Council Minutes

August 3, 2004 Meeting Minutes

BETHLEHEM CITY COUNCIL MEETING
Bethlehem, Pennsylvania
Tuesday, August 3, 2004 – 7:30 PM – Town Hall

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

President J. Michael Schweder called the meeting to order. Reverend Paul D. Braden, Salem Lutheran Church, offered the invocation which was followed by the pledge to the flag. Present were Ismael Arcelay, Jean Belinski, Robert J. Donchez, Joseph F. Leeson, Jr., Gordon B. Mowrer, Magdalena F. Szabo, and J. Michael Schweder, 7.

4. APPROVAL OF MINUTES

Mrs. Belinski stated she would like to offer a correction to the July 20, 2004 minutes. Mrs. Belinski, referring to a remark made at the July 20, 2004 City Council Meeting by Ronald Donchez, Chairman of the Bethlehem Authority, that the Mayor had called him an f-ing Boy Scout, said she would like that put in the minutes. Acknowledging that off-color words are usually omitted from the minutes, Mrs. Belinski communicated that, in this particular case where the Mayor of the City would call the Chairman of one of his Authorities an f-ing Boy Scout, she thinks it merits being stated in the minutes, and asked that the addition be made to the minutes.

Mrs. Belinski commented that the Morning Call saw fit to make a front page story about an Easton Housing Authority Board member calling one of the Morning Call reporters “a stupid bitch”. Stressing that received front page coverage, Mrs. Belinski wondered why the editor of the local paper saw fit to put that in the newspaper versus when the Mayor of the City of Bethlehem called the Chairman of one of his Authorities an f-ing Boy Scout. Remarking she wishes there were a lot more “Boy Scouts” in government, Mrs. Belinski said unfortunately that is not the way it is.

Ms. Szabo asked that City Council postpone approving the minutes because there are some things she is looking for that she has not found. Ms. Szabo, saying that was one of the things that was of importance, thought that tells a lot as part of the witnessing.

President Schweder confirmed that approval of the minutes of July 20, 2004 will not take place at this meeting.

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

Zoning Text Amendment - Side Yard Setback Requirements

Peter Crownfield, 569 Brighton Street, commenting that amendments to the Side Yard Setback Requirements were presented as something that would create more open space, thought that, as Mr. Scheirer pointed out, it redistributes open space. However, Mr. Crownfield said, by his reading of the documents, in RT the proposal can actually reduce open space by 20%, and added he thinks people should be careful how things are characterized when described to the public.

PA Capital City (PACC) Automotive and Equipment Contract – City of Harrisburg

Mr. Crownfield asked what are the expected savings from the City’s participation in the PACC.

Dennis Reichard, Business Administrator, responding it would be hard to determine, explained the City would be “piggybacking” on another contract, and it would depend upon what the City is requesting bids. The City would have to then determine whether or not the savings would be sufficient.

Mayor John Callahan explained the City tries to “piggyback” on the State’s contract. Mayor Callahan continued on to note that former Mayor Donald Cunningham, who is the Secretary of the Department of General Services (DGS), has been very aggressive in driving down costs at the State level, and is trying to pool the buying power of the State. While the City would have the option to purchase from the DGS contract, the City can often negotiate a better contract. Mayor Callahan added that it depends on the item.

Zoning Text Amendment – Side Yard Setbacks

William Scheirer, 1890 Eaton Avenue, said the remarks he made at the last City Council Meeting about open space merely being redistributed would apply to the RM District, while Mr. Crownfield’s remarks tonight would be in the case of the RT District. Mr. Scheirer said he still thinks the proposal is a good idea.

PA Capital City (PACC) Automotive and Equipment Contract – City of Harrisburg

Mr. Scheirer, with reference to the proposed participation in the PACC automotive and equipment contract with the City of Harrisburg, commented he is generally in favor of doing such things. Mr. Scheirer cautioned that, at the Federal level, contracts like that have resulted sometimes in the loss of business for small business which, he remarked, is not something one would want to have in Pennsylvania. Mr. Scheirer further cautioned that one should make sure a sufficient amount of business is with local business. Mr. Scheirer observed one thing that Council might consider is whether it would be a good idea to offer a price differential for local business on government purchases.

6. OLD BUSINESS

Finance Committee Meeting – March 30, 2004 - Refinancing of the 1994 Bethlehem Authority Bond Issue

Mr. Donchez, Chairman of the Finance Committee, made the following statement regarding the March 30, 2004 Finance Committee meeting at which the Refinancing of the 1994 Bethlehem Authority Bond Issue was considered:

“Mr. President, first let met take this opportunity to thank you for reading my comments regarding the Bond refinancing into the public record at the July 20th City Council Meeting. I just want to briefly state again for the public record that the Finance Committee acted properly regarding this issue and we did not engage in any delay. When the [Bethlehem] Authority met on February 12, 2004 and voted to move forward on the refinancing, I, as Chairman, was willing to schedule a Finance Committee meeting at any time for the Administration and Authority. The Finance Committee met approximately six weeks later on March 30, 2004, and I think it is important to look at that meeting through the prism of March 30, not late July 2004. There was no criticism of the Finance Committee the next day, or during the months of April, May, June, and for the most part of July.

As a member of the Finance Committee for almost nine years, this was the first time in my memory that there was disagreement between the City, the Authority, and its financial consultants. The minutes clearly reflect this point, and I don’t need to repeat them except to say again that neither the Finance Committee or City Council engaged in any delay costing 1.7 million dollars. In addition, it is important to know that neither the Finance Committee or City Council selects the underwriter.

The Finance Committee acted properly and gave its approval to proceed and get the best deal for the City of Bethlehem.”

Hirko Lawsuit Settlement

Ms. Szabo, focusing on the Hirko lawsuit settlement, commented she is sure all have seen the articles in both newspapers about Attorney Karoly concerning his not providing certain clauses to an agreement with the City’s insurance company before the amount of $500,000 is paid. Ms. Szabo, recalling that Mr. Leeson asked if there was such a clause in the City’s agreement, stated she does not remember being told or receiving any information as to the fact that the City has been able to determine whether or not there is such a clause. Ms. Szabo did not think City Council saw the final agreement.

Mr. Leeson replied no, he has not seen it. Mr. Leeson asked John Spirk, City Solicitor, to provide a copy of the release and settlement agreement.

Attorney Spirk advised that when the City paid its money the City received a release. However, the insurance company did not pay their money, did not have a release, and that was the squabble with the insurance company in which the City was not involved because the City did make payment and received its paperwork.

Mr. Leeson queried if the plaintiffs filed with the Pennsylvania Department of Revenue to get approval of the settlement.

Attorney Spirk responded he does not know.

