Apex Contract January 6, 2009
Gennaro A. Marino P.E.
409 W. Main Street
Kutztown, Pa 19530
610-683-7977
e-mail kmayor@ptd.net
Blog www.marinoreport.com
Mayor Sandy Green
Kutztown Borough Council
Kutztown Borough Solicitors Dietrich & Mooney
Kutztown Borough Manager Khalife
Information Technology Director Caruso
Dear Borough Officials,
ITD Frank Caruso stated recently that breaking the Hometown Utilicom contract by Apex was no loss. This isn’t true because you all know that the Borough counted on the Apex Student Housing for many additional subscribers. You all also know that the contract with Apex, originally made with Grande, requires Apex to supply and install all the infrastructure in the development for HU services and it would be turned over to the Borough upon completion free of charge. Hometown Utilicom received this and many more concessions from the developer in exchange for Borough Water and Sewer for the development which is outside the Borough. The Borough Council had no obligation to but made the decision to sell the utilities outside the borough to gain Subscribers for Hometown Utilicom. The original developer bought the Apex property for $440,000 and after the Borough Council voted to give the developer water and sewer the property was sold to Apex for $3.2 million.
This sweetheart deal for the Borough was concocted by the Borough Elected Officials and Borough Manager Jaymes Vettraino to keep Telecom competitors out of the development. Aside from the Borough blackmailing the developer into this one sided contract there were many opportunities here for corruption by Borough Officials.
The scheme fell through when the Borough (Hometown Utilicom) could not produce or provide the internet services as was promised by HU and Apex opted to end the contract. Ex- Borough Manager\Treasurer Keith Hill, who initiated HU knew HU would fail, sued the Borough and I, when I was Mayor, and was awarded an insurance settlement $162,000. Borough Officials helped Mr. Hill in his case. He will also receive a healthy pension from the Borough. Mr. Hill then unethically and immediately went to work for SS&M, the Borough Engineering firm. He later went to work for Atlantic Engineering the contracting firm that Mr. Hill recommended and awarded the contract to install the fiber system which I think was over $2 million.
Ex-Borough Manager\Treasurer Vettraino also left the Borough because he knew that HU would fail and this Apex contract, which he negotiated, would be an embarrassment just as it turned out to be. While he was employed by the Borough he also gave out a $225,000 contract to a computer firm without a public bid, which is illegal, and the firm, New World Systems, is located in his hometown of Morton Michigan. The firm failed to fulfill the contract of utility billing.
The present Borough Manager\Treasurer Gabriel Khalife has continued the policies of Mr. Hill and Mr. Vettraino of not publicizing any financial records of HU.
You have engaged in illegal and unethical activities with the approval of Borough Solicitors Dietrich and Mooney. It is illegal for a municipality to legislate to favor a business venture that is owned by the legislators. The Editorial in The Reading Eagle of January 3,2009 agrees with this.
Sincerely,
Gennaro A. Marino P.E.
Friday, January 9, 2009
Monday, January 5, 2009
Letter to D. Dawson of CCG Consulting
January 2, 2009
Gennaro A. Marino P.E.
409 W. Main Street
Kutztown, Pa
Ph. 610-683-7977
e-mail kmayor@ptd.net
blog www.marinoreport.com
Mr. Douglas Dawson
CCG Consulting LLC
Beltsville, Maryland
FAX 301-210-5200
Dear Sir,
I am the former Mayor of Kutztown and would like to say that your report that the Council voted $ 20,000 for was not very informative and lacked facts, figures and statistics. You were intentionally and deliberately lied to and misled by the Kutztown Borough Elected Officials, appointed Borough Employees, with the approval of the Borough Solicitors. Please go to my blog and read my comments about your report.
You could never address any of the following questions of Hometown Utilicom?
1) Number of Cable TV subscribers.
2) Number of Internet subscribers.
3) Number of Telephone subscribers.
4) Amount of revenue from subscribers.
5) Amount of revenue from funds within the Borough.
6) The number of HU employees, the HU payroll and the HU wages.
7) Is the salary of HU Director Caruso paid by HU.
8) How did you arrive at the number of subscribers of HU was about 1,000.
9) Audits, Profit or Loss statements or financial reports on HU.
10) Business Plan or Marketing Plan required as per the February Council Meeting.
11) The status of the Apex Contract which can not be fulfilled by HU.
12) The total debt or debt service of HU since its inception in 2002.
