Thursday, October 16, 2008

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.-

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.

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.

Wednesday, September 17, 2008

Council Meeting July 15, 2008

September 16, 2008
Gennaro A. Marino P.E.
409 W. Main St.
Kutztown, Pa 19530
Council President Malcolm Eidle
Council Vice President Seyler
Councilman Schlegel
Councilman Gangewere
Councilman Snyder
Councilwomen Amy Bray
Dear Council Members,
After almost 2 months the minutes of the July 15, 2008 Council Meeting were published. Page 87 states and I quote, “Under Finance, Electric and Telecommunications Committee, Council reviewed the Second Quarter Budget Summary Report. President Eidle commented that the Borough has done very well with expenses this year”.
I notice Telecommunications is conveniently grouped together with Finance and Electric to hide the fact that Telecommunications is losing money and is illegally being transferred funds from other Borough Departments. Finance and electric control the majority of the Borough’s funds and revenue. I then notice that there are no facts or figures attached to the Budget Report, again to hide the finances of Telecom. Therefore the only financial report for the public is President Eidle’s comment which was that “THE BOROUGH HAS DONE VERY WELL WITH EXPENSES THIS YEAR”. I can not believe the 5 of you sit there and accept this statement which means nothing and not one of you is curious enough to ask President Eidle to explain his statement and ask him for a Treasurer’s Report. I have never seen or heard of any legitimate regular municipality meeting or even a club meeting without a Treasurer’s Report.

Page 87 also states and I quote, “Council reviewed CCG Consulting’s proposal which exceeds the originally approved amount of $16,500. A motion was made by Ms. Bray, seconded my Mr. Schlegel, Resolved, To accept CCG Consulting’s proposal in the amount of $20,000”.
Shouldn’t the public be informed about what this proposal is for? Why was $16,500 originally approved? What was it based on? I think this proposal is for the Telecom Business Plan and again, if it is, you are hiding the finances of Telecom. If it is for the Business Plan why did it take almost 4 months to approve the proposal? And now 2 months later there are still no details about the Business Plan or the $1.3 million loan.

This letter points out just 2 incidents that prove you are all individually responsible for distorting the Borough’s finances. The $1.3 million Telecom Loan hinges on this Business Plan which you are deliberately delaying. You are all running out of time the Borough finances have to be made public sooner than later. The 2006 and 2007 Audits and Budgets are not available to the public which is a Borough Code violation. Every one of you is aware that the Borough’s finances are falsified and you can never say you did not know. Ignorance of the law is no excuse. The truth will prevail.

The Borough has a new Borough ManagerTreasurer but nothing has changed he continues to keep the books illegally as Keith Hill and Jaymes Vettraino did before him and he did not answer my letter as per your orders. WHAT IS THE STATUS OF THE BUSINESS PLAN AND THE $1.3 MILLION HOMETOWN UTILICOM LOAN?
Sincerely,

Gennaro A. Marino P.E.

Tuesday, September 16, 2008

Borough9-12-08 Officials Letter

September 12, 2008
Gennaro A. Marino P.E.
409 W. Main St.
Kutztown, Pa 19530
www.marinoreport.com
Council President Eidle
Council Vice President Seyler
Councilman Schlegel
Councilman Snyder
Councilman Gangewere
Councilwomen Bray
Dear Council Members,
I addressed all of you individually and by name because I want each and every one of you personally to know that you are all accountable for not answering the demands that I stated in my letters to Borough Manager\Treasurer Khalife and Council President Eidle. You are all violating the Borough Code.
I demanded President Eidle address Mr. Remaley’s untrue and derogatory statements about me and to make the Borough’s finances available to the public as per the Borough Code.
I demanded Treasurer Khalife make all the Borough’s finances available to the public as per the Borough Code. About one month before my letter to him Mr. Khalife told me he was not aware of the situation concerning the Borough finances. I agreed being he was new as Borough Manager and Treasurer. But after more than one month there are still no financial records available to the public.
How can the 6 of you agree to order Mr. Khalife not to publish the Borough’s financial records and violate the Borough Code? You have also ordered Assistant Treasurer Samilo to violate the Borough Code. He personally refused to show me any financial records on several occasions.
You are also aware of the disgraceful behavior of David Remaley who is a member of the Zoning Hearing Board and again you all agree to ignore my accusations but you can never say you did not know of his false statements.
I know that every one of you received copies of my letters because I hand delivered them to the Borough Hall and you can never say you were not aware of the Borough Code violations.
I am in possession of the contract between Hometown Utilicom and Apex at Kutztown and offhand I think the Borough over stepped its limits with this contract. Did the Borough Solicitor review this contract before it was signed?
I am going to pursue the Remaley incident unless I hear from you. And I will continue to pursue my requests for financial records to be made available to the public. Remember you can never say you did not know the facts of this serious situation.
What happened to former Councilman Dr. Strasser’s statements about Hometown Utilicom that were published in the local newspaper? Did you disown them?
Please inform me as to when the financial records will be available at the Borough Hall and how you will handle the Remaley case. Thank you.

