[1st-mile-nm] Additional Sandoval BB update

[Richard Lowenberg]

Some additional news on the difficulties at the Sandoval County Broadband
Project.   Updates as they are received.  (forwarded to me by new list
subscriber, P. Baston)
rl
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Friday, May 25, 2007
Former Broadband CEO Subpoenaed
By Sean Olson, Alb. Journal Staff Writer

The state auditor has handed down another subpoena for his investigation
into the Sandoval Broadband project, auditor's office spokeswoman Caroline
Buerkle confirmed Thursday. The subpoena was issued Wednesday to former
Sandoval Broadband CEO and current majority shareholder Jonathan Mann.

It is the third subpoena issued by State Auditor Hector Balderas since his
office's investigation into project finances began in early February.
Balderas has said the auditor's power to issue subpoenas has not been used
in recent New Mexico history.

The Sandoval Broadband project endeavors to bring cheap ultra-high-speed
Internet access to service providers across the entire county.

Balderas confirmed last week two other subpoenas had been issued to the
Sandoval Broadband company and its- until recently- CEO Dewayne Hendricks.

Mann said Thursday he was presented with the subpoena during a meeting on
Wednesday with private investigators hired by the state auditor. He said
he had already provided all the documents the investigators had previously
asked for- such as financial records, equipment invoices and contract
agreements- and the subpoena only required a few extra records that had
not been requested.

"I had committed to all that information ... well before the subpoena was
delivered," Mann said. "It wasn't something that required force."

Mann had written the original request for proposals for a feasibility
study on the broadband project at its beginning in late 2004. His company,
AQV Inc. of Salt Lake City, was then awarded the bid for the same RFP.
Mann was recruited by the county to set up Sandoval Broadband- the company
overseeing the project's deployment- after he finished the feasibility
study.

Mann quit the project in August and Hendricks took his place. The Dandin
Group, Hendricks' company, was hired in 2005 to install the broadband
network infrastructure. Hendricks resigned May 9 as CEO of Sandoval
Broadband- which has been entirely funded by county and state money-
shortly after private investigators began a review of project finances.

Sandoval Broadband's board of directors had only Hendricks as a member and
his departure has left the company unable to function or pay bills-
including $36,000 due to the network's signal provider IXNM.

Mann said shareholders are uncertain whether to appoint new members to its
board until it is certain Sandoval County wants to continue contracting
with Sandoval Broadband to deploy the project. Mann said he and other
shareholders purchased stock in the company when it was founded.

About $3 million of state and county funding has already been spent on the
project and only one working signal- between the signal's source in
downtown Albuquerque and the County Courthouse in Bernalillo- exists in
what will be the permanent network.

The project has been beset by delays and vague accounting- including
invoices with little to no detail signed off by County Manager Debbie
Hays. It has also been plagued by $200,000 worth of missing invoices and
an incomplete equipment inventory.

County officials have hired Netlogix, a San Diego, Calif., company with
extensive wireless Internet experience, to assess the project and give
recommendations for moving forward.

The Dandin Group is still contracted to deliver three working pilot areas
in Bernalillo, Jemez and Cuba before the end of June. Hays has said the
county will consider all of its options, including litigation, if the
pilots are not delivered.



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Richard Lowenberg
P.O.Box 8001, Santa Fe, NM 87504
505-989-9110,  505-603-5200 cell

New Mexico Broadband Initiative
www.1st-mile.com/newmexico
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