Mr. Leeson asked Attorney Spirk to look into the matter so that the proper taxes were paid to Pennsylvania.

Attorney Spirk stated he would check with the defense counsel.

Mr. Leeson asked Attorney Spirk to provide copies of the petitions and the answers concerning the issue of enforcing the settlement.

Ms. Szabo asked that copies of the documents requested by Mr. Leeson be supplied for each Member of Council.

Sinkhole

In response to Mrs. Belinski, Attorney Spirk confirmed he received Mrs. Belinski’s memorandum concerning a sinkhole matter and he could provide her with a response after the meeting.

Public Works Capital Projects Status Report - Second Quarter of 2004 – Wastewater Treatment Plant

Mrs. Belinski, with reference to the Public Works Capital Projects Status Report for the Second Quarter of 2004, noted on page 20 it states the Department is awaiting an independent review of Gannett Fleming on the Wastewater Treatment Plant improvement study by Schoor DePalma prior to rebuilding one filter. Mrs. Belinski stated she has heard over and over again from Schoor DePalma that it is not going to cost any money and the efficiency of the Wastewater Treatment Plant is going to be optimized. Mrs. Belinski pointed out that, as far as she knows, it costs about $100,000 to rebuild a filter. Mrs. Belinski wondered why an independent review has to be done by Gannett Fleming, the former engineering consulting firm, which firm she found very lacking in their ability to solve the problems in the Water Filtration Plant. Mrs. Belinski questioned why Gannett Fleming is still doing work in view of the fact that the firm has been replaced by Schoor DePalma.

David Brong, Director of Water and Sewer Resources, responded he thinks what Mrs. Belinski is referring to is the conclusion of the work done by Gannett Fleming. Gannett Fleming was contracted approximately two years ago to perform a study to help resolve some of the issues that exist and have existed. Noting there have been some delays in their final report, Mr. Brong said at this point that is the only thing that Gannett Fleming owes the City. Mr. Brong affirmed that Schoor DePalma is presently concluding their optimization study, and a final report is expected on August 25, 2004.

Northampton County Council Member – Ron Angle

Ms. Szabo said she would like to recognize that Northampton County Council Member Ron Angle is present at the meeting this evening.

7. COMMUNICATIONS

A. Director of Public Works – Traffic Signal – Hellertown Road and Cherry Lane

The Clerk read a memorandum dated July 27, 2004 from Michael Alkhal, Director of Public Works, to which was attached a draft resolution for consideration by City Council to install and maintain a traffic signal at the intersection of Hellertown Road and Cherry Lane to eliminate a safety problem at the intersection and improve access to Hellertown Road.

President Schweder stated that the appropriate Resolution will be placed on the August 17 Agenda.

B. City Solicitor – Use Permit Agreement for Public Property – Celtic Classic 2004

The Clerk read a memorandum dated July 29, 2004 from John F. Spirk, Jr., City Solicitor, to which was attached a proposed Use Permit Agreement for Public Property between Celtic Fest, Inc., and the City of Bethlehem for use of certain public properties, certain streets, and Sand Island West, for Celtic Classic 2004 for the time periods from September 11 through September 26, 2004, according to the terms and conditions of the Agreement.

President Schweder stated that the appropriate Resolution will be placed on the August 17, Agenda.

C. City Solicitor – Use Permit Agreement for Public Property – VIABL of Northampton County, Inc. – 2004 Fabric Sale

The Clerk read a memorandum dated July 29, 2004 from John F. Spirk, City Solicitor, to which was attached a Use Permit Agreement between Visual Impairment and Blindness Services (VIABL) of Northampton County, Inc. and the City for use of the Memorial Pool Building for a fabric sale for the time period September 22, 2004 to October 18, 2004, according to the terms and conditions of the agreement.

President Schweder stated that the appropriate Resolution will be placed on the August 17, Agenda.

D. City Council Solicitor – Draft Ordinance for Minimum Liability Insurance Coverage

The Clerk read a memorandum dated July 30, 2004 from Christopher T. Spadoni, City Council Solicitor, to which was attached a draft Ordinance as requested by Finance Committee Chairman, Robert Donchez, requiring that the City of Bethlehem maintain liability insurance at a minimum of $10,000,000 with provisions for reporting by the Administration to City Council.

President Schweder referred the matter to the Finance Committee.

8 . REPORTS

A. President of Council

None.

B. Mayor

1. Administrative Order – Gordon Barry – Electricians’ Examining Board

Mayor Callahan reappointed Gordon Barry to the Electricians’ Examining Board effective until July 2007. Mr. Donchez and Mrs. Belinski sponsored Resolution 14,430 to confirm the appointment.

Voting Aye: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

2. Administrative Order – Luke Cunningham – Electricians’ Examining Board

Mayor John B. Callahan reappointed Luke Cunningham to the Electricians’ Examining Board effective until July 2007. Mr. Donchez and Ms. Szabo sponsored Resolution 14,431 to confirm the appointment.

Voting Aye: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

3. Administrative Order – Kenneth Miller – Electricians’ Examining Board

Mayor John B. Callahan reappointed Kenneth Miller to the Electricians’ Examining
Board effective until July 2007. Mr. Donchez and Ms. Belinski sponsored Resolution 14,432 to confirm the appointment.

Voting Aye: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

C. Finance Committee
Mr. Donchez, Chairman of the Finance Committee, presented an oral report of the Committee’s meeting held July 27, 2004 on the following subjects: Utilization of Savings – Communications Center – Purchase of Flat Screen Monitors; Utilization of Savings – Police Department – Purchase of Patrol Camera and In-Car Computers; Transfer of Funds – Sewer Capital Budget – Valve Actuators; Transfer of Funds – Sewer Capital Budget – Chlorine Container Shut Off System; Amending Community Development Budget – South Side Greenway, South Side Lighting, and North Side Planning; Amending General Fund Budget – Economic Development Bureau - PA Council on the Arts Grant; Amending Non-Utility Capital Budget – Illick’s Mill; Amending Article 151 – Firemen’s Pension Fund; Amending Article 153 – Police Pension Fund; and Utilization of Savings – Bureau of Streets – Purchase of Pavement Breakers, Tamper, and Wacker.

D. Public Works Committee

Mr. Mowrer, Chairman of the Public Works Committee, presented an oral report of the Committee’s meeting held July 13, 2004 on the following subject: Water and Sewer Resources Department – Update.

Mr. Mowrer, noting that the report enumerating the observations and goals has been sent to the Members of Council, including the charts showing water and sewer history, affirmed Ms. Szabo suggested that, instead of supplying copies in black and white of the charts, the charts be duplicated in color so they can be read more easily.

