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ip <br /> monies were used as follows: $25,000 for Jim Goldman's study which is a Purdue affiliation; <br /> $100,000 for the proof of concept to the University of Notre Dame; $35,000 American <br /> Consulting for plans and specs; $75,000 for design and field services of Steve Major; and <br /> $365,000 earmarked for conduit & related items. With regard to liability, the city is making <br /> space available and there would be no liability to the city or to the taxpayers. The City <br /> Attorney's Office has drafted hold harmless and indemnification language. <br /> Council Member Kuspa inquired,what is MetroNet to the average person. <br /> Mr. Gilot stated that it is a process of direct use of fibers. Strains of glass and lasers are used to <br /> send information at high speed which tie into long haul fibers. It can do voice,video,telephone, <br /> and internet. Big fiber is necessary in order to access the information age economy. <br /> City Attorney Charles Leone noted that in the US Supreme Court case of Nixon v. Missouri <br /> handed down in 2004, there was a challenge to an FCC rule. It found that you cannot use a <br /> federal mechanism. There is no case law prohibiting what is going on right now. He added that <br /> HB 1148 is currently pending. <br /> Cleo Washington of SBC noted that the US Supreme Court issued their opinion on March 24, <br /> 2004 and that it was a 8-1 decision. He noted that the City has a good City Attorney and a good <br /> Council Attorney, however he has a much broader reading of the opinion. There are twelve (12) <br /> states which have passed laws and a movement is taking place across the county. He noted that <br /> in Monday's edition of the South Bend Tribune,the Governor was quoted as questioning whether <br /> local government should compete against the private sector. He stated that if a new state law is • <br /> passed that it would affect investments from the city. <br /> Mr. Gilot noted that the city is not going into the telecommunication business,but rather into the <br /> conduit business. <br /> Mr. Carbone questioned whether there is existing fiber and whether it is part of MetroNet? Mr. <br /> Gilot answered no, and noted that there was competitive bidding. <br /> Mayor Luecke stated that existing fiber cannot be part of MetroNet and some would be replaced <br /> with 144 fiber and some would be dedicated to the city for city use. <br /> Dr. Varner noted that at the earlier meeting Pat McMahon stated that 24 pairs would be for the <br /> city of the 144 fibers. Mr. Gilot stated that since then the city has asked for 36 pairs, to which <br /> MetroNet has agreed. <br /> Mr. Washington inquired wt6her the study performed by Mr. Goldman would be released to the <br /> Council. He noted that it would be appropriate for the Council to see it, noting that other <br /> community models have not all been successful. He added that there is a "littered landscape" of <br /> at least 47 companies, large and small which have been failures. He questioned whether only <br /> "best case scenarios" are being studied. <br /> Council Member Rouse noted that St. Joseph Medical Regional Center is one of the seven <br /> companies. He questioned what would happen when they move their operation out of the city. <br /> Information and Technology Committee Meeting of January 26,2005 -page 2- <br />