Council Minutes

March 20, 2007 Meeting Minutes

BETHLEHEM CITY COUNCIL MEETING
10 East Church Street – Town Hall
Bethlehem, Pennsylvania
Tuesday, March 20, 2007 – 7:30 PM

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

President J. Michael Schweder called the meeting to order. Rabbi Allen Juda of Congregation Brith Shalom offered the invocation which was followed by the pledge to the flag. Present were Jean Belinski, Karen Dolan, Robert J. Donchez, Joseph F. Leeson, Jr., Gordon B. Mowrer, Magdalena F. Szabo, and J. Michael Schweder, 7.

Citations

President Schweder presented a Citation to Charles A. Brown who retired from the Parks and Public Property Department after 33 years of service to the City. The Members of Council congratulated Mr. Brown and wished him well in his retirement.

President Schweder presented a Citation to Robert J. Herstich who retired from the Fire Department after 39 years of service to the City. The Members of Council congratulated Mr. Herstich and wished him well in his retirement.

President Schweder noted that a Citation for James Stiffinella, who retired from the Fire Department after 36 years of service, would be delivered to him since he was unable to be present at the Meeting.

4. APPROVAL OF MINUTES

The minutes of February 20 and March 6, 2007 were approved.

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

Liquor License Transfer Requests – Posting Notice

William Scheirer, 1890 Eaton Avenue, proposed that City Council request of the applicant for a liquor license transfer that a notice be posted on the premises, visible from the sidewalk, stating the date of the public hearing before City Council. He added, if the applicant declined to do so, that could be brought out at the hearing and considered by City Council when voting on the request.

President Schweder stated that Mr. Leeson has already proposed such a Resolution and it will be read into the record at the next City Council Meeting.

Invocation

Stephen Antalics, 737 Ridge Street, expressed his pleasure that a Rabbi offered the invocation this evening.

Bethlehem Authority – Appointment to Board

Mr. Antalics read a letter sent to David DiGiacinto, past member of the Bethlehem Authority Board, that he obtained through the Freedom of Information Act, in which Mr. DiGiacinto was thanked for his service on the Board. Mr. Antalics noted that he read the resume of Vaughn Gower, whose appointment to the Bethlehem Authority Board was listed on this evening’s Agenda, and remarked that it is impressive. Mr. Antalics stated what disturbs him is that among Mr. Gower’s accomplishments reported in a newspaper article is negotiating the sale of assets. Pointing out that the Bethlehem Authority is concerned with the quality of water, Mr. Antalics said to this extent easements in the watershed would affect the quality of the water. Mr. Antalics questioned whether Mr. Gower’s appointment is on the basis of supporting funding to the City of Bethlehem’s financial welfare or to the preservation of the integrity of the watershed.

2007 Bond Issue

Robert Pfenning, 2830 Linden Street, said the four occurrences of the word repair in the 2007 Bond Issue worries him in terms of long term financing, as does the vehicle purchases. Mr. Pfenning was informed by President Schweder that bond counsel will fill in the blank portions of the Bond Issue document. Turning to the vehicle purchases totaling $338,000, Mr. Pfenning remarked that after adding the prices of the listed vehicles to be purchased, the remaining amount is $84,303 that would be for the police utility vehicle or he wondered if a few more cars are being considered for purchase.

Liquor License Transfer Request – 701 E. Fourth Street

Edwin Rodriquez, 1845 Linden Street, asked where is the site of the proposed liquor license transfer. President Schweder informed him it is at the corner of Buchanan and Fourth Streets, across the street from the former Oravec pharmacy. Mr. Rodriquez said the same problems or worse are occurring in that neighborhood as in the neighborhood of the former liquor license transfer request involving drug activity and wondered if that should be taken into consideration. President Schweder affirmed there will be a public hearing on the request as well as another meeting at which a Resolution would be considered and those matters will be addressed.

6. OLD BUSINESS

None.

7. COMMUNICATIONS

A. Finance Committee Chairman – Amending Article 121 – Restrictions on Fund Transfers from Treasurer's Escrow Account to General Fund

The Clerk read a memorandum dated March 9, 2007 from Joseph F. Leeson, Jr., Chairman of the Finance Committee, to which was attached a draft Ordinance that would require prior Council approval for future transfers from the Treasurer's Escrow Account to the General Fund Account.

President Schweder referred the matter to the Finance Committee.

B. Public Works Director – Federal Aid Reimbursement Agreement – Paint Mill Bridge Replacement

The Clerk read a memorandum dated March 9, 2007 from Michael Alkhal, Director of Public Works, to which was attached a proposed Resolution required by the Pennsylvania Department of Transportation for an amendment to Federal Aid Reimbursement Agreement No. 050218-D that will add funds in the amount of $114,568.32 in order to accommodate the final closeout construction and railroad crossing upgrade costs for the Paint Mill Bridge project. The City will be reimbursed 95% of these costs.

President Schweder stated that the appropriate Resolution will be listed on the April 10 agenda.

C. City Solicitor – Use Permit Agreement for Public Property – St. Luke's Hospital and Health Network – 2007 Boutique at the Rink

The Clerk read a memorandum dated March 12, 2007 from John F. Spirk, Jr., Esq., City Solicitor, to which was attached a proposed resolution for a Use Permit Agreement between the City and St. Luke's Hospital and Health Network for use of the Municipal Ice Rink for the 2007 Boutique at the Rink for the period April 21 to June 3, 2007, according to the terms of the agreement.

President Schweder stated that the appropriate Resolution will be listed on the April 10 agenda.

D. Request for Intermunicipal Liquor License Transfer – 701 East Fourth Street, Inc.

The Clerk read a letter dated March 9, 2007 from Attorney Theodore J. Zeller, III, that requested approval of an intermunicipal transfer of liquor license No. R-5834 from Soul Imperial, Inc., 2447 Freemansburg Avenue, Wilson Borough, Easton, Northampton County, Pennsylvania, to 701 East Fourth Street, Inc., Bethlehem, Northampton County, Pennsylvania.

Ms. Dolan and Mr. Mowrer moved to schedule a Public Hearing on Tuesday, April 10, 2007 at 7:30 p.m. in Town Hall. Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The motion passed.