9. ORDINANCES FOR FINAL PASSAGE

A. Bill No. 27 – 2004 - Rezoning Schoenersville Road – PI – Planned Industrial to CS –
Shopping Center

The Clerk read Bill No. 27 – 2004, Rezoning Schoenersville Road – PI – Planned Industrial to CS – Shopping Center, on Final Reading.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 27 – 2004, hereafter to be known as Ordinance 4265, was declared adopted.

B. Bill No. 28 – 2004 – Zoning Text Amendment – Shopping Center District Regulations –
Revisions

The Clerk read Bill No. 28 – 2004, Zoning Text Amendment – Shopping Center District Regulations – Revisions, on Final Reading.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 28 – 2004, hereafter to be known as Ordinance 4266, was declared adopted.

C. Bill No. 29 – 2004 – Repealing Article 709 – Dogs

The Clerk read Bill No. 29 – 2004, Repealing Article 709 – Dogs, on Final Reading.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 29 – 2004, hereafter to be known as Ordinance 4267, was declared adopted.

D. Bill No. 30 – 2004 – Repealing Article 1711 – Swimming Pools

The Clerk read Bill No. 30 – 2004, Repealing Article 1711 – Swimming Pools, on Final Reading.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 30 – 2004, hereafter to be known as Ordinance 4268, was declared adopted.

10. NEW ORDINANCES

A. Bill No. 31 – 2004 – Amending Zoning Ordinance – Appendix A-2 – Side Yard Setbacks

The Clerk read Bill No. 31 - 2004, Amending Zoning Ordinance – Appendix A-2 – Side Yard Setbacks, sponsored by Mrs. Belinski and Mr. Leeson, and titled:

AN ORDINANCE AMENDING APPENDIX A-2
OF THE ZONING ORDINANCE OF THE CITY OF
BETHLEHEM, PENNSYLVANIA, AS AMENDED,
ENTITLED TABLE OF AREA, YARD AND BUILDING
REGULATIONS.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 31 – 2004 was declared passed on First Reading.

B. Bill No. 32 – 2004 – Amending General Fund Budget – Economic Development Bureau – PA Council on the Arts Grant

The Clerk read Bill No. 32 - 2004, Amending General Fund Budget – Economic Development Bureau – PA Council on the Arts Grant, sponsored by Mr. Donchez 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 2004.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 32 – 2004 was declared passed on First Reading.

C. Bill No. 33 – 2004 – Amending Non-Utility Capital Budget – Illick’s Mill

The Clerk read Bill No. 33 - 2004, Amending Non-Utility Capital Budget – Illick’s Mill, sponsored by Mr. Donchez and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE 2004 CAPITAL BUDGET FOR NON-UTILITIES.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 33 – 2004 was declared passed on First Reading.

D. Bill No. 34 – 2004 – Amending Article 151 – Firemen’s Pension Fund

The Clerk read Bill No. 34 - 2004, Amending Article 151 – Firemen’s Pension Fund, sponsored by Mr. Donchez and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
ARTICLE 151 OF THE CODIFIED ORDINANCES
ENTITLED FIREMEN’S PENSION FUND.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 34 – 2004 was declared passed on First Reading.

E. Bill No. 35 – 2004 – Amending Article 153 – Police Pension Fund

The Clerk read Bill No. 35 – 2004, Amending Article 153 – Police Pension Fund, sponsored by Mr. Donchez and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA,
AMENDING ARTICLE 153 OF THE CODIFIED
ORDINANCES ENTITLED POLICE PENSION FUND.

Mr. Leeson, noting he may have overlooked the matter, asked for some background information regarding the Bill, and asked if the proposal is the result of a Union negotiated settlement.

Mr. Reichard replied yes it is the result of a Union negotiated settlement.

In further response to Mr. Leeson, Mr. Reichard affirmed the contract was settled in 2003.

Mr. Leeson, while acknowledging the City must live with the terms of the agreement, stated the Police are hardworking individuals and deserve fair compensation. Mr. Leeson asked whether the costs of the agreement are known.

Mr. Reichard, responding yes, advised that the City receives costs for any changes in pension benefits. Mr. Reichard stated he can provide that information.

Mr. Leeson, observing it looks like it will be a costly item, noted the provision calls for 70% pension after 25 years.

Mr. Reichard pointed out that, when the provision was negotiated with the Police Union, the Police Pension Fund was fully funded and overfunded. However, Mr. Reichard highlighted the fact that in 2001 and 2002 market values decreased.

Mr. Leeson said he would be curious to know if the Administration has updated figures on the City’s Pension exposure.

Mr. Reichard noted the numbers are being calculated now. Mr. Reichard added that the Senate recently passed a Bill to help municipalities address the higher Minimum Municipal Obligations (MMO) to the pension funds as a result of investment losses in 2001 and 2002. Mr. Reichard, continuing on to note that he had to send documents to the City’s Actuary and is waiting for the Actuary to recalculate the City’s MMO for 2004 and 2005, advised he will have an update soon. Mr. Reichard affirmed to Mr. Leeson that Conrad Siegel is the Actuary that is calculating the numbers.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 35 – 2004 was declared passed on First Reading.

11. RESOLUTIONS

A. Authorizing Participation in PACC – City of Harrisburg

Mrs. Belinski and Mr. Leeson sponsored Resolution 11 A that provided for the City’s participation in the PACC (Pennsylvania Capital City) Automotive and Equipment Contract, administered by the City of Harrisburg, to purchase supplies and services from the contract, based upon the terms and conditions of the contract, and at the same prices.

President Schweder inquired how did the City decide to become involved in the PACC.

Dana Grubb, Deputy Director of Community Development, explained that the City’s Purchasing Director contacted the City of Harrisburg to explore the matter. The City of Bethlehem had bid a front end loader for the Recycling Program. However, the low bidder did not want to agree to the terms and conditions that the City normally places in its contractual agreements. Consequently, the Purchasing Director and the Solicitor’s Office looked at the possibility of going to the next higher bidder. When the next higher bidder and cost was known, the Purchasing Director explored the possibility of “piggybacking” on an existing purchasing arrangement, to buy under a group arrangement and save additional funds on the purchase of the front end loader. The Purchasing Director made several contacts with the Commonwealth and other municipal organizations, and determined the piece of equipment was available through the City of Harrisburg at a cost savings. Mr. Grubb stated he will follow-up to confirm the amount of the cost savings.

President Schweder queried, if the City received bids but was not satisfied with them, would the City simply look towards piggybacking on a contract that the City of Harrisburg had, or would the City opt into it at the outset when it sent out bids.

