Questions of the Day Dec 1, 2008
At the July 15, 2008 Council Meeting the Council voted unanimously to increase CCG Consulting’s proposal from $16,500 to $20,000, which I assume is for the HU Business Plan.
1) Why did it take 4 months to complete the Plan?
2) The Borough has NEVER published a financial report on Hometown Utilicom. Did the Borough provide a financial report on HU to CCG consulting? Why didn’t the Borough make public the information provided to CCG Consulting?
3) At the special December 3, 2008 will Borough Officials act surprised at the findings of CCG Consulting?
4) Will the Business Plan be available to the public at the meeting?
5) Was this report deliberately delayed because of the internet problem at the Apex Student Housing?
Thursday, October 16, 2008
Questions of the Day November 26, 2008
Questions of the Day of November 26, 2008
1) Why did it take 8 months to produce a Business Plan for HU?
2) Why haven’t any financial records or statistics of HU been published for 8 months?
3) Is the Borough paying interest on the $1.3 million loan?
1) Why did it take 8 months to produce a Business Plan for HU?
2) Why haven’t any financial records or statistics of HU been published for 8 months?
3) Is the Borough paying interest on the $1.3 million loan?
$1.3 MILLION HU LOAN HU BUSINESS PLAN
Question of November 25, 2008
WHERE IS THE $1.3 MILLION HU LOAN AND HU BUSINESS PLAN VOTED ON AND SIGNED BY MAYOR SANDY GREEN AT THE MARCH 2008 BOROUGH COUNCIL MEETING?
WHERE IS THE $1.3 MILLION HU LOAN AND HU BUSINESS PLAN VOTED ON AND SIGNED BY MAYOR SANDY GREEN AT THE MARCH 2008 BOROUGH COUNCIL MEETING?
Perkasie and Kutztown Comparison
Comparing Boroughs Kutztown vs. Perkasie
Population Kutztown 5,000 residents (includes about 2,000 students)
Perkasie 8,000 residents
Budget Kutztown $19 million $19 million/5,000 = $3,800 per resident
Perkasie $5 million $ 5 million/8,000 = $625 per resident
Debt Service Kutztown $ 1.1 million $1.1 muillion/5,000 = $220 per resident
Perkasie $ 2,750 $2,750/8,000 = 34 cents per resident
Electric Rate Kutztown 21 cents per KWH not posted anywhere
Perkasie 11 cents per KWH posted on borough website
Budget Available Kutztown Unavailable
Budget available Perkasie Available on Borough website
Note:
Both Boroughs sell electricity
Kutztown has a university adjacent to the Borough
Kutztown owns a Business Venture, Hometown Utilicom that loses about $1 million a year
Kutztown’s debt service does not include any payment for the $19 million borrowed
from the Borough by Hometown Utilicom which would be an additional debt service of $1.5 million
Comment:
Borough Officials will attribute all of these embarrassing figures to the fact that Kutztown University is adjacent to the Borough. I attribute it to wild spending by the Borough Council and a lack of leadership by the elected and appointed officials of the Borough and the poor advice from Solicitors Dietrich and Mooney and independent Auditor Long & Barrell Ltd.
All figures have been rounded off to simplify the comparisons
Gennaro A. Marino P.E.
Jerry
Population Kutztown 5,000 residents (includes about 2,000 students)
Perkasie 8,000 residents
Budget Kutztown $19 million $19 million/5,000 = $3,800 per resident
Perkasie $5 million $ 5 million/8,000 = $625 per resident
Debt Service Kutztown $ 1.1 million $1.1 muillion/5,000 = $220 per resident
Perkasie $ 2,750 $2,750/8,000 = 34 cents per resident
Electric Rate Kutztown 21 cents per KWH not posted anywhere
Perkasie 11 cents per KWH posted on borough website
Budget Available Kutztown Unavailable
Budget available Perkasie Available on Borough website
Note:
Both Boroughs sell electricity
Kutztown has a university adjacent to the Borough
Kutztown owns a Business Venture, Hometown Utilicom that loses about $1 million a year
Kutztown’s debt service does not include any payment for the $19 million borrowed
from the Borough by Hometown Utilicom which would be an additional debt service of $1.5 million
Comment:
Borough Officials will attribute all of these embarrassing figures to the fact that Kutztown University is adjacent to the Borough. I attribute it to wild spending by the Borough Council and a lack of leadership by the elected and appointed officials of the Borough and the poor advice from Solicitors Dietrich and Mooney and independent Auditor Long & Barrell Ltd.
