Contract bid procedures and penalties

Contract Bid Procedures and Penalties February 27, 2008

Gennaro A. Marino P.E.

409 W. Main St.

Kutztown, Pa 19530

610-683-7977

Kutztown Borough Council

Mayor Sandra Green

Borough Manager\Treasurer Vettraino

Borough Solicitors Dietrich, Mooney & Barley Snyder LLC

Kutztown Borough Hall

45 Railroad Street

Kutztown, Pa 19530

Dear Policy Makers,

I have pointed out many times that most Contracts, awarded by the Borough, of more than $10,000 must be Competitive Bid Contracts and must be advertised. There are many other regulations regarding this procedure. But at this time I only want to address the point that the Borough has awarded and continues to award contracts of more than $10,000 without advertising or conducting Competitive Bidding. I am positive that each and every one of you is aware of the Borough Code mandatory provisions and should abide by them. But all of you arrogantly and deliberately continue to violate these provisions and cover them up by denying public access to the Budget.

Attached please find a copy of page 35 of the Borough Council Handbook, dated 2000, that explains the bidding provisions and also explains the penalty for violating the Borough Code. The Manual states ”ANY COUNCILLOR WHO KNOWINGLY VOTES IN VIOLATION OF THESE PROVISIONS IS SUBJECT TO A SURCHARGE OF TEN PERCENT OF THE FULL AMOUNT OF THE CONTRACT”. And when you vote for and approve a contract, of over $10,000, that you know was not competitively bid or advertised that you are violating these provisions.

I have informed you many times about Borough Manager\Treasurer Keith Hill giving out a $2 million and $800,000 contract without competitive bidding and Borough Manager\Treasurer Vettraino giving out a $225,000 contract without any competitive bidding. And to add insult to injury Keith Hill is now employed by Atlantic Engineering the contractor he gave the $2 million to and the computer firm New World Systems that Jaymes Vettraino gave the $225,000 contract has their home office in Troy Michigan Mr. Vettraino’s home town.

Borough Solicitors Dietrich, Mooney, Barley Snyder, Mayor Green, Borough Manager\Treasurer Vettraino, Council President Eidle and the Borough Council owe me and the residents of the Borough explanation of how this could of happened and how the Borough is going to solve this serious situation. The sooner the better. Thank you.

Sincerely,

Gennaro A. Marino P.E.

Hometown Utilicom discussed at 11-27-01 Council Meeting

Hometown Utilicom discussed @ Nov. 27, 2001 Council Meeting ( from minutes, pages 15575 through 15578)

The Borough Council, under the influence of Former Borough Manager\Treasurer Hill and Information Technology Director Caruso, was illegally financing Hometown Utilicom in 2001. The following is all discussed under Telecommunications.

(1) Borough Council voted unanimously to pay $15,000 to Atlantic Engineering for a tower foundation before they had a contract and without a public bid.

(2) Borough Council voted unanimously to enter into an agreement with National Cable Television Cooperative to purchase video programming for Hometown Utilicom. There was no purchase price mentioned, Mr. Hill and Mr. Caruso have authority for any purchase price. Again there was no public bid.

(3) Borough Council voted unanimously to add cameras to the Borough’s Closed Circuit Television Security Monitoring for $25,000. Again there was no public bid.

(4) Borough Council voted unanimously to pay Metropolitan Edison Company $25 a pole to attach fiber optic equipment to them. No total or maximum amount was noted for the agreement.

(5) Borough Council voted unanimously to purchase equipment for the Automated Meter Reading System for $360,000. Again there was no public bid.

The above action by the Borough Council demonstrates the influence Former Borough Manager\Treasurer Hill and Head of Hometown Utilicom Caruso had over the Council. All of the Council’s decisions were based on Mr. Hill’s and Mr. Caruso’s opinions and recommendations. All of these illegal actions took place with the approval of the Borough Solicitor who was present at the Council Meeting. All Council Members were very happy about spending the Borough’s funds without more investigation or review.

