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.-