E. Assistant City Solicitor – Amending Article 313 – Private Security Services

The Clerk read a memorandum dated March 15, 2007 from Timothy P. Brennan, Assistant City Solicitor, to which was attached the final draft of the Private Security Services Ordinance. The existing Article 313 – Private Watchmen is being repealed and a new Article 313 – Private Security Services is proposed.

President Schweder referred the matter to the Public Safety Committee.

8 . REPORTS

A. President of Council

None.

B. Mayor

1. Administrative Order – Vaughn C. Gower – Bethlehem Authority

Mayor Callahan appointed Vaughn C. Gower to the Bethlehem Authority effective until January 2012. Mr. Donchez and Mrs. Belinski sponsored Resolution 15,018 to confirm the appointment.

Mrs. Belinski stated that, although she would have preferred the reappointment of Mr. DiGiacinto who did an excellent job, she cannot fault Mr. Gower. She continued on to say while according to the newspaper article Mr. Gower does not know a lot about the water business he is great with finances. Mrs. Belinski advised it should be made sure that Mr. Gower knows that trees should not be cut down in the watershed.

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

2. Administrative Order – Jody Reppert – Acting Director of Parks and Public Property Department

Mayor Callahan appointed Jody Reppert as Acting Director of the Parks and Public Property Department effective March 20, 2007. Mr. Donchez and Mrs. Belinski sponsored Resolution 15,019 to confirm the appointment.

Mrs. Belinski expressed she is happy that Ms. Reppert will be Acting Director of the Parks and Public Property Department, and it is well deserved.

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

9. ORDINANCES FOR FINAL PASSAGE

None.

10. NEW ORDINANCES

A. Bill No. 4 – 2007 – Approving 2007 Bond Issue – Non-Utility Capital Projects, Equipment, and Water System Improvements

The Clerk read Bill No. 4 – 2007 – Approving 2007 Bond Issue – Non-Utility Capital Projects, Equipment, and Water System Improvements, sponsored by Mr. Mowrer and Mr. Donchez, and titled:

AN ORDINANCE OF THE COUNCIL OF THE CITY OF BETHLEHEM, LEHIGH AND NORTHAMPTON COUNTIES, PENNSYLVANIA, AUTHORIZING AND DIRECTING THE ISSUANCE OF GENERAL OBLIGATION BONDS OR NOTES, SERIES OF 2007 (THE BONDS OR NOTES) IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $10,000,000 PURSUANT TO THE LOCAL GOVERNMENT UNIT DEBT ACT OF THE COMMONWEALTH OF PENNSYLVANIA, 53 PA. C.S. CHS. 80-82 (THE ACT); PROVIDING THE PROCEEDS OF THE BONDS OR NOTES SHALL BE APPLIED TO FUNDING OF CERTAIN CITY IMPROVEMENTS DESCRIBING THE CITY IMPROVEMENTS (THE IMPROVEMENTS), DETERMINING THAT THE SALE OF THE BONDS OR NOTES SHALL BE A PRIVATE SALE UNDER THE ACT, AND DETERMINING THAT THE BONDS OR NOTES SHALL BE NONELECTORAL DEBT OF THE CITY; FIXING THE INTEREST PAYMENT DATES, DENOMINATIONS AND REGISTRATION, TRANSFER AND EXCHANGE PRIVILEGES OF THE BONDS OR NOTES AND PROVIDING FOR BOOK ENTRY BONDS OR NOTES THROUGH DEPOSITORY TRUST COMPANY; SETTING FORTH THE MATURITY DATES, PRINCIPAL MATURITIES AND CURRENT INTEREST RATES OF EACH SERIES OF BONDS OR NOTES AND ESTABLISHING A REQUIRED SCHEDULE OF PAYMENTS WITH RESPECT TO THE SINKING FUND, AS HEREINAFTER ESTABLISHED, IN ORDER TO AMORTIZE THE BONDS OR NOTES; ESTABLISHING THE REDEMPTION PROVISIONS OF THE BONDS OR NOTES, BOTH OPTIONAL AND MANDATORY; ESTABLISHING THE NOTICE REQUIREMENTS WITH RESPECT TO THE REDEMPTION OF THE BONDS OR NOTES; ACCEPTING A BID FOR PURCHASE OF THE BONDS OR NOTES AND AUTHORIZING EXECUTION OF THE BOND PURCHASE AGREEMENT; DESIGNATING A PAYING AGENT AND REGISTRAR; DESIGNATING A PLACE AND METHOD OF PAYMENT OF THE BONDS OR NOTES AND INTEREST THEREON AND MAKING CERTAIN COVENANTS WITH RESPECT TO THE TAX FREE STATUS THEREOF; ESTABLISHING THE SUBSTANTIAL FORMS OF THE BONDS OR NOTES AND THE PAYING AGENT'S CERTIFICATE RELATING THERETO; AUTHORIZING EXECUTION AND AUTHENTICATION OF THE BONDS OR NOTES; PROVIDING FOR THE REGISTRATION OF THE BONDS OR NOTES, THE MAINTENANCE OF RECORDS OF REGISTERED OWNERS AND TRANSFER OF THE BONDS OR NOTES; DESIGNATING A SINKING FUND DEPOSITORY; COVENANTING TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS OR NOTES AND PLEDGING THE FULL FAITH, CREDIT AND TAXING POWER OF THE CITY TO SUCH PURPOSE; ESTABLISHING SINKING FUND FOR THE BONDS OR NOTES AND AUTHORIZING AND DIRECTING PAYMENT THEREFROM; SETTING FORTH CERTAIN PROVISIONS WITH RESPECT TO THE INVESTMENT OF MONIES THEREIN; DESIGNATING A SINKING FUND DEPOSITORY; SETTING FORTH CERTAIN RIGHTS OF THE PAYING AGENT AND BONDHOLDERS OR NOTEHOLDERS IN THE EVENT OF DEFAULT AND OTHER RIGHTS OF THE PARTIES WITH RESPECT TO THE BONDS OR NOTES; PROVIDING FOR THE CIRCUMSTANCES UNDER WHICH THE ORDINANCE MAY BE AMENDED OR MODIFIED; PROVIDING FOR THE TERMS, CONDITIONS AND COVENANTS WITH RESPECT TO THE BOND INSURER, IF ANY, FOR THE BONDS OR NOTES; AUTHORIZING AND DIRECTING SPECIFIED OFFICERS OF THE CITY TO DO AND PERFORM CERTAIN SPECIFIED, REQUIRED OR APPROPRIATE ACTS; AUTHORIZING THE EXECUTION OF DOCUMENTS FOR SETTLEMENT AND THE PAYMENT OF ISSUANCE EXPENSES; DECLARING THAT THE DEBT TO BE INCURRED IS WITHIN THE LIMITATION IMPOSED BY THE ACT UPON INCURRING OF SUCH DEBT BY THE CITY; AUTHORIZING AND DIRECTING PROPER OFFICERS OF THE CITY TO DELIVER THE BONDS OR NOTES UPON EXECUTION AND AUTHENTICATION THEREOF, UPON RECEIPT OF PROPER PAYMENT OF THE BALANCE DUE THEREFOR, AND ONLY AFTER SPECIFIED APPROVAL, AS REQUIRED, OF THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE COMMONWEALTH OF PENNSYLVANIA; SETTING FORTH CERTAIN COVENANTS RELATING TO THE FEDERAL TAX STATUS OF THE BONDS OR NOTES; PROVIDING FOR COMPLIANCE WITH SECURITIES AND EXCHANGE COMMISSION RULE 15c2-12; PROVIDING FOR SEVERABILITY OF PROVISIONS OF THE ORDINANCE; PROVIDING FOR REPEAL OF ALL ORDINANCES OR PARTS OF ORDINANCES SO FAR AS THE SAME SHALL BE INCONSISTENT; PROVIDING WHEN THIS ORDINANCE SHALL BECOME EFFECTIVE.