Mr. Grubb, explaining the original bid had a certain manufacturer of the requested equipment, noted it was not so much that the City rejected the bid but it was more the fact that the low bidder did not want to execute the City’s standard contract document. When the Purchasing Director explored the possibility of purchasing at the price of the next highest bid, the Director decided to explore whether the equipment made by the second manufacturer was available under some sort of a group purchase arrangement. Through that research, the Director was able to determine that the piece of equipment was available through the City of Harrisburg’s purchasing arrangement. As a result, the Director forwarded a Resolution to City Council in order to obtain permission to acquire the equipment through the particular PACC arrangement with Harrisburg.

President Schweder, citing the example of the City’s putting a fire truck out for bid and receiving three bids, asked if the City has the opportunity then to determine whether the City of Harrisburg has comparable equipment available for purchase at a lower price, and inquired how that impacts the bidding process.

Mr. Grubb thought that question would be asked prior to bidding a fire truck. Mr. Grubb noted, if the fire truck were available through either a State contract or some other purchasing arrangement, the City would explore the availability of that particular unit and that particular cost. In this case, when the front end loader was originally bid, the unit originally bid was not available. However, when the City went to the second manufacturer that had bid at a higher price and on a piece of equipment that was similar in nature, the Director, after having determined who the second bidder was and what the cost was, then researched the matter. Mr. Grubb stated that, ordinarily, the City would seek out a purchasing arrangement first.

President Schweder explained what he is trying to find out is, if there is a bidding process in place and people bid in good faith, and while there might be some monetary savings, whether the City circumvents the entire bidding process by making the determination to participate in the PACC arrangement. President Schweder asked if the City would have to opt into the PACC arrangement before the bidding process started.

Attorney Spirk advised there is a State law that authorizes any municipality to piggyback off some other municipality’s contract to purchase anything. For example, if Harrisburg had a contract to buy fire trucks from vendor A, then any municipality in the State could piggyback off that contract and purchase fire trucks from vendor A at the same price that Harrisburg had negotiated. Attorney Spirk, expressing he would presume that is what happened in this case, noted there is a vendor providing something to the City of Harrisburg under a contract with Harrisburg, and the City wants to buy one at the same price.

Mr. Grubb added, in this case, it was vendor B. Affirming that vendor A recommended a number of changes to the City contract which were not part of the standard City contract, Mr. Grubb noted at that point in time it was determined that the City would not enter into an agreement with Vendor A. When the City went to Vendor B, Vendor B was under a group purchasing arrangement and, as a result, the City was able to take advantage of that savings and buying power.

Theoretically, Attorney Spirk communicated that a municipality could open all its bids, decide it did not like them because they were too expensive, reject all bids, and then go out and piggyback off another municipality’s contract. Attorney Spirk noted that a reservation is always put in requests for bids that reserves the right to reject all bids.

President Schweder queried whether that would jeopardize or lessen the number of bidders.

Attorney Spirk responded that, legally, one could do it that way. While commenting that lawful may not always be right, Attorney Spirk noted there may be other practical reasons why one would not want to do that.

Ms. Szabo asked what is the amount of savings between the lowest bidder and the one that was chosen.

Mr. Grubb, noting he would follow-up with a memorandum containing information on the bid prices, said he knows the second bid was higher. However, when it was determined that vendor B, who was the second bidder, was part of a group purchasing arrangement, it provided a savings to the City to go to that group purchasing arrangement.

Ms. Szabo observed that as a result of the agreement with Harrisburg the bids will be lower since the vendor is counting on getting others to piggyback on the contract and obtaining lots of business. Ms. Szabo pointed out this could cut out local bidders.

Ms. Szabo questioned whether City Council should be voting on the Resolution tonight because Council does not have the information.

Tabling Resolution 11 A

Mr. Donchez, expressing his agreement with Ms. Szabo, thought Council needs more information and moved to Table Resolution 11 A until the next City Council Meeting, and have more information presented to City Council about the various questions that were raised.

Mrs. Belinski seconded the motion.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The motion passed.

B. Transfer of Funds – Communications Center – Purchase of Flat Screen Monitors

Mr. Donchez and Ms. Szabo sponsored Resolution 14,433 which transferred $2,500 in the General Fund Budget from the 911 System – Training/Continuing Education - Communications Center Account to 911 System – Equipment-Communications Center Account for the purchase of flat screen monitors for the Communications Center.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

C. Transfer of Funds – Sewer Capital Budget – Valve Actuators

Mr. Donchez and Ms. Szabo sponsored Resolution 14,434 which transferred $31,700 in the Sewer Capital Budget from the Control Box 5 and 6 Gates/Actuators Account to the Valve Actuators Account for revised construction of the replacement of the sluice gate from the chlorine contact tanks and engineering review of the revised construction procedure.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

D. Transfer of Funds – Sewer Capital Budget – Chlorine Container Shut Off System

Mr. Donchez and Ms. Szabo sponsored Resolution 14,435 which transferred $11,898 in the Sewer Capital Budget from the Control Box 5 and 6 Gates/Actuators Account to the Chlorine Container Shut Off System Account for funding needed to award the low bid to T.C. Wills Co., Inc. for the contract.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

E. Utilization of Savings – Liquid Fuels Fund Budget – Purchase of Pavement Breakers, Tamper, and Wacker

Mr. Donchez and Ms. Szabo sponsored Resolution 14,436 which utilized $4,676 in savings in the Liquid Fuels Fund Budget from the Equipment Account to purchase Pavement Breakers, Backfill Tamper, and Wacker for the Bureau of Streets to replace old equipment in need of repairs.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

F. Utilization of Savings – Non-Utility Capital Budget – Purchase of Police Patrol Camera and In-Car Computers

Mr. Donchez and Ms. Szabo sponsored Resolution 14,437 which utilized $20,600 in savings in the Non-Utility Capital Budget from the Equipment-Police Account to purchase a Patrol Camera and In-Car Computers for the Police Department.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

Motion – Considering Resolutions 11 G through 11 J As A Group

Mr. Donchez and Mrs. Belinski moved to consider Resolutions 11 G through 11 J as a group. Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The motion passed.

G. Certificate of Appropriateness – 701 East Fourth Street

Mr. Donchez and Ms. Szabo sponsored Resolution 14,438 that granted a Certificate of Appropriateness to renovate the exterior of 701 East Fourth Street.

H. Certificate of Appropriateness – 409 Wyandotte Street

Mr. Donchez and Ms. Szabo sponsored Resolution 14,439 that granted a Certificate of Appropriateness to install signs at 409 Wyandotte Street.

I. Certificate of Appropriateness – 310-322 East Third Street

Mr. Donchez and Ms. Szabo sponsored Resolution 14,440 that granted a Certificate of Appropriateness to construct a new building at 310-322 East Third Street.