All figures have been rounded off to simplify the comparisons
Gennaro A. Marino P.E.
Jerry
Blooger Advice
October 14, 2008
Blogger Message from Former Mayor Jerry
All any one needs to have a website and be heard is honesty, courage, a computer and an IDENTITY. Thank you.
Blogger Message from Former Mayor Jerry
All any one needs to have a website and be heard is honesty, courage, a computer and an IDENTITY. Thank you.
Attorney General Corbett Letter
October 3, 2008
Gennaro A. Marino P.E.
409 W. Main St.
Kutztown, Pa 19530
Websitew www.marinoreport.com
610-683-7977
Attorney General Tom Corbett
Strawberry Square
Harrisburg, Pa 17120
Honorable Attorney General,
I am making a serious charge of deceit and corruption by the Borough of Kutztown. The Borough, doing business as Hometown Utilicom (a Business Venture), signed an agreement (contract dated June 21, 2005) with 4 members of the Grande family to provide Services, television, internet and telephone at a development known as “University Village Apartments” in Maxatawny Township in Berks County, Pennsylvania. This property was purchased for about $440,000 and after the Borough of Kutztown agreed to provide sewer and water to the project and the Township of Maxatawny approved student housing, the property was sold for about $3.2 million. The new owner Apex of Kutztown agreed to accept the contract even though the value of the installment could not be determined.
In return the Borough received many very generous concessions from the developer to benefit the Business Venture, Hometown Utilicom. Attached please find a copy of the contract.
Page 2, paragraph 4 states that the OWNER at its expense shall install the network facilities external to the buildings. (External Network) When complete the OWNER shall transfer ownership of the External Network to HU in consideration of HU’s agreement to provide services hereunder and otherwise maintain the External Network.
Page 2, paragraph 5 states that the OWNER at its expense construct and install the inside wiring and facilities within the buildings. (Internal Network Facilities)
At the time this contract was agreed upon, June 21, 2005, there were no plans or specifications to base this agreement on. It is impossible to determine the value of the commitment of the contract which means this is payment to the Borough of Kutztown for providing water and sewer to the development. The profit is so tremendous that the developer, Apex of Kutztown, agreed to any type of installation, at any cost, for the Borough’s business venture which loses about $1 million a year. Paragraph 7, page 3 states the owner will also provide electricity to the system, again an undetermined cost.
Paragraph 25a. states proprietary information will not be disclosed to third parties. Are Borough residents third parties? Municipalities can not be a party to secret deals or agreements.
Along with these illegalities the Borough has not published any statistics or finances about HU for about a year and one half except at the August Council Meeting Council President Eidle stated, as per the minutes,” Mr. Eidle welcomed Apex village as a new HU customer, providing for an estimated potential of 545 new customers”. I think this contract also intends to eliminate other service providers from competing with HU.
I think this contract is a sweetheart deal for the Borough of Kutztown, doing business as Hometown Utilicom, in payment for the Borough agreeing to provide water and sewers to the project. This development would not be possible without Kutztown providing water and sewer. I think your office has good reason to look into this matter and question the Borough, the Grandes and Apex of Kutztown. Thank you.
Sincerely,
Gennaro A. Marino P.E.-
Gennaro A. Marino P.E.
409 W. Main St.
Kutztown, Pa 19530
Websitew www.marinoreport.com
610-683-7977
Attorney General Tom Corbett
Strawberry Square
Harrisburg, Pa 17120
Honorable Attorney General,
I am making a serious charge of deceit and corruption by the Borough of Kutztown. The Borough, doing business as Hometown Utilicom (a Business Venture), signed an agreement (contract dated June 21, 2005) with 4 members of the Grande family to provide Services, television, internet and telephone at a development known as “University Village Apartments” in Maxatawny Township in Berks County, Pennsylvania. This property was purchased for about $440,000 and after the Borough of Kutztown agreed to provide sewer and water to the project and the Township of Maxatawny approved student housing, the property was sold for about $3.2 million. The new owner Apex of Kutztown agreed to accept the contract even though the value of the installment could not be determined.
In return the Borough received many very generous concessions from the developer to benefit the Business Venture, Hometown Utilicom. Attached please find a copy of the contract.
