Quincy port stuck with fiber optics bill

County denies funding to support Zipp services to Gorge, Cave B

EPHRATA — The Port of Quincy invested more than $100,000 connecting fiber optic telecommunication infrastructure to both Cave B Inn at Sagecliffe and nearly completing a fiber optic connection to the Gorge Amphitheatre.

In its effort to recoup $50,000, the port submitted a "strategic infrastructure program" proposal to Grant County officials. The Grant County Board of Commissioners opted not to award funding for the project last month, saying it's inappropriate for the county to fund the public utility related infrastructure.

On Tuesday, the port asked the county commissioners to reconsider.

Cities and port districts looking to pay for infrastructure and job development projects can receive SIP funds, said Port of Quincy Commissioner Pat Connelly.

"What we do is economic development and we felt like that was economic development for our district," he said.

Both the amphitheater and inn generate considerable revenue for the county through taxes and new construction, Connelly said.

"When you look at the taxes that the Gorge pays and the county receives, it's huge," he said. "The more money they make, the more they pay back to the county."

The fiber optic connection, Connelly said, is definitely considered infrastructure and should therefore qualify for SIP funding.

"Infrastructure is infrastructure, as far as we're concerned," he said. "(Fiber optics) is the same as roads, it's the same as anything."

According to Grant County Commissioner LeRoy Allison, the proposal was denied because providing fiber is the Grant County Public Utility District's responsibility. Commissioners also fear others would begin seeking funds for similar projects.

"It would be precedent setting, if we got into that type of infrastructure purchasing," Allison said. "There would be a huge demand if we did step into that new arena, and we don't have enough economic development dollars dedicated to do that and to meet that need."

The SIP program takes in around $200,000 to $300,000 per year, Allison said, and has paid out more than $2 million since it was initiated.

He said there are currently more projects than funds.

"With the few economic development dollars that we do have, we've got enough needs in the roads and the water and the sewer," he explained.

The board unanimously voted against the port's proposal the first time, Allison said, and he believes a second vote would produce the same result.

"Have they officially made the decision? I don't think so," said Port of Quincy Commissioner Curt Morris. "We haven't gotten the final notice that that was what they have decided on."

Morris said the county initially denied the $50,000 because Allison, Commission Chairman Richard Stevens and Commissioner Deborah Moore remain convinced the PUD is responsible for expanding its fiber optic communication system, known as the Zipp Network.

"To me, that's counterproductive," Morris said. "The fact is the PUD is not doing it, so, if it needs to be done it has to be done through a different method."

He does, however, agree the PUD is responsible for the fiber optics system's expansion.

"But if I waited for that to happen it wouldn't happen," Morris said. "Now, it becomes the responsibility of either the user, or in our case the port in partnership with the user, to get the job done."

PUD General Manager Tim Culbertson said their obligation for service is different, depending on whether they are providing telecommunications or power.

"Right now, if it's fiber or electricity, it's different," Culbertson said Tuesday. "Because we have an obligation to serve, different statutes and regulations apply to the district for fiber service versus electric service."

After four years of deploying fiber optics to homes, businesses, schools and farms in Grant County, a majority of the utility's board of commissioners voted to halt building out the fiber optics system last year. That position on fiber optics build out is known as "stand pat" mode.

The PUD will expand service to homes and businesses located within areas considered "fiber ready."

"Being at a 'stand pat' mode, if customers want fiber service outside of an existing hub area and are willing to pay 100 percent of the cost, then we're willing to build out the system if they pay 100 percent of those costs," Culbertson said. "And that would apply to anybody at this point in time."

PUD Commissioner Tom Flint, whose at-large district includes Quincy, the amphitheater and inn, believes the utility should be trying to accommodate as many businesses as possible with fiber optics. He contends the "stand pat" policy of the commission majority is discriminatory.

"The county should not be going into the fiber business and that's not what I want my property taxes to pay for," Flint said. "The PUD has the capacity and authority to do that and we should."

He has continuously opposed the "stand pat" mode.

"We should be enabling the system, not putting road blocks in the way," Flint said today.

He favors some kind of system of equalization for businesses paying for fiber on their own, if the commission eventually changes their policy position.

Morris said the port plans to spend another $6,000 to $12,000 dollars finishing the connection to the amphitheater before the concert season begins.

"The numbers started out at $6,000 and then I think went to $12,000 for no real apparent reason," he said. "So I've got to go back to the PUD and say 'why did that jump up like that?'"

He said Cave B is fully operating with fiber optics now. Originally, they utilized wireless service, which proved unreliable, resulting in lost sales and business.

When the county commissioners reconvene, Allison said they will discuss a future vote on the port's funding proposal.