Council Minutes
September 21, 2004 Meeting Minutes
BETHLEHEM CITY COUNCIL MEETING
Bethlehem, Pennsylvania
Tuesday, September 21, 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 Darrell Johnson, of East Hills Moravian 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
The minutes of September 7, 2004 were approved.
5. COURTESY OF THE FLOOR (for public comment on ordinances
and resolutions to be voted on by Council this evening)
Liability Insurance Ordinance
William Scheirer, 1890 Eaton Avenue, said he read the proposed
amendments to the liability ordinance and thinks they look
great.
6. OLD BUSINESS
Payment of Stranded Landfill Debt Service
Jean Belinski, Member of Council, recalled that Joseph F.
Leeson, Jr., brought up the matter, and it was published in
the newspaper, of where the $390,000 is coming from for payment
for the debt service for the stranded landfill debt. Mrs.
Belinski said she had voiced her opinion on several occasions
and quoted from the Finance Committee Meeting of November
5, 2001, Pages 10 and 11, when she asked where the money was
coming from:
“Attorney Carlucci [bond counsel] stated that, from
the perspective of the financing documents, these are contractual
arrangements that have been reviewed and interpreted. Attorney
Carlucci confirmed that the way the bond issue is structured,
and given the current status of the Bethlehem Authority, clearly
the stream of revenue that is anticipated would be sufficient
to maintain the Authority in a healthy economic status.”
Mrs. Belinski recounted that she asked a list of questions.
She asked “is it possible that Bethlehem Authority customers
may sue”. She said the answer was not likely “because
the Bethlehem Authority has no customers; customers of water
are customers of the City. No cost associated with the sewer
plant transaction will be allocated to water customers of
the City.” Mrs. Belinski quoted from minutes of the
Bethlehem City Council Meeting of December 4, 2001, Page 4:
“The amount to be made up in order to make the annual
debt service payments for the Bond Issue are about $392,500.
Those amounts would come through eventual sale of timber and
conservation easements for which the Bethlehem Authority would
pay advance payments to the City. The net impact of the General
Fund aside from the annual $490,000 already in place would
be zero.” Then moving on to a possible taxable bond
issue, Bethlehem Authority power and purposes, dated November
3, 2000, Mrs. Belinski quoted from the bottom of the page
that “other revenues of Bethlehem Authority such as
water revenues would not be pledged or available for debt
service on the taxable bond.” Mrs. Belinski stated when
this letter was signed, directed to Joseph Leeson, Jr., Esquire,
who at that time was City Solicitor, it was signed by Attorney
Peter Carlucci, Bond Counsel.
Mrs. Belinski pointed out that now, we didn’t do the
timbering, and the Nature Conservancy’s application
for a conservation easement which would have generated the
necessary funds to meet these expenses was turned down by
the Authority because they said the conditions were too restrictive
and especially the controlled burning and possible restricting
of the volume of water in the future. Stating that, again,
there has been a try at getting a conservation easement, Mrs.
Belinski said this time forget the Nature Conservancy since
the Tunkhannock Township Board of Supervisors would like to
conserve at least 600 acres in Tunkhannock Township. Mrs.
Belinski said she has the June 10, 2004 minutes of the Bethlehem
Authority and the new Executive Director, Steve Salvesen,
said he personally transcribes the tapes from the minutes
of meeting and under the heading Tunkhannock Township he tells
us his summation of the tapes from the meeting which, she
said she fails to understand why he doesn’t keep the
tapes so if anyone would want to check, the tapes aren’t
there. She said our City Clerk keeps our tapes for maybe two
years. In it Mr. Salvesen has recorded here “it does
not appear that the Board will follow through on approving
this easement request from Tunkhannock Township” which
would probably generate us $1 million with the money from
the Township, the County and the State. Mrs. Belinski said
she called Mr. Altemose who is Chairman of the Tunkhannock
Township Board who she said assured her that Tunkhannock Township’s
request for this conservation easement will have very few
restrictions and was sure it would be easy for the Authority
and the City to live with. Mrs. Belinski was told by Mr. Altemose
that he sent his paperwork in about one and a half weeks ago.
Mrs. Belinski said she is wondering where this money is coming
from to pay the debt service on the bond for the stranded
landfill debt, and why isn’t the Authority acting on
these petitions for a conservation easement which would generate
some money.
Dennis Reichard, Business Administrator, responded that
she is correct that it is the Authority that is to be doing
the timbering, not the City, and said he is still waiting,
also. He said the second question is also the Bethlehem Authority
and he cannot answer that. Mr. Reichard said he is waiting
for an opinion from Attorney Carlucci, Bond Counsel, to respond
to Mr. Leeson’s memo.
Strategic Plan for Bethlehem Authority
Mrs. Belinski noted that she read in the newspaper that the
Mayor was quoted as saying he doesn’t know why Council
has asked for a forensic accounting of the Bethlehem Economic
Development Corporation (BEDCO), and that the Mayor was criticizing
Council for spending $10,000 for the review, which Mrs. Belinski
said Council has every right to, from Council’s Professional
Services Account. She said the Mayor was quoted as saying
“that would buy half of a police car”. Mrs. Belinski
then questioned the Mayor as to where Peter Wernsdorfer came
from who is to be paid $50,000 as a facilitator for another
committee consisting of eight members for the purpose of developing
a Strategic Plan for the Bethlehem Authority. She said we
now have Art Brooks, forestry consultant, who has a very well
developed plan for the management of the watershed and for
the timbering in the future of our trees. She said we’ve
had over six years and at least two people involved in the
selling of water, and in six years have not sold any water.
Mrs. Belinski asked who authorized this expenditure and where
in the budget is the line item for the $50,000 for this man
who, she said, she guesses is an individual contractor.
David Brong, Director of Water and Sewer Resources, said
he is the veteran of the strategic planning process and said
that for the six organizations that he has put together strategic
plans for and with, each and every one of those processes
were facilitated by somebody who was an impartial, unbiased
objector to lead a group of diverse people through this process.
He said Peter Wernsdorfer is that facilitator. He is from
the industry, has had some time consulting in the field for
twenty-some years. Mr. Brong said he felt that he is clearly
an outstanding person to facilitate this strategy and basically
help not only the City but also the Authority work through
what could be some differences of opinion and things that
could derail the entire process. He said the funds came from
a line item in the Capital Budget called Future Years Planning
that was set aside by the Authority precisely for this endeavor.
Mrs. Belinski said she thought the person was hired by the
City. Mr. Brong said yes he was, he hired him. Mrs. Belinski
asked then if we were giving the Authority money to pay him.
Mr. Brong said no it is the City out of the Water Capital
Fund. Mrs. Belinski said she had never heard of Mr. Peter
Wernsdorfer and asked what his background is that he is going
to do this wonderful job that nobody has been able to accomplish
so far. Mr. Brong said Peter Wernsdorfer is the President
of Integrated Water Services which is a consulting firm that
has recently gotten off the ground. He has spent a significant
amount of his time most recently for CMA Consulting, a municipal
utility-consulting organization. He said Mr. Wernsdorfer was
available, the price was right, he had the right personality,
he is local, he understands the issues, and Mr. Brong said
he felt he was perfect to facilitate the process. Mr. Brong
said, to make no mistake, that it is our strategy, but an
unfacilitated strategic planning process seldom works. Mrs.
Belinski further questioned Mr. Brong regarding two real estate
agents who she read in the paper were to be part of the team,
and wondered why real estate agents were being brought in.
