Loan $8.5 Million Water & Sewage

March 28, 2011
Gennaro A. Marino P.E.
409 West Main Street
Kutztown, Pa 19530
610-683-7977
Kutztown Mayor Green
Kutztown Borough Council
Dear Borough Elected Officials,
I see in the Borough Council Meeting Minutes of February 15, 2011 that the Borough Council voted to clear the way to borrow $5.5 million to update and\or expand the Borough sanitary sewage treatment plant. How did you calculate the amount of the loan or bond if you haven’t decided if it is an update or expansion? Councilman Schlegel stated in The Reading Eagle he did not know how much sewage rates would be increased because he did not know the cost of the project. The estimate of the rate increase could be based on the amount of the loan.

The proposals you received for the loan were for $8.5 million which was for $5.5 million for the sewage treatment and $3 million for the water plant. When did you vote on borrowing $3 million for the water treatment plant?

I also heard that Spotts, Stevens and McCoy will design the update or expansion. When will it be decided if it is going to be an expansion or an update? This is the same Spotts, Stevens and McCoy that unethically hired Borough Manager Keith Hill 2 days after he resigned from the Borough because of the hostile Borough Hall environment and sat at his same desk at a wonderfully reduced rate of $85 per hour for Spotts, Stevens and McCoy. And yes this is the same Keith Hill who secretly sued the Borough for age discrimination and was paid a settlement of $162,000 by the Borough’s insurance carrier. Mr. Hill also approved payments for Spotts, Stevens and McCoy before he left the Borough. Does Spotts, Stevens and McCoy have the expertise to decide on an expansion or update and design the project?

The Borough had an opportunity to build a sewage treatment plant joint-venture with the Township of Maxatawny and turned it down after years of haggling and delaying of the project by the Borough. The best part of the deal was there was a Grant involved and the Borough did not have to put up any funds until they opted to use it. The Township is currently in the process of constructing the plant.

There are many questions to be asked of you and the former Elected Officials
Such as:
Why wasn’t the Borough alerted about the update or expansion by the Borough Engineering firm when the Borough was planning to construct a plant with the Township?
Why did the Borough give sewage service to Apex, outside the Borough, when the plant was close to capacity?
Did Apex ever pay their tapping fees to the Borough?
What will be the debt service of the total debt of $21.5 million?

This is another example of the short sighted outlook of you and your predecessors. All of a sudden, like overnight, the Borough needs a sewage treatment plant. This project was first discussed in 2000 and no one in the Borough knew that we would need an update or expansion. I would like a response to this letter by one of you personally. Thank you.
Sincerely,


Gennaro A. Marino P.E.