J. Certificate of Appropriateness – 321 West Fourth Street

Mr. Donchez and Ms. Szabo sponsored Resolution 14,441 that granted a Certificate of Appropriateness to replace the existing asphalt shingles at 321 West Fourth Street.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolutions passed.

12. NEW BUSINESS

311 Program

Mr. Donchez, noting he raised the topic at a block watch meeting last week, asked if the Police Department has been able to explore the issue of a non-emergency 311 telephone number.

Randall Miller, Deputy Police Commissioner, advised that he spoke with Police Captain Frederic Mill, captain of the Communications Center. He explained that 311 is basically an information sharing system designed for City Hall in general, for non-emergencies, and for departmental calls such as sewer problems, for example. When a person would call 311, they would be directed to a menu that would refer the caller to various departments and bureaus. Deputy Police Commissioner Miller observed a problem is that 311 calls could be mistaken for 911. He further advised he has software on order and additional information will be sent to him shortly.

Mr. Donchez stated he would appreciate receiving information on the program.

Mayor Callahan said he has had some discussions with companies that set up 311 systems, including Motorola that is well known and has installed a number of these systems throughout the country. Typically, Mayor Callahan noted the systems have been implemented in larger cities such as Baltimore. Mayor Callahan affirmed it is a customer service based telephone program by which a citizen could call with a problem, they would be assigned a customer service number, and the complaint could be tracked throughout City Hall. When the citizen called back, it would be known that a call on December 1 about a dead tree, for example, was referred to the city forester who has an appointment to go to the site on December 2. While acknowledging it would be a nice program to have and would enhance the level of customer service for residents, Mayor Callahan pointed out that it is technologically savvy but costly. Mayor Callahan observed the question is whether the City is willing to put forth the dollars to create the system. Mayor Callahan explained the cities that have had success with the program have integrated the 311 system, that is the input side and the customer service focus, with another program called City Staff, that is a way to measure the effectiveness of the City staff. He continued on to exemplify that the program would provide information on how often city parks are cleaned or grass is cut, information on street overlays, the health department, or housing inspections, etc. The effectiveness of individual employees and crews could then be measured; e.g., fixing water main breaks. It would involve regular meetings with Department Heads, supervisors, and so on, so that the City could do a better, more efficient job at delivering services, and could do more with less or the same. Pointing out it is a great program, Mayor Callahan restated it is costly and a determination must be made whether such a system is right for a City the size of Bethlehem, or whether there is a way to manage to still have improvements in efficiencies and still deliver a good level of service. Mayor Callahan, affirming he thinks customer service is important and he lobbied hard to have a customer service representative in the Mayor’s Office, thought the program could be an alternative. Mayor Callahan noted he could give the information to Mr. Donchez. Mayor Callahan advised that he met with representatives from City Staff, and the Mayor of Baltimore reviewed the program with him and offered to hold a demonstration. Mayor Callahan commented that it is costly up front but in the long run it could be cost effective.

Adopt A Park Press Conference – Saucon Park

Mrs. Belinski stated she was informed by the City Clerk shortly before 1:00 p.m. today that notification had just been received, and the City Clerk in turn was notifying Members of Council, that the Mayor was holding a press conference at 2:00 PM at Saucon Park about the new Adopt A Park Program. Mrs. Belinski observed this is not really a new idea, and one of the members of the Center City Block Watch brought up the idea about eight years ago but there was no interest in it. Mrs. Belinski noted that she had another appointment and was unable to attend the press conference with only an hour’s notice. As the Chairwoman of the Parks and Public Property Committee, Mrs. Belinski wondered why she was not notified about the press conference, especially since at the last City Council Meeting she brought up the horrendous conditions at Saucon Park after the Fourth of July holiday. Mrs. Belinski added she had neglected to mention that people came to Saucon Park on buses from New York and New Jersey, and by 10:00 a.m. there was probably not a spot of grass without a towel or a person. When the City trash truck came to the Park only one-third of the trash that was left behind by the patrons could fit in the truck. Mrs. Belinski communicated she is upset that she was not informed about the press conference taking place at Saucon Park, and that as Chairwoman of the Parks and Public Property Committee she was not informed until an hour before.

Mayor Callahan, noting that ideas and best practices from other cities and communities are often utilized, expressed it is a great idea that someone had eight years ago and he has no pride in ownership. Rather, Mayor Callahan stated he is proud of the fact that, after eight years and having been in office only seven months, the program was able to be implemented. Mayor Callahan expressed the hope that the residents who brought up the idea eight years ago will be equally happy. Mayor Callahan, highlighting the fact that there are 38 parks in the City, pointed out it is a tremendous strain on Charles Brown, Director of Parks and Public Property, and his staff, and added that Mr. Brown does a great job with the resources that he has. Observing there are concerns about the quality of the parks, Mayor Callahan commented that, if private-public partnerships could be developed with community businesses, block watch groups, churches, and other organizations, it could be a more cost effective way of managing and improving the City’s parks. Mayor Callahan continued on to remark that if block watch groups in the vicinity of their individual neighborhood parks could invest some sweat equity into the parks, then the City could do its share in providing the necessary materials, tools and expertise to assist them. Mayor Callahan notified the assembly that 18 of the 38 parks have been adopted as of today, including Sand Island for which Fritch Fuel has offered its assistance, Saucon Park for which Wagner Enterprises has offered its assistance, and Monocacy Park for which a consortium of individuals have offered their assistance. Mayor Callahan, explaining that part of the purpose in having the press conference was to announce the program so that the remaining 20 parks would be adopted, noted the Administration wanted to provide the information, telephone number, and program description so that other community organizations that might be interested would make their interest known. Mayor Callahan, restating he is proud of the program, advised it was part of his ten point plan when he ran for Mayor. Mayor Callahan stressed that he gives a lot of credit to Mr. Brown and his staff for the job they do. Mayor Callahan, expressing his apologies, said he wishes Mrs. Belinski would have been informed sooner.

Mrs. Belinski added she found out that people who came to Saucon Park over the Fourth of July holiday put soiled diapers in Saucon Creek. Mrs. Belinski wondered how that can be stopped.

Mr. Brown, communicating he takes the responsibility, advised he knew about the press conference.

City Staff Program and GIS System

Mr. Arcelay asked if the City Staff program referenced by Mayor Callahan is similar to the GIS system.