President Schweder confirmed that the advice of City Council’s Solicitor as well as Bond Counsel on the necessity to include items less than $75,000 in the Bond Issue is it would require five affirmative votes. Accordingly, President Schweder explained that Mr. Leeson will present proposals, and it will require five affirmative votes in order to include those items in the Bond Issue. President Schweder added that any Member of Council can offer amendments.

Mr. Leeson, turning to the proposed debt service payment structures of the Bond Issue, pointed out there are advantages and disadvantages to both the level debt service payments and the wrap around debt service payments. Mr. Leeson highlighted the fact that an advantage of the wrap around debt service payment is that it saves $700,000 in interest. Affirming that although the Finance Committee did not make a recommendation for this evening’s meeting, Mr. Leeson stated it would be his personal recommendation to accept the wrap around debt service payment schedule.

Mr. Leeson advised his issues are concerning the vehicle purchases and the items in the Bond Issue that cost less than $75,000. Stressing they are all important and worthwhile projects, Mr. Leeson explained the question is not whether the projects should be done but rather the source of funding and the timing of the projects. Mr. Leeson recounted that over the years the City has added significantly to its long term debt that is at an all time high, while the City’s credit rating is at an all time low. Mr. Leeson thought when the Ordinance was enacted several years ago stipulating that items placed in bond issues were to have a minimum cost of $75,000 it was a responsible step because of the recognized problem that, historically, common business type items of City government were being placed in long term bond issues which added significantly to the City’s debt service with interest payments. Mr. Leeson observed the Ordinance was passed in recognition of the need to fund day-to-day operational items from the City’s General Fund Budget. Mr. Leeson, making the analogy to operations of a household, noted that items need to be prioritized and their purchased timed based on affordability and availability of funds. Mr. Leeson asserted it is not prudent from a fiscal perspective to borrow money for these types of every day business or “grocery” type items. Stressing the City needs to live within its means, Mr. Leeson thought the City is getting away from that principle. Communicating that the City is headed down some dangerous roads from a fiscal perspective, Mr. Leeson highlighted the fact that most recently there was a shortage of money in 2006 and the shortage of $1.5 million did not come to Council’s attention until January 2007. Consequently, Mr. Leeson said the 2007 Budget is not based on real numbers, and the City started off on January 1, 2007 with a shortage of $1.5 million for which there is not a revenue source. While expressing the hope that revenues will go up, Mr. Leeson remarked it would be a miracle to have happen in order to solve a problem of that magnitude. Mr. Leeson restated there is the problem of borrowing for little items that will add up and increase the annual debt service and interest expense. Mr. Leeson continued on to say one of the features of the wrap around debt service schedule is that, although in 2008 the debt service will increase by about $700,000, the heaviest debt payments ranging from $1.1 million to $2.3 million will begin when the gambling revenues start to come into the City. Mr. Leeson pointed out the City is gradually falling into the direction of using up those gambling revenues with regular expenses of City government, and the prospects of meaningful tax reform through tax cuts or significant reinvestment in the City with gambling revenues is diminishing because of the City’s current fiscal path. Mr. Leeson highlighted the fact that would lead to losing a golden opportunity to do many things. As a result, Mr. Leeson informed the Members he is going to propose to cut ten items from the proposed 2007 Bond Issue. Mr. Leeson restated he is not against the projects but it is a question of timing and stated that they should be paid for out of General Fund revenues.

Amendments to Bill No. 4 – 2007 – Approving 2007 Bond Issue – Non-Utility Capital Projects, Equipment, and Water System Improvements

Police Equipment - $26,800

Mr. Leeson moved to delete the amount of $26,800 for Police Equipment from the 2007 Bond Issue.

Mrs. Belinski asked the Police Commissioner about the importance of the item.

Randall Miller, Police Commissioner, advised he was able to obtain a reduction in the price because of the CAD and RMS system, and the cost of the space saver is now $16,000 since the CAD and RMS system comes with a built-in evidence system. Police Commissioner Miller advised the law requires that evidence be held longer, there is no place to go with it, and most recently four parking spaces in the garage were converted for the evidence room that is presently 95% full. In addition, Police Commissioner Miller advised that storage space is being rented off-site in the interim. The item proposed to be purchased is a full rack system and will increase capacity by 113% and has 15-20 years longevity.

