The Dan Hoch Contract

The Dan Hoch contract scandal: a web of lies, misleading information, information withheld by the Interim Township Manager, The Chairman of the Board of Supervisors and the Solicitor. 
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What we know: 

• On May 28th, the board was informed that RHM had terminated their contract, but no termination letter was included with the documents for this meeting.
• Several days after the meeting, I coincidentally received a copy of the termination letter, which was dated May 3rd, 2024. In the letter, Chris Shellhammer informed Mr. Piersol that RHM was terminating the agreement, with the termination becoming effective 90 days from the date of the letter. This means the termination could take effect either around August 3rd or September 6th, depending on whether business days are considered.
• During the May 28th meeting, Jack Piho stated that he had personally decided to hire Dan Hoch without consulting the Board of Supervisors. He directed interim Township Manager Larry Piersol to create an independent contractor agreement with Solicitor J. Chadwick Schnee. The contract included language from the Township ordinance indicating that the Township Manager has the authority to hire employees under section 61-6 B2 of the ordinance. Mr. Schnee also cited a previous motion he introduced and passed 4 to 1, authorizing the Township Manager to ‘take any and all actions in furtherance of the sale of the Reading Country Club.’
• During the same meeting, it was also discovered that the independent contract prepared by Mr. Schnee and Mr. Piersol was incomplete, as page two, which included items 4, 5, and 6, was missing. The supervisors were unaware of the missing page, indicating they had not fully reviewed the document. One supervisor suggested tabling the contract until the next meeting, but the Vice Chairman recommended approving the contract with unspecified contingencies. The contract was approved 4 to 1. Both Schnee and Piersol admitted that a subsequent contract existed but did not produce it at the meeting.

 
 
Where this gets scandalous: 

• In preparation for the June 10th meeting, we received an invoice for Mr. Hoch’s work during May, totaling 115 hours at $50.00 per hour, amounting to $5,768. Mr. Hoch worked from Wednesday, May 15th, to Friday, May 31st. However, no one was aware of his work during this period, and it was not mentioned at the May 28th meeting. Notably, the termination letter from RHM/DoubleTree indicated their termination would take effect in 90 days.
• The issue is that Mr. Hoch had not yet been officially hired. There was no existing contract or liability insurance. A blogger, Jerry Geleff, requested a copy of the contract adopted on May 28th from Mr. Schnee. In response, Mr. Schnee stated via email that Larry Piersol had signed the contract after the May 28th meeting. However, this was inaccurate. We obtained a copy of the contract on May 31st, and it was indeed signed on May 31st. On the same day, proof of liability insurance certification was provided, also signed on May 31st.
• This indicates that Mr. Hoch was working without a contract and liability insurance, and the board/public was not informed of this situation during the May 28th meeting. Mr. Piho, Mr. Schnee, and Mr. Piersol failed to disclose that Mr. Hoch had been working without a contract or insurance for those three weeks in May.
• The May 3rd letter from Chris Shellhammer of DoubleTree indicated the termination of his catering business and the contract, effective 90 days from the date of the letter. It appears that negotiations began, but the context, intent, and decisions remain unclear to the board and the public. These negotiations, seemingly conducted without board approval by Piho, Schnee, and Piersol, likely took place before the Hoch contract was signed on May 31st. This was not disclosed at the May 28th public board meeting.
• It seems we are allowing RHM to terminate the contract without penalty, absorbing all May costs on the taxpayers’ behalf. We will pay DoubleTree over $65,000, while Dan Hoch, the former Director of Business Development for RHM/DoubleTree, worked for Exeter Township without a contract or liability insurance, costing nearly $6,000. Mr. Piho admitted during the May 28th meeting that he unilaterally directed Dan Hoch to start working for Exeter Township. However, this was not communicated to the board until the May 28th meeting, where Piho stated it was his idea to hire Hoch. At no point during this meeting did he mention that Hoch had been working prior to the board’s approval of the contract.
• Additional questions arise, Mr. Piersol, as interim manager has the authority by ordinance to hire “employees” without board approval. However, this should be construed for current approved openings. Nowhere does it suggest he can create new positions, new positions not in the budget.
• As the Chairman of the board, Mr. Piho has the responsibility to inform all supervisors of significant issues like this one. He failed to fulfill this duty. The contract has the 90-day clause, should Doubletree absorb the cost of termination if they completely shut down catering operations and forcing our manager to hire one of their employees to follow up with the contract?

 
In light of this scandal, I call for Schnee and Piersol to be fired and for Piho to resign immediately. 
 
 
For Discussion: 
 
In Mr. Hoch’s first invoice, submitted while he was not yet an official employee, he billed the township for activities that do not align with his contract. Additionally, he failed to provide any documentation, reports, analyses, or recommendations to justify the 113 hours he billed at a rate of $50 per hour. This lack of a paper trail is unacceptable for a contractor at that rate, indicating that the $7,000 we paid him essentially amounts to a sign-on bonus for work that cannot be substantiated.

1. Setting email accounts, laptop and printer for Mulligans Manager
2. Inspecting the clubhouse and condition of the grounds
3. Driving the golf course to understand the condition, cart path, revenue ops
4. Meeting with Exeter finance on accounting procedures
5. Interviewing members for ideas
6. Daily presence to greet and guide golfers and staff
7. Inspect clubhouse for maintenance on his list at least twice
8. Inspection of property conditions pre/post RHM
9. Daily engagement of pro-shop staff
10. Daily meeting with RCC Pro Dave Milore

 
Mulligans 

1. Negotiated wind down and hand off Mulligans from RHM to Mulligans
2. Negotiated keeping necessary RHM equipment owned for Mulligans
3. Worked with Mulligans Manager for to-do list to re-open
4. Worked with Mulligans on staffing strategy
5. Assisted Mulligans manager in Menu Selection and food costing
6. Advised Mulligans manager as to the hiring and of Mulligans employees
7. Discussion with Dave Milore concerning cross utilization of Golf staff
8. Establish uniform policy

 
Facility Rental and Catering 

1. Negotiated RHM wind down and hand off of book events
2. Reviewed RHM files 2024 and 2025?
3. Acquired intellectual property rights to RCC social media channels and website controlled by RHM
4. Negotiated keeping Bridal suite furniture and décor
5. Created strategy for RCC revenue
6. Engaged a marketing/graphics arts company for social media unifying golf and event websites
7. Researched and interviewed caterers
8. Created catering engagement letter
9. Created House rules and requirements for caterers and clients
10. Created open house concepts for caterers
11. Set up rental agreement with linen rental
12. Interviewed with Josh for the superintendent position