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  • 9-9-18 UPDATE – HOW LANCASTER SPENT OVER $5 MILLION AND GOT…

    Posted on September 8th, 2018 Becky 4 comments

    IT’S NOT RISKY!

    UPDATE 9-9-18
    *
          The loan terms will allow the city to take over the fiber network outright should MAW default, Hopkins [Patrick Hopkins, Director of Administrative Services] said. It could then hire another firm to manage it.
         Lancaster also would have liens on MAW’s other assets and LanCity Connect revenues and potentially could recover other MAW revenues in the event the company folded while still owing the city money.
    From the LNP article, “Official: It’s not risky for city to put up money for LanCity Connect broadband, and here’s why,” (click here).

    Hopkins

        

    Let’s examine this in detail:

      There is no “fiber network” to “take over” and the little that was installed is being taken down under court order.
    —   How much revenue is LanCity Connect bringing in that the city can put a lien against? The last we heard they had about 100 business and personal customers (and some of those are being disconnected by PP&L). If they purchased the highest tier – “$124.64 a month after fees,” rounding to $125 that’s $12,500 a month and $150,000 a year. Of course they still have to pay a customer service person and an accounting person and apparently still pay Favyan Asia who states he is the “lead network engineer” at MAW Communications. That’s not going to recover the $1.5 million dollar loan!
      What are MAW’s other assets the city can take? We know they own a building in Reading assessed at $89,000. We don’t know what other assets they have but I will put in a Right to Know request for the list because certainly the city would not have loaned them $1.5 million without a list of assets!
    —  What other revenue does MAW have coming in that the city can take to pay back the $1.5 million dollar loan? We don’t know (it has been suggested that Lancaster is their only “customer”) but I will put in a Right to Know request for their revenue sources and amounts since certainly the city would not have loaned them $1.5 million dollars without having reviewed many years of their financial statements and knowing their actual revenue stream down to the penny!

    ******

    ABSOLUTELY NOTHING! – 2

         The below is an excellent, well-researched review of MAW Communications and LanCity Connect’s history by city resident Billy Weisser. He posted this on the “Northeast Neighbors United” Facebook page. Everyone should read it! Everyone.
          LNP’s complete silence on this over $5 million waste of taxpayer’s dollars is appalling, shameful and inexcusable.

     

    4 responses to “9-9-18 UPDATE – HOW LANCASTER SPENT OVER $5 MILLION AND GOT…”

    1. There are very well established high speed broadband companies providing these services to the public in other cities and counties in the US. I read Billy Weisser’s above letter and yes, it is well researched but it still does not attribute responsibility to the person or persons or business that initially approached the power that be to sell the service to the city. Why is this such a secret? Follow the money they say.

    2. I don’t know if we will ever know for sure who “introduced” MAW to Lancaster. What is obvious is that Mayor Gray’s administration and city council (including now Mayor Danene Sorace) fell for it and did not do any research at all. I sat at my computer for less than three hours one day and learned MAW was a fraud.

      The short list of who brought MAW into Lancaster:
      Randy Patterson
      Patrick Hopkins
      Charlotte Kaztenmoyer
      Danene Sorace
      Pat Brogan
      or… the Dick himself (former Mayor Gray)!

    3. This Facebook page post needs to be read by everybody as a letter to the editor in the LNP.

      Would LNP dare print it???

      Will LNP ever investigate and report the truth???

      Is this a prosecutable fraud offense for the DA’s office to investigate???

      Where did the money go?????

      Questions, questions, questions….will LNP provide any answers???

    4. Rednek. The short answer is no. LNP (Least News Provided) is more of a company news letter for the tourist industry. You won’t see them doing stories on the human trafficking along Lincoln Hwy’s no tell motel’s. You won’t read stories about prostitution at truck stops (lot lizards). Nothing about men on the down low and their cruising Long’s Park and Park City. They won’t ask the elected the kind of questions that challenge or second guess any decisions or statements they’ve made. You won’t read about homeless, drug industry, and gangs n Lancaster. But if it’s where readers buy their chicken corn soup and woopie pies. Now you’re talking LNP.