13) The amount of funds moved into HU by the Borough since its inception in 2002.
14) The audit of the Electric Fund that indicates the amount of funds moved into HU.
15) What the $1 million loan, you recommended, would be used for.
16) That the Borough does not employ a CPA or an accountant with a $21 million budget.
If you had addressed the above items your report would state that HU should be shut down immediately. You did not produce any statistics, projections, graphs, facts or figures that demonstrate that HU will about break even this year is heading for a profit next year as you stated because you were never given the financial reports and information of HU. There is no evidence that even hints that HU about broke even this year or can be profitable next year as you stated.
I have attached a few pages from my blog and if you go to my blog you will see all the questions, criticisms and accusations I forwarded to the Borough. I have never received a comment or reply to any of my letters and I was told by Council President Eidle that the Borough Solicitor advised them not to reply to my letters.
The Borough Council engaged you to produce a Business Plan or Marketing Plan for HU because HU is not capable of creating either of them. You recommend a citizens committee for guidance of HU because again HU, which you stated was well run, is not able to direct operations. As you must have noticed at the Council Meeting that the residents do not have a clue as to what the Borough is doing with our finances much less know about HU.
Sincerely,
Gennaro A. Marino P.E.
Gennaro A. Marino P.E.
409 W. Main Street
Kutztown, Pa
Ph. 610-683-7977
e-mail kmayor@ptd.net
blog www.marinoreport.com
Mr. Douglas Dawson
CCG Consulting LLC
Beltsville, Maryland
FAX 301-210-5200
Dear Sir,
I am the former Mayor of Kutztown and would like to say that your report that the Council voted $ 20,000 for was not very informative and lacked facts, figures and statistics. You were intentionally and deliberately lied to and misled by the Kutztown Borough Elected Officials, appointed Borough Employees, with the approval of the Borough Solicitors. Please go to my blog and read my comments about your report.
You could never address any of the following questions of Hometown Utilicom?
1) Number of Cable TV subscribers.
2) Number of Internet subscribers.
3) Number of Telephone subscribers.
4) Amount of revenue from subscribers.
5) Amount of revenue from funds within the Borough.
6) The number of HU employees, the HU payroll and the HU wages.
7) Is the salary of HU Director Caruso paid by HU.
8) How did you arrive at the number of subscribers of HU was about 1,000.
9) Audits, Profit or Loss statements or financial reports on HU.
10) Business Plan or Marketing Plan required as per the February Council Meeting.
11) The status of the Apex Contract which can not be fulfilled by HU.
12) The total debt or debt service of HU since its inception in 2002.
13) The amount of funds moved into HU by the Borough since its inception in 2002.
14) The audit of the Electric Fund that indicates the amount of funds moved into HU.
15) What the $1 million loan, you recommended, would be used for.
16) That the Borough does not employ a CPA or an accountant with a $21 million budget.
If you had addressed the above items your report would state that HU should be shut down immediately. You did not produce any statistics, projections, graphs, facts or figures that demonstrate that HU will about break even this year is heading for a profit next year as you stated because you were never given the financial reports and information of HU. There is no evidence that even hints that HU about broke even this year or can be profitable next year as you stated.
I have attached a few pages from my blog and if you go to my blog you will see all the questions, criticisms and accusations I forwarded to the Borough. I have never received a comment or reply to any of my letters and I was told by Council President Eidle that the Borough Solicitor advised them not to reply to my letters.
The Borough Council engaged you to produce a Business Plan or Marketing Plan for HU because HU is not capable of creating either of them. You recommend a citizens committee for guidance of HU because again HU, which you stated was well run, is not able to direct operations. As you must have noticed at the Council Meeting that the residents do not have a clue as to what the Borough is doing with our finances much less know about HU.
Sincerely,
Gennaro A. Marino P.E.
Thursday, December 25, 2008
Budget Comparisons
Budgets
Reading Budget about $68,800,000 spending about $860 per resident
Reading population about 80,000
Fleetwood Budget less than $2,000,000 spending about $500 per resident
Fleetwood Population about 4,000
Kutztown Budget about $21,000,000 spending about $4,200 per resident
Kutztown population about 5,000
Will someone please verify my figures and comment on them. This is not algebra or mathematics this is arithmetic. Do you think we have wild spending in the Borough? Mayor Green, the Borough Council, and other responsible Borough Officials are obligated to explain why the spending per resident is very much higher in our Borough which is almost 5 times as much per resident in Reading, and more than 8 times as much per resident in Fleetwood. Maybe they should consult with the retired High School teacher who lives in the Borough and praises Hometown Utilicom and the Borough finances at Council Meetings.
