTOPIA, joining a growing list of cities that have pulled away from the public telecommunications agency.

While it once boasted 18 cities, UTOPIA has dwindled to 11 member cities with only nine of those contributing to the project financially. Two cities have yet to vote whether they will remain in the agency or not.

As cities have backed away, the project's price tag, once set at $540 million, has decreased to less than $340 million. Still, UTOPIA executives say, the project can continue and will succeed.

Salt Lake City — citing potential legal liabilities — became the latest city to drop from UTOPIA's ranks as the City Council voted 5-2 Thursday to end its affiliation with the public telecommunications agency, which seeks to bring super-high-speed data connections to every address in its member cities.

On Wednesday night, Payson's City Council voted 3-2 to opt out instead of pledging $259,000 in taxpayer funds.

Earlier this year the Salt Lake City Council voted not to spend taxpayer funds to back UTOPIA. Those taxpayer funds would have been used to back UTOPIA's construction bonds.

Roger Black, deputy director of UTOPIA, downplayed the idea that Salt Lake's departure would significantly injure UTOPIA.

"If they withdraw, it will not affect our ability to get financing to get started and serve the communities that are part of UTOPIA," he said.

Black did get some good news Thursday, as the Layton and Brigham City councils pledged sales tax revenues to back the project.

Earlier this week seven other cities — Tremonton, Centerville, West Valley City, Murray, Midvale, Lindon and Orem — also voted to use tax dollars to back UTOPIA. Cedar Hills and Riverton also opted to stay in the project but will not pledge sales tax revenues — being non-pledging members means UTOPIA may eventually build fiber-optic lines in those cities but those cities won't gain any of UTOPIA's profits.

Salt Lake leaders considered staying in as a non-pledging member, but voted against it largely over legal concerns. For instance, if UTOPIA ever gets sued, the city coffers might have to pay for any settlement or judgment against the agency.

"The risk of litigation certainly outweighs any potential," Councilman Eric Jergensen said.