Mr. Brong said there are a handful of people on call basically
sitting in the bleachers that could serve to give us an outside
opinion in areas where we may not have the expertise. He said
real estate is one, that there are no real estate people in
City Administration. So, he said, when we have those needs,
perhaps a need for a little bit more global economic development
perspective, we have those people that have been put on call,
basically. They are not going to be full time members of the
process but they will be available in the need that we have
a use for them. Mr. Brong said we do not have time to get
hung up on issues, when we need answers, when we need an outside
perspective, we will call them in and we will get the process
off the dime so that we can make sure that our deliverable
is available in December. Mrs. Belinski said she still does
not understand why we need this strategic plan. Everybody
has been talking for a long time for a strategic plan. She
said we have the timbering under control with Mr. Brooks’
excellent plan to manage our watershed. Mrs. Belinski said
she doesn’t know where these water customers are coming
from, for six years we have tried to find customers and still
do not seem to be been able to do it. Mrs. Belinski asked
if we are planning to sell off watershed land. Mr. Brong said
categorically no. He said the timbering plan is a small microcosm
of the strategic plan. The strategic plan includes not only
the commercial issues like potential customers, potential
other revenue generating opportunities, the rates that we
are charging, but also the costs of operations, the technologies
that should be implemented, and the problems that exist with
regard to capacity that need solutions. Mr. Brong advised
that all needs flushing out because if anyone is of the opinion
that a good sound plan exists for these businesses, it does
not. That is what we are in the process of. Mrs. Belinski
said she agrees. She said we have a filtration plant that
is working at half capacity, we have a new engineering consulting
firm that says they can fix it and will not cost us any money.
She said we know we have ten filters and to redo one will
cost $100,000 and the media in those filters has all come
to the end of its useful life. That is what we have to do,
it is going to cost money and nothing is being done. Mrs.
Belinski said we are going to go out and get water customers.
But, she said we can’t get more water customers if we
can’t filter any more water. She said we are at capacity
now. Mr. Brong said he thinks we are all painfully aware of
that, and said the solution to the capacity problem comes
before the customers, absolutely. Mrs. Belinski said Schoor
DePalma, engineering consultants, have been on the payroll
for a long time at the Authority, and what have we seen now?
Mr. Brong said we actually have a pretty good plan as far
as the resolutions of those issues. He said he thinks for
the first time there are a number of people in the operations
line of business in the water area that have some belief in
the solutions that exist right now. Mrs. Belinski said she
wishes Council would be let in on what the solutions are.
Mr. Brong said in due time that would be part of the budget
processing. Mrs. Belinski highlighted the fact that, in addition
to the Director of Water and Sewer Resources, there is Mr.
Salvesen, Executive Director of the Bethlehem Authority, who
was supposed to come up with a strategic plan and who was
also supposed to sell the water, none of which has come to
fruition. She said now we have another $50,000 consultant,
and the Mayor tells us we are wasting money that could buy
half of a police car, which is the ironic part of it she said
she doesn’t understand. Mrs. Belinski thanked Mr. Brong.
President Schweder recognized Magdalena Szabo, Member of
Council, who asked Mr. Brong how many people or companies
applied for this $50,000 job. Mr. Brong responded that three
major organizations were interviewed. A bid was put on the
street, three organizations were interviewed, Peter Wernsdorfer
was one of them. He said Mr. Wernsdorfer was chosen, he was
the best option.
Ms. Szabo said that some months ago she said she saw an ad
in the PLCM flyer to fill a position in the Water Bureau.
She asked if that position was filled and what the position
was. Mr. Brong said if it was an advertised position it was
probably the Superintendent of Water and Sewer Maintenance,
and yes, that position was filled. Ms. Szabo asked if we always
had that position. Mr. Brong said that it was vacated by Gus
Dancho.
Robert J. Donchez, Member of Council, questioned the strategic
plan and if it will also include an issue that has been talked
about before about really defining very clearly the roles
of the City and the roles of the Authority, because as has
been said, there is a lot of gray. He asked if this will be
part of this review of the strategic plan, even though we
are looking at a plan for the future, but will it clear up
the roles of the Authority and roles of the City. Mr. Brong
agreed that has been a much discussed issue and he intends
to clear it up. Mr. Donchez asked if a report would be expected
by the end of the year. Mr. Brong said the organizational
issues will be included in that strategic plan.
Mayor John B. Callahan stated that the issue of clarifying
of duties and delineating lines of responsibility is something
that he stressed vehemently to both Mr. Salvesen and Mr. Brong
as they move forward with the plan, and what that plan would
look like and what the goals would be at the end of that plan
in terms of outcome. The Mayor said to rest assured that is
an ongoing concern of the Administration and that will be
addressed during the course of the strategic planning process.
He said we know why we are spending the $50,000 for the consultant,
we are expecting to get something out of that as a result.
The Mayor said he thinks he has made it clear it is certainly
within Council’s prerogative to order an audit for whatever
it is that they wish to, there is money in Professional Services
to do it. He says he doesn’t quarrel with that at all,
it was just that there was nothing other than a comment or
concern from an employee, and no one has come to him with
a concern, about BEDCO funds. The Mayor said if they were
concerned, and they wish to share it with him, he is certainly
open to hearing that. He said when pressed as to why the audit
was ordered, there was really no reason that he could discern
from the newspaper stories. Mayor Callahan said he simply
pointed out the fact that $10,000 could buy half a police
car, and doesn’t quarrel with the decision to move forward
with an audit. The Mayor said we certainly know what we are
expecting to receive as a result of our $50,000 for a consultant.
Mrs. Belinski said she hopes so.
Ms. Szabo asked if Council could see the credentials of the
person who was hired. Mayor Callahan responded yes. Ms. Szabo
said to the Mayor she hates this “tit for tat”
but said some of the traveling around and the expenses at
conventions, the Democratic Convention and other places, would
buy the other half of the police car. Mayor Callahan said
no expenses have been incurred as a result of him traveling
to the Democratic Convention. He said the vast majority is
paid for either by the people who requested to have him there
or out of his campaign funds. In response to Ms. Szabo’s
comment, Mayor Callahan said he finds that going to certain
conventions to be helpful, and he said he is requested to
speak and take part in a number of conventions.
President Schweder addressed the Mayor and said he would
like to follow up and recall that Mr. Salvesen, who is not
here tonight, called a meeting which he thinks was at the
end of November last year. Mr. Salvesen was present, Ronald
Donchez of the Bethlehem Authority, and he thinks Michael
Alkhal, Director of Public Works, was present, and then-Mayor
Delgrosso, and Mr. Callahan. He said the discussion that took
place at that time was that Mr. Donchez had raised the concerns
that the failure to have a strategic plan in place and someone
to work on that was something of the utmost importance to
the Authority and the City. President Schweder recalled that
Mr. Donchez had instructed Mr. Salvesen to go about starting
this project, which Mr. Donchez reported at the meeting. Mr.
Schweder said at that meeting we acceded to Mr. Callahan’s
wishes as the Mayor-elect when he was said to us that was
really not the job of the Bethlehem Authority, that it was
the job of the Administration to develop the strategic plan.
President Schweder said he recalls he or someone else asked
who would do that, and whether we needed outside people. Mr.
Callahan at that time said no because the person who was going
to do the strategic plan was the person who Mr. Callahan was
going to find as part of a nation-wide search to replace the
director of the Water Department who Mr. Callahan indicated
he had lost faith in at that point. President Schweder continued
on to recount that the person who was brought in to be the
Director of Water and Sewer Resources would be the one who
would facilitate and direct the strategic plan, and it would
be the City’s responsibility. President Schweder questioned
whether now Mayor Callahan decided that was the wrong approach
to take at that point, or how did things change now that we
have somebody else who is going to be working on this?