Gennaro A. Marino P.E.
Reading Budget about $68,800,000 spending about $860 per resident
Reading population about 80,000
Fleetwood Budget less than $2,000,000 spending about $500 per resident
Fleetwood Population about 4,000
Kutztown Budget about $21,000,000 spending about $4,200 per resident
Kutztown population about 5,000
Will someone please verify my figures and comment on them. This is not algebra or mathematics this is arithmetic. Do you think we have wild spending in the Borough? Mayor Green, the Borough Council, and other responsible Borough Officials are obligated to explain why the spending per resident is very much higher in our Borough which is almost 5 times as much per resident in Reading, and more than 8 times as much per resident in Fleetwood. Maybe they should consult with the retired High School teacher who lives in the Borough and praises Hometown Utilicom and the Borough finances at Council Meetings.
Gennaro A. Marino P.E.
Tuesday, December 23, 2008
Borough Finance Confusion
Borough Finance Confusion
The Reading Eagle of December 18, 2008 states there will be a .25 mil increase in the Fire Tax, which is a Real Estate Tax. The headline in The Patriot of the same date reads, “No Tax Increase in Kutztown”. Is the Borough confused and giving the local papers the wrong information?
The Patriot sub title also states, “Utility funds needed to offset general fund deficit”. Borough Finance Director and Assistant Treasurer Russ Samilo, Mayor Green, the Borough Council, Borough Manager Khalife, Solicitors Dietrich and Mooney, Auditors Long & Barrell and responsible Borough employees should know this a violation of the Borough Code. According to the Borough Code the only utility that funds can be moved from and into the General Fund is the Electric Department. The West Chester Case also states that funds received for a certain use can only be spent for that use. The Borough has been violating the Borough Code for at least the past 14 years. Most of the funds moved into the General Fund end up paying for the losses of Hometown Utilicom.
The Reading Eagle article states that the Borough Council voted to spend $185,000 for a new utility software program. Council President states that this new program will replace a custom-made software program built in the 1980’s. President Eidle is mistaken this program will replace the New World System which was bought by former Borough Manager Vettraino for $225,000 and was unable to complete the utility billing. Mr. Eidle is deliberately misleading the public. Don’t forget New World System is located in Vettraino’s hometown Morton Michigan. Aren’t there any capable computer firms in Pennsylvania?
Councilman Schlegel stated water and sewer bills will be due monthly rather than quarterly because they can be hefty quarterly. They became hefty because he voted for the rate increases.
The Apex deal with HU is a disaster for the Borough. ITD Caruso states it is not a loss and I think he should explain the situation to the Borough residents.
The Borough should publicize its actions at the Borough Hall, on the Borough website and in the Kutztonian. Gennaro A. Marino P.E.
The Reading Eagle of December 18, 2008 states there will be a .25 mil increase in the Fire Tax, which is a Real Estate Tax. The headline in The Patriot of the same date reads, “No Tax Increase in Kutztown”. Is the Borough confused and giving the local papers the wrong information?
The Patriot sub title also states, “Utility funds needed to offset general fund deficit”. Borough Finance Director and Assistant Treasurer Russ Samilo, Mayor Green, the Borough Council, Borough Manager Khalife, Solicitors Dietrich and Mooney, Auditors Long & Barrell and responsible Borough employees should know this a violation of the Borough Code. According to the Borough Code the only utility that funds can be moved from and into the General Fund is the Electric Department. The West Chester Case also states that funds received for a certain use can only be spent for that use. The Borough has been violating the Borough Code for at least the past 14 years. Most of the funds moved into the General Fund end up paying for the losses of Hometown Utilicom.
The Reading Eagle article states that the Borough Council voted to spend $185,000 for a new utility software program. Council President states that this new program will replace a custom-made software program built in the 1980’s. President Eidle is mistaken this program will replace the New World System which was bought by former Borough Manager Vettraino for $225,000 and was unable to complete the utility billing. Mr. Eidle is deliberately misleading the public. Don’t forget New World System is located in Vettraino’s hometown Morton Michigan. Aren’t there any capable computer firms in Pennsylvania?