President Schweder, pointing out that no one doubts how important the item is, questioned if it is that important why was it not worthy of being placed in the 2007 General Fund Budget.

Police Commissioner Miller communicated he does not recall specifically whether the item was initially placed in Equipment or in the Bond Issue. In further response to President Schweder, Police Commissioner Miller explained he would probably not make a recommendation on the funding source but possibly what account it could come out of, and would recommend the equipment, the need, purpose, and cost.

President Schweder advised those Members of Council who wish to have the item remain in the 2007 Bond Issue will vote aye and those who do not want the item to remain in the Bond Issue will vote nay.

Ms. Dolan asked what is the recourse if the item is cut from the Bond Issue.

Police Commissioner Miller commented that the use of a remote storage site has risk, and there is no other place in City Hall of which he is aware that can be remodeled. Police Commissioner Miller acknowledged he does not know what will be done.

President Schweder suggested that the alternative would be to present a request for a transfer of funds within the General Fund Budget before the Finance Committee.

Mayor John Callahan advised there is no money in the General Fund with which to purchase the equipment. Mayor Callahan explained that the Administration included the items in the proposed 2007 Bond Issue as part of the Proposed 2007 Budget, and the Proposed 2007 Non-Utility Capital Budget was reviewed and passed along with the General Fund Budget. Mayor Callahan highlighted the fact that, since none of the items came up as a point of discussion during review of the Proposed 2007 Budget, it was the Administration’s assumption the items were acceptable to City Council.

Ms. Dolan, observing that City Council is looking at difficult financial issues, noted that simultaneously Council is considering the possibility of keeping a tighter reign on the Escrow Account. Ms. Dolan expressed it seems as though a catch 22 situation is being created because on the one hand Council is fully recognizing and being responsive to the fact that the City is ending its fiscal year without any money and yet at the same time is saying if an item is really needed then a transfer of funds should be requested. Ms. Dolan communicated that, if it cannot be guaranteed that something the City needs cannot be paid for through some other avenue, then it is risky to cut off the funding.

Mr. Mowrer advised that the $16,000 item to him is clearly a General Fund Budget expense, and not a Bond Issue expense because it is too small of an item and does not belong in a Bond Issue.

Mrs. Belinski observed that one of the criteria for placing an item in a Bond Issue is that it must last for a certain number of years.

Police Commissioner Miller replied the longevity is guaranteed at 15 years and it is estimated to last 20-25 years.

Ms. Szabo queried whether the item is needed because of what it can do.

Police Commissioner Miller responded it is a large rack system on tracks with large movable shelves and increases storage capacity by 113%.

Ms. Szabo inquired if there were more space in the building would the item still be needed.

Police Commissioner Miller noted if there were additional space in the building the Department would be in a better position for storage. He added that since the evidence must be easy to access it needs to be in an accessible location. Police Commissioner Miller added there has been aggressive purging of evidence, and some excess items were able to be sold to obtain revenue.

Ms. Szabo asked, in view of the shortage of space, why does the City rent out space in City Hall to others, and why does the City not make better use of the available space.

Mayor Callahan noted that space in City Hall is used by the AARP and the Redevelopment Authority.

Ms. Szabo observed that the Recycling Bureau has only three employees.

Tony Hanna, Director of Community and Economic Development, acknowledged there are inefficiencies in City Hall and will be addressed as part of the space study that is included in the Bond Issue.

Mayor Callahan, while informing Ms. Szabo that no one will be evicted from their spaces in City Hall, affirmed that the goal of undertaking the space study is to study how to utilize the existing space more efficiently.

Mr. Donchez questioned whether off-site evidence storage is something that will be taken into consideration under the CALEA accreditation process.

Police Commissioner Miller, advising that probably more money has been spent on the evidence room facilities than any other single item of the CALEA requirements, noted the system is not specifically needed for CALEA but proper evidence storage will pass inspection.

Mr. Mowrer, observing the discussion is going off-track, noted that Mr. Leeson is not questioning the need for any of the items but the question is where is the money coming from, and if it is something that is really needed then the money will be found in the General Fund Budget. Mr. Mowrer, continuing on to say he is happy with the items listed in the Bond Issue, noted he is not necessarily happy with the fact that the money to pay for them comes from the Bond Issue, and stated the Police equipment item is one that clearly should come from the General Fund Budget.

President Schweder, noting his agreement with Mr. Mowrer’s comments, stated that none of the Members of Council question the necessity of any of the items that have been included in the 2007 Bond Issue. President Schweder expressed his assurance that money will be found in the General Fund Budget to pay for the items if they are not in the Bond Issue. President Schweder recounted the only reason items such as those under question were ever put in a Bond Issue before was the unique circumstance in the Cunningham Administration when the Landfill Bonds were sold too early and lost their tax exempt status. As a result, the City was fined by the Federal Government. At the direction of then Council President Donchez, Mr. Schweder met with the Department of Justice, Senator Santorum’s office, and Governor Ridge’s office and the City was given one year to pay the fines that was done through General Fund revenues. Consequently, General Fund equipment was moved from the General Fund to the Bond Issue to free up funding, with the agreement that would never happen again. President Schweder read from an article in the Morning Call edition of March 16, 2004 at which time Mr. Mowrer said the same thing he is saying tonight; that is, he is not against anything in the bond but is against how it is financed. Mr. Mowrer at that time said he wanted to forewarn the Callahan Administration that he did not want to see this practice repeated at budget time. Mr. Mowrer had stressed he wanted to send a message to the Administration not to do this kind of thing again, or at least while he is on Council. President Schweder continued on to read from the newspaper that Mayor Callahan had said he would have to be deaf not to hear that message, and had explained that Council should not feel it necessary to send any further signals to the Administration by eliminating any of the necessary equipment purchases. Mayor Callahan further said at that time that the process would end.