Mayor Callahan explained that a GIS system is needed to run an effective City Staff program, and it would also be needed for the 311 function. Mayor Callahan advised that a plan will be put forward to create a GIS system in the City. Mayor Callahan noted that the City of Allentown has a GIS system, as well as Lehigh and Northampton Counties. Because the Counties have a system, the City could borrow the information already there to begin to build its system which would be more cost effective. Mayor Callahan affirmed there is a GIS committee comprised of representatives from various Departments. Mayor Callahan pointed out that the lack of a GIS system could limit the City’s ability to respond to a crisis. Mayor Callahan exemplified that if a citizen wanted to have a water main located in front of their house before digging started, it could take a length of time before the location information is acquired under the current system. Mayor Callahan, while denoting that the GIS system has a very practical application in response to disaster, observed it also has practical application on a daily basis in delivering good customer service to residents in a cost effective way. Advising that implementation of a GIS system is a five year plan, Mayor Callahan explained that by the fifth year there will be the ability to deliver some of the services, but it is labor intensive in the beginning due to the amount of data that must be put into the

system. He continued on to note that other layers of information could then be added such as for Community Development, Police, and Fire Departments. Mayor Callahan cited the example of doing a targeted police patrol in a hot spot, and then measuring effectiveness over time by charting crime in a particular neighborhood. Mayor Callahan, affirming there is a press conference tomorrow to be held by Mr. Arcelay related to information technology, expressed the hope that Councilman Arcelay can provide some of the political will to provide funding in order to make the GIS system a reality. Mayor Callahan summarized that GIS is the first step, then 311 could be done, followed by City Staff.

Saucon Park - Permits

Ms. Szabo, noting that Council often is asked to adopt Resolutions to give permission for parking on City property, asked if there is such a procedure for the use of parks, such as Saucon Park. Ms. Szabo observed that, if buses are bringing in people from New York and New Jersey, it is a thought out event, and asked if there is a plan whereby they would have to ask for permission to use a park and sign an agreement.

Mr. Brown, responding no, explained the parks are open to the public. Mr. Brown continued on to point out that Fourth of July at Saucon Park has always been an overloaded day, and people come in by busloads. Mr. Brown added that, unless bus companies were required to get a permit, the City would not know until the people are there. Mr. Brown commented he would look into the matter.

13. COURTESY OF THE FLOOR

Encroachment

A. E. Bubick, 422 East Market Street, said his request is a repeat, and Mr. Brown saw the property last year. Mr. Bubick affirmed it is the same exact situation, and continued on to say it is a matter of safety because it is encroaching on the alleyway. Mr. Bubick advised he has video proof. Mr. Bubick explained that the matter was taken care of two days before the time limit. Mr. Bubick noted the house is covered, and the wires are being covered. Mr. Bubick requested that the matter be studied to see what can be done about it.

Mr. Brown, confirming he handled the matter last year, advised it involved many City Bureaus. Mr. Brown stated he would be more than willing to meet with Mr. Bubick and get the proper people involved in correcting the situation.

GIS System and City Staff

Peter Crownfield, 569 Brighton Street, noted that the City of Baltimore has 650,000 people so there is more base over which to spread the cost of the City Staff program. However, Mr. Crownfield pointed out that Lehigh University is doing something with a GIS system. While acknowledging he does not have the details, Mr. Crownfield expressed the hope that the City is working together with Lehigh University.

Patriot Act

Mr. Crownfield highlighted the fact that at the time of the next meeting it will have been a year since he first raised the issue of the Patriot Act with City Council. Recounting at that time there were 143 cities that dealt with the issue, Mr. Crownfield pointed out there are 340 cities that have dealt with it and Bethlehem still has not. Mr. Crownfield, commenting he does not know why, noted he does not know if other cities are more aware of the dangers of the Patriot Act, or are paying more attention to things happening in other cities, or are more concerned about protecting their citizens than is Bethlehem City Council, and added he does not know the answer. Mr. Crownfield exemplified there are all sizes of cities that have addressed the issue such as Crestone, Colorado with a population of 73, City of New York with a population of 8 million, and just about every size in between. Mr. Crownfield, stressing there are 342 cities and town that have addressed the issue, remarked “and Bethlehem can’t seem to get its act together.”

U.S. Conference of Mayors – Summer Internship Program

Emily Murphy, resident of Collegeville, stated she has been interning in Mayor Callahan’s office for the past ten weeks, is a sophomore at Harvard University, and is planning to pursue a career in government or some form of public service. Ms. Murphy presented an update on her internship and projects. Ms. Murphy explained she obtained the internship through Harvard Institute of Politics’ summer in the city program sponsored in conjunction with the U.S. Conference of Mayors. Mayor Callahan attended the U.S. Conference of Mayors convention and was introduced to the program. The program was targeted to place interns in cities of varying sizes across America to work on youth programs in local city governments to augment the services provided to youth. The seven other cities involved were Cleveland, Denver, Providence, West Palm Beach, Knoxville, Burnsville (in Minnesota), and Dearborn. Ms. Murphy related that she has shadowed Mayor Callahan, attended the Mayor’s staff meetings, press conferences, meetings with youths, and City Council Meetings. Ms. Murphy continued on to note she assisted the Mayor with his remarks at press conferences and other events, worked with staff members on programs including the Adopt A Park program, and met other City government officials. Ms. Murphy stated that she enjoyed her internship at a local level of government. Ms. Murphy, affirming that the other main project on which she worked was the Adopt A Park program that was announced today in Saucon Park, noted her job was to organize the press releases and information about the program in conjunction with the Parks and Public Property Department. In addition, Ms. Murphy advised she helped seek out several sponsors for various parks, and organized some of the information sent to sponsors. Ms. Murphy, informing the Members that the Adopt A Park program runs from March to October, stated that sponsors are asked to visit the park they adopt on at least a monthly basis to perform regular maintenance, and to sign a waiver. After three months of successful adoptions, the adopters will receive a sign that advertises them as the adopters of those parks. Ms. Murphy added it is an excellent opportunity for public-private partnerships with businesses, block watch groups, and church groups, including youth. Ms. Murphy notified the assembly she also worked on a project correlated with South Side Vision 2012 by researching youth recreational opportunities in Bethlehem. She pointed out there is a lot for youth to do in Bethlehem despite the results of a survey in which youth complained of boredom. Ms. Murphy denoted that she visited various areas in Bethlehem and compiled a list of 20 activities for under $20 primarily for youth ages 16 to 19, and the list will be published in a pamphlet that will be available in City Hall, on the City’s website, and at local businesses. Ms. Murphy said she will be reporting back to the U. S. Conference of Mayors at the Harvard Institute of Politics about her experience in the City of Bethlehem and the projects on which she worked, in addition to prospects for future interns. Ms. Murphy added that information she submitted as well as that submitted by interns in other cities will be combined in a report that will be sent to the Mayor as a possible point of discussion for expanding youth services. Ms. Murphy expressed her thanks to the Mayor and City staff.