Page 2, paragraph 4 states that the OWNER at its expense shall install the network facilities external to the buildings. (External Network) When complete the OWNER shall transfer ownership of the External Network to HU in consideration of HU’s agreement to provide services hereunder and otherwise maintain the External Network.
Page 2, paragraph 5 states that the OWNER at its expense construct and install the inside wiring and facilities within the buildings. (Internal Network Facilities)
At the time this contract was agreed upon, June 21, 2005, there were no plans or specifications to base this agreement on. It is impossible to determine the value of the commitment of the contract which means this is payment to the Borough of Kutztown for providing water and sewer to the development. The profit is so tremendous that the developer, Apex of Kutztown, agreed to any type of installation, at any cost, for the Borough’s business venture which loses about $1 million a year. Paragraph 7, page 3 states the owner will also provide electricity to the system, again an undetermined cost.
Paragraph 25a. states proprietary information will not be disclosed to third parties. Are Borough residents third parties? Municipalities can not be a party to secret deals or agreements.
Along with these illegalities the Borough has not published any statistics or finances about HU for about a year and one half except at the August Council Meeting Council President Eidle stated, as per the minutes,” Mr. Eidle welcomed Apex village as a new HU customer, providing for an estimated potential of 545 new customers”. I think this contract also intends to eliminate other service providers from competing with HU.
I think this contract is a sweetheart deal for the Borough of Kutztown, doing business as Hometown Utilicom, in payment for the Borough agreeing to provide water and sewers to the project. This development would not be possible without Kutztown providing water and sewer. I think your office has good reason to look into this matter and question the Borough, the Grandes and Apex of Kutztown. Thank you.
Sincerely,
Gennaro A. Marino P.E.-
Monday, October 13, 2008
Hometown Utilicom Failure
October 8, 2008
Gennaro A. Marino P.E.
http://www.marinoreport.com/
Kutztown Borough Officials
It is a known fact that the Borough, doing business as Hometown Utilicom, can not provide internet services as advertised. The Hometown Utilicom website is now advertising upload and download speeds at 3 mb for $80 a month. Not long ago HU was advertising 10mb for half the price. The Service Electric website advertises 7mb for $39.95 per month and the Verizon website advertises 3mb for $29.99 per month.
Information Technology Director Frank Caruso, who heads HU, has told customers that the Borough can not provide higher speeds because Mayor Green, Councilmen Kevin Snyder and Brendan Strasser want to destroy HU for personal reasons. As usual Mr. Caruso does not state the true story. The true story is at the March ’08 Council Meeting Councilmen Snyder and Strasser voted against the loan but Mayor Green signed the Ordinance for the $1.3 million loan for HU with the stipulation that the Borough would obtain a Business Plan before the $1.3 million could be spent. The Mayor was right because she was looking to protect the residents. I assume the loan was to be used to pay for the HU system update. The rest of the story is that after almost 7 months ITD Caruso and the Borough still have not come up with a Business Plan. The Borough is deliberately delaying the completion of the Business Plan to buy time. Councilmen Snyder and Strasser voted against the Loan because the Borough, in one way or the other, has diverted more than $16 million into HU since its inception in 2002 and it continues to lose $1 million a year.
Council President Eidle has stated HU will be profitable next year. That statement is a figment of Mr. Eidle’s imagination since no financial records or budgets have ever been published by the Borough. Even if HU added all of the Apex tenants HU will not be profitable. Mr. Eidle should provide backup information for the Borough residents.
President Eidle also stated at the August ’08 Council Meeting that the Apex student housing has the potential of providing 545 new subscribers to HU. There are 183 units with 3 students in a unit. Mr. Eidle assumes every student will be a customer. Unless HU has a special deal at Apex, there is only one TV service in a unit and according to Service Electric’s website each internet service can provide service for up to 5 computers which means there is only potential for 183 customers.
I am in possession of the contract between HU and Apex of Kutztown and in it the developer has agreed, at its own expense, to provide and install all the interior and exterior fiber systems and equipment for the complete HU service operation. The contract also states that after completion and successful testing ownership of the exterior system will be transferred to HU. Apex has also agreed to provide electricity for the HU system. There are many more concessions made to the Borough by Apex in the contract. All these concessions were made before there were any plans or specifications for the project. It was impossible for the developer to calculate the cost of these concessions. Even with all the Apex free construction HU still can not provide competitive service. There is also evidence in the contract that attempts to exclude HU’s competitors from the project. All these concessions were made to the Borough in payment for the Borough providing water and sewer to the project that helped the original developer who bought the property for $440,000 to sell it for $3.2 million.