Mayor Callahan responded that he disagrees, that he did not
indicate that we would not need the consultant for this process.
He said he did not want this process to be consultant driven
and felt that it would be the incoming Director of Water and
Sewer Resources who would be best to lead this process, and
thinks it is clear that Mr. Brong has a strong handle on the
process and is going to be doing just that, leading the process.
The plans of whatever use that we will make of a consultant,
to reiterate what Mr. Brong has said, that in the times when
we feel that we need to go out to get a level of expertise
or a third party objective opinion on something that is a
sticky point as we work our way through the plan, we will
go out and seek that opinion. He said whether it is a real
estate professional or, in this case, the consultant. Mayor
Callahan said he felt we had enough expertise in-house and,
clearly, Mr. Brong has had a lot of expertise in the private
sector in strategic planning and is one of the strengths in
his coming forward as a candidate for this position, and thinks
he will prove to be an outstanding leader of such a process.
Mayor Callahan said, as Mr. Brong indicated, that sometimes
even in the private sector it is necessary to go out and seek
the advice of consultants. He said he is not one who rushes
out to look for advice on the part of consultants, but knows
that there are times when they are necessary. The Mayor said
he knows he never indicated that we would never need a consultant
in the course of the strategic planning process, and did indicate,
indeed, it would be the City’s role in leading this
process.
President Schweder said, in conclusion, then what the Mayor
is saying is that at the time he did say that he thought in-house
personnel were capable of doing that. He said he still thinks
that is the answer to this and is not sure why we have added
somebody else to this process when it seemed clear to him
that everyone who sat in that meeting that day understood
that the Mayor was going to bring the best possible person
in here who, in fact, would do that. That is what he really
thought was the commitment the Mayor had made. Mayor Callahan
said to President Schweder that he doesn’t think he
heard him correctly, as he said he never indicated that we
would never need a consultant, and did indicate that this
was not a process that he wanted to be consultant-driven.
He said he felt like he had the expertise in-house to begin
the process and, in fact, it was Mr. Salvesen who wanted to
go out and pursue looking at potential consultants at that
time to come in and start the process. Mayor Callahan said
he actually slowed Mr. Salvesen down and said that he didn’t
think that was a good idea and that we should wait until we
have a Director of Water and Sewer Resources in place because
it was that person that he wanted to lead the process and
that person he wanted to have input as to when and where and
how much we would need outside consultants. Again, Mayor Callahan
said he knows he did not indicate that there would never be
a time when we wouldn’t seek the advice of outside consultants.
He said he hasn’t changed his opinion one bit. President
Schweder said thank you to the Mayor for making his point.
7. COMMUNICATIONS
A. Chairman of Human Resources and Environment Committee
- Courtesy of the Floor – Time Limits
The Acting Clerk read a memorandum dated September 17, 2004
from Ismael Arcelay, Chairman of the Human Resources and Environment
Committee, to which was attached a draft Resolution recommended
by the Committee at its September 9, 2004 meeting, amending
Rule 3 B of the Rules of Council to institute a time limit
for individuals who address City Council under the Courtesy
of the Floor.
Mr. Arcelay stated that a proposed Resolution was reviewed
by the Committee. Mr. Arcelay made a motion that after consideration
of the proposed Resolution that all language after “in
excess of twelve minutes” be removed from the Resolution.
He said he feels that all language up to that point accomplishes
what was intended to accomplish originally. President Schweder
stated that, under the proposed amendment, what Mr. Arcelay
is proposing is that it would read: “Courtesy of the
Floor is extended for public comment as set forth in Rule
3 hereinabove but in no event shall one individual address
Council during Courtesy of the Floor for a period of time
in excess of twelve (12) minutes”, and the rest of the
language, that reads as follows, be stricken: “At the
sole and exclusive discretion of the President of Council,
the twelve (12) minute time limit during Courtesy of the Floor
established herein may be extended for a period of time to
be determined by the President of Council.” Ms. Szabo
seconded the motion. Mr. Schweder advised Council will not
be voting on the Resolution itself tonight because under the
Rules it would have to appear in writing this evening and
then would be voted on at the next Council meeting.
Robert Donchez stated that he appreciated the Committee
considering the ten minutes to twelve minutes, but would never
support a time limit of two, three or five like other communities
and school districts. He said this, in his opinion, may be
the lesser of evils. Mr. Donchez said he does believe that
the President of City Council should have the discretion to
allow people, if he decides to, to go beyond the twelve minutes.
He said he is opposed to this change and the reason is that
he thinks that most people who come before City Council, in
his ten years of being on Council, will speak less than twelve
minutes. Mr. Donchez said occasionally we do have people who
obviously go beyond, but when there are very controversial
issues with a packed house, very emotional issues, rezoning
issues, for example, from the Ballyard, to the Landfill, to
Friedensville Road, to Lowe’s, to name a few, he thinks
that one of the reasons why we have conducted ourselves with
decorum and professionalism and with great control is because
of the fact that in some instances we have allowed people
at the discretion of the President to go beyond the twelve
minutes, and that diffuses, he said, in his opinion, a great
deal of tension, that we allow the public to speak. He said
he thinks we should have vested in the President the ability
to allow a person to go beyond the twelve minutes, and thinks
it is a mistake not to, just to go strictly at twelve and
cut that person off, or, if you have one representative, for
example, that is making a presentation on behalf of a group,
and that person goes beyond twelve minutes to cut him off.
Mr. Donchez said he thinks it is a mistake, the way the Committee
voted on this is the way City Council should vote on this
issue. He said he thinks there needs to be some latitude,
and there needs to be some discretion. He said he feels that
decision must be made by the President, no matter who the
President is. Mr. Donchez said he will vote no with this amendment,
and feels very strongly that there are exceptions to the rule
here and the President should have that latitude to make that
decision.
Mrs. Belinski said she is sorry she was not here for that
meeting, but had she been here she said she would have voiced
her concerns because she said she sat in the audience for
eight years and many times got up to speak. She said she never
thought she was redundant and thought she was always to the
point, and always researched thoroughly every issue she spoke
to. Mrs. Belinski said she is very much opposed to any time
limits being set. Most of the people have consideration and
she thinks the authority of the President would be usurped.
She said we elected Mr. Schweder to be the President, or anyone
sitting in the President’s chair, and he rules Council
and it is his decision when to tell someone that time is up.
Mrs. Belinski said she thinks our President should control
how long people speak, and agrees with Mr. Donchez, on the
whole over the years, no one really abuses the privilege.
Mrs. Belinski said she is totally against any time limits
at all and will vote nay.
Gordon Mowrer, Member of Council, said he agrees with Mr.
Donchez by limiting it to twelve minutes and if the President
of City Council allows more, that is fine.
President Schweder said Mr. Arcelay spoke to him after the
meeting because he said he does know it was Mr. Arcelay’s
intent to do this with a limit of twelve, or ten minutes at
that time, before it was compromised. He said with the additional
language that allows the discretion to the President of Council,
it is his belief that the Rule then becomes oxymoronic. He
said if you include the sole exclusive discretion of the President,
he can assure that most Presidents sitting here will simply
never enforce the rule because if you arbitrarily have the
ability to do this, you are not going to stop anyone from
speaking. President Schweder said he thinks the power with
that should rest with Council as it does with other chambers,
and what would be done by accepting Mr. Arcelay’s amendment
by taking it out is that on the evening of the meeting it
is determined that something is a highly charged issue, we
would do what any other chamber would simply do, Council,
by a majority vote, would vote to suspend the rule and it
would not be left up then to the sole discretion of the President
of Council to determine whether the length of time of any
individual is changed, it is that the Members of Council could,
in fact, do that. He said that is the way it was done and
is done in most other legislative bodies, whether they be
at the local, the state, or federal level. He said what he
is suggesting is that with the language as it is written now
giving the discretion to the President, there is really no
rule which limits any of this discussion. He said he is going
to vote in favor of the amendment as it is proposed by Mr.
