Provo • The city is putting together a list of companies that could step in and run iProvo if the need arises.

Mayor John R. Curtis, in his State of the City Address on Thursday, announced the city will be soliciting requests for qualifications from companies interested in the network. Curtis said the move is part of his "Plan B" in case Veracity Networks defaults on the sale agreement with the city.

But, Curtis stressed, the move is not a sign that Veracity is in any trouble.

"We have committed as a city to be proactive and have a [contingency] plan," Curtis said.

He said it was also important for everyone to stop debating whether Provo should have created iProvo in the first place and work on making it successful.

Curtis also announced the formation of an advisory committee to look at iProvo and recommend ways to close the gap between revenues and expenses. The committee will be chaired by former Mayor George O. Stewart and will include Sen. Curtis Bramble, former Provo municipal councilman and Micron lobbyist Stan Lockhart, and Bill Hulterstrom, executive director of United Way of Utah County.

Municipal Council members Sherrie Hall Everett and Steve Turley both praised Curtis' proposal.

"I think this is a prudent step," Everett said.

She said having the request for qualifications makes the process more transparent, eliminating the earlier charges that the city did not adequately advertise the sale of iProvo in 2008.

Turley said that bringing experts together will help the city put together the best possible contingency plan.

"We can't afford to make these huge, costly mistakes," Turley said. "There is consensus we need to learn the lessons from the past."

The city sold the network to Broadweave Networks in 2008, which later merged with Veracity Communications to become Veracity Networks. Under the sales agreement, the city continues to hold the $39 million bond, which Veracity is paying off in monthly installments.

Under the agreement, if Veracity defaults, the city will take ownership of the network — and have to pay off the bond.

Veracity has encountered a gap between its iProvo revenues and expenses. Curtis said if the city were to take over the network now, the gap would be about $4 a month per utility ratepayer.

dmeyers@sltrib.com

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