Mr. Hill estimated in the minutes that the cost of the Automated Meter Reading System (AMR) will be paid for within 5 years based on the return on investment. Here we are more than 6 years later not only the system isn’t paid for it has not even been installed. And it may never be installed because many residents, including myself, will not let the Borough install the equipment because it is not mandatory and the Borough intends to charge residents $3 or $4 for each meter reading when our meter reader only costs us about fifty cents a reading. The $3 or$4 will be transferred illegally to Hometown Utilicom.

On page no. 15577 Mr. Hill states that competitive bidding is not required on the AMR System ($360,000) because the equipment has patents on several of its components. Having patents on components of equipment does not always eliminate other bidders. The Borough Code states no bid is required if a bidder has excusive or specialized service or product that no one else can provide. I don’t know why Mr. Hill mentions this because he gave out the Fiber optics contract for over $2 million and the Cable TV Dish for about $900.000 without a public bid. By law as per the Borough Code all contracts over $10,000 must be bid publicly.

The above actions by Mr. Hill, Mr. Caruso and the Borough Council clearly show that they knowingly acted illegally and knew what they were doing. Mr. Hill and Mr. Caruso convinced the Borough Council that HU would make tremendous amounts of revenue and the Council gave them everything they asked for. Seven months later in 2002 Mr. Hill realized that his idea was a failure and filed a harassment suit against the Borough and myself and resigned in October of 2002.

Please visit my website: www.marinoreport.com for news of Kutztown. Thank You.

Jerry

$30 Rent Tax Unnecessary and illegal??

$30 Rent Tax Unnecessary and illegal?

Borough Manager\Treasurer Vettraino, Mayor Sandy Green,the Borough Council and Borough Solicitor Dietrich, in their desperate need of revenue to finance Hometown Utilicom have come up with another scheme, a rent tax. Its legality is now being challenged in Court and Solicitor Tim Dietrich stated we better pass it quickly or we may not be able to later. Mr. Vettraino recently called together some landlords to explain the tax to them. Mr. Vettraino has recommended millions of dollars in increased rates, fees and taxes and has never called on anyone to explain his recommendations. He called landlords, most of whom are absentee landlords who do not reside in the Borough and do not have the Borough’s interest at heart.

Borough Solicitor Dietrich who recently received a promotion from his Law firm, Barley Snyder, encourages litigation. Barley Snyder billed the Borough about $120,000 a year, every year, as per the last time I had access to this information. This information is being illegally withheld by the Borough along with the Budgets.

How can Mr. Vettraino state we need this money for the General Fund, when the Borough just increased the rates of every service the it provides. The gross from the Electric Fund alone will be more than $1.5 million.

Bankruptcy warning to Kutztown Borough Council

Bankruptcy Warning to Kutztown Borough Council

I have written to the Borough many times in the past accusing the Borough Council, Mayor Green and some Borough Employees of falsifying the budget, publishing fraudulent annual reports, illegally transferring funds from all Borough Funds and departments into Hometown Utilicom, and keeping all financial books and records from the public. You have depleted all of the Borough Reserves and all reserve funds in financing Hometown Utilicom. I have also stated that the Borough is on the brink of bankruptcy and Hometown Utilicom should be shut down immediately.

By you raising all our utility rates, taxes, fees and creating new taxes and fees you have clearly admitted and shown that my statement is true about the Borough being on the brink of bankruptcy. The Borough Debt is over $29 million when you include all the funds loaned and transferred to Hometown Utilicom. It is inconceivable that the 2008 Budget contains revenue of $19.1 million, expenses of $17.5 million and the Borough Debt is over $29 million. This loan of over $29 million is insurmountable. Let me remind you that Hometown Utilicom is not a utility. It is a business venture that was created by you, Mr. Hill and Mr. Caruso who deceitfully led Borough residents to believe that Hometown Utilicom would raise huge amounts of revenue and replace the Electric Department as the Borough’s big earner. You continue to lie about Hometown Utilicom today and will not publish a financial report or audit on it.

