Council Minutes

July 29, 2003 Meeting Minutes

BETHLEHEM CITY COUNCIL MEETING
Bethlehem, Pennsylvania
Tuesday, July 29, 2003 – 7:30 PM – Town Hall

1. INVOCATION
2. PLEDGE TO THE FLAG
3. ROLL CALL

President Schweder called the meeting to order. Deacon Richard Seward, of Notre Dame of Bethlehem Church, offered the invocation which was followed by the pledge to the flag. Present were Jean Belinski, John B. Callahan, James S. Gregory, Magdalena F. Szabo, and J. Michael Schweder, 5. Ismael Arcelay and Robert J. Donchez were absent, 2.

4. APPROVAL OF MINUTES

The minutes of July 15, 2003 were approved.

5. COURTESY OF THE FLOOR (for public comment on ordinances and resolutions to be voted on by Council this evening)

None.

6. OLD BUSINESS

None.

7. COMMUNICATIONS

A. Planning and Zoning Bureau – Miscellaneous Zoning Ordinance Amendments

The Clerk read a memorandum dated July 24, 2003 from Tracy E. Samuelson, Planning and Zoning Bureau, proposing miscellaneous Zoning Ordinance text amendments, as follows: Section 1302.38, Height of a Structure, to provide more flexibility in allowing the current trend towards steeply pitched roofs; Section 1322.04(f)(1), Distance between Multiple Family Dwellings, from 50 feet to not less than 25 feet; Amending the Zoning Ordinance to allow for Arenas in the Institutional Zone, by amending Section 1309.02 (b) to include a new subsection (7) Arena and Adding Section 1322.04 (m) pertaining to Arenas; Section 1318.11, Projections into Front Yards, to increase the Size of the Projection Into Front Yards for Open Porches; Section 1318.17, Rear Yard Requirements, to Allow for Open Porches in Rear Yards and delete the word hedges; and Section 1320.09(a)(2)(11) Amending the Maximum Allowable Square Footage of Wall Signs in the Commercial Districts increasing the Maximum Allowable Square Footage of Wall Signs in Commercial Districts from 100 to 200 square feet.

President Schweder referred the proposal to the Planning Commission and Lehigh Valley Planning Commission.

Scheduling Public Hearing

Mr. Gregory and Mrs. Belinski moved to schedule a Public Hearing on the proposed Zoning Ordinance text amendments on Tuesday, September 16, 2003 at 7:30 PM in Town Hall.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The motion passed.

8 . REPORTS

A. President of Council

None.

B. Mayor

None.

C. Public Works Committee

Mr. Gregory, Chairman of the Public Works Committee, presented an oral report of the Committee’s meeting held July 23, 2003 on the following subjects: Bethlehem Authority - Gift of Land to Bethlehem Housing Authority - Clemente Field/Williams Street; Bethlehem Authority - Gift of Land to Tunkhannock Volunteer Fire Company - Long Pond Road Vicinity; and Bethlehem Authority - Sale of Land to Flavio Schivel - Mt. Pocahontas/Pohawtan Trail.

D. Finance Committee

Mr. Callahan, Chairman of the Finance Committee, presented an oral report of the Committee’s meeting held July 23, 2003 on the following subjects: Parking Authority – Advanced Refunding – 2000 Bond Issue; Transfer of Funds – Water Fund to Bethlehem Authority - Forest Ranger Salary; Amending General Fund Budget – Police Department – ATF GREAT Grant; Amending General Fund Budget – Police Department – Equipment; Amending General Fund Budget – Recycling Bureau – Performance Grant, Compost Service, and Recycling Contract; Transfer of Funds – Main Street Bridge Redecking; Transfer of Funds – Water Fund – Overtime; EMS Bureau – Transfer from Community and Economic Development Department to Fire Department; Amending General Fund Budget – Tobacco Grant; Amending General Fund Budget – Health Bureau – Diabetes Grant; Transfer of Funds – Health Bureau – Bioterrorism Supplies and Equipment; Transfer of Funds – Housing Inspections – Overtime; Amending Non-Utility Capital Budget – Temporary Assistance to Needy Families (TANF) Program – Deferred Payment Loans; Transfer of Funds – Community Development Department – Overtime; Amending Non-Utility Capital Budget – Illick’s Mill; Amending Community Development Budget – 2003 Entitlement and Transfers; Amending Community Development Budget – Home Program; Transfer of Funds – City Council – Advertising and Printing.

