iProvo sale approved

PROVO — Mayor Lewis Billings once told City Council members they were the ones who'd pull the trigger on whether the city would sell iProvo to Broadweave.

But Tuesday night, as the City Council voted 4-3 to approve the sale of the city-owned fiber optic network, some council members said they felt like they were on the wrong side of a rifle as they deliberated.

"Frankly, I feel like I have a gun to my head," said City Councilwoman Sherrie Hall Everett, who participated in the meeting via conference call.

The council discussed the mayor's proposal to sell iProvo — which provides voice, video and Internet — to South Jordan-based Broadweave Networks for $40.6 million, plus interest. As the council considered the measure, city staff repeatedly reminded them that the proposed 2009 fiscal budget had already factored in the sale of iProvo.

Interim telecommunications director Kevin Garlick said the city is approaching the end of the financial year, and if they decided not to sell the network then they would have to readjust the budget, which already reflected the iProvo sale, to reflect the status quo.

"We all know the status quo would be a continued need to finance the project," Garlick said.

Garlick also said the uncertain atmosphere surrounding iProvo has also led to other problems. Four iProvo employees have given him letters of resignation because they are seeking employment elsewhere, and the current service providers MSTARmetro, Veracity Communications and Nuvont have reported an extremely difficult time maintaining subscribers while the fate of iProvo is yet to be determined.

"Based on all of these issues, we would hope the council would take this recommendation," Garlick said.

Executives from Sorenson Captial, an organization that has pledged to back Broadweave as it assumes control of the network, also applied pressure to move the council's decision along.

Fraser Bullock, of Sorenson Capital, said the deal needs to be closed soon so the cloud of uncertainty can be released.

"Uncertainty creates a cloud," he said. "The longer we go ... the more problems it creates."

City Councilman Steve Turley said Sorenson Capital and Broadweave aren't the only ones operating under a cloud of uncertainty. Since they learned of the sale May 6, Turley said members of the council have been bombarded by information about the sale. He also said they had recently received additional documents detailing the sale that he hasn't had sufficient time to review.

"I want you to know there's a discomfort," he said.

City Councilwoman Cindy Richards said she doesn't feel like she's under a cloud, and she thinks all the information leading up to this point has been helpful.