I have written you many times about the Borough’s disastrous financial situation and your illegal activities and have not received a comment or reply to any of my letters. Not one of you will defend your actions privately or publicly. Some agencies or officials that I have complained to answered and stated it was not their jurisdiction, but they never stated that your actions were legal or acceptable. You or any of the Agencies and Officials that I have copied with my letters to you can ever say you didn’t know or weren’t aware of the Borough’s frightful financial situation.

Gennaro A. Marino P.E.

2-11-08 letter to Mayor Sandy Green

February 11, 2008

Gennaro A. Marino P.E.

409 W. Main St.

Kutztown, Pa 19530

610-683-7977

WEB SITE www.marinoreport.com

Mayor Sandy Green

Kutztown Borough Hall

45 Railroad St.

Kutztown, Pa 19530

Madam Mayor,

Parking Citations were not issued for vehicles illegally parked during street cleaning Friday 2-8-08. You, as the head of the Police Department, are responsible for this duty. You should admonish Police Chief Cole, whose salary is $73,059.93 and has a personal Borough vehicle to cover his department’s efficiency, for his ineptness. Chief Cole has expanded the coverage of the Parking Enforcement Officers. He attempted to increase the enforcement in 2004, but he was ordered not to do so. The Borough Council, with your approval, has also increased the parking violation fine from $20 to $25. Why did we need an increase in fines when the revenue from Parking Citations was $90,000 last year. All the above actions confirm my opinion that the Borough is desperate for funds and on the verge of bankruptcy. Along with this action the Borough Council has increased all utility rates, all taxes, all fees, permits and has even created new charges and fees.

You know by my letters to you and the Borough Council, to which I never receive a reply, that there is no budget for 2006 and 2007 available to the public which is a Borough Code violation. Borough Manager\Treasurer Vettraino stated in the January 3, 2008 Reading Eagle that the proposed 2008 Budget has revenue of $19.1 million and expenses $17.5. Normally a Budget should be balanced where revenue is equal to expenses.

If the budget is $19.1 million, why is the Budget for the Police Department, the last time I saw it, only about $1 million or about 5% of the Budget?

You also know from my letters that the Borough debt is about $14 million not counting the $6 million borrowed by Telecom, and will be $15.35 million after the latest loan for Telecom. The actual total debt of the Borough, including the loan to Telecom, will be over $21 million

What have you, the Borough Council and Chief Cole done positively since the murder of a student on our street? Has Chief Cole increased foot patrol or prowl cars on our streets? Has Chief Cole left his desk to go out to investigate the situation and get some feed back from our residents?

Recently you made a speech at Kutztown University condemning the Kutztown University Administration, you did this to draw attention away from yours and the Borough’s shortcomings. You, as the highest elected official in the Borough, and the Borough Council should run the Borough and let the University Administration run the University. For starters you should look into the Borough finances and hire more Police Officers.

You have not vetoed or even discussed one spending ordinance and you watch Borough Manager\Treasurer Vettraino, with the approval of the Borough Council, put us into an insurmountable debt. How will the Borough ever recover from this dangerous financial situation where the total Borough debt is more than $21 million when the Borough Loan of $6 million for Hometown Utilicom, a BUSINESS VENTURE,, is included?

Sincerely,

Gennaro A. MarinoP.E.

A Concerned Borough Resident

VISIT MY WEBSITE @ www.marinoreport.com FOR NEWS OF KUTZTOWN

Letter to District Attorney Adams

February 7, 2008

Gennaro A. Marino P.E.

