Hometown Utilicom and Apex Confusion

Hometown Utilicom and Apex Confusion February 11, 2009
Gennaro A. Marino P.E.
e-mail kmayor@ptd.net
Kutztown Borough Council President Malcolm Eidle
Mr. President,
As Council President it is your responsibility and obligation to explain to the people of the Borough, who are stockholders of Hometown Utilicom, exactly what is going on with its subscribers and finances which you have never done.
You stated at the August 8, 2008 Council Meeting that Apex Student Housing had the potential of providing 545 new subscribers to Hometown Utilicom. After losing Apex as a customer you are quoted in the January 29 ’09 issue of The Patriot as saying “it’s a black eye to lose a customer after just a year, but that’s business”. President Eidle we did not lose a customer we lost 545 customers. These are your statements.
The article also states that we lost the TV Cable customers because of the dissatisfaction with the cable service. What you did not state was that the students were also unhappy with the internet service that HU advertised as 10 mbs for $80 a month then 3 mbs for $80 a month and today I received an advertisement with my electric bill stating you can now receive 8 mbs for $80 a month. In one year HU sold 10mbs, 3mbs and 8 mbs all for $80. You also did not state that HU was not capable of producing 10mbs. President Eidle this proves that you, the Borough Council, HU Director Frank Caruso and the people around you do not know what you are doing. This influx of subscribers was supposed to make HU profitable and help satisfy the $1.3 million loan.
The article also states that in order for Apex to break the contract with the Borough Apex would have to pay the Borough approximately $200,000 to pay for the cable company’s (HU) cost for the infrastructure. President Eidle the cable company (HU) never paid for the infrastructure Apex provided and installed the infrastructure as part of their contract which also stated the infrastructure would be turned over to the borough upon completion with no cost to the Borough. I read the Letter of Intent to Apex and it vague as to what the payment is for. You should explain to the public exactly what the $198,650 is for. I think the payment is part of the original concessions of the sweetheart contract between the Borough and the developer in which the Borough would provide the developer with sewer and water. It’s pay back time for an unethical contract.
Your above actions prove that Hometown Utilicom is not a viable business because you have no Business Plan, no Marketing Plan, no direction and financially it loses about $1 million a year.
Get rid of HU before you have to have another round of increases in taxes, fees and utility rate increases which residents can not afford with the current financial situation. Thank you
Sincerely,


Gennaro A. Marino P.E.