Citing concerns over security vulnerabilities and a lack of IT support at Grand Traverse County, Traverse City Light & Power (TCL&P) is pursuing pulling its data off county servers – and is threatening legal action against the county if the request is denied or delayed.

TCL&P officials have expressed concerns since October about the county continuing to host utility and city customer billing data – along with internal payroll and finance functions – following the mysterious deletion of a critical county budget database last fall. A 2016 county IT audit identified multiple security risks in its technology systems, and an exodus of county IT staff familiar with the county’s systems also raised the alarm, according to TCL&P Executive Director Tim Arends, who has contracted with two of those former employees to provide continued support for TCL&P programs.

“There’s an absolute lack of confidence in (the county’s) ability to serve Light and Power at this point,” Arends says. “I have a responsibility to the customers of Light and Power to preserve their billing data and to ensure that the actual ability to do billing, which is a vital portion of our business, is not disrupted.”

TCL&P board members gave Arends the green light in November to purchase a new $25,000 IBM i machine capable of hosting utility and city data and providing billing functionality for electric, water and sewer customers. Arends says instead of the city and TCL&P jointly paying $16,000 a year to the county for IT services, the utility now has the technology and internal IT staff to handle those services “at no cost.”

“We don’t have to continue doing things the way they’ve always been done,” says Arends, citing an at-least decade-old agreement between the county and the city for IT services. That contract, which doesn’t specifically name TCL&P, began at a time when the utility didn’t employ in-house IT staff, Arends says. “We’re in a position now where we have two degreed IT professionals and can provide these services and not pay the county, which doesn’t even have the staff to support these programs.”

Emails exchanged between TCL&P and county officials over the last two weeks reflect mounting frustration over the utility’s demand for access to its data, as well as access to the Governmental Center to run a cable giving a client access to TCL&P’s dark fiber network. Explaining the county’s delay in granting TCL&P’s requests, County Deputy Administrator Jennifer DeHaan wrote Arends Thursday that “there are potential issues related to liability, use of resources, and potential security issues” to be worked out before allowing TCL&P to access county servers.

County Administrator Tom Menzel tells The Ticker the situation is further complicated by the fact that the county’s contract is with the city, and the city has indicated its plans to continue that agreement. “I think we have to work something out with the city, not Light and Power, because our agreement is with them,” Menzel says.

City Manager Marty Colburn confirms he plans to keep contracting with the county for IT services related to water and sewer billing. He says the relationship provides a “one-stop shop” at the Governmental Center for customers to pay their bills and receive assistance. Colburn also says he’s “worked with the county” over the last several months on security concerns and that the county is “regaining our confidence,” noting the county is about to hire a new IT director, has commissioned an IT analysis to identify needed infrastructure upgrades, and has committed to investing in its technology systems.

But in a memo to Menzel, Colburn also supported TCL&P’s request for access to its data, citing a desire to have “a secondary backup system…in case of a catastrophic event.” Colburn also tells The Ticker that if the “Light and Power board wants to move their operations (away from the county), I would suppose they have the legal right to do so.”

Arends has expressed his willingness to take legal action against either the county or, if necessary, the city in order to extricate TCL&P from the city-county IT services agreement. In a memo to DeHaan Friday, Arends wrote: “I am requesting my legal counsel to take legal action against the county and/or the city to remand the TCL&P information, assets and property…and to sever any and all ties with GT County/city and this defunct agreement.” Shortly after the memo was sent, Arends and Menzel agreed to a meeting today (Monday) to try and resolve the dispute short of litigation.

“I’m just trying to find out how to resolve this by not being stuck in the middle,” Menzel says. “If (TCL&P) wants their own data, I’m certainly happy to comply with that. If they want to do their own billing, that’s between the city and Light and Power. I don’t have any objection, but I’d have to get some closure from the city. I just want to make sure we all have good relationships, because we need to work with the city and Light and Power on initiatives like bringing fiber to the community…if we’re all fighting, we’re going to take our eye off the ball.”

Arends says he’s hopeful today’s meeting will lead to a resolution without legal action. But he’s also firm on his expected outcome, saying TCL&P needs to protect its interests and that of its customers. “I’m hopeful (Menzel) will say, ‘You have my permission (to complete these requests) and you can do it tomorrow,’” he says. “That’s my expectation. Because it should have been done weeks ago.”