Did officials unduly press consultants for iProvo?

Published: Saturday, April 5 2008 12:37 a.m. MDT

PROVO — Critics of iProvo say recently released correspondences indicate city officials pressured consultants to focus on allocating iProvo's debt among city departments rather than on developing the system's profitability.

Provo spokeswoman Helen Anderson disputed their assertion Friday, saying city officials weren't putting any kind of pressure on consultants to tell them only what they wanted to hear.

Last year, the city called on CCG Consulting and Franklin Court Partners to analyze its fiber-optic telecommunication network. In 2004, the city issued $39.5 million in bonds to finance construction of iProvo, which provides Internet, phone, television and video services. During 2007, the network experienced churn rates and posted deficits despite receiving a monthly $100,000 transfer from the city's general fund.

The consultants were supposed to have their final reports submitted six weeks after they were hired, Provo spokeswoman Helen Anderson said, but their reports are being revised based on new information.

City Councilmanr Steve Turley filed a GRAMA, or Government Records Access and Management Act, request to obtain copies of the reports. His request was denied based on the claim the reports are still in draft form, but Turley received copies of numerous communications between the iProvo consultants and city officials.

One particular e-mail sent Jan. 14 from CCG Consulting President Doug Dawson to acting telecom manager Kevin Garlick came as a "little kick in the old head" when Turley read it.

In the e-mail, Dawson states he would be extremely uncomfortable only recommending chargebacks — billing other city departments for their use of iProvo — to the council as "the only fix the company needs."

Dawson also said he recommended other ideas, including cutting expenses, shifting functions to retailers and adding new retailers to make iProvo profitable and self-sustaining.

"To talk about only the chargebacks gets my reputation, and by association, the company's, shredded," he wrote.

While Turley thinks Provo's departments should pay for piggybacking on the iProvo system, he doesn't think "reshuffling a dollar from one (budget) column to another" will solve the deficit.

"It's a Band-aid," he said.

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