Chairman Callahan noted that Advanced Refunding of the Parking Authority's 2000 Bond Issue is listed on this evening's Agenda on First Reading; however, Final Reading will not occur until a threshold of at least 2% Present Value Savings is achieved, or approximately $170,000.

9. ORDINANCES FOR FINAL PASSAGE

A. Bill No. 32 – 2003 – Amending Article 149 – Vacant Property Review Board

The Clerk read Bill No. 32 - 2003 – Amending Article 149 – Vacant Property Review Board, on Final Reading.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. Bill No. 32 – 2003, hereafter to be known as Ordinance 4203, was declared adopted.

B. Bill No. 33 – 2003 – Amending Article 150 – Codes Board of Appeals

The Clerk read Bill No. 33 – 2003, Amending Article 150 – Codes Board of Appeals, on Final Reading.

Voting AYE: Mrs. Belinski, Mr. Donchez, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. Bill No. 33 – 2003, hereafter to be known as Ordinance 4204, was declared adopted.

10. NEW ORDINANCES

A. Bill No. 34 – 2003 – Parking Authority – Advanced Refunding – 2000 Bond Issue

The Clerk read Bill No. 34 - 2003 – Parking Authority – Advanced Refunding – 2000 Bond Issue, sponsored by Mrs. Belinski and Mr. Callahan, and titled:

