Net project
encounters flak
Chamber of Commerce says free-market forces
should drive the project.
By E.J. Schultz / The Fresno Bee
www.fresnobee.com
The Greater Fresno Chamber of
Commerce and the Regional Jobs Initiative are not seeing eye-to-eye on
an RJI plan that would form a public-private partnership to sell
Internet services in the region.
Chamber officials, speaking before the Fresno County Board of
Supervisors on Tuesday, criticized the public portion of the plan,
saying that free-market forces should drive investment.
"Government and the public sector should not be in a role where they are
in effect subsidizing the private sector," chamber CEO Steve Newvine
told the supervisors, some of whom expressed concern that the project
got the county's support without their knowledge.
The initiative envisions forming a nonprofit, called Central California
Broadband, to offer voice, data and video services. Companies would
operate the service, and the nonprofit would sell it. Under one
scenario, cities would offer assets such as fiber-optic cable line along
traffic light systems to companies willing to build and sell the latest
technology here. The hope is that the partnership would give the region
a competitive edge in attracting technology companies.
A request for proposals was sent recently to more than 200 technology
firms, including current providers. Bids are due April 25, and
organizers hope to sell service by the end of the year. The inquiries
sent to companies included letters from officials with the cities of
Fresno and Clovis and Fresno County, stating that the governments are
"interested" in making assets available.
Fresno County Chief Information Officer G.P. Atkisson wrote that the
county "would like to investigate opportunities" to leverage assets. The
letter mentions the possibility of sharing development costs with the
public-private partnership on the county's "e-government" system, a plan
to offer certain services online.
The letter also mentions the possibility of sharing space with the
partnership at the county's technology center in southeast Fresno.
Supervisor Phil Larson and board Chairwoman Judy Case said they were not
aware of the letter. "My staff sends out a letter, I think the Board of
Supervisors oughta know about it," Larson said at Tuesday's meeting.
Supervisor Susan Anderson, a co-chair of the RJI leadership council,
said she requested the letter. It did not commit the county to anything,
Anderson said, and in her view did not need supervisor authorization.
"If feathers are ruffled over that letter, I apologize for that."
The supervisors did not take any formal action on the initiative
Tuesday. Instead, they asked county staff to research how many, if any,
county assets are now being used by technology providers.
The debate Tuesday highlighted the political
complexities the RJI faces as it pushes some of its
programs. No one questions the group's motive of
seeking to improve the long-struggling regional
economy by creating 30,000 jobs by 2009. But putting
some plans into action, such as the Central
California Broadband proposal, can get sticky,
involving myriad agencies and companies that have
their own agendas.
The dominant local Internet service provider, SBC
Communications, has come out against the public
portion of the partnership plan, calling it the
beginnings of municipalization of Internet service.
SBC's external affairs director, Eric Johnson, has a
slot on the board of directors of the Chamber of
Commerce, a member of the RJI leadership council.
In this case, the chamber has taken the same view as
SBC, a dues-paying chamber member.
In interviews after the supervisors meeting, RJI and
chamber officials downplayed their disagreement.
Newvine said he is not asking the RJI to pull the
Central California Broadband project or to halt the
request-for-proposal process. "All we're saying is
let it go forward, but be careful," he said.
SBC also is not fighting the request-for-proposal
process, known as RFP. "We do not oppose the RFP,"
company spokesman Johnson told the supervisors.
"We oppose the portion of the RFP that would involve
the county."
RJI Co-chairman Pete Weber said, "I think we're
going to end up very much on the same page" with the
chamber.
The RJI, which includes some 1,300 business and
government leaders, does not take formal votes on
proposals it pushes.
The RJI gets buy-in for some issues, said RJI Chief
Operating Officer Ashley Swearengin. Members of the
group's 20-member leadership council are polled, and
the ultimate call is made by Weber, fellow RJI
Co-chairman Ken Newby, Fresno Mayor Alan Autry,
Clovis Mayor Lynne Ashbeck and Anderson, the county
supervisor.
The process was not used for the broadband proposal
because it is one of the 40 initiatives described in
the RJI implementation plan. "It was a core project
from the beginning," Swearengin said.
RJI officials have discussed putting more defined
procedures in place. But, Swearengin said, "We are
trying to keep it as informal as possible. Otherwise
we just get buried in bureaucracy."
The RJI backs the broadband proposal on the grounds
that it would give the region a competitive edge by
boosting technological investment.
"This is not municipalization," Weber told the
supervisors. "What we are trying to do is increase
competition, not decrease it."
More debate on the proposal is expected Tuesday at
the Fresno City Council meeting.
Council Member Jerry Duncan said in a recent
interview that he plans to ask the council to vote
to remove the city of Fresno as a supporter of the
project.
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