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PUD commissioners release fiber funds

by Erik Olson<br>Herald Staff Writer
| May 5, 2004 9:00 PM

Telecom department now under direct control of general manager

More money is available to bring fiber to 500 homes after a Grant County PUD commissioners approved a release of telecommunications funds Monday.

The commission approved at its Monday business meeting the release of $642,205 of sequestered operations and maintenance funds, along with $675,000 from the fiber capital fund.

PUD Telecommunications Director Larry Jones said the funds will be used to connect fiber to Grant County residents who have already signed up for the service. Jones added that he does not want to be caught short of funds for these projects, which is part of the reason for the request.

The telecommunications department has $513,162.38 left from the $1.8 million released from the capital budget as of April 30. The department has $1,08,687.22 left from the $2,158,274 released from the operations and maintenance budget on the same day.

The funds are slated to pay for contract crews, underground services, power supplies for fiber gateways, optics for the gateways and other miscellaneous expenses.

Jones said some of the money is needed for infrastructure to address "serious safety problems" with fiber cables.

Commissioners Tom Flint, Vera Claussen and Mike Conley voted to approved the motion. Commissioner Randy Allred voted against it, and Commissioner Bill Bjork abstained from the vote.

Jones added that he rejected an agreement with officials at the Northwest Open Access Network (NOA Net) for the PUD to opt out of its Network Operations Center.

Critics have pressured the PUD to get out of that agreement because of its cost to the district.

Telecommunications funds for 2004 have been sequestered in an effort by PUD commissioners to have more oversight in fiber spending. Every two months, the fiber director has come before the commission with a request to release funding to cover expenses for fiber buildout.

In related news, commissioners approved a motion set forth by General Manager Tim Culbertson for the telecommunications director to report directly to him again.

The telecommunications department came under direct supervision by the commission after a report from the state auditor's office last year found PUD fiber managers had misspent funds in setting up the fiber system.

Culbertson said after the meeting that the motion shows the commission has become comfortable with his ability to manage the fiber system and help it move forward. One of his biggest priorities, he said, is developing a business plan for the system that can withstand public

scrutiny.

Commissioners sequestered all telecommunications funds and only allowed their release at the request of the fiber director. Consequently, the PUD's fiber system has had its slowest buildout this year since its inception in 2000.

Conley asked whether Jones, the fiber director, would still deliver reports to the commission.

Jones answered that he would.