AN ORDINANCE OF THE COUNCIL OF THE CITY OF BETHLEHEM, NORTHAMPTON AND LEHIGH COUNTIES, PENNSYLVANIA (THE “CITY”), AUTHORIZING AND DIRECTING ISSUANCE OF GENERAL OBLIGATION BONDS, SERIES A OF 2003, IN THE AGGREGATE PRINCIPAL AMOUNT OF $9,645,000 (THE “BONDS”), AS PERMITTED BY AND PURSUANT TO THE LOCAL GOVERNMENT UNIT DEBT ACT, 53 PA.C.S.A. § 8001 ET SEQ., AS AMENDED AND SUPPLEMENTED, FOR THE PURPOSE OF PROVIDING FUNDS TO BE APPLIED FOR AND TOWARD REFUNDING THE CITY’S OUTSTANDING GENERAL OBLIGATION BONDS, SERIES OF 2000 (THE “2000 BONDS”); DETERMINING THAT SUCH DEBT SHALL BE NONELECTORAL DEBT OF THE CITY; DETERMINING THAT THE BONDS SHALL BE SOLD AT PRIVATE SALE BY NEGOTIATION; AUTHORIZING ACCEPTANCE OF A PROPOSAL FOR PURCHASE OF THE BONDS AND AWARDING THE BONDS AND SETTING FORTH RELATED PROVISIONS; PROVIDING THAT THE BONDS, WHEN ISSUED, SHALL BE GENERAL OBLIGATION BONDS OF THE CITY; FIXING THE SUBSTANTIAL FORM, DENOMINATIONS, DATE, MAXIMUM INTEREST RATES, INTEREST PAYMENT DATES, REGISTRATION PRIVILEGES, PLACE OF PAYMENT OF PRINCIPAL AND INTEREST AND REDEMPTION PROVISIONS, AS APPLICABLE, OF THE BONDS, AS WELL AS THE FORM OF PAYING AGENT’S CERTIFICATE AND FORM OF ASSIGNMENT AND TRANSFER; AUTHORIZING EXECUTION, ATTESTATION AND AUTHENTICATION OF THE BONDS; COVENANTING TO PAY DEBT SERVICE AND PLEDGING THE FULL FAITH, CREDIT AND TAXING POWER OF THE CITY FOR THE PAYMENT OF THE BONDS; CREATING A SINKING FUND IN CONNECTION WITH THE BONDS AS REQUIRED BY SUCH ACT; APPROPRIATING PROCEEDS OF THE BONDS; DESCRIBING THE PROJECT FOR WHICH THE DEBT OF THE CITY EVIDENCED BY THE 2000 BONDS WAS ORIGINALLY INCURRED AND SPECIFYING THE REALISTIC ESTIMATED USEFUL LIFE OF SAID PROJECT; SETTING FORTH CERTAIN COVENANTS RELATING TO THE NON-ARBITRAGE STATUS OF THE BONDS; RATIFYING PRIOR ADVERTISEMENT AND DIRECTING FURTHER ADVERTISEMENT; AUTHORIZING AND DIRECTING THE PREPARATION, EXECUTION AND FILING OF A TRANSCRIPT OF PROCEEDINGS INCLUDING A DEBT STATEMENT AND BORROWING BASE CERTIFICATE WITH THE PENNSYLVANIA DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT; AUTHORIZING AND DIRECTING APPROPRIATE OFFICERS OF THE CITY TO EXECUTE AND DELIVER DOCUMENTS AND TO TAKE ACTION AS MAY BE NECESSARY RELATING TO THE ISSUANCE OF THE BONDS; RATIFYING THE PRELIMINARY OFFICIAL STATEMENT AND THE DISTRIBUTION THEREOF AND AUTHORIZING THE APPROVAL AND DISTRIBUTION OF A FINAL OFFICIAL STATEMENT AND THE USE THEREOF IN CONNECTION WITH THE SALE OF THE BONDS; CREATING A CLEARING ACCOUNT AND AN ESCROW FUND; SETTING FORTH CERTAIN COVENANTS RELATING TO PROVISIONS FOR THE RETIREMENT AT MATURITY OR REDEMPTION, AS APPLICABLE, OF THE 2000 BONDS; DIRECTING THE IRREVOCABLE DEPOSIT AND INVESTMENT OF AN AMOUNT OF MONEY, WHICH TOGETHER WITH INTEREST TO BE EARNED THEREON, WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE 2000 BONDS UPON REDEMPTION OR MATURITY, AS APPLICABLE; AUTHORIZING THE PURCHASE OF ESCROW INVESTMENTS; AUTHORIZING THE PAYMENT OF EXPENSES; PROVIDING GUIDELINES FOR PERMITTED INVESTMENTS; AUTHORIZING THE PURCHASE OF A POLICY OF BOND INSURANCE WITH RESPECT TO THE BONDS; PROVIDING FOR THE AUTHORIZATION OF OFFICERS; ADOPTING THE FORM OF BOND; COVENANTING TO PROVIDE CONTINUING DISCLOSURE; PROVIDING WHEN THIS ORDINANCE SHALL BECOME EFFECTIVE; PROVIDING FOR SEVERABILITY OF PROVISIONS; AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES INSOFAR AS THE SAME SHALL BE INCONSISTENT HEREWITH.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. Bill No. 34 – 2003, was declared passed on First Reading.

B. Bill No. 35 – 2003 – Amending General Fund Budget – Police Department, Recycling Bureau, and Health Bureau

The Clerk read Bill No. 35 – 2003, Amending General Fund Budget – Police Department, Recycling Bureau, and Health Bureau, sponsored by Ms. Szabo and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE GENERAL FUND BUDGET FOR 2003.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. Bill No. 35 – 2003, was declared passed on First Reading.

C. Bill No. 36 – 2003 – Amending Non-Utility Capital Budget – Temporary Assistance to Needy Families Program (TANF) Program and Illick’s Mill

The Clerk read Bill No. 36 – 2003, Amending Non-Utility Capital Budget – Temporary Assistance to Needy Families Program (TANF) Program and Illick’s Mill, sponsored by Ms. Szabo and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE 2003 CAPITAL BUDGET FOR NON-UTILITIES.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. Bill No. 36 – 2003, was declared passed on First Reading.

D. Bill No. 37 – 2003 – Amending Community Development Budget – HOME Program

The Clerk read Bill No. 37 – 2003, Amending Community Development Budget – HOME Program, sponsored by Ms. Szabo and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE COMMUNITY DEVELOPMENT BUDGET FOR
2003.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. Bill No. 37 – 2003, was declared passed on First Reading.