409 West Main Street

Kutztown, Pa 19530

District Attorney John T. Adams

633 Court Street

Reading, Pa 19601

Dear Sir,

Attached please find a letter I wrote to Attorney General Corbett, dated January 22, 2008, in which I complain about the Borough of Kutztown’s illegal activities. As you can see in short that there are no Budgets for 2006 and 2007 available to the public which is a violation of the Borough Code. In fact there aren’t any budgets available at the Borough Hall. The Borough is also making illegal internal transfers of funds to and from different Departments. The Borough has not had an internal audit for at least 14 years and the 2006 Budget has not been finalized and audited as of this date. The Borough does not employ an accountant or retain a CPA. Another example of the Borough’s shoddy and reckless bookkeeping is the Borough Council approved Borough Manager\Treasurer Vettraino’s request to Borrow $1.3 million for our Telecommunications, a business venture that loses about $1 million a year, and he will explain the terms and the purpose of the loan in the first quarter of 2008. The Borough Council voted unanimously to honor his request without knowing the terms or purpose of the loan.

I have also attached the reply to my letter from State Attorney General’s Office, dated January 31, 2008 and signed by Robert A. Mulle who is the Chief Deputy Attorney General Office of Civil Law. He states my complaints and observations do not come under his jurisdiction and refers me to your office. I have much more information and proof of the Borough brazenly and openly withholding all information about the Borough’s finances.

I hope you will look into this matter because I feel there has to be some law enforcement agency that has jurisdiction over the Borough’s finances. The only way a resident could have the Borough open our financial records is to pay an attorney and go into the Court of Common pleas. Thank you.

Sincerely,

Gennaro A. Marino P.E.

A Very Concerned Resident

Reply from Attorney General Corbett

Reply from Attorney General Corbett

The letter is from the Office of Attorney General, dated January 31, 2008 and is signed by Robert A. Mulle Chief Deputy Attorney Office of Civil Law and is addressed to me.

It states:

Your letter to the Attorney General has been referred to this office for reply.

The Authority of the Office of Attorney General is defined by state statutes, and the matter you raise in your letter does not come under our jurisdiction. We suggest that you direct your inquiry to the agency listed below and request the officials of the agency to review your letter and provide you advice or assistance if they can do so.

We are making this referral based on the information provided in your letter. Please understand that it will be up the agency officials receiving the referral to determine whether they can be of any assistance.

John T. Adams, Berks County District Attorney

Berks County Court House

633 Court Street

Reading, Pa 19601

letter to attorney general corbett

1-22-08

January 22, 2008

Gennaro A. Marino P.E.

409 W. Main St.

Kutztown, Pa 19530

610-683-7977

Attorney General Tom Corbett

Strawberry Square

Harrisburg, Pa 17120

Dear Sir,

For the past year there has been no Budget available at the Kutztown Borough Hall. I was told by Borough Manager\Treasurer Vettraino that the Borough Council past a Resolution that states there will be no Budget available to the public. I told him it was a Borough Code violation not to have a Budget available for the public. He stated I can not disobey the Borough Council. When I asked to see the 2006 and the 2007 budgets Tuesday January 15, 2008 I was given the proposed budget for 2008 by Office Manager Gina Wiand which was dated December 5, 2007. I stated this budget contained estimated amounts I wanted to see the actual figures. She stated I do as I am told. When I stated it is the law to have the budget available to the public she again stated I do as I am told. I asked her several more questions and she answered firmly I do as I am told. This proves that the Borough does not want the residents of the Borough to know what the Borough Council and some appointed Borough Employees are doing with our money.

The 2006 Budget has yet to be summarized or audited. Last March 2007 Borough Manager\Treasurer Vettraino stated the Borough was changing their method of accounting and had to appraise their assets and the 2006 Budget will be complete in 2007.

Attached please find 2 pages of the Kutztown Borough Council minutes of the November 20, 2007 meeting. This is the last published record of our finances. The totals for the transfer of funds was voted on in a consent agenda without a discussion and the totals do not disclose if the funds are transferred into or out of the departments. The Borough has never conducted an audit or published a financial report on Telecommunications (a business venture and not a utility) since its inception in 2002. Yet the total transfer of funds for Telecommunications is greater than the combined Water and Sewer Departments totals.