Councilman Schlegel stated water and sewer bills will be due monthly rather than quarterly because they can be hefty quarterly. They became hefty because he voted for the rate increases.
The Apex deal with HU is a disaster for the Borough. ITD Caruso states it is not a loss and I think he should explain the situation to the Borough residents.
The Borough should publicize its actions at the Borough Hall, on the Borough website and in the Kutztonian. Gennaro A. Marino P.E.
Monday, December 22, 2008
HU &CCG Consulting Report
Hometown Utilicom and CCG Consulting Report
CCG Consulting was paid $20,000 to conclude and state what the Borough Council and Mayor Sandy Green wanted to hear, that Hometown Utilicom is viable. Nothing is further from the truth. No Business Plan or Marketing Plan was presented by Mr. Dawson as was agreed upon at the February Council Meeting by Mayor Green and the Borough Council. Mr. Dawson’s report was based on falsified budgets and fraudulent financial reports that he received from the Borough. The only revenue of HU should be the revenue from the subscribers and not include the funds the Borough is moving into HU through so called rentals, services, subsidies and transfers. Mr. Dawson neglected to state that funds moved into HU were included as revenue.
HU has never produced one financial report and Mr. Dawson stated it was well run. He stated the Electric Fund would help finance HU, but he neglected to say residents pay double the rate for electricity than the surrounding area.
It is strange that all my blogger (www.marinoreport.com) comments and supporters of Hometown Utilicom are nameless and do not include any statistics or financial information to support their comments. It is also strange that the Borough Council, Mayor Green, Borough Solicitors Dietrich and Mooney, Auditor Long and Barrell and other Borough employees do not dispute or respond to my statements and comments.
The Borough has not published or included any information on the Borough website of the details and vote of this Special Hometown Utilicom Council Meeting of December 3, 2008.
It is a known fact that the HU Internet System is outdated, over loaded and can not compete with our competitors. The sweetheart deal with Apex has been broken and the Borough should shut down the Hometown Operation immediately. The last time I looked HU was losing about $1 million a year.
I think it is time for the Borough to defend their actions and explain to the Borough Residents the financial status of HU.
Gennaro A. Marino P.E.
CCG Consulting was paid $20,000 to conclude and state what the Borough Council and Mayor Sandy Green wanted to hear, that Hometown Utilicom is viable. Nothing is further from the truth. No Business Plan or Marketing Plan was presented by Mr. Dawson as was agreed upon at the February Council Meeting by Mayor Green and the Borough Council. Mr. Dawson’s report was based on falsified budgets and fraudulent financial reports that he received from the Borough. The only revenue of HU should be the revenue from the subscribers and not include the funds the Borough is moving into HU through so called rentals, services, subsidies and transfers. Mr. Dawson neglected to state that funds moved into HU were included as revenue.
HU has never produced one financial report and Mr. Dawson stated it was well run. He stated the Electric Fund would help finance HU, but he neglected to say residents pay double the rate for electricity than the surrounding area.
It is strange that all my blogger (www.marinoreport.com) comments and supporters of Hometown Utilicom are nameless and do not include any statistics or financial information to support their comments. It is also strange that the Borough Council, Mayor Green, Borough Solicitors Dietrich and Mooney, Auditor Long and Barrell and other Borough employees do not dispute or respond to my statements and comments.
The Borough has not published or included any information on the Borough website of the details and vote of this Special Hometown Utilicom Council Meeting of December 3, 2008.
It is a known fact that the HU Internet System is outdated, over loaded and can not compete with our competitors. The sweetheart deal with Apex has been broken and the Borough should shut down the Hometown Operation immediately. The last time I looked HU was losing about $1 million a year.
I think it is time for the Borough to defend their actions and explain to the Borough Residents the financial status of HU.
Gennaro A. Marino P.E.
Sunday, December 14, 2008
HU Meeting of December 3, 2008
Hometown Utilicom Report of December 3. 2008
At the February 26, 2008 Council Meeting Mayor Sandy Green agreed to sign legislation approving a loan of $1.3 million with the concession from the Council that they would not spend $1 million of it without a Business or Marketing Plan. There were many other questions and facts raised about HU such as the funds borrowed, future marketing, equipment condition and many others as shown on P. 17426 of the meeting minutes that were also noted to be explained.
