On March 11, Oneida County set a strict limit on its spending to address a vendor's refusal to connect municipal buildings to the new fiber network. Despite laying 225 miles of fiber optic cable in Rhinelander, the project stalled at the finish line. Multi million dollar fiber lines currently sit dormant yards from nine critical municipal buildings because the vendor, Bug Tussel, considers the final hookups an extra cost.

This local delay carries massive financial stakes. Oneida County belongs to a 24 county coalition that shared the cost of construction. While Fond du Lac County borrowed the initial money, Oneida County cosigned the debt for its local portion. Taxpayers are legally responsible for up to $24 million in principal and interest. The county intended to pay this debt using a share of the internet service revenue. If Bug Tussel fails to finish the connections, there is no network to sell, no revenue to collect, and the full debt falls on the local budget.

The construction stalled because of a gap in the contract language. While the county’s bond agreement required a "comprehensive" network, the technical specifications did not explicitly list the final physical hookups for municipal offices. Bug Tussel treated the fiber in the street as a finished product. They labeled the final building connections as an unfunded extra cost.

Instead of entering a long legal battle over these definitions, the county implemented a financial barricade. During the March 11 meeting, Finance Director Tina Smigielski reported that only $1,546,000 remains in the project fund. She warned that the county would lose all leverage once that money was spent. In response, the Executive Committee voted to freeze all payments the moment the fund drops to $1,250,000.

This 5.2 percent project holdback functions as a performance guarantee. It legally forces Bug Tussel to complete the building connections to access its final profit margin. The county cannot afford to let the vendor walk away from these final nine buildings because a partially finished network cannot generate the funds needed to service a $24 million loan.

A funding freeze requires physical verification. The committee recruited Ken Kortenhof to audit the vendor’s work. As the former Emergency Management Director, Kortenhof has decades of experience managing 911 dispatch centers and radio towers. He will inspect the infrastructure and confirm that the fiber is properly terminated and functional inside the buildings before the county releases any further money.

This strategy provides a blueprint for other local governments. Administrative Coordinator Tracy Hartman coordinates with other counties in the Bug Tussel group. If partners like Fond du Lac and Outagamie implement similar 5 percent holds, the coalition gains significant leverage over the vendor.

Oneida County currently operates under tight fiscal constraints. The county recently moved $2 million in emergency funds to cover state-mandated child placement costs. The municipal budget cannot absorb the failure of a major infrastructure project. By setting a hard capital floor and hiring an expert auditor, the county ensures that the $24 million already spent results in a working product.