Mayor Callahan stated it was a joy for him to work with Ms. Murphy who was a fine representative of the U. S. Conference of Mayors program, and he expressed his appreciation for the work she did.

Mr. Mowrer asked Ms. Murphy for her thoughts on the highlight and disappointment during her time in Bethlehem. Ms. Murphy replied the highlight was meeting local officials, and added it was inspiring to see the Mayor in action, while the disappointment was not being able to stay longer.

Patriot Act

Stephen Antalics, 737 Ridge Street, noted he has a draft resolution pertaining to the Patriot Act that requires two signatures for sponsors, and a copy of Resolution 8881, as amended, containing the procedures for Council. Mr. Antalics asked does each Council Member have the privilege or right to present a Resolution.

President Schweder responded absolutely.

Mr. Antalics, observing that preparation of the draft Resolution pertaining to the Patriot Act took a lot of work on the part of the City Council Solicitor, asked who requested the draft Resolution, and read the draft Resolution.

President Schweder replied he requested the City Council Solicitor to draft the Resolution.

Mr. Antalics inquired whether it was prompted by the wish of President Schweder or any other Member of Council.

President Schweder, responding it was probably just his wish, pointed out it is one of many, and added there are numerous issues that never make their way to the floor.

Mr. Antalics queried if the Resolution were signed by a sponsor and a second person would it be placed on the Agenda.

President Schweder said yes it would. President Schweder further informed Mr. Antalics that the President of Council does not sponsor Resolutions or Ordinances, and he had it drafted to be shared with the other Members of Council. President Schweder explained there were conversations with various people, he made a determination, and asked City Council Solicitor Spadoni to draft a Resolution as on any number of occasions, in case there was support within City Council to go in that direction. President Schweder pointed out the Members have indicated to him that the matter will not come up in Resolution form.

Mr. Antalics, stressing that profound statements have been heard from concerned citizens who expressed interest in the welfare of all citizens, asked is there any Member of Council who is willing to sign their name to the draft Resolution, and further asked if the Member of Council can make a motion.

Ms. Szabo raised her hand and expressed she feels very upset about the situation. Ms. Szabo explained that her signing the Resolution does not do any good if there is no second.

Mr. Antalics said he would expect at the minimum at least the person who requested the draft Resolution to recognize Ms. Szabo’s request and second the Resolution.

Ms. Szabo informed Mr. Antalics that the President of Council does not sign Resolutions as a sponsor.

Mr. Antalics noted that Resolution 8881, Rule 4, states that the President of Council can also act as a Member of Council and vote, and said his interpretation is that the President of Council can act as a Council Member.

Mr. Antalics asked if there were any seconds to the motion. No Members of Council responded to the request for a second sponsor.

Mr. Antalics wondered why a Resolution was written for a person who then will not either sponsor or second it. Mr. Antalics remarked it would be simply a matter of putting the Resolution on the Agenda and Council would then have the freedom to vote it down, as was done in Perkasie. Mr. Antalics, advising that in Perkasie the issue was put on the Agenda and the Council of Perkasie said no, stressed the same could be done in Bethlehem, Council could say no, and the matter would be back to step one, but at least Council would have addressed the issue. Expressing he is bewildered by the logic, Mr. Antalics communicated that he appreciates and respects Councilwoman Szabo’s concern and frustration. Mr. Antalics expressed his understanding from the Rules of Council is that a motion could be made now and seconded and a Resolution could be put on the Agenda for the next Meeting, and asked if he is wrong.

President Schweder informed Mr. Antalics that any Member of Council and during a regular meeting has the right to make any motions to bring things before City Council.

Mr. Antalics repeated his request asking if any Member of Council would care to make a motion to put a Resolution on the Agenda for the next City Council Meeting.

President Schweder responded that, as the presiding officer and speaking for Council, Council has answered that question, which Mr. Antalics has asked in the past, and the answer has not been altered at this point. President Schweder notified Mr. Antalics that the matter has been disposed of.

Ms. Szabo said she does not know how to handle the matter because it will go on and on.

Mr. Antalics, remarking not really because once it is on the Agenda it will be voted against, but at least it will be on the Agenda, stressed the citizens of Bethlehem have a right to have Council vote yes or no on the matter in open forum.

Ms. Szabo moved that Council reconsider the Patriot Act Resolution and place it on Council’s Agenda.

President Schweder asked is there a second to the motion. President Schweder stated, hearing none, the motion dies.

Mr. Antalics noted what President Schweder is saying is that he will not second the draft Resolution that he asked the Council Solicitor to prepare. President Schweder responded that is correct.

Mary Pongracz, 321 West Fourth Street, said she is extremely disturbed at the statements made by the gentleman who just spoke. Ms. Pongracz, confirming that the Members of Council and the Mayor were elected by the people of the City of Bethlehem and were chosen to be the citizens’ representatives, remarked she would assume the Members of Council have enough common sense when something is brought before them that it is incumbent upon the Members to make their decision known. Ms. Pongracz, stressing that she finds the motion to be totally unnecessary, pointed out that under the rules of parliamentary procedure the only things that can be acted on are the things that are on the Agenda. She added that she finds the recent discussion a little bit insulting to the Members of Council, and respects their right to their opinion. Ms. Pongracz, stating she does not know the point of the discussion, asserted that Mr. Antalics has belabored the question to the point of annoyance. Expressing she does not think the attorneys would do anything to jeopardize the citizens of the City, Ms. Pongracz expressed the hope that is the end of this nonsense.