11. RESOLUTIONS

A. Transfer of Funds – Water Fund to Bethlehem Authority – Forest Ranger Salary

Ms. Szabo and Mr. Callahan sponsored Resolution 14,131 which transferred $32,384 in the Water Fund Budget from the Collection and Treatment – Salaries Account to the Water General Expenses – Bethlehem Authority Operating Expenses Account to transfer the position of Ranger from the Department of Water and Sewer Resources to the Bethlehem Authority.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

B. Transfer of Funds – Main Street Bridge Redecking

Mr. Gregory and Mr. Callahan sponsored Resolution 14,132 that transferred $20,000 in the Non-Utility Capital Budget from the Street Overlays Account to the Main Street Bridge – Redecking Account to provide sufficient funds towards the costs of completion of the project.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

C. Transfer of Funds – Water Fund – Overtime

Ms. Szabo and Mrs. Belinski sponsored Resolution 14,133 that transferred $6,000 in the Water Fund Budget from Water General Expenses – Unforeseen Contingencies Account to the Water Supply and Treatment – Overtime Account to pay for overtime required for weekends and emergencies.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

D. Transfer of Funds – Transferring EMS Bureau from Community and Economic Development Department to Fire Department

Mrs. Belinski and Mr. Callahan sponsored Resolution 14,134 that transferred $990,773 in the General Fund Budget from the EMS Bureau - Community Development Accounts to corresponding EMS Bureau – Fire Department Accounts, for the purpose of transferring the EMS Bureau from the Community and Economic Development Department to the Fire Department.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

E. Transfer of Funds – Health Bureau – Bioterrorism Supplies and Equipment

Ms. Szabo and Mrs. Belinski sponsored Resolution 14,135 that transferred $32,242 in the General Fund Budget from the Health Bureau – Temporary Help Account to the following: $5,403 - Bioterrorism and $26,839 - Equipment – Bioterrorism Accounts to provide funding towards operational and equipment costs related to the bioterrorism programmatic grant.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

F. Transfer of Funds – Housing Inspections – Overtime

Ms. Szabo and Mrs. Belinski sponsored Resolution 14,136 that transferred $1,600 in the General Fund Budget from the Health Bureau – Temporary Help Account to the Housing Inspections – Overtime Account to provide additional funding for overtime for inspections due to extended medical leave.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

G. Transfer of Funds – Community Development Department – Overtime

Ms. Szabo and Mrs. Belinski sponsored Resolution 14,137 that transferred $1,000 in the General Fund Budget from the Community Development Department – Salaries Account to new Community Development Department – Overtime Account to provide funding for secretarial staff overtime.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

H. Transfer of Funds – Communications Bureau – 911 System

Mrs. Belinski and Mr. Callahan sponsored Resolution 14,138 that transferred $6,820 in the General Fund Budget from the 911 System – Department Contract – Communications Center Account to the 911 System – Equipment – Communications Center Account to purchase needed equipment for the 911 Center not originally budgeted.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

I. Transfer of Funds – City Council – Advertising and Printing

Mrs. Belinski and Mr. Callahan sponsored Resolution 14,139 that transferred $1,000 in the General Fund Budget from the City Council – Professional Services Account to the City Council – Advertising and Printing Account to provide additional funding needed in the Account.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

J. Approving Bethlehem Authority Gift of Land to Bethlehem Housing Authority – Clemente Field/Williams Street

Ms. Szabo and Mrs. Belinski sponsored Resolution 14,140 that authorized the gift of 1.67 acres of land known as Clemente Field, located off Williams Street, owned by the Bethlehem Authority and/or City of Bethlehem, to the Bethlehem Housing Authority, according to the terms and conditions of the agreement.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

K. Approving Bethlehem Authority Gift of Land to Tunkhannock Volunteer Fire Company – Long Pond Road Vicinity

Ms. Szabo and Mrs. Belinski sponsored Resolution 14,141 that authorized the gift of 5.5 acres of land located in Tunkhannock Township, Monroe County, owned by the Bethlehem Authority and/or City of Bethlehem, to the Tunkhannock Volunteer Fire Company, according to the terms and conditions of the agreement.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

L. Approving Bethlehem Authority Sale of Land to Flavio Schivel – Mt. Pocahontas/ Pohawtan Trail

Ms. Szabo and Mrs. Belinski sponsored Resolution 14,142 that authorized the sale of land approximately 80’ x 27.25’ x 80’ x 25.84’ located at the rear of lot at 1693 Pohawtan Trail, Mt. Pocahontas, in Penn Forest Township, Carbon County, owned by the Bethlehem Authority and/or City of Bethlehem, to Flavio Schivel, according to the terms and conditions of the agreement.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolution passed.

