Surpha Inc.: Musterdepotaufnahme

Barbara Christiansen - NORTH COUNTY STAFF    
Earlier this year, an Orem company made an offer to buy the American Fork broadband system. There still isn't a contract, but the city is hopeful it will happen soon.

On Tuesday, the American Fork City Council agreed to extend the deadline for contract negotiations to Oct. 31. The city signed a letter of intent to work with the company, Surpha, earlier this year.

"We had a letter of intent and hoped to get a contract," Councilman Dale Gunther said after the meeting Tuesday. "Surpha ended up needing more time to do due diligence. They haven't done a contract yet."

He explained that due diligence included analyzing the assets of the network.

"They will present a contract to us," Gunther said. "We will have our legal counsel look at it. There will be fine points that will have to be agreed to."

Councilwoman Heidi Rodeback said before the council meeting that she thought the company was a viable option.

"They really have a lot of experience in the industry," she said. "They specialize in business applications. They are a very solid company. They have a really sound reputation."

American Fork purchased the fiber-optic system in 2002, and bonded for $6 million to make the purchase and begin operations. At one point, the system was losing $1.2 million annually. City officials pointed to changes in state law, which now prohibits a city from offering services over a broadband system. Cities that own broadband systems must contract with Internet service providers to provide those services to residents.