Arcelay in the belief that would give us something, and would
give all of us, by majority vote, the right to determine when
an individual should have the right to move beyond the time
frame as stated by our rules.
The Members of Council voted, as noted below, to remove
the following sentence: “At the sole and exclusive discretion
of the President of Council, the twelve (12) minute time limit
during Courtesy of the Floor established herein may be extended
for a period of time to be determined by the President of
Council.”
Voting AYE: Mr. Arcelay, Mr. Leeson, Ms. Szabo, and Mr.
Schweder, 4.
Voting NAY: Mrs. Belinski, Mr. Donchez, and Mr. Mowrer,
3.
President Schweder noted that the authorizing Resolution,
as amended by the deletion of the sentence, will be listed
on the October 5, 2004 Agenda.
B. Proposed Amendments to Liability Insurance Ordinance
The Acting Clerk read a memorandum dated September 10, 2004
from Joseph F. Leeson, Jr., Member of Council, to which was
attached a proposed amendment to Bill 37 – 2004 to simplify
and strengthen the original proposal.
President Schweder stated that the amendment will be considered
on Final Reading of Bill 37 this evening.
C. City Clerk – Amending Article 150 – Board
of Appeals
The Acting Clerk read a memorandum dated September 15, 2004
from Cynthia H. Biedenkopf, City Clerk, requesting consideration
and adoption of proposed amendments to Codified Ordinance
Article 150 – Board of Appeals, as a result of the passage
of Ordinance 4254 – Adopting New Article 1701 –
Pennsylvania Uniform Construction Code.
President Schweder stated that the appropriate Ordinance
will be listed on the October 5 Council Agenda.
D. Business Administrator – 2005 Preliminary Budget
Estimate – Pensions
The Acting Clerk read a memorandum dated September 15, 2004
from Dennis W. Reichard, Business Administrator, listing estimates
of the financial requirements of the Police, Fire, Officers
and Employees, and PMRS pension plans and minimum municipal
contribution to the plans for 2005 budget purposes, as required
under Act 205.
President Schweder stated that the Communication is for
information only at this time.
E. Director of Public Works – Supplemental Engineering
Agreement – Paint Mill Bridge
The Acting Clerk read a memorandum dated September 15, 2004
from Michael Alkhal, Director of Public Works, to which was
attached an amendment to Supplemental Engineering Agreement
for Costs of Services During Construction. This amendment
adds funds in the amount of $294,675.33 for a new Part III
Costs of Services During Construction, and adds funds in the
amount of $2,299.79 to augment the existing Part II Final
Design. The City will be reimbursed 95% of the costs. PennDOT
requires a resolution authorizing the Mayor and City to enter
into the amended Agreement for the Paint Mill Bridge Project.
President Schweder stated that Resolution 11 E is listed
on this evening’s Agenda.
F. Director of Parks and Public Property – Southside
Recreation Coordinator
The Acting Clerk read a memorandum dated September 17, 2004
from Charles A. Brown, Director of Parks and Public Property,
to which was attached a copy of the Contract for Youth Services
along with the City Solicitor’s requested changes, the
Work Plan for the Southside Recreation Coordinator, and an
explanation of funding.
President Schweder referred the matter to the Parks and
Public Property Committee.
Mrs. Belinski, Chairwoman of the Parks and Public Property
Committee, stated that the matter will be on the agenda of
the Parks and Public Property Committee Meeting scheduled
for Thursday, September 30, 2004 at 7:30 PM in Town Hall.
8 . REPORTS
A. President of Council
None.
B. Mayor
1. Administrative Order – William Fitzpatrick –
Zoning Hearing Board
Mayor Callahan appointed William Fitzpatrick to the Zoning
Hearing Board effective until June 2007. Mr. Donchez and Mr.
Leeson sponsored the Resolution.
Motion to Table
Mrs. Belinski asked that this appointment be tabled. Mrs.
Belinski said since we have been having problems with the
Zoning Board, and suing our own Zoning Hearing Board, she
thinks it is very important to scrutinize resumes and said
she has some questions. Mrs. Belinski asked if it can be tabled
until the next meeting so she can get answers to her questions.
Ms. Szabo seconded the motion to table to give Mrs. Belinski
time to satisfy her questions.
Voting AYE on the motion: Mr. Arcelay, Mrs. Belinski, Mr.
Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder,
7. The motion passed.
2. Administrative Order – Mona Turner – Sister
City Commission
Mayor Callahan appointed Mona Turner to the Sister City
Commission effective until September 2007. Mr. Leeson and
Mr. Mowrer sponsored Resolution 14,467 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.
Commending City Workers after Flood
Mayor Callahan commended the City’s Police, EMS, and
Fire Department, Public Works, and Parks and Public Property
workers for their outstanding efforts on Saturday in response
to the flooding from Hurricane Ivan. He said Bethlehem was
hit relatively hard especially in the Monocacy Creek and Saucon
Creek areas, and it got a little precarious at times with
the Lehigh River and the concerns there. The Mayor said in
typical Bethlehem fashion, both the citizens in the community
and the workers from the City of Bethlehem did an outstanding
job from the Department Heads right on down. He commended
everyone for a job well done.
President Schweder joined the Mayor in thanking everyone
and thanked the Mayor on behalf of all the Members of Council
for making sure they were apprised of things as they went
on through the day. He said the phone calls the Mayor made
to him allowed him to call the other Members of Council and
said they are all appreciative and are thankful for that.
D. Human Resources and Environment Committee
Mr. Arcelay, Chairman of the Human Resources and Environment
Committee, presented an oral report of the Committee’s
meeting held September 9, 2004 on the following subject: Amending
Rules of Council – Rule 3B – Courtesy of the Floor
– 10 Minute Time Limit Proposal.
E. Community Development Committee
Ms. Szabo, Chairwoman of the Community Development, presented
an oral report of the Committee’s meeting held September
16, 2004 on the following subject: Proposed 2005 CDBG and
HOME Programs.
Ms. Szabo also presented an oral report of the Community
Development Committee meeting held prior to this evening’s
City Council Meeting on the following subject: City of Bethlehem
Health Bureau Programs.
9. ORDINANCES FOR FINAL PASSAGE
A. Bill No. 36 – 2004 – Amending General Fund
Budget – Medical Expenses and Fire Department - Grant
The Acting Clerk read Bill No. 36 – 2004 – Amending
General Fund Budget – Medical Expenses and Fire Department
– Grant, on Final Reading.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No.
36 – 2004, hereafter to be known as Ordinance 4274,
was declared adopted.
B. Bill No. 37 – 2004 – Maintaining Liability
Insurance - $10 Million Minimum
The Acting Clerk read Bill No. 37 – 2004 – Maintaining
Liability Insurance - $10 Million Minimum, on Final Reading.
Amendment to Bill No. 37 – 2004
Mr. Leeson made a motion to amend Bill No. 37 – 2004,
seconded by Mr. Donchez.
Voting AYE on the motion: Mr. Arcelay, Mrs. Belinski, Mr.
Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder,
7. The motion passed.
The Acting Clerk read the Amendment to Bill No. 37 –
2004, sponsored by Mr. Donchez and Mr. Leeson:
“That Bill No. 37 – 2004 is hereby deleted in
its entirety and replaced with the following:
AN ORDINANCE OF THE COUNCIL OF THE CITY OF
BETHLEHEM, LEHIGH AND NORTHAMPTON COUNTIES,
PENNSYLVANIA, ADDING ARTICLE 128 “INSURANCE”
TO THE CITY’S ADMINISTRATIVE CODE.
SECTION 1. The Council of the City of Bethlehem hereby ordains
that the following new Article 128 of the Codified Ordinances
of the City of Bethlehem is adopted and enacted:
128.01 The City of Bethlehem will purchase and continuously
maintain liability insurance coverage, from insurance carriers
with an A.M.Best rating of not less than “A-“,
in an amount of not less than $10.0 million.
128.02 The Mayor shall annually submit to Council, at the
time of annual submission of the recommended budget, a listing
of the name of the City’s insurance carrier(s), applicable
policy limits, insurance deductibles, together with any other
information requested from time to time by Council concerning
the City’s insurance program.
128.03 In the event that material and substantial modifications
or changes in the amounts of insurance coverages, the amounts
of deductibles, or the scope of coverage are proposed, the
same will be submitted for prior review by City Council, before
any such changes are implemented.
SECTION 2. All ordinances and/or resolutions or parts thereof,
insofar as the same are inconsistent herewith, are hereby
expressly repealed.”
Mr. Leeson, said he circulated to all Members of Council
and the Administration some proposed amendments to the ordinance.
He acknowledged the excellent idea of his colleague, Mr. Donchez,
to do this. Mr. Leeson said the three minor changes are to
set a financial responsibility minimum standard for any insurance
carrier that writes coverage for the City of Bethlehem with
an A.M.Best rating of not less than “A-“, and
said historically that has been what we have done anyway,
so it is implementing that standard and mandating it. He said
the second change is really a housekeeping issue, the original
ordinance required the Administration to submit an annual
report on our insurance program, and said that one of the
things he has observed over the years is there is always uncertainty
as to when to submit it and the format to submit reports,
timing, etc. He said he thought it would be an orderly process
to put it in the budget book, and then from year to year it
would just reappear on a logical basis. That was Section 2.
Mr. Leeson said Section 3 is if the Administration or even
insurance carriers propose material and substantial modifications
to the amounts of coverage that we have, or the scope of coverage
that will be submitted to Council for review, we would not
be in a position to approve them, just a review situation.
So if we felt that some action needed to be taken or we needed
some funding authorization to get us the kind of coverage
we need, we would be able to respond to needs and recommendations
as well as for our own thoughts on the process. Mr. Leeson
said these are the reasons for the requested changes and requested
approval.
Voting AYE on the Amendment: Mr. Arcelay, Mrs. Belinski,
Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder,
7. The Amendment passes.
Mayor Callahan asked Mr. Leeson if he would be agreeable
to striking from the amendment the word “approval”
by City Council. Mr. Leeson said that had been taken out.
Mayor Callahan commented on the history of insurance coverage
that the City has had going back to 1998 so it is clear where
the Administration is now and where we have been and what
the direction will be from this Administration moving forward
because it has been an issue as a result of the Hirko case
and probably will be ongoing. He said in the years 1998 to
January 2001, the City had $4 million of maximum coverage,
for January 2001 to January 2002 we had $7 million, and $7
million in subsequent years to 2003. It was up in the year
2003 to $11 million and in May 2003 it was lowered again to
$7 million, and in July this year to present we upped it to
$12 million. Mayor Callahan wants to make it clear to everyone
that the City currently has $12 million, and we certainly
do not anticipate ever going below $10 million, and appreciates
Council weighing in on this issue. He said if you go back
through recent years there has been times when the City has
had as little as $4 million of insurance and $7 million of
insurance as recently as last year. The Mayor said the City
will be kept secure and safe from an insurance and liability
perspective.
Voting AYE on Bill 37 – 2004, as amended: Mr. Arcelay,
Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo,
and Mr. Schweder, 7. Bill 37 – 2004, hereafter to be
known as Ordinance 4275, was declared adopted.
10. NEW ORDINANCES
A. Bill No. 38 – 2004 – Rezoning South Mountain
– CS, RM and RG to RR-Residential
The Clerk read Bill No. 38 - 2004, Rezoning South Mountain
– CS, RM and RG to RR-Residential, sponsored by Mr.
Leeson and Mr. Mowrer, and titled:
AN ORDINANCE AMENDING PART 13 OF THE CODIFIED ORDINANCES
OF THE CITY OF BETHLEHEM, PENNSYLVANIA,
AS AMENDED, KNOWN AS THE ZONING ORDINANCE OF THE
CITY OF BETHLEHEM, PENNSYLVANIA, BY AMENDING THE
CITY ZONING MAP.
President Schweder stated that through this process, he
thinks, regrettably, there were a number of individuals who
came before Council who thought the action that is being taken
would be able to prevent the actions that have taken place
with the three proposals that Darlene Heller, Director of
Planning and Zoning, provided to Members of Councils over
the past week. President Schweder said this will obviously
not correct what some of those individuals in the community
were concerned about. He said, regrettably, those did take
place. When you look at the history of when the steep slope
was enacted, and some of this terrain is not technically part
of that to begin with, President Schweder said he thinks there
was a belief by Council at that point that that would have
prevented things like this from taking place. President Schweder
said that with what is being passed tonight and, hopefully,
pass again in two weeks on final motion, is that it will significantly
reduce what could be done up on the mountain. He said he met
with Ms. Szabo and Christopher Spadoni, Council Solicitor,
today to talk about this and it is really more or less a stop
gap at this point and to make a determination what above and
beyond needs to be done to protect the things that he thinks
that the community and all of us hold dear. President Schweder
said he thinks that all of Council will be voting for this
tonight, but more work will be needed on this.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No.
38 – 2004 was declared passed on First Reading.
B. Bill No. 39 – 2004 – Amending Article 543 –
Residential Permit Parking – Adding 900 Block of East
Fifth Street
The Acting Clerk read Bill No. 39 – 2004, Amending
Article 543 – Residential Permit Parking – Adding
900 Block of East Fifth Street, sponsored by Mr. Leeson and
Mr. Mowrer, and titled:
AN ORDINANCE AMENDING ARTICLE 534 OF
THE CODIFIED ORDINANCES OF THE CITY
OF BETHLEHEM, AS AMENDED, ENTITLED
RESIDENTIAL PERMIT PARKING, BY
REDEFINING RESIDENTIAL PARKING PERMIT
ZONE K.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No.
39 – 2004 was declared passed on First Reading.
C. Bill No. 40 – 2004 – Amending Article 342
– Re-enacting LERTA – Enterprise Development Area
The Acting Clerk read Bill No. 40 – 2004 – Amending
Article 342 – Re-enacting LERTA – Enterprise Development
Area, sponsored by Mr. Donchez and Mr. Leeson, and titled:
AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
ARTICLE 342 OF THE CODIFIED ORDINANCES
OF THE CITY OF BETHLEHEM, ENTITLED
LOCAL ECONOMIC REVITALIZATION TAX
ASSISTANCE - ENTERPRISE DEVELOPMENT
AREA, BY CONTINUING THE LERTA PROGRAM
THROUGH DECEMBER 2006.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No.
40 – 2004 was declared passed on First Reading.