Motion - Considering Resolutions 11 M through 11 Q as a Group

Mrs. Belinski and Mr. Gregory moved to consider Resolutions 11 M through 11 Q as a group.

Voting AYE: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The motion passed.

M. Certificate of Appropriateness – 117 East Third Street

Mrs. Belinski and Mr. Gregory sponsored Resolution 14,143 which granted a Certificate of Appropriateness to add a covered upper deck and uncovered lower deck attached to the rear of the building for an additional (outside) dining area at 117 East Third Street.

N. Certificate of Appropriateness – 240 Union Station Plaza

Mrs. Belinski and Mr. Gregory sponsored Resolution 14,144 which granted a Certificate of Appropriateness to install tenant wall signs on the building and a rectangular wood gazebo on the property at 240 Union Station Plaza.

O. Certificate of Appropriateness – 4 East Fourth Street

Mrs. Belinski and Mr. Gregory sponsored Resolution 14,145 which granted a Certificate of Appropriateness to install communication antennas and an equipment cabinet on the roof of an existing high rise building at 4 East Fourth Street.

P. Certificate of Appropriateness – 29 West Fourth Street

Mrs. Belinski and Mr. Gregory sponsored Resolution 14,146 which granted a Certificate of Appropriateness to install two wall signs on the storefront above the windows at 29 West Fourth Street.

Q. Certificate of Appropriateness – 27 West Fourth Street

Mrs. Belinski and Mr. Gregory sponsored Resolution 14,147 which granted a Certificate of Appropriateness to install a wall sign on the storefront above the window at 27 W. Fourth Street.

Voting AYE on Resolutions 11 M through 11 Q: Mrs. Belinski, Mr. Callahan, Mr. Gregory, Ms. Szabo, and Mr. Schweder, 5. The Resolutions passed.

12. NEW BUSINESS

2004 Taxes

President Schweder, with reference to a recent article in the Morning Call about a large tax increase next year perhaps being unavoidable, expressed his understanding that there were four reasons advanced which may necessitate it. President Schweder enumerated the reasons, as follows: the extra payroll payment in 2004, denial by the Federal Government of the Bethlehem Housing Authority's payment to the City, bad weather which brought about a loss of revenue at the Golf Course, and a pending lawsuit against the Police Department.

President Schweder, noting that the extra payroll payment occurs every eleven years, inquired whether over the last eleven years any provision was made to prepare for the upcoming situation. Dennis Reichard, Business Administrator, stating the matter has been discussed many times with his staff, advised that the Bethlehem Area Public Library has been able to make provisions in their budget. However, Mr. Reichard highlighted the fact that the City has not had that luxury because it has not had the availability of cash to put money away for a 27th payroll. President Schweder queried if the elected Members of Council would receive a 27th paycheck next year. Mr. Reichard, replying no, explained that the salary of Elected Officials and Department Heads is based on the salary increase but under 26 pays and then the salary is divided by 27. The salary of hourly employees is based on their bi-weekly pays that is part of the Union contract which is 27 pays in 2004, so they would be paid for 27 pays during 2004. In further response to President Schweder, Mr. Reichard indicated that salaried TAMS employees receive 27 pays. Mr. Reichard continued on to state that the following year's payroll would be slightly less than 2004 because of the 27th pay that occurs in 2004. Consequently, some salaries will be less in 2005 than in 2004 because of the extra payroll in 2004. President Schweder observed that if a salary is established for a salaried employee then that is the person's salary for the year and it does not matter whether there are 27, 26, or 32 checks. Mr. Reichard advised that the employees he indicated earlier did not get the extra 27th pay and all the other employees did. Mr. Reichard added that the situation of TAMS employees, who did receive the extra pay the last time the 27th pay occurred, would have to be reviewed. President Schweder suggested that matter be reviewed.

