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To the members of the House Government Operations Committee,
We the undersigned believe that HB60 is a bad bill for business for the following reasons.
1) It restricts UTOPIA as an entity from expanding, regardless of whether its member cities are served or not, or whether other cities would like to join. This is a punitive effort executed by the Utah Legislature that takes control away from city members and management.
2) It hobbles one of UTOPIA’s necessary needs to interconnect member cities through backbone service. These fiber optic links currently under UTOPIA ownership allow service providers who may not have facilities in a UTOPIA member city to provide services throughout UTOPIA, increasing member city choice and competition. How are these interconnections supposed to happen under HB60?
3) It limits UTOPIA from collecting funds from potentially high take-rate areas outside member cities. Funds that could otherwise be used for payback of UTOPIA member city debt.
4) It limits UTOPIA from venturing into unincorporated municipalities, with no governing entity that would otherwise join.
5) It is discriminatory against advanced services. Municipal electrical line services are exempt from these restrictions as long as they have been in operation for over 50 years. Fiber optics have only been in broad deployment since the early 1980’s.
6) UTOPIA is under consideration for a dramatic ubiquitous expansion financed by a private entity. This is the wrong time for the Utah Legislature to throw down potential restrictions that could negatively influence their consideration. If the Utah Legislature wishes cities to be enabled to pay off their UTOPIA bonds, they will welcome all potential offers and take a “hands-off” approach.
Pete Ashdown – XMission
David Burr – Sumo Fiber
Randy Cosby – Infowest
Lane Livingston – Fibernet
Dan McComas – Reddit