A crappy anti-muni broadband law was passed at the state level a couple of years ago (http://arstechnica.com/tech-policy/2011/03/cable-backed-anti...), so apparently the network has to be run by a private company?
There is joint initiative by local municipalities and universities to bring in a private company to run fiber (http://ncngn.net). It's not clear to me how this will be affected by the Google announcement. (They released a rather vague statement about it.)