President Schweder, focusing on denial of the Bethlehem Housing Authority payment to the City, communicated that some Members may have felt it was somewhat dubious to begin with. However, President Schweder recalled that was a recommendation that came from the Business Administrator and the previous Administration. Stating at this point he is "hard pressed to find a rationale for how we go forward with that", President Schweder indicated it was a suggestion that probably filled a hole but was probably not the correct way to do it. President Schweder expressed how that came about and the whole process have to be reviewed so that will not be done in the future. Mr. Reichard, advising that the City is not dismissing the matter of a $350,000 Bethlehem Housing Authority payment, noted that a meeting will be held within the next few weeks to try to work out the matter. While remarking he is anticipating that the City may receive only half of the funding, Mr. Reichard restated the Administration is working on trying to obtain additional funding, and discussing services and other things that could be done. President Schweder confirmed his suggestion going forward is that the City should probably not be looking at these types of "creative accounting" measures.

President Schweder, acknowledging the loss of revenue from the Golf Course because of the inclement weather, noted that as a result the $400,000 in General Fund Service Charges would not be reached. However, President Schweder observed it is not inconceivable that a larger percentage could be taken from it, or from other funds, although it would be at the loss of other things that the City may be considering doing. President Schweder pointed out there is a way for the City to meet that figure depending on what it may be prepared to do. Observing that the Sewer Fund would not be a source, Mr. Reichard commented there may be other places to review. Mr. Reichard affirmed that, last year, some of the charges taken were placed back into the Golf Course Enterprise Fund. President Schweder pointed out the City is not locked into taking a percentage so that is also an alternative.

President Schweder, turning to the comments reported in the newspaper article about the lawsuit against the Police Department pertaining to actions in 1997, recounted it has been the subject of an Executive Session. President Schweder stressed he does not think the matter should be discussed in a negative light before it goes to litigation. While commenting there is confidence that the suit would be won, President Schweder observed that under a worst case scenario it is inconceivable to him that the City would be required to make any payment in fiscal calendar year 2004. Consequently, President Schweder stated he is not necessarily sure it is something that would bring about the inevitability of a large tax increase or any tax increase at this point. Mr. Reichard, explaining that the statements he made were not against the Bethlehem Police Department, advised it is his responsibility as the Business Administrator to bring out the financial picture of the City of Bethlehem. Mr. Reichard further advised that, in discussions with attorneys, it is thought there will be a decision at the end of this year. There is a good possibility that if the City has to pay any money it would be paid next year. Mr. Reichard added that he and his assistant will have to testify on the City's finances. Mr. Reichard restated he thinks it should be brought out where the City is right now and where he thinks the City is going.

President Schweder expressed that, in view of public discussions at this early stage, it would appear the budgetary process is farther along than perhaps it has been in other years in order to make such determinations at this point. Mr. Reichard, responding the process is fairly far along, noted the six months reports have been received and there is a five year projection model. Mr. Reichard, adding that the Mayor has requested that the budget be prepared sooner this year than normal, commented the process is a little bit farther along than in previous years. President Schweder recounted he and Mr. Reichard have had discussions about the fact that there was a time when the budget process started much earlier, and the proposed budget was presented to City Council at a much earlier time than it has been in probably the last 10-12 years. President Schweder added it seemed coincidental to him that the budget was pushed off until after election day over the last decade or longer. President Schweder suggested that, in following what Mr. Reichard has stated in the newspaper that the City has some very serious decisions that will have to be made in the budget, City Council would receive the proposed budget earlier than it has in past years, and that Council become actively involved in the process. President Schweder suggested that perhaps consideration could be given to forwarding the budget at the end of September or the beginning of October at the latest. President Schweder pointed out that would give the Members of Council time to go through what may be very difficult decisions based on the budget that is sent to Council. Denoting that is an aggressive schedule, Mr. Reichard communicated if that is what is being requested, then he will try to come up with that accommodation. Mr. Reichard, informing President Schweder the Mayor had requested that the budget proposal be concluded by October 20, advised he has already issued memos containing dates by which budget numbers must be entered. Mr. Reichard added "we'll work hard on that, and the numbers are the numbers."