I think it is high time that the Borough fess up and tell the truth about HU. The whole operation is a lie and HU should cease operations immediately. To divert funds into HU the budget is falsified, reports are fraudulent, timesheets are falsified etc. To support these charges the 2006 and 2007 mandatory Annual Audits are at this time incomplete. And the Borough Solicitor is advising you to withhold Borough finances and not answer my letters or honor my Right to Know requests.
Sincerely,
Gennaro A. Marino P.E.
Gennaro A. Marino P.E.
http://www.marinoreport.com/
Kutztown Borough Officials
It is a known fact that the Borough, doing business as Hometown Utilicom, can not provide internet services as advertised. The Hometown Utilicom website is now advertising upload and download speeds at 3 mb for $80 a month. Not long ago HU was advertising 10mb for half the price. The Service Electric website advertises 7mb for $39.95 per month and the Verizon website advertises 3mb for $29.99 per month.
Information Technology Director Frank Caruso, who heads HU, has told customers that the Borough can not provide higher speeds because Mayor Green, Councilmen Kevin Snyder and Brendan Strasser want to destroy HU for personal reasons. As usual Mr. Caruso does not state the true story. The true story is at the March ’08 Council Meeting Councilmen Snyder and Strasser voted against the loan but Mayor Green signed the Ordinance for the $1.3 million loan for HU with the stipulation that the Borough would obtain a Business Plan before the $1.3 million could be spent. The Mayor was right because she was looking to protect the residents. I assume the loan was to be used to pay for the HU system update. The rest of the story is that after almost 7 months ITD Caruso and the Borough still have not come up with a Business Plan. The Borough is deliberately delaying the completion of the Business Plan to buy time. Councilmen Snyder and Strasser voted against the Loan because the Borough, in one way or the other, has diverted more than $16 million into HU since its inception in 2002 and it continues to lose $1 million a year.
Council President Eidle has stated HU will be profitable next year. That statement is a figment of Mr. Eidle’s imagination since no financial records or budgets have ever been published by the Borough. Even if HU added all of the Apex tenants HU will not be profitable. Mr. Eidle should provide backup information for the Borough residents.
President Eidle also stated at the August ’08 Council Meeting that the Apex student housing has the potential of providing 545 new subscribers to HU. There are 183 units with 3 students in a unit. Mr. Eidle assumes every student will be a customer. Unless HU has a special deal at Apex, there is only one TV service in a unit and according to Service Electric’s website each internet service can provide service for up to 5 computers which means there is only potential for 183 customers.
I am in possession of the contract between HU and Apex of Kutztown and in it the developer has agreed, at its own expense, to provide and install all the interior and exterior fiber systems and equipment for the complete HU service operation. The contract also states that after completion and successful testing ownership of the exterior system will be transferred to HU. Apex has also agreed to provide electricity for the HU system. There are many more concessions made to the Borough by Apex in the contract. All these concessions were made before there were any plans or specifications for the project. It was impossible for the developer to calculate the cost of these concessions. Even with all the Apex free construction HU still can not provide competitive service. There is also evidence in the contract that attempts to exclude HU’s competitors from the project. All these concessions were made to the Borough in payment for the Borough providing water and sewer to the project that helped the original developer who bought the property for $440,000 to sell it for $3.2 million.
I think it is high time that the Borough fess up and tell the truth about HU. The whole operation is a lie and HU should cease operations immediately. To divert funds into HU the budget is falsified, reports are fraudulent, timesheets are falsified etc. To support these charges the 2006 and 2007 mandatory Annual Audits are at this time incomplete. And the Borough Solicitor is advising you to withhold Borough finances and not answer my letters or honor my Right to Know requests.
Sincerely,
Gennaro A. Marino P.E.
Friday, October 3, 2008
Borough Solicitor letter
September 25, 2008
Gennaro A. Marino P.E.
409 W. Main St.
Kutztown, Pa 19530
Kutztown Borough Solicitor
Mr. T. Dietrich Esq.