D. Bill No. 41 – 2004 – Amending Article 343
- Re-enacting LERTA – North Side Central Business District
The Acting Clerk read Bill No. 41 – 2004 – Amending
Article 343 – Re-enacting LERTA – North Side Central
Business District, sponsored by Mr. Leeson and Mr. Mowrer,
and titled:
AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
ARTICLE 343 OF THE CODIFIED ORDINANCES
OF THE CITY OF BETHLEHEM, ENTITLED
LOCAL ECONOMIC REVITALIZATION TAX
ASSISTANCE - NORTH SIDE CENTRAL BUSINESS
DISTRICT, BY CONTINUING THE LERTA PROGRAM
THROUGH DECEMBER 2006.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No.
41 – 2004 was declared passed on First Reading.
E. Bill No. 42 – 2004 – Amending Water Capital
Budget – Water Collection and Treatment, and Water Control
– Overtime
The Acting Clerk read Bill No. 42 – 2004 – Amending
Water Capital Budget – Water Collection and Treatment,
and Water Control – Overtime, sponsored by Mr. Leeson
and Mr. Mowrer, and titled:
AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE 2004 CAPITAL BUDGET FOR WATER
UTILITIES.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No.
42 – 2004 was declared passed on First Reading.
F. Bill No. 43 – 2004 – Amending Community Development
Budget – South Side Lighting and North Side Planning.
The Acting Clerk read Bill No. 43 – 2004 – Amending
Community Development Budget – South Side Lighting and
North Side Planning, sponsored by Mr. Donchez and Mr. Leeson,
and titled:
AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE COMMUNITY DEVELOPMENT BUDGET FOR
2004.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No.
43 – 2004 was declared passed on First Reading.
11. RESOLUTIONS
A. Authorizing Execution of Local Law Enforcement Block Grant
– Community Policing
Mr. Donchez and Mr. Leeson sponsored Resolution 14,468 which
authorized the Mayor to execute the grant award documents
for a $21,033 Local Law Enforcement Block Grant, so as to
enhance the City’s Community Policing and related enforcement
efforts.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution
passed.
B. Appointing Local Law Enforcement Block Grant Advisory
Board
Mr. Donchez and Mr. Leeson sponsored Resolution 14,469 which
appointed the Local Law Enforcement Block Grant Advisory Board,
authorized to make non-binding recommendations to the City
for the use of funds under the program.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution
passed.
C. Authorizing Execution of Winter Traffic Services Agreement
– PennDot – 2004/2009
Mr. Leeson and Mr. Mowrer sponsored Resolution 14,470 which
authorized the Mayor and the Controller to execute the Pennsylvania
Department of Transportation’s Winter Traffic Services
Agreement for the winter seasons 2004/2005 through 2008/2009.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution
passed.
D. Approving Disposition of Records – Police Department
Mr. Donchez and Mr. Leeson sponsored Resolution 14,471 which
authorized the disposition of records from the Police Department
listed on Exhibit A in accordance with the Municipal Records
Manual.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution
passed.
E. Authorizing Execution of Supplemental Engineering Agreement
– PennDot – Paint Mill Bridge
Mr. Donchez and Mr. Leeson sponsored Resolution 14,472 which
authorized the Mayor and the Controller to execute Supplemental
Engineering Agreement No. 050217-C between the Commonwealth
of Pennsylvania Department of Transportation, and the City
of Bethlehem for the Paint Mill (Schoenersville Road) Bridge
over the Monocacy Creek Project, in accordance with the Agreement
made a part hereof.
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 F through 11 M
as a Group
Mr. Donchez and Mrs. Belinski moved to consider Resolutions
11 F through 11 M as
a group.
Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr.
Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The motion
passed.
F. Certificate of Appropriateness – 425 Center Street
Mr. Donchez and Mr. Leeson sponsored Resolution 14,473 which
granted a Certificate of Appropriateness to install light
fixtures on the new brick piers at 425 Center Street.
G. Certificate of Appropriateness – 52-58 East Wall
Street
Mr. Donchez and Mr. Leeson sponsored Resolution 14,474 which
granted a Certificate of Appropriateness to replace the grass
planting strip along the curb at 52-58 East Wall Street.
H. Certificate of Appropriateness – 57 East Wall Street
Mr. Donchez and Mr. Leeson sponsored Resolution 14,475 which
granted a Certificate of Appropriateness to replace the existing
slate roofing at 57 East Wall Street.
I. Certificate of Appropriateness – 38 West Market
Street
Mr. Donchez and Mr. Leeson sponsored Resolution 14,476 which
granted a Certificate of Appropriateness to change the paint
colors at 38 West Market Street.
J. Certificate of Appropriateness – 25 East Market
Street
Mr. Donchez and Mr. Leeson sponsored Resolution 14,477 which
granted a Certificate of Appropriateness to install a lamppost
at 25 East Market Street.
K. Certificate of Appropriateness – 415-417 Linden
Street
Mr. Donchez and Mr. Leeson sponsored Resolution 14,478 which
granted a Certificate of Appropriateness to paint the exteriors
of 415-417 Linden Street.
L. Certificate of Appropriateness – 424 Center Street
Mr. Donchez and Mr. Leeson sponsored Resolution 14,479 which
granted a Certificate of Appropriateness to replace the existing
sidewalk and restore the retaining walls at 424 Center Street.
M. Certificate of Appropriateness – 79 West Market
Street
Mr. Donchez and Mr. Leeson sponsored Resolution 14,480 which
granted a Certificate of Appropriateness to alter the exterior
of 79 West Market Street.
Voting AYE on Resolutions 11 F through 11 M: Mr. Arcelay,
Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo,
and Mr. Schweder, 7. The Resolutions passed.
12. NEW BUSINESS
Sinkholes
Mrs. Belinski said today she spent some at the home of Mr.
and Mrs. George Kalata who had sinkholes develop on their
property at 2304 Lafayette Avenue several years ago when it
cost them (they are in their eighties) at that time $30,000
from their life’s savings to fill the sinkholes that
our previous Director of Water and Sewer Resources said was
an act of God and the City is not responsible. Mrs. Belinski
said our insurance company has just recently offered to settle
and give them $5,000. She said because of Saturday’s
storm she was told they now have two more sinkholes. She said
they have already spent $30,000 of their own money and a good
portion of the street was redone and they were promised that
the rest of the street would be redone. Mrs. Belinski said
she was there and across the street saw two depressions, two
more sinkholes that are forming, and the concrete contractor
who did the work originally said that had the City acted and
repaired the rest of the street, these new sinkholes would
not be there today. Mrs. Belinski asked what could be done
about this and where the City stands on this.
Michael Alkhal, Director of Public Works, said there were
some water breaks at that intersection, and there were some
sinkholes and there were some repairs. He said that was last
summer some time, and great pains were taken by the City to
excavate and find the eye of the sinkholes to the extent that
they could within the City right-of-way, to find the voids,
and to fill them properly. Mr. Alkhal said he was on the site
several times with the Streets Superintendent and we excavated
in some cases beyond where we were obligated in order to make
sure it didn’t happen again. He said we made all the
repairs that were necessary at that time within the right-of-way.