Mayor Callahan communicated he would have appreciated if Council had concerns that they were raised last November when the Budget was presented. Mayor Callahan noted the practice of putting smaller ticket items in the bond issues extended beyond the year when the Landfill Bonds were sold too early and occurred during past Administrations, and Council had no problems with it during that time. Mayor Callahan, while denoting this is a different standard now than it was then, said he is not here to talk about the past. Mayor Callahan pointed out that Council raised the minimum amount for individual items to be placed into bond issues from $50,000 to $75,000. Mayor Callahan continued on to point out that in 2004 the grouping of cars, radios, and computers that could be bought together were acceptable to Council whether or not the items met the threshold amount. Mayor Callahan stated there are some cars in the 2007 Bond Issue and capital projects that have always been in bond issues, including projects such as the asbestos monitoring program, and tree planting program, that have been in past bond issues for years and Council never raised the matter. While observing that Council can take the Police Equipment out of the Bond Issue and the Administration will do its best to try to find the money to purchase it, Mayor Callahan stressed all that will do is create further pressure on the General Fund. Mayor Callahan emphasized the Administration feels it is an important item and merits being purchased through the Bond Issue given its useful life. Mayor Callahan, highlighting the fact that there are no small ticket items in the Bond Issue, pointed out there are items that are part of larger capital projects and in keeping with past bond issues, or they are associated with grant funding and do not fall under the $75,000 threshold. Mayor Callahan, while acknowledging this particular item does not meet the Ordinance, pointed out its useful life is well beyond the length of the Bond Issue debt.

President Schweder restated that a vote in the affirmative is a vote in favor of the expenditure; a vote in the negative is against the expenditure remaining in the Bond Issue.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, and Ms. Szabo, 4. Voting NAY: Mr. Leeson, Mr. Mowrer, and Mr. Schweder, 3. The item was removed from the Bond Issue.

Mr. Leeson stated for the record that as the former City Solicitor he was able to negotiate zero fines and zero penalties with respect to the Landfill Bond Issue.

Vehicle Purchases - $338,810

Mr. Leeson, turning to the vehicle purchases listed in the 2007 Bond Issue, stressed this is a problem that has existed for 20 years. Mr. Leeson continued on to assert that in a $58 million General Fund Budget the City should be able to afford cars without having to incur interest expense in purchasing a car. Mr. Leeson, pointing out the City participates in group purchasing programs with the State and also competitively bids vehicles, highlighted the fact that the savings the City receives are substantially defeated and eroded because of the interest expense that must be incurred when vehicles to be purchased are placed into a bond issue. Mr. Leeson continued on to say that, rather than borrowing money every two years to buy cars, a more prudent approach is to pay cash through a line item in the General Fund Budget and to buy a certain number of cars every year as part of a vehicle replacement program. Mr. Leeson, observing that every two years this issue is faced, communicated he has not seen the willpower to stand up and correct a process that is expensive. Mr. Leeson advised he will move to delete the vehicles from the Bond Issue.

Mrs. Belinski recounted at the past Finance Committee meeting it was agreed that Dennis Reichard, Business Administrator, could buy a certain number of cars because there was a deadline associated with their purchase under State contract for a lower price.

Mr. Leeson, while agreeing the vehicles and every one of the items is needed, said then something else will have to be cut in the Budget. Mr. Leeson, explaining that for him the issue is prioritization, stated the City cannot afford everything it is doing and has to live within its budget, and it is not being done. Mr. Leeson asserted the 2007 Budget is not based on real numbers, the City is in fiscal difficulty, and needs to be firm about belt-tightening.

Mr. Mowrer recounted that, at his request, two vehicles were previously taken out of the Proposed 2007 Bond Issue and were put into the General Fund, in order to begin the process knowing it would be difficult to do all at once. Accordingly, Mr. Mowrer said he will vote in favor of keeping the vehicles in the Bond Issue.

Mr. Donchez, advising he will support it, stated there should be a line item for vehicle replacements. Mr. Donchez recalled that over the last several years the number of Police cruiser cars usually purchased has been reduced and the City needs to get back to purchasing a certain number of cruiser cars each year, rather than playing catch-up because of reductions in past years.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Mowrer, and Ms. Szabo, 5. Voting NAY: Mr. Leeson, and Mr. Schweder, 2. The item remained in the Bond Issue.

Asbestos Monitoring Program - $15,000

Mr. Leeson moved to delete the funding for the Asbestos Monitoring Program listed at $15,000 and noted it is a worthwhile program but the Bond Issue is not the right way to pay for it.

Ms. Dolan, referring to President Schweder’s comment that money will be found in the General Fund for items that would be cut from the Bond Issue, pointed out at the last Finance Committee meeting it was learned that the Parks and Public Property Department is either already or close to running out of funds. Ms. Dolan, while commenting she philosophically agrees with everything Mr. Leeson is saying, thought these are very difficult times and expressed she is curious where the money will be found to keep the Asbestos Monitoring Program going if expenditures in the General Fund Budget are at 99% of Budget.

Charles Brown, retired Director of Parks and Public Property, advised that the Asbestos Monitoring Program is for the City Center Complex, and a line item is needed in the event there is a major problem.

Mr. Leeson, highlighting the fact that 2008 is nine months away, pointed out that a lot of the items could be addressed in 2008.

Mr. Mowrer remarked that $15,000 could be found in the General Fund Budget if it is that important.

Jody Reppert, Acting Director of Parks and Public Property, affirmed that a few years ago the Department committed to an on-going asbestos monitoring plan. Every three years a test survey is conducted to make sure there is no loose material that would present a health and safety hazard. Ms. Reppert confirmed the Department asked that a minimum amount of $15,000 be budgeted just to keep the line item open in case money has to be moved quickly to perform any abatement that might be necessary when capital projects are undertaken that might disturb the existing asbestos.

Mr. Mowrer stated the issue is not the project but where the money comes from.

Mrs. Belinski, commenting the City is robbing Peter to pay Paul, queried if the budget expenditures are at 99% where is the money going to be taken from to obtain money for asbestos monitoring.

Ms. Szabo, noting money always shows up when it is moved from one place to another, said she is concerned about small amounts in a bond issue.

Voting AYE: Mrs. Belinski, Ms. Dolan, and Mr. Donchez, 3. Voting NAY: Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 4. The item was removed from the Bond Issue.

