CitySourced, a startup formed by well-connected political action site FreedomSpeaks.com, will let citizens use a smartphone like Superman’s phone booth and help save the day in their city.

With apps to become available on the Apple iPhone and Palm’s WebOS, CitySourced will let people instantly report problems such as potholes and graffiti, take pictures, and upload them to notify their elected officials and local agencies. The product, demonstrated Tuesday at the TechCrunch 50 conference in San Francisco, has already been sold to the city of San Jose, California. Palm has invested in the company and plans to do co-marketing of its phones with the software.

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