Sincerely,


Gennaro A. Marino P.E.

Friday, September 12, 2008

Teplitz Auditor General letter

September 8, 2008
Gennaro A. Marino P.E.
409 W. Main St.
Kutztown, Pa 19530
610-683-7977

Department of the Auditor General
Robert F. Teplitz Chief Counsel\Policy Director
229 Finance Building
Harrisburg, Pa 17120

Dear Sir,

I am in receipt of your letter dated August 22,2008 which does not address my complaint that the Borough of Kutztown is using Commonwealth Grant Funds for purposes other than they were issued for. You also do not address a previous statement from your office stating that the Borough did not receive any Commonwealth funds. To my knowledge it is the responsibility of the Auditor General to confirm that the funds are legally expended on projects that the grant was issued for. I have pointed out in my previous letters some violations of this provision. And being there are no Borough financial records available to the public at this time there is no way of determining how, when or where the grant funds are spent. Your office has the responsibility and the authority to follow the paper trail, if there is any, of these funds. We are talking about over $1 million since 2004.

I have attached a copy of letters to Borough Manager\Treasurer Gabriel Khalife dated August 24, 2008 and Council President Malcolm Eidle dated September 2, 2008 in which I ask to see Borough financial records and have never received a reply because the Borough will not allow the public to see any information about Borough Finances which includes the distribution of Commonwealth Grants.

Please feel free to contact me if you require any additional information.

Sincerely,


Gennaro A. Marino P.E.

Friday, September 5, 2008

Right to Know Secretary Bray 9-5-08

September 5, 2008
Gennaro A. Marino P.E.
409 W. Main St.
Kutztown, Pa 19530
Kutztown Borough Secretary Bonnie Bray
Kutztown Borough Hall
45 Railroad St.
Kutztown, Pa 19530
Madam Secretary,
I am in receipt of your reply to my Right to Know Law request dated
August 27, 2008 and I would like to appeal my requests Nos. 1,2 and 4 on the grounds that these documents have to exist because this information was given to the Borough Council and the Mayor for discussion and vote. Council President Eidle and Councilman Gangewere stated publicly that Hometown Utilicom will be profitable after the Borough has provided Apex with services. Under the Right to Know Law your letter states the Borough has to duplicate public records. Councilmen Eidle and Gangewere had to receive status reports on the Business Plan, the $1.3 million loan and the number of potential subscribers to HU to make such statements. In fact Mayor Green, the remaining Council Members and Borough Manager\Treasurer Khalife were all given this information. It had to be in writing for distribution and all you have to do is make copies to fulfill my request. This information was voted on at the March 2008 Council meeting which was almost 6 months ago.
This information should be published monthly along with the Budget and should not have to be requested under the Right to Know Law. This is public money in a Business Venture that loses $1 million a year and the Borough residents are entitled to know what you are doing with the money.

Sincerely,


Gennaro A. Marino
Kutztown Borough Resident


cc. Council Members
Mayor Sandra Green
B.M. Khalife
Open Records Office
Many Others