A Performance Audit of the Utah Telecommunication Open ...

in public, the executive committee meetings are closed to the public.Executive committee meetings often last several hours, during whichthe committee members receive a great deal of information regardingthe weightier matters facing UTOPIA. In addition, the members ofthe executive committee are given a packet of information regardingUTOPIA’s budget, financial position, and other matters. However,this information is not presented to the full board of directors and isnot typically discussed during the meetings of the full board.UTOPIA board reliesheavily on theexecutive committee toreview criticalinformation and makeimportantdeliberations.The reason, we are told, that the board relies so heavily on itsexecutive committee is that UTOPIA wishes to avoid providing theincumbent telecommunications providers with insights intoUTOPIA’s business strategy. Their concern is that if UTOPIA’sbusiness strategies were discussed openly, during a public meeting, theincumbent providers would focus their marketing efforts in thoseneighborhoods targeted by UTOPIA’s business plan. UTOPIA boardmembers and administrators are concerned that incumbents wouldentice residents with deeply discounted rates and multi-year contracts,thus preventing UTOPIA from gaining a foothold in the community.Despite these concerns, UTOPIA is a government entity and mustadhere to laws applicable to all interlocal agencies.UTOPIA May Not Be Complying with the IntentOf the Open Meetings ActWe believe meetings of the executive committee may not be incompliance with the intent of the Utah Open and Public MeetingsAct. We have two main concerns. First, during executive committeemeetings, the members of the UTOPIA board of directors oftendeliberate on matters later presented to the full board of directors.State law requires that boards hold their deliberations during open andpublic meetings. Second, the executive committee constitutes aseparate public body and is therefore required to conduct its businessin an open meeting. We believe most topics discussed by the executivecommittee do not qualify as matters that may be handled during aclosed session under the Utah Open and Public Meetings Act.The Executive Committee Deliberates on Matters to Be TakenUp by the Board of Directors. As mentioned, we observed that theexecutive committee meetings are closed to the public. They generallyinclude rather lengthy discussions of UTOPIA’s financial position, itsmarketing strategies, and problems faced in building the networkinfrastructure. Occasionally, matters discussed by the executive- 52 -A Performance Audit of the Utah Telecommunication Open Infrastructure Agency (August 2012)