He said there was a property that had a sinkhole that remained
unattended to on private property for quite some time which
he doesn’t think was repaired. Mr. Alkhal stated that
he honestly did not think that anyone could definitively determine
what the causes of the sinkholes were, whether the water main
contributed to it or whether it was stormwater runoff causing
this. He said he doesn’t know if it is the latest incidence
of more sinkholes appearing and if any of them were in the
street. Mrs. Belinski said it is right on the other side of
where the new pavement was put in from the last sinkhole on
their property in their yard. Mr. Alkhal said if it is on
private property, you need to try to take some steps to force
a fix if possible, he’s not sure, he’d have to
discuss that with Planning, Zoning and the Law Bureau, to
see what can be done. He said the City tries to take care
of those things beyond the right-of-way. If they involve sidewalks,
the City tries to push it for safety reasons and facilitate
a repair quicker than normally takes place. Mrs. Belinski
said there was another one across the street that was not
on the Kalata property. The insurance companies on the whole
say no they are not going to cover sinkhole damages. The insurance
company claims they agreed to do the work and extended the
work they were doing. Mrs. Belinski thought the City filled
in the rest and it cost the City $19,000. But she does not
understand why the insurance company would in this case do
the work and finish it up for what should have been the City’s
responsibility, $19,000 worth of work. Mr. Alkhal said he
is not sure what that is about. He stated, typically, insurance
companies only cover the structure if you have sinkhole insurance,
the rest they don’t even touch. He said they could check
into it. Mrs. Belinski said she thinks there must be something
that can be done to help the Kalatas. Mr. Alkhal said if there
are any signs of concern in the street in the right-of-way
area, the City gets on it right away in order not to allow
that part of the area to contribute to it in any way. Mr.
Alkhal noted that, pertaining to private property, he would
have to discuss that with the Law Bureau. Mrs. Belinski mentioned
another recent event of a sinkhole on Butztown Road, the judge
ruled against it, costing the people $60,000 because it was
found when it was excavated that when the City originally
installed those lines, they didn’t have the proper gravel
and foundation and support for the lines. She said she is
wondering if that could be possible in this area. Mr. Alkhal
said he doubted it because they have done some recent repairs.
Mrs. Belinski noted there was a cross street but she doesn’t
recall where it was but once there was a street that was repaved
at a corner property, and the rest of the street wasn’t
done and whoever was there from Public Works said they would
be back to fix it but it was found out there were more problems.
Mr. Alkhal said he would check into it.
Response to Bond Issue
Mr. Leeson thanked Dennis Reichard, Business Administrator,
and said he appreciated his prompt and thorough response to
his inquiry about the Bond Issue. He said he had a couple
of questions, focusing on the debt service coverage ratios
for the City’s municipal bond issues, to be followed
up on. Mr. Leeson said the debt service coverage ratios are
mandated in almost all municipal bond transactions in Pennsylvania,
they are not optional, they are mandatory. He said by way
of illustration, in the trust indenture that we have with
the Bank of New York, it is mandated, which is what really
triggered the initial memorandum written to Mr. Reichard.
Mr. Leeson said he had concerns that we were not meeting those
ratios which was confirmed in Mr. Reichard’s memorandum.
Mr. Leeson asked Mr. Reichard if he knew how many bond issues
are not in compliance on with the debt service coverage ratio,
and asked if it was just the landfill bond issue or are there
more. Mr. Reichard responded that he thought there were a
couple of the Authority issues and said he was meeting this
week with Ronald Donchez, Chairman of the Bethlehem Authority
Board, to discuss coverage ratios and also reducing the interest
rate on one of the bond issues to pick up additional savings
to help some of the shortages in the ratios. Mr. Reichard
said there were numbers well over $1 million and said it is
nowhere near that. He said it will be resolved, he is meeting
this Thursday, and will respond. Mr. Leeson said there are
two financial components as he sees it. First, he said is
what to do with the Water Fund and the money that is taken
out of it, but he said the entire separate issue is the failure
to meet the debt service coverage ratios, a technical default
on the trust indentures. Mr. Reichard said he spoke to Peter
Carlucci, Bond Counsel, and said he felt more of a concern
is not making the principal and interest payment, that is
the number one concern to the bond holder. Mr. Reichard said
the coverage ratio monies just go into one of the Authority’s
accounts and those accounts could be used to pay debt service
and also to pay for maintenance. We have a lot of excess in
the amount of $2 to 4 million if you combine the bond investment
improvement and the maintenance fund accounts. In the maintenance
fund we have to keep $2 million, and we are well over that.
Mr. Reichard said his main concern is making sure we have
the money to pay the principal and interest, and obviously
our payroll. He said the coverage ratios do not get him as
nervous because of the monies that they have that they can
use to repay those ratios. Mr. Reichard said he will be meeting
with Mr. Donchez and Attorney Carlucci and hopes to resolved
that on Thursday. Mr. Leeson said he felt Mr. Reichard was
right that the first priority is payment of principal and
interest, and that has been paid in full, and acknowledges
that. Mr. Leeson said he feels this is not a matter to be
taken lightly. Mr. Reichard said he and Mr. Donchez have had
discussions on this since last summer, almost a year, and
it’s not that we have been taking it lightly, it is
known that the Water Fund is struggling, and the timbering
has not happened yet. Mr. Reichard said his responsibility
as Business Administrator is to look at what he feels are
the important issues, and feels that principal and interest
are extremely important payments that we need to make. He
said the Water Fund now has about $10 million worth of debt
service, so about 53 percent of the funding is debt service.
Mr. Leeson then asked Mr. Reichard if it is his intent to
comply with the debt service coverage ratios. Mr. Reichard
said, yes, it has always been his intent to comply, there
is give and take in negotiations with the Authority and there
are funds available there that can be used to help us out.
He said we are at a time now where the Water Fund needs some
help.
Update on K-9 Funds
Ismael Arcelay, Member of Council, asked Francis Donchez,
Police Commissioner, for an update on funds for the K-9 unit.
Commissioner Donchez said Mr. Arcelay’s memo had mentioned
a grant, which was not correct. He said the funds that were
talked about paying for an additional canine was not a grant,
it was from the equitable sharing account, monies from the
DEA. He said we have a full time task force member assigned
to the DEA Task Force. When they seize money, whether it be
Reading, Allentown, we get a cut out of that. The money comes
back to the equitable sharing account to be used for law enforcement
operations and that can include equipment and training, and
there are specifications what it can be used for. Commissioner
Donchez said it can be used to purchase or train canine. The
Commissioner said he researched our canine usage and in the
year 2004 to date we have had only nine canine usage reports,
which is nine reports for two canine. Commissioner Donchez
said that some of that equitable sharing money is earmarked
for some equipment which they would like to purchase. He said
he cannot justify adding a third canine when we really do
not have much usage of the two that we have. He said they
are a great tool, they are available when needed. He said
he thinks they are probably one the best public relations
tools that we have. Commissioner Donchez said, however, he
does not see the need to add a third. Mr. Arcelay asked then
if that money would stay in that account in case the need
arises in 2005 or 2006. Commissioner Donchez said yes, the
money is there. He said we are very careful of what we spend,
we don’t spend it arbitrarily. He said there have been
big purchases made, new hand guns for the whole department,
the crime van, which was approximately $26,000. Commissioner
Donchez said he suspects there will be money there in 2005
and 2006 and then some. He said the DEA Task Force does a
great job and they continue to funnel money back to us as
our portion in participating in that.
Condition of Charles A. Brown
Magdalena Szabo asked on the condition of Charles A. Brown,
Director of Parks and Public Property. Jody Reppert, Business
Manager, Department of Parks and Public Property, replied
that he is doing fine. Mayor Callahan noted that he is out
of the hospital, and said that as difficult it was for so
many people to deal with the flooding, he thought it must
have really been painful for Charlie to be in the hospital
on Saturday while everyone else was out and about doing everything
they could to react to the flood. Mayor Callahan said he talked
to him numerous times on Saturday and would have to guess
they had to tie him down because he was trying very hard to
direct all the operations. The Mayor said on Monday morning
he was driving down to the Colonial Industrial Quarters, and
saw Charlie driving out with Jane Persa from his department,
already surveying the damage to the area. The Mayor said he
was at staff today and back on his feet and that you cannot
keep Charlie Brown down for very long. Ms. Szabo thanked the
Mayor and said we are all glad he’s improved, but all
know he overdoes it, too.