Refinancing of the 1994 Bethlehem Authority Bond Issue

Ronald Angle, Member of Northampton County Council, stated he is at the meeting over the situation with the Bond Issue and the Bethlehem Authority. Mr. Angle said, “as you know, we have had a number of bond issues in Northampton County with similar sets of circumstance to yours. And, as I read your minutes, from Ronald Donchez’s comments, two things I’d like to start out by saying is I have a great deal of respect for Ronald Donchez. He appears to be a very honorable and accurate individual. What he’s saying transpired is exactly what transpired in Northampton County. And, one can only wonder how these things can transpire with the same names popping up, the same deals pushed certain ways, certain people benefiting monetarily, and no open bidding. I understand Mr. Leeson’s comments that I read in the paper…, maybe it’s not illegal, I don’t know. It surely has a lot of wrong about it. Could it be illegal. It very well could be illegal. But, we need to find that out. Now, I just want to go over a couple things that Mr. Donchez says here that I highlighted. He has a very big disagreement with this. He’s been on the Authority since 1988. He is a well respected banker, as he said, and he certainly has a vast knowledge of finance, or an impressive vast knowledge of finance. So, this was not some individual who didn’t understand what swaptions were. I appreciated, though, his comment because I sat on a body with the same fellow who other than myself they didn’t know what swaptions were either, and I would venture to say if I were to run a quiz here this evening would find that most everybody doesn’t know what swaptions is. And, quite frankly, most people don’t want to know what they are. But there was a lot of game playing in this situation. The taxpayers of the City of Bethlehem at a minimum lost money. It could have been done differently. And, again, I could go over so many things that Mr. Donchez has here, but I’m not going to do that because I don’t know as that’s the answer. I met earlier today myself with Mr. Morganelli, the District Attorney of Northampton County. And, a few years back, very similar set of circumstances to this, and one of the players who was a player back then fortunately done some Federal jail time…I don’t know whether he is a player in this, by the way, but he was a player in the original $111 million County bond issue, by the way. So, what I’m suggesting is, to not belabor this whole thing, I believe you have two choices, the same as Northampton County Council has two choices. Either you can convene a hearing yourself, and subpoena people, and get to the bottom of what happened, and I would suggest that’s a big task to tackle. Where John Morganelli does have investigators on his payroll, he’s an experienced law enforcement individual, he certainly could much easier convene a grand jury and do this, and more efficiently, probably than you or Northampton County Council. No disrespect, it’s just that’s his expertise. So, what I’m asking you this evening I think is reasonable and appropriate for the citizens of Bethlehem, and, that is, you join me with your own letter to Mr. Morganelli, or maybe your own motion here this evening telling him also on behalf of the City of Bethlehem, and I’m doing it by the way on behalf of the City of Bethlehem, too, because you are part of Northampton County. But, I think you need to join in that in support of good, open government, where there’s games not played. When you read these documents, it’s clear from what Mr. Donchez says, and I have no reason to disbelieve him, he’s right on the money, that there was game playing, and this bond issue was steered in certain directions for certain purposes. All the same names pop up in here. And, that’s how the original few people went to jail, by the way. When I cross referenced names, individuals, and circumstances, I started coming up with similarities. And, in the end, I gave that information to the United States Attorney, and people went to jail. I’m sad to say the Attorney General of Pennsylvania which had much more information didn’t see fit to send people to jail, but that’s not my job. But, I think it’s very important that you either have a hearing of your own if you think that’s more appropriate, and I would understand that. Or, what I really believe is the most appropriate thing is to join me in asking John Morganelli on behalf of your citizens also to conduct an investigation to see whether there is possibly wrongdoing. I believe it will lead eventually to a grand jury. I could be wrong, but I believe there will be wrongdoing in the end. And, again, that’s based on the last four and a half years of looking at some bad stuff in my County, and knowing what individuals were involved in the bad stuff. If I can answer any questions, I gladly will. I don’t want to go over Mr. Donchez’s stuff, but I can assure you what he’s saying is the same MO as Northampton County. It’s right on the money. Certain people exercise certain influence on certain other people. And, consequently, it was steered away from what I think, without digging out Mr. Donchez’s comments, and it was very good. What he wanted to do was to open this up for public bidding amongst a number of viable entities, not the least of which was Wachovia Bank which is major player, while some officials here in the City said, well, the only real major player is Merrill Lynch. I can assure you there is many more major players than Merrill Lynch. And, Mr. Donchez is right. It should have been opened up for public bid and not manipulated by certain people to shift it to one particular institution [and individual. Mr. Leeson is right.]…Maybe it’s not illegal, maybe it’s just improper, but let’s just be safe and find out whether it was illegal. Because, the last time I had this problem, it was, and two people went away.”

City Officials – Information

Dave Sanders, 69 East Goepp Street, said one of the reasons he started to come to City Council Meetings about five years ago was because he got tired of hearing second hand what is printed in the newspaper. Recalling that a past Member of Council expressed displeasure to then Mayor Donald Cunningham about what he read in the newspaper, Mr. Sanders noted for the last four and a half years he has heard people say they were not informed and something was in the newspaper. Mr. Sanders remarked the thing he is tired of hearing is the Department Heads are not letting the Administration know, Council is not getting information from the Mayor, the Mayor is not getting information from Council, but yet the newspaper has all the information. Mr. Sanders thought it is time for Council, the Mayor, and all the Department Heads to let each other know what is going on, whether it is a small or large item. Mr. Sanders added he thinks the people in Bethlehem should know first hand what is going on, and not get the information from the newspaper.

Accountability

Dean Bruch, 625 Hawthorne Road, expressed the hope that there is accountability. Mr. Bruch thanked Mr. Angle and said he did a fine thing this evening. Mr. Bruch stressed that the City is still paying for selling its landfill. Referring to an accident involving a Police Officer and a civil suit, Mr. Bruch said the City is paying again. Mr. Bruch, questioning whether the City is now paying again, asserted that the City is losing ground. Again stressing the issue of accountability, Mr. Bruch expressed that heads should roll when something is not done right. Turning to the draft Resolution concerning the Patriot Act, Mr. Bruch remarked that President Schweder should be surcharged for the City Council Solicitor’s time if it was known that the Resolution was not going to be used. Upon Mayor Callahan’s clarification about a proposed GIS system, Mr. Bruch stated one does not have to go to the prints to identify a location. He continued on to highlight the fact that someone comes to his house to measure his street, and marks points in the street with spray paint. Stressing this occurs throughout the whole City, Mr. Bruch pointed out that workers know where certain facilities are located, but acknowledged that someone is needed to input information in the computer. Focusing on saving money, Mr. Bruch explained when a new sewer, water main or gas main is installed, the City and other utilities should input the information now instead of having to search back.

Police Pension Fund

Steve Marshall, President of the Bethlehem Police Union, asked what caused Mr. Leeson to question the Police Pension Fund.

Mr. Leeson replied he forgot to ask the question previously, and he was going to ask about both the Police and Fire Pension Funds. Mr. Leeson explained his concern is that when the numbers are obtained from the actuary the costs will be very expensive. Mr. Leeson continued on to note that, as Mr. Reichard pointed out, at the time when the benefits were negotiated the Pension Fund was adequately funded but market conditions unfortunately caused serious drops in the value of the Pension Fund. Mr. Leeson, highlighting the fact that the City has an obligation to make up the difference, said the City also needs to know how much it is going to cost.

Mr. Marshall said the reason he questioned it is because an actuarial study was done at the time of contract negotiation, and the City would be spending more money again to obtain another study.

Mr. Leeson advised that all the numbers will change due to the decrease in the market value of the pension funds.

Mr. Marshall queried whether another actuarial study will be done when the market returns.

Mr. Leeson, noting he will leave the question of when actuarial studies are needed to the Administration, said he is not making a recommendation but rather is asking questions.

14. ADJOURNMENT
The meeting was adjourned at 9:31 p.m.
ATTEST:

City Clerk