Fire House Repairs - $50,000

Mr. Leeson moved to delete the funding for the Fire House Repairs listed at $50,000 and noted it needs to be done but this is not the way to pay for it, and something else will have to be cut from the General Fund Budget. Mr. Leeson stated he is willing to convene a special meeting of the Finance Committee for the purpose of making cuts in the Budget in order to find money.

Mrs. Belinski was informed this project is related to the mold at the fire house, and stated she would not want to expose herself to that.

Mr. Mowrer noted it is an item that is needed and he will vote for it.

Ms. Dolan commented if the budget cutting session had occurred before tonight’s meeting, and she would have known for a fact that funding could have been found for each of these items then she might feel differently about them.

Mr. Leeson, while acknowledging it is a good point, denoted it is not known yet how much to cut.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Mowrer, and Ms. Szabo, 5. Voting NAY: Mr. Leeson, and Mr. Schweder, 2. The item remained in the Bond Issue.

Municipal Ice Rink - $50,000

Mr. Leeson moved to delete the funding of $50,000 for the Municipal Ice Rink and said he does not dispute the work needs to be done but the bond issue is not the way to pay for it.

Mrs. Belinski highlighted the fact that there was a net gain of $300,000 at the Ice Rink in the recent past. Mr. Brown advised the figure was $300,000 the first year after the roof was put on, and at the end of February the revenue is $108,000. Mr. Brown further informed Mrs. Belinski the problem is with the deck and the unit that collects and makes the ice. If repairs are not made, Mr. Brown advised that the ice rink could be lost.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Mowrer, and Ms. Szabo, 5.
Voting NAY: Mr. Leeson and Mr. Schweder, 2. The item remained in the Bond Issue.

Skate Park - $50,000

Mr. Leeson moved to delete the Skate Park in the amount of $50,000, noting it is not a must have item and could wait until the 2008 Budget.

Ms. Dolan asked if the project is related to grant money.

Mr. Brown affirmed the funding represents a match for the grant money.

Mayor Callahan observed that, based on the Ordinance, the $75,000 restriction does not apply in this case since the restriction does not apply to economic development related activities or functions nor to City government expenditures for local contributions tied to non-City funding resources including State and/or Federal loans and/or grants. Mayor Callahan confirmed it is a $250,000 project that has a $200,000 grant associated with it. Mayor Callahan continued on to say it would be the Administration’s position that 5 votes are not required.

In response to Ms. Dolan, President Schweder stated it would be the Chair’s position that a vote would still be needed of 5 to 2. President Schweder added that the Administration designated one item on the list under the stated category where a vote of 5 in the affirmative is not required but it was not the Skate Park.

Mr. Mowrer was informed by Mayor Callahan that the grant was $200,000. Mayor Callahan further informed Mr. Mowrer that the Skate Park will not be a revenue generator. Mr. Mowrer, commenting that grants are not really free money and come from the citizens out of a different pocket, communicated he would not think of a Skate Park as a priority during tough times.

Mrs. Belinski, noting that according to information from Mr. Brown it was Senator Lisa Boscola who obtained the $200,000 State grant, asked what happens to the grant if the project is not done. Mr. Brown commented there would have to be a match or the grant would be lost. Mayor Callahan, advising it is a grant that does not require a local match and the $50,000 is to initiate the project, stated the Administration does not believe it falls under the 5 vote restriction.

Ms. Dolan asked for clarification from City Council’s Solicitor.

Christopher Spadoni, City Council Solicitor, referring to correspondence from Attorney Kevin Reid, Bond Counsel, and correspondence that he sent, stated he is firmly of the opinion that a vote of 5 to 2 is needed for the nine items in order for them to remain in the Bond Issue. In further response to Ms. Dolan as to why he is firmly in favor of the 5 to 2 vote, Attorney Spadoni advised that in accordance with Ordinance 4286 that adopted Codified Ordinance Section 129.02 it states if it does not meet the threshold of $75,000 on a per item basis, a super vote of 5 to 2 is needed unless, as the Mayor indicated, the item is related to economic development activities or other expenditures connected to non-City funding resources. In this case, there is a grant but the $50,000 in the Bond Issue is not funded from a non-City resource and is funded from the Bond.

Ms. Dolan questioned how the non-City funding resource clause could relate to anything in a Bond Issue. Attorney Spadoni affirmed he forwarded his opinion to City Council as to the nine items under $75,000 only and did not review any other items in the Bond Issue.

John F. Spirk, Jr., Esq., City Solicitor, asked what does this not apply to then if it says this restriction shall not apply to expenditures that are paired with other foreign sources of funds such as State money.

President Schweder asked if there is a Member of Council who wishes to challenge the ruling of the Chair and the Solicitor.

Ms. Dolan, saying she does not feel experienced enough to challenge the Chair, stated she would like to express her discomfort with making decisions on what seems to be a challengeable interpretation. Ms. Dolan asked what would a challenge entail. President Schweder replied there would need to be a challenge, and a second, and a vote of City Council to overrule the ruling of the Chair. Ms. Dolan stated she does not wish to do so at this time.

Mr. Mowrer inquired if there is a grant of $200,000 then the process can begin to build the Skate Park, and that it does not have to be matched necessarily.

Jody Reppert, Acting Director, responded when the City applied for the $200,000 Skate Park grant the City had to prove it could match that amount. The match was provided by the $50,000 amount in the Bond Issue plus some funding from the Greenway, Community Development Block Grant funding, and in-kind labor for the $200,000 share. Ms. Reppert stated it is needed as part of the match in order to continue with the Skate Park project. Ms. Reppert confirmed there is great interest in the Skate Park and the City has over 1,000 signatures of people who really want it.

Mrs. Belinski asked if the City could charge a nominal fee for use of the Skate Park in order to compensate for the amount needed, and observed the youth are so interested in it.

Mr. Leeson, suggesting that is what the City’s recreation plan will do, pointed out it will raise revenue once the Recreation Plan and Open Space Ordinance is passed for which the City has been waiting a long time.

Attorney Spirk asked for clarification if the ruling would be different now that the amount is tied to a State grant. President Schweder observed there have been various answers to the question. Mayor Callahan, highlighting the fact that he did not apply for the grant, noted the Parks and Public Property Department did and they corrected the explanation.