13. COURTESY OF THE FLOOR
Watershed
William Scheirer, 1890 Eaton Avenue, said that at the last
meeting of the Water Authority they went into an Executive
Session to consider a personnel matter. Mr. Scheirer said
he and Gregg Bortz, Express-Times, Nicole Radzievich, Morning
Call, Stephen Antalics, Peter Wernsdorfer were asked to leave.
Mr. Wernsdorfer was asked a few questions from the press and
Mr. Scheirer asked if the strategic plan would include the
Watershed and he said “only from the standpoint of nutrients”.
Mr. Scheirer then asked if that would mean the type of forest
that is there or whether or not there is a forest at all.
He replied, “no, only from the standpoint of development”.
Mr. Scheirer said he is puzzled after hearing Mr. Brong this
evening say that the Watershed would not be sold. Mr. Scheirer
said he would have liked to hear that no part of the Watershed
would be sold, and maybe Mr. Wernsdorfer meant something different
by the word “development” than he thought he meant.
Mr. Scheirer then said his question for the Administration
would be is there any possibility that the strategic plan
that comes out of this facilitation would have a recommendation
that any part of the Watershed would be sold.
Mayor Callahan replied that being they are in the early
stages of the plan to give a definitive answer at this point
would be wrong. Mayor Callahan said he wouldn’t want
to limit the planning at this point and want to be open minded
to the process and what is going to come out of this, but
said he certainly finds it highly unlikely and doubtful at
this point.
Time Limit
Stephen Antalics, 737 Ridge Street, with respect to Mr. Donchez’s
comments, said he attended the original meeting and asked
a question about emotional versus statistical recommendation
for limitation. Tonight’s decision, he said, he thinks
is also emotional because Mr. Donchez, Acting President, was
confronted with a gentleman who has a reputation for speaking
for 45 minutes. In the process of the long dissertation, Mr.
Donchez was able to intercede and question the gentleman and
cut him down to eleven minutes. Mr. Antalics thinks that is
significant and commends Mr. Donchez on his wisdom, and said
it is a shame that the Council didn’t take advantage
of his wisdom.
Bethlehem Authority
Mr. Antalics said going back to 1937 to the original Water
Authority under Mayor Pfeifle, the Bethlehem Water Authority,
which later became the Bethlehem Authority, commented if you
proceed through the process of what the state said was an
Authority, and each person’s mission, the Authority,
Administration, and Council, and if each group knew their
mission, there would be practically no major discussions here
or special meetings with the forester because everyone knew
what their job was. He said the best way he can summarize
would be that everyone is getting into the pie, it has gotten
very political, and it reminds him of Abbott and Costello’s
“Who’s on First and What’s on Second”.
Recent Resolutions
Mr. Antalics said he looked at three recent resolutions,
one being the Patriot Act, the second being Limitation of
Courtesy of the Floor, and the third being the Renaming of
the Plaza and at a common denominator as to how each of these
potential resolutions address the health and welfare of the
community and the wellbeing of the public. Mr. Antalics said
the Patriot Act resolution was never resolved, it carried
on for a period of 7 to 9 months with very concerned citizens
coming before Council making very intelligent, well researched
presentations and their concern was the welfare of the community
in terms of their civil rights. Mr. Antalics said he is looking
at how to place the other two resolutions, Limitation of Courtesy
of the Floor and Renaming City Plaza, and how they impact
on the wellbeing of the community. Mr. Antalics said he really
has a serious problem if he uses a common denominator to have
ignored the pleas of intelligent people, and in many cases,
the best the City has to offer. He said we have seen the best
of Bethlehem citizens coming up and asking for a resolution
for the welfare of the general community, and it was ignored.
He said we have these other two resolutions which really are
becoming political. Mr. Antalics asked where is the wisdom
here in terms of looking at the common denominator, the wellbeing
and welfare of the general community. When you look at that
and see that the Patriot Act resolution was ignored, all he
said he can say is “for shame”.
Insurance Liability
Dana Grubb, 2420 Henderson Place, thanked Council, and in
particular, Councilman Donchez, in pursuing the insurance
liability issue. He said in the past some decisions were made
due to budgetary pressures and they were “pennywise
and pound-foolish” and we have seen the results of that.
Rezoning South Mountain
Mr. Grubb commented on the issue of the rezoning of South
Mountain, and said he is heartened to hear that at least some
of Council is willing to further pursue the issue of zoning
on the mountain. He said, in his opinion, the South Mountain
is a geographic feature by which a lot of people identify
the City of Bethlehem and it has a wonderful natural area
and none of it should be compromised in any way. Mr. Grubb
said he thinks that type of character in our community needs
to be preserved. Beth Works, Bethlehem Commerce Center, and
other sites throughout the community, he said in his opinion,
provide more than ample opportunity to grow our community
and grow our tax base. Mr. Grubb said he would be saddened
to see a level of development attained on the South Mountain
that would diminish the character that it adds to the City
of Bethlehem and is glad to hear some of Council and others
will continue to review that issue and continue to look at
the zoning issues regarding the South Mountain and its relationship
to the City of Bethlehem.
Time Limit
David Sanders, 69 East Goepp Street, on the subject of the
ten minute or twelve minute speaking before City Council,
asked Council if he came to the next meeting and signed up
to speak for ten minutes, would he be able to relinquish his
ten minutes to someone else, and thereby giving them possibly
20 minutes or possibly 24 minutes. President Schweder replied
that his initial reaction to that would be no, that Council
has not voted on that, but it will be reviewed.
Rezoning South Mountain
Santiago Rivera, 1349 Lynn Avenue, stated that he spoke
at the last City Council Meeting and had requested to see
if the lot, 1349 Lynn Avenue, could be excluded from the rezoning,
which is already utilized as a commercial building and under
the current RM zoning it would allow him to convert it into
either a childcare facility or possibly a funeral home. He
said under RR those options would be eliminated. He said he
is requesting that the zoning map could be redrawn and move
the property line that is RM right behind his property and
be moved up and include that corner lot as part of the RM.
Ms. Szabo asked where on Lynn Avenue it is located. Mr. Rivera
said it is at the intersection of William and Lynn, the old
firehouse, an existing structure. Mr. Rivera said he shares
the property line with Bethlehem Housing. Ms. Szabo agreed
that it should be included and looked into. Mr. Rivera said
he thinks it would be a detriment if he had to establish a
single family home as his only option because he doesn’t
have much interest in building a single-family home at that
intersection due to the traffic anticipated to develop on
the Lynn Avenue/William Street corridor. He said also the
fact it is next to Bethlehem Housing, it is just under the
water tower, and across the street he believes there is a
five-acre lot owned by the City, and can’t imagine the
City placing single-family homes there. Mr. Rivera said he
would imagine it would be used for some official use and if
we do get the development anticipated on the William Street
side, he wouldn’t be surprised if there wouldn’t
be a need for a firehouse or something, which could be located
right across the street since the City no longer owns the
existing firehouse that was there. Mr. Rivera asked for Council’s
consideration.
President Schweder asked what the current use is of the
building. Mr. Rivera said it is going to be the headquarters
for Magic Woman Personalized Services, a detailed cleaning
service for commercial and residential properties as well
as lawn care. He said he anticipates moving in after remodeling
probably in the December time frame.
14. ADJOURNMENT
The meeting was adjourned at 9:25 p.m.
ATTEST:
Acting City Clerk
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