Mayor James Delgrosso stated that the issue raised by President Schweder concerning the 27th payroll is something that has been talked about along with possibilities on how to address the matter in view of the fact that the $1 million payroll figure is a large number to address in one budget year. Mayor Delgrosso acknowledged it is not expected that the Golf Course revenue estimate will be realized, and other areas can be looked at. Turning to the $350,000 from the Bethlehem Housing Authority, Mayor Delgrosso said he would not expect the City to receive that amount but would hope the City will receive what was owed from last year, plus what the City would be owed from this year. Mayor Delgrosso affirmed that meetings have been set up within the next few weeks concerning the matter. Focusing on the lawsuit, Mayor Delgrosso observed it would depend on whether the Law Bureau thinks the matter should be appealed and stated he thinks there should be an appeal if it is thought the City has a case to appeal. Mayor Delgrosso, affirming he asked that the budget be ready by October 20, commented perhaps the date could be moved up another seven days. Mayor Delgrosso confirmed he wants it done early so there is time to address the end product that will be the difficult part. Mayor Delgrosso, verifying the goal is to not increase taxes, said that has been his goal when he was the Chairman of the Finance Committee and is his goal as the Mayor, if that can possibly be done.

13. COURTESY OF THE FLOOR

Water Loss/Unaccounted For Water

Stephen Antalics, 737 Ridge Street, asked what is the total revenue the City derives from people and corporations paying their water bill. Mr. Reichard responded it is over $16 million. Mr. Antalics inquired what amount would be predicted to be lost as a result of the water loss issue that has been under discussion. Mayor Delgrosso, replying there is no loss of dollars unless the water is used, explained what water is being lost is not used so it is revenue neutral. Mr. Antalics, expressing he is concerned and discouraged, made an analogy between City government and a corporation with the Members of Council serving as the board of directors, the Mayor as the chief executive officer and staff, and the taxpayers as stockholders. Mr. Antalics, continuing on with his analogy, said he feels there would be some degree of outrage if this were a stockholders meeting in that the group, ADS Environmental Services, hired to study the problem of the issue of unaccounted for water revised its mandate and decided to report on only 10% of the problem without the board's knowledge or condoning the action. Stressing if this were a corporate structure the board would request their money back because the company did not do the job, Mr. Antalics thought the City should request its money back from ADS Environmental Services. Further, Mr. Antalics asserted that, although the problem of unaccounted for water has existed for many years, no one seems to have taken responsibility for looking at the problem. Mr. Reichard, informing Mr. Antalics that the City is looking into a refund on the project, advised that the Controller has discussed the matter with him and is reviewing it. Mr. Reichard, affirming that the City does not want to spend any more money on the project, confirmed that the City is attempting to recoup some of the money it has spent.

President Schweder highlighted the fact that what Mr. Antalics has brought to light tonight is exactly the line of questioning he brought up when he first learned about it. Confirming that he has spoken with the City Controller about the issue, President Schweder said he is under the impression that the City Controller is taking action against the company in order to obtain a refund of the money for the work that was not done. President Schweder continued on to point out it has been explained to him that a change order was not sent. President Schweder stressed that everyone will take whatever steps they can to assure that either the City gets the job completed for which the contract was signed or the City will seek restitution of the money. President Schweder advised that the Controller will make a determination as to whether there was a change order that allowed the company to change the scope of the project. President Schweder continued on to point out that, at the Public Works Committee meeting of July 15, 2003, he posed the question to Kathleen Reese, Director of Water and Sewer Resources, about having a signed agreement with the company for the City to spend an amount of money for the company to do 100% of the investigation although it turns out only 10% was done but the company was paid the same amount of money. President Schweder affirmed that steps are being taken and actions have been pursued over the last two weeks since learning about the situation at the Public Works Committee meeting.

Mr. Antalics, expressing his feeling that ADS Environmental Services should be paid $25,000 which is 10% of the $250,000 contract amount, said he would ask the company for $225,000 to be paid back to the City because they are in breach of contract. President Schweder informed Mr. Antalics that it is up to the Controller to determine what percentage will be requested. President Schweder indicated that a determination needs to be made as to whether it was 10% of the geographic area or 10% of what was the total job.

14. ADJOURNMENT
The meeting was adjourned at 8:25 p.m.
ATTEST:
City Clerk