In the past few years, Bayfield has expanded an existing fiber optic network in town, assisted by state grant funds for improved broadband services in Southwest Colorado.
The $3 million regional grant went through the Southwest Colorado Council of Governments (SWCCOG), with a total $1 million local match from participating communities. Bayfield's share of the grant was $307,322 with an initial town match of $102,440. However, the cost escalated quickly from the $410,000 represented by the grant and local match to more than $500,000 by late 2012, with the additional cost all on the town.
The now-completed town project expanded on an existing fiber network owned by FastTrack. It connects schools and public buildings with the idea of being able to lease around 75 percent of excess fiber capacity to private internet service providers that can then provide services to businesses or homes. The specific goal was to allow competition among private providers to bring better broadband service to Bayfield at lower cost.
The first such lease, to Cedar Networks, was stalled on June 23 when town trustees tied on a vote to approve a memorandum of understanding (MOU) with the COG to provide billing and payment collections from such providers and remit 75 percent to the town. One trustee was absent. The board will reconsider the MOU and the Cedar Networks lease on July 7.
Town Manager Chris La May said the Council of Governments would be in charge of billing lease holders. The council would collect the money, pass 75 percent to the local community and keep 25 percent to maintain the regional part of the network.
Trustee Ed Morlan opposed the MOU. He is the longtime executive director of the Region 9 Economic Development District which provided administrative support to the council for its first few years. The council now has its own executive director.
Morlan objected that Cortez isn't participating in the 75-25 split. "Cortez has bullied you all," he said. "That's not proper in my opinion. Only certain communities are generating significant revenue from leasing fiber in Durango and Cortez, and Cortez isn't playing." He suggested that voting to approve the MOU was also approving Cortez's non-participation.
He also expressed concern that "there was no financial diligence given to this."
Morlan, Matt Nyberg, and J.J. Sanders voted against the MOU. Matt Salka, Mayor Rick Smith, and Rachel Davenport voted for it, although Davenport had concerns about checks and balances to make sure the middle man is passing on the town's proper share of the lease money.
La May said he thinks the town can keep track of that, even with multiple vendors.
Smith said, "We do participate in the COG network, through their router. So even if one member of the COG chooses not to participate, I think we should. We're getting a benefit from the COG. There's a redundant system if something happens in Durango. Theoretically you will never go down."
The town fiber network now has fiber connection to the outside world via fiber brought by FastTrack up County Road 509 from Highway 172 to Bayfield Parkway.