Attorney Spadoni stated he stands by his memorandum of March 8 that a vote of 5 to 2 is needed.

Voting AYE: Ms. Dolan, Mr. Donchez, and Ms. Szabo, 3. Voting NAY: Mrs. Belinski, Mr. Leeson, Mr. Mowrer, and Mr. Schweder, 4. The item was deleted.

South Side Streetscape - Lighting - Business District - $50,000

Mr. Leeson, commenting all know his reasoning, stated the South Side Streetscape and Lighting project of $50,000 is a worthwhile project but the Bond Issue is not the way to pay for it, and moved to cut it from the Bond Issue.

Ms. Dolan asked if this item is tied to grant funding.

Mayor Callahan noted the total estimated cost of the project is $164,000 of which $50,000 would come from the 2007 Bond Issue. Mayor Callahan, affirming that millions of dollars have been spent on lighting for South Bethlehem much of which was grant related, noted this item is to continue the project that has a life expectancy of well over 15 years. Mayor Callahan noted none of it is grant funded. Michael Alkhal, Director of Public Works, stated $114,000 is from Community Development Block Grant funding and $50,000 from the Bond Issue.

Mr. Mowrer, observing this is an on-going project that is part of the overall master plan, said he will vote for it.

Ms. Szabo asked what areas are covered by the project. Mr. Alkhal replied it is Fourth Street from Williams Street to Edward Street called the gateway area.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Mowrer, and Ms. Szabo, 5. Voting NAY: Mr. Leeson, and Mr. Schweder, 2. The item remained in the Bond Issue.

Traffic Message Board - $25,000

Mr. Leeson moved to delete the Traffic Message Board in the amount of $25,000 from the Bond Issue for the same reasons as the other items.

Ms. Dolan asked if the item is tied to any other source of funding. Mayor Callahan, replying it is tied to grant funding, noted it is partially funded via a grant with the remainder of $25,000 from the 2007 Bond Issue.

In response to Ms. Szabo, Randall Miller, Police Commissioner, explained the traffic message board that is on a trailer has a radar speed detector, records traffic surveys, provides traffic and emergency notification, and road closings. Mr. Alkhal added it can be used for special events, and construction jobs.

Mr. Mowrer, stating he does not question the need for the item, said $25,000 belongs in the General Fund Budget rather than a Bond Issue, and he will vote against it.

Police Commissioner Miller advised it is tied to a DCED grant of $10,000.

Ms. Dolan, while observing it is something that would provide traffic calming, stated however that she would like to see the item in the General Fund Budget rather than in a Bond Issue.

Voting AYE: Mr. Donchez, and Ms. Szabo, 2. Voting NAY: Mrs. Belinski, Ms. Dolan, Mr. Leeson, Mr. Mowrer, and Mr. Schweder, 5. The item was deleted from the Bond Issue.

Traffic Safety Improvements - $50,000

Mr. Leeson moved to delete Traffic Safety Improvements in the amount of $50,000 from the Bond Issue for the same reasons as stated before.

Mr. Mowrer inquired about the item.

Mayor Callahan advised this item has been included in the bond issues at approximately the same funding level of $50,000-$60,000 for over 20 years. Mayor Callahan continued on to advise the item is for the purchase of various relatively expensive equipment with a life expectancy of 15 years necessary for the safe and proper operation of traffic signals throughout the City at over 150 locations.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Mowrer, and Ms. Szabo, 5. Voting NAY: Mr. Leeson, and Mr. Schweder, 2. The item remained in the Bond Issue.

Tree Planting/Replacement - $50,000

Mr. Leeson moved to delete Tree Planting/Replacement in the amount of $50,000 from the Bond Issue for the same reasons as expressed previously.

Ms. Dolan asked if there is a particular plan or if the item is part of the on-going plan for tree replacements, and if there is any grant money or outside funding sources involved.

Mr. Alkhal, responding the specific locations have not been selected, affirmed that every two years an amount is placed in a bond issue for beautification for plantings in certain areas in the City. Mr. Alkhal recounted there was $50,000 in the last bond issue for tree plantings and trees were added along Broad Street and Stefko Boulevard. Mr. Alkhal added that tree plantings are also done in conjunction with other projects such as the Elm Street project.

Ms. Dolan inquired whether the item would be utilized in conjunction with possible removal of trees for safety and replacement on Itaska Street.

Mr. Alkhal confirmed there is no limitation on where the funding could be used.

Mr. Mowrer, communicating he does not view this as a high priority item, offered the suggestion that, as has been done in the past, civic organizations would plant trees in the City, and encouraged the community to be responsive.

Mrs. Belinski, informing the assembly that she received a telephone call recently asking what happened to the City’s Shade Tree Commission, commented that perhaps the Commission could be reinstituted and could obtain money to buy trees.

Ms. Dolan, cautioning that trees are not less important than Police cars, observed that in view of information related to global warming it is not just a matter of beautification but it is also neighborhood economic development and the quality of air.

Voting AYE: Mrs. Belinski, and Ms. Dolan, 2. Voting NAY: Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 5. The item was deleted from the Bond Issue.

Mr. Mowrer expressed it was a good discussion and Council was trying to get the message to the Administration that it is serious about items for future bond issues.

Facility Capital Improvement Plan - $150,000

President Schweder stated he would request that Members of Council vote on the item for the Facility Capital Improvement Plan in the amount of $150,000. President Schweder denoted that all Members of Council believe that the items in the 2007 Bond Issue including those that were deleted are meritorious programs, and a way should be found to fund them. President Schweder communicated his thought that the proposed Facility Capital Improvement Plan is probably the single biggest waste of taxpayers money in the 2007 Bond Issue. Stressing the City is hemorrhaging red ink and is on the verge of being broke, President Schweder said what the study will do is find ways to spend millions of dollars more in future bond issues to buy additional buildings. President Schweder observed the item is related to the interest in buying VanBittner Hall in excess of $1 million, and looking at other facilities. President Schweder suggested there is not one corporate taxpayer in the City or elsewhere that is looking to expand the size of their offices. President Schweder communicated that, for the City to be going into the opposite direction in light of its financial problems, it sends the wrong message. President Schweder stated he is opposed to adding additional buildings to the City’s ownership, and respectfully asked the Members to strike the Facility Capital Improvement Plan from the Bond Issue.