Barley Snyder
Kutztown Borough Hall
45 Railroad St.
Kutztown, Pa 19530
Kutztown Borough Solicitor Dietrich,
It has come to my attention that you are advising the Borough Council, Mayor Green and Borough Employees not to respond to my letters which means they can not defend the Borough or address my accusations that the Borough Budget is falsified, the Borough publishes fraudulent reports and there are no Audits or Budgets available to the public. Recently the 2007 Audit was placed at the Borough desk but it is incomplete.
I think this is an admission by you that the Borough is guilty of all the accusations and charges I have stated and you are a part of it. I think you are illegally encouraging the Borough to withhold all financial books and records that are unfavorable to Hometown Utilicom which loses about $1 million a year, and then you advise Borough representatives not to respond to my letters. I think you are overstepping your responsibilities and are out of order by doing so. Your responsibility is to advise the Borough about the legalities of matters, remain neutral, and not make policies.
At the September 16, 2008 Council Meeting which you attended especially to act on my appeal of my Right to Know Request. Of course you were in favor of denying the appeal and then advising me that I can take my appeal to Court which will help line the coffers of Barley Snyder. What is your objection to making public the status of the $1.3 million loan and Business Plan for Hometown Utilicom which was voted on at the March 2008 Council Meeting which was 6 months ago? The vote stated that the loan would remain untouched until a Business Plan was completed. Again the question is where is the loan and the Business Plan after 6 months? This information should have been published periodically in the past and not have to be requested under the Right to Know Law. This is a no win situation for the Borough. If the Court rules in favor of the Borough, and the Borough is not required to produce the information, the whole world will know the Borough is withholding financial information. And if the Court forces the Borough to produce the information, again every one will know the Borough is not forthcoming with financial records of Hometown Utilicom. Either way the Borough will be embarrassed.
Why are you so afraid to produce the information on HU? And why are you afraid to have the Borough produce the Audits and Budgets for 2006 and 2007 as per the Borough Code? And why are you afraid to have any one respond to my letters?
I expect an answer to this letter and I also expect to receive information about the status of the $1.3 million loan and the status of the HU Business Plan because going to Court will be an embarrassment to the Borough.
Sincerely,
Gennaro A. Marino P.E.
Gennaro A. Marino P.E.
409 W. Main St.
Kutztown, Pa 19530
Kutztown Borough Solicitor
Mr. T. Dietrich Esq.
Barley Snyder
Kutztown Borough Hall
45 Railroad St.
Kutztown, Pa 19530
Kutztown Borough Solicitor Dietrich,
It has come to my attention that you are advising the Borough Council, Mayor Green and Borough Employees not to respond to my letters which means they can not defend the Borough or address my accusations that the Borough Budget is falsified, the Borough publishes fraudulent reports and there are no Audits or Budgets available to the public. Recently the 2007 Audit was placed at the Borough desk but it is incomplete.
I think this is an admission by you that the Borough is guilty of all the accusations and charges I have stated and you are a part of it. I think you are illegally encouraging the Borough to withhold all financial books and records that are unfavorable to Hometown Utilicom which loses about $1 million a year, and then you advise Borough representatives not to respond to my letters. I think you are overstepping your responsibilities and are out of order by doing so. Your responsibility is to advise the Borough about the legalities of matters, remain neutral, and not make policies.
At the September 16, 2008 Council Meeting which you attended especially to act on my appeal of my Right to Know Request. Of course you were in favor of denying the appeal and then advising me that I can take my appeal to Court which will help line the coffers of Barley Snyder. What is your objection to making public the status of the $1.3 million loan and Business Plan for Hometown Utilicom which was voted on at the March 2008 Council Meeting which was 6 months ago? The vote stated that the loan would remain untouched until a Business Plan was completed. Again the question is where is the loan and the Business Plan after 6 months? This information should have been published periodically in the past and not have to be requested under the Right to Know Law. This is a no win situation for the Borough. If the Court rules in favor of the Borough, and the Borough is not required to produce the information, the whole world will know the Borough is withholding financial information. And if the Court forces the Borough to produce the information, again every one will know the Borough is not forthcoming with financial records of Hometown Utilicom. Either way the Borough will be embarrassed.
Why are you so afraid to produce the information on HU? And why are you afraid to have the Borough produce the Audits and Budgets for 2006 and 2007 as per the Borough Code? And why are you afraid to have any one respond to my letters?
I expect an answer to this letter and I also expect to receive information about the status of the $1.3 million loan and the status of the HU Business Plan because going to Court will be an embarrassment to the Borough.
Sincerely,
Gennaro A. Marino P.E.
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