After almost 10 months the Borough Council called a Special Council Meeting to explain the Business Plan and the Marketing Plan to the public. CCG Consulting was paid $20,000 for their report which did not produce any statistics, profit or loss statements, funds transferred into HU that were called loans, transfers, subsidies, rentals etc. The only loan repayment (debt service) mentioned at the meeting was $170,000 a year to repay the bond issued that was originally borrowed by HU. The report does not mention almost $14 million which was given to HU in one way or another by the Borough that was never made public. The public asked many pertinent questions about HU and none of them were answered by Mr. Dawson. Mr. Dawson also stated “the Borough owned-and-operated television and internet services nearly broke even this year and is expected to break even next year, covering expenses and covering debt”. I challenge Mr. Dawson to produce an amount and Borough records to confirm this.
The Borough has never made public any financial report on HU since its inception and CCG Consulting reproduced the limited information that was given to them by the Borough. The Borough also groups HU finances with Borough Finances and the Electric Fund to further mask the finances of HU, yet Mr. Dawson states” there is a true separation between the borough and Utilicom”.
The Borough Council voted to continue to foolishly spend another $1 million on HU based on a presentation made by Mr. Dawson which did not produce any statistics, projections or financial records.
Mayor Green what happened to the agreement you made with the Borough Council regarding the Business and Marketing Plan which you based your signing for the loan approval? Mr. Dawson did not produce anything new. Rumor, before the meeting, had it that the Council was going to vote to continue HU no matter what the report stated.
In my humble opinion, without financial records and statistics, the report read like a $20,000 novel for 3rd graders. G.M. Professional Engineer
At the February 26, 2008 Council Meeting Mayor Sandy Green agreed to sign legislation approving a loan of $1.3 million with the concession from the Council that they would not spend $1 million of it without a Business or Marketing Plan. There were many other questions and facts raised about HU such as the funds borrowed, future marketing, equipment condition and many others as shown on P. 17426 of the meeting minutes that were also noted to be explained.
After almost 10 months the Borough Council called a Special Council Meeting to explain the Business Plan and the Marketing Plan to the public. CCG Consulting was paid $20,000 for their report which did not produce any statistics, profit or loss statements, funds transferred into HU that were called loans, transfers, subsidies, rentals etc. The only loan repayment (debt service) mentioned at the meeting was $170,000 a year to repay the bond issued that was originally borrowed by HU. The report does not mention almost $14 million which was given to HU in one way or another by the Borough that was never made public. The public asked many pertinent questions about HU and none of them were answered by Mr. Dawson. Mr. Dawson also stated “the Borough owned-and-operated television and internet services nearly broke even this year and is expected to break even next year, covering expenses and covering debt”. I challenge Mr. Dawson to produce an amount and Borough records to confirm this.
The Borough has never made public any financial report on HU since its inception and CCG Consulting reproduced the limited information that was given to them by the Borough. The Borough also groups HU finances with Borough Finances and the Electric Fund to further mask the finances of HU, yet Mr. Dawson states” there is a true separation between the borough and Utilicom”.
The Borough Council voted to continue to foolishly spend another $1 million on HU based on a presentation made by Mr. Dawson which did not produce any statistics, projections or financial records.
Mayor Green what happened to the agreement you made with the Borough Council regarding the Business and Marketing Plan which you based your signing for the loan approval? Mr. Dawson did not produce anything new. Rumor, before the meeting, had it that the Council was going to vote to continue HU no matter what the report stated.
In my humble opinion, without financial records and statistics, the report read like a $20,000 novel for 3rd graders. G.M. Professional Engineer
Sunday, December 7, 2008
Hometown Utilicom Meeting of December 3, 2008
Hometown Utilicom Council Meeting December 3, 2008
To my knowledge there have been no details of the special 12-3-08 HU meeting made public by the Borough. It would be nice if anyone who comments on my blog to fill us in as to what transpired at the meeting. CCG Consulting received $20,000 to produce a Business Plan and Marketing Plan that would allow HU to spend the $1.3 million loan which was approved at the March 2008 Council Meeting. I know some of you that comment were present at the meeting. I would appreciate information from anyone. Thank you. Jerry
To my knowledge there have been no details of the special 12-3-08 HU meeting made public by the Borough. It would be nice if anyone who comments on my blog to fill us in as to what transpired at the meeting. CCG Consulting received $20,000 to produce a Business Plan and Marketing Plan that would allow HU to spend the $1.3 million loan which was approved at the March 2008 Council Meeting. I know some of you that comment were present at the meeting. I would appreciate information from anyone. Thank you. Jerry
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