Clarification of BTOP Complaint

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Countyof

SantaClara

OfficeoftheCountyExecutive

CountyGovernmentcenter,EastWing

70West

Hedding

Street,11thFloor

San

Jose,

California95110(408)299"5102

jeft.smrtheceo.sccgov.org

Jeffrey

V.

Smith

County

Executive

February28,2011LawrenceE.StricklingAssistantSecretaryforCommunicationsandInformationU.S.DepartmentofCommerce,NTIAHerbertC.HooverBuilding1401ConstitutionAvenue,N.W.Washington,D.C.20230Re:ClarificationofComplaint-BTOPGrantAwardforBayWEBProjectDearMr.Strickling;Thankyouforyourresponse,datedFebruary24,2011,totheletterssenttoyouonJanuary18,January31,andFebruary15,2011concerningtheSanFranciscoBayAreaWirelessEnhancedBroadband(BayWEB)projectfundedbytheDepartmentofCommerce'sBroadbandTechnologyOpportunitiesProgram(BTOP).

It

ishelpfultohaveyouranalysislaidoutindetail.Withallduerespect,however,Icouldnotdisagreemorewithanumberofthestatementsinyourletter.Basedonyourresponse,IamallthemoreconcernedthattherehasnotbeenacomprehensivereviewofthecriticallyflaweddetailsundergirdingtheBayWEBprojectapplication.YourletterisformulatedmoreinthetoneofadvocacyfortheinterestsofMotorola,Inc.,ratherthanadvocacyfortheintegrityofthegrantprocess.

It

issimplynotacceptabletoputMotorola'sinterestsabovethemandatedARRAprinciplesofintegrityandtransparency!Tosettherecordstraightandelucidatethemisconceptionsinyourletter,Iaddresscertainstatementsfromyourletterbelow.Idonotexpectthatyouwillchangeyourdecisiontoallocatethe$50milliontoMotorola,butIdowantyoutobefullyawareofpertinentinformationwhensomeinvestigatorsubsequentlyaskswhyyouwastedthe

LettertoAssistantSecretaryLawrenceE.Strickling,CommunicationsandInformationU.S.DepartmentofCommerce,NTIAClarificationofComplaint-BTOPGrantAwardforBayWEBProjectFebruary

28,2011

Page

2

of5

moneybygivingittoMotoroladespitethefactthatitwasneitheraqualifiedapplicantforthegrant,norhonestandtransparentinitsapplication.I.Inparagraphfourofyourletter,yousay,

"NTIA...

didnotrelyonrepresentationsmadeintheapplicationwithregardtotheBayRICSPolicyGroupasthebasisforawardingtheproject."Rather,yousay,"wereliedonthestatementsofsupportreceivedfromkeygovernmentalunitswithintheBayArea,includingSantaClaraCountyandtheCityofSanJose....

If

Anyrelianceonstatementsofsupportfromindividualpublicofficialsismisplaced,andsolerelianceonanystatementsmadepriortofulldisclosureisirresponsible.TheDepartmentofCommerce'sdecisiontoawardagrantmustbemadebaseduponrepresentationsintheapplication,ratherthanmereevidenceofgenericpoliticalsupportforoverallprojectgoals.

In

fact,the

DepartmentofCommercePre-AwardNotificationRequirementsforGrantsandCooperativeAgreements,

clearlystatesthat"DOCfinancialassistancemustbeawardedthroughamerit-basedreviewandselectionprocess."!Furthermore,intheletterthatMayorChuckReedandIsenttoyouonJanuary18,2011,weexplained,"AlthoughtheCountyofSantaClaraandCityofSanJoseprovidedlettersofsupportforthegrantapplicationbasedupontheultimategoalsoftheproject,theselettersweregivenwiththeexpectationthattheprojectwouldbegovernedunderalegitimategovernancestructure,suchastheBayAreaUASI,andthatfurtherinformationaboutthepublic-privatepartnershipandgrantapplicationwouldbeprovided."Asitturnedout,suchinformationwasnotandhasnotbeenforthcoming.II.Inparagraphfiveofyourletter,youassertthat"Motorola...providedsubstantialsupportingdocumentsandinformationthatindicatedsupportfromtheimpactedcommunities[thatdemonstratethatpublicjurisdictionswouldparticipateintheproject]."Youhavemistakenpoliticalsupportforactualpartnership.AlthoughMotorola'sgrantapplicationincludedlettersofsupportfromlocalSheriffsandotherelectedofficials,theseindividualsdonothavetheauthoritytocommitpublicresources

173Fed.Reg.7696(Feb.

11,2008).

LettertoAssistantSecretaryLawrence

E.

Strickling,CommunicationsandInformationU.S.DepartmentofCommerce,NTIAClarificationofComplaint-BTOPGrantAwardforBayWEBProjectFebruary28,2011Page3of5

totheprojectwithoutactionsfromtheirgoverningbodies.Expressedenthusiasmforapotentialprojectmeansnothingmorewithouttheattendantofficialapprovalnecessarytoactuponsaidenthusiasm.AsfarasIamaware,noneofthelocaljurisdictionsintheBayAreahavetakenanyofficialactiontocommitanyresourcestotheBayWEBproject.Indeed,thoselocalagenciescouldnotpossiblyofficiallycommitsuchresourcesbecauseMotorolahasnotbeenforthcomingaboutthetotalcostoftheproject.Withoutsuchcommitments,theprojectiscertaintofail.III.ParagraphsfiveandsixofyourletterindicatethatyouarecommittedtotransferringthegrantmoneytoMotorola.However,youmustknowthata$50milliongrantalonewillnotbeenoughtomaketheprojectwork.AsIsaidbefore,IknowofnojurisdictionsintheBayAreathathavemadeanyofficialcommitmentofresourcestotheproject.

It

isunacceptabletoturnablindeyetooutstandingquestionsregardingwhichentities,

if

any,willcommittothebalanceoftheenormouscostsassociatedwithdevelopingandimplementingthisprojectwhileMotorolasolidifiesastrangleholdontheregion.Itisclearthatthecompleteinfrastructureprojectanditsoperationasapublicsafetycommunicationsystem,includingallequipmentrequiredtousetheinfrastructure,licensingfees,maintenance,etc.,willcostatleasttentimesthe$50milliongrantamount.Withoutacommitmentfromsomeonetopaythoseothercosts,thepublicsafetycomponentoftheprojectwillfailforeveryoneexceptforMotorola.Thecompanywillbenefitbecausetheywillhaveanewinfrastructureforwhichtheycanchargeaccessfeesinthenon-publicsafetycommercialmarket-aninfrastructurepaidforbytaxpayers.WhileIcanunderstandwhyMotorola,asthesolevendorselectedfordevelopmentofthisproject,maybewillingtomoveforwardintheabsenceofatransparentandaccountablegovernancestructureforparticipatingpublicentities,IfailtounderstandwhytheNTIAissocommittedtothisflawedundertaking.AsMayorReedandIexplainedinourletterofJanuary18,2011,onceMotorolahasbeenlockedinasthesolevendorforthissystem,publicentitiesparticipatinginthisregion-widestandardwillhavelimitedabilitytocontrolcostsortonegotiatetermssuchasuserfees.

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