Besides not having a budget available for the public the Borough is also illegally transferring funds within the Borough, falsifying the budget and publishing fraudulent financial reports and should be investigated by your office. If this is not in your jurisdiction please tell me what State Office will investigate my complaint. I swear that all the above statements are true. Thank you.

Sincerely,

Gennaro A. Marino P.E.

cc: Gov. Rendell, Aud. Gen. Wagner, Sen. O’Pake, Rep. Mantz,

BOROUGH OF KUTZTOWN'S DEBT

BOROUGH OF KUTZTOWN’S DEBT

Borough’s debt through bond issues----about $14 million

Borough’s startup loan to HU------------about $6 million

Borough’s subsidies or transfers to HU-about $6 million

Borough’s present total debt--------------about $28 million

Borough Council’s vote for HU update-----------$ 1 million Borough

Borough Council’s vote for HU operating cost--$350,000

Borough of Kutztown’s total debt-----about $29,350,000

Yes the Borough of Kutztown’s total debt will be over $29 million

and Borough Manager\Treasurer Vettraino, Mayor Sandy Green, the

Borough Council and Head of HU Caruso should explain how the

Borough plans to repay the debt.

HU Review @ 10-17-06 Council Meeting

Hometown Utilicom Review at the 10-17-06 Council Meeting

At the 10-17-06 Borough Council Meeting Mr. Vettraino discussed the Telecom Investment in Capital and Operation from 1999 to 2006.

Borough Manager\Treasurer Vettraino advised:

(1) That the Borough will need to budget for a substantial Capital Investment in 2007\2008 to upgrade the Borough’s television service.

(2) That the 2007 will include a Capital Investment to begin transferring the field equipment from OSI to Calix.

(3) That the Borough was making progress towards the goal to be “operationally breakeven” by 2009.

(4) That the margin between the price to the customer and the content cost for cable television is shrinking.

(5) That in order to reach full breakeven HU must increase its margin and most importantly grow its customer base, in particular business class customers.

(6) That since HU’s inception Borough residents have saved over $1 million, including $850,000 on their cable television bills.

My Current Comments to the above corresponding numbers are:

(1) Mr. Vettraino, Mayor Green Information Technology Director Caruso and the Borough Council knew in October of 2006 that HU is nowhere near supporting itself and that is the reason the Borough Council has approved a loan for $1 million for capital investment in HU.

(2) The amount of the 2007 Capital Investment to transfer field equipment has never been made public and it is another secret and illegal loan to HU from the Borough.

(3) If the Borough is making progress towards the goal to be “operationally breakeven” by 2009, why is the Borough borrowing $350,000 operating expenses in 2008? Will the Borough need another $350,000 loan in 2009?

(4) The margin between the price to the customer and the content cost for cable television was shrinking in 2006. The margin has not increased since and the Borough is forced to borrow money in 2008?

(5) How can HU increase its business class customer base when the cost of electricity and operating in the Borough is so high that businesses are leaving?

(6) Borough residents have saved over $1 million and almost all of the $1 million was saved by the cable customers that stayed with Service Electric.

The Borough Council, Mayor Green, Information Technology Director Caruso, who earns $84,056.02, and Borough Manager \Treasurer Vettraino, who earns $103,876.39, all know that HU is bankrupting the Borough. There has never been a complete financial report on HU and there are no budgets for 2006 and 2007 available to the public. The Borough is deliberately falsifying the budget and publishing fraudulent reports to secretly finance HU. The $1.35 million loan will be a bank loan because I think the Borough has lost its Triple AAA credit rating. HU should be shut down immediately.

Another question is after all the Borough increases, where are the senior citizens on fixed income supposed to get the money to live in the Borough?

party affiliations of council members

john stutzman thank you for your question which was, what are the party affiliations of the council members? john, there are 6 council members and i am pretty sure they are 3 democrats and 3 republicans which adds up to bi-partisan Korruption in kutztown. their votes are usually unanimous and there is never an open discussion before the votes because they were decided before hand.