Mr. Mowrer observed that the item could be revisited next year.

President Schweder affirmed to Ms. Dolan that a vote of 4 to 3 is required to delete the item that is over $75,000. Ms. Dolan queried why this would lead to necessarily the acquisition of VanBittner Hall.

Mayor Callahan explained it could be described as a space study as well in light of the need to look at the City’s facilities, better utilize the space, and evaluate future space needs. Mayor Callahan continued on to advise the item will cover the cost of a contract for a survey and evaluation of all City buildings and properties, interior, exterior, construction, and mechanical equipment, and development of a long range plan for upgrading City facilities. The plan will also include a feasibility study for the re-use of VanBittner Hall, and the possible expansion of the EMS facility on Stefko Boulevard. It was noted by the Director of Parks and Public Property that in an effort to keep consultant costs at a minimum a plan will be developed to allow the evaluation of facilities to be done in-house by a committee, after which a consultant could then computerize the data and prepare specifications. Mayor Callahan stated it will not necessarily lead to the purchase of VanBittner Hall, although it could.

Ms. Dolan questioned whether next year’s budget would be a more appropriate time to consider an expenditure for the study.

Jody Reppert, Acting Director of Parks and Public Property, noted there has been research on other facility assessment surveys and advised the Department is ready to start the study. Ms. Reppert, expressing it is important to develop a long range plan for all the City’s facilities, communicated that otherwise it is putting off priorities that need to be addressed now. Ms. Reppert informed the Members there are over $1 million of projects needed for City Hall. In addition, other City facilities such as the fire stations and so on need to be reviewed and a long range plan needs to be designed so that money can begin to be budgeted.

President Schweder observed that, even if one is supportive of the study, one should think about how the project is being funded for someone’s work that is going to take a limited number of days. In light of past discussions about putting into a bond issue cars that do not meet depreciation in terms of the length of a bond issue, President Schweder pointed out it was advised those types of items could be paid up-front in the bond issue. President Schweder presented an analogy to putting into the bond issue the facilities study of putting a housing inspection into the mortgage and incurring additional interest debt over that period of time. President Schweder communicated he is suggesting that if one is supportive of the study a bond issue is not the way to fund it because it means that taxpayers will be paying for it for years. President Schweder stressed it does not make good fiscal sense to do it that way.

Mr. Mowrer inquired about decreasing the amount to $100,000 from $150,000.

Mayor Callahan, advising the individual is being asked to do a lot for $150,000, stated some of the items will not be done, and then the plan would change.

Tony Hanna, Director of Community and Economic Development, expressed it was felt $150,000 was a fair number given the scope of the project, but the cost will not be known until the RFP is issued.

Mr. Mowrer moved to reduce the amount from $150,000 to $100,000. Mr. Leeson seconded the motion.

Mr. Leeson commented one of the deficiencies in the City’s borrowing process is estimates that are sometimes inadequate. Mr. Hanna confirmed to Mr. Leeson that no estimates have been obtained. Mr. Leeson stated that estimates are needed in order to determine price ranges. Mr. Hanna informed Mr. Leeson there was a consultation with Spillman Farmer about the range of costs. Mr. Leeson noted that going forward the obtaining of estimates needs to be mandated based on a process.

Ms. Szabo asked what is the life of the 2007 Bond Issue.

Mr. Reichard replied the level debt portion is 15 years, and the wraparound portion of the debt is $4.2 million and is 7 years. Mr. Reichard advised the Facility Capital Improvement Plan is covered under the 7 years. Mr. Reichard further informed Ms. Szabo the average interest rate is 4.1%. Mr. Reichard, notifying the Members of Council that proposals were sent to banks, affirmed the Administration is looking at bank financing as compared to a bond issue to determine which would be a better deal.

Ms. Szabo wondered what amount would a taxpaper pay for one tree. Mayor responded it would be $30 of interest for a 15 year bond issue, based on the cost of $300-$400 for a tree at 4% interest.

President Schweder stated he will vote against Mr. Mowrer’s amendment because he thinks reducing the item to anything short of zero makes no sense.

Voting AYE on the Amendment to reduce the amount from $150,000 to $100,000 for the Facility Capital Improvement Plan: Ms. Dolan, Mr. Donchez, Mr. Mowrer, and Ms. Szabo, 4. Voting NAY: Mrs. Belinski, Mr. Leeson, and Mr. Schweder, 3. The Amendment passed.

Voting AYE on the Amendment to retain the amount of $100,000 for the Facility Capital Improvement Plan in the Bond Issue: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mowrer, and Ms. Szabo, 6. Voting NAY: Mr. Schweder, 1. The Amendment passed.

Bill No. 4 – 2007 – As Amended

President Schweder, advising he will be voting no, said his concern is that not enough was done this evening. Recalling he voted against the 2007 Budget, President Schweder recounted at that time he commented that he thought the information and numbers given to City Council were not accurate, and added that, regrettably, it is being discovered that is the case and a fiscal crisis is being faced in the City. President Schweder did not think that more money should be spent and that the City should be going further into debt.

Ms. Szabo communicated the point she was trying to make concerning the trees was that it is unfair for any taxpayer to have to pay more than the original price for an item that may die the next year.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mowrer, and Ms. Szabo, 6. Voting NAY: Mr. Schweder, 1. Bill No. 4 – 2007 was declared passed on First Reading.

11. RESOLUTIONS

A. Installing Traffic Signal – Center Street and East Union Boulevard

Mr. Donchez and Mrs. Belinski sponsored Resolution 15,020 that approved installation of a traffic signal at the intersection of Center Street and East Union Boulevard, subject to the approval of the Pennsylvania Secretary of Transportation, and in accordance with the Pennsylvania Vehicle Code and the Regulations for traffic signs, signals, and markings of the Pennsylvania Department of Transportation.

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

B. Installing Traffic Signal – East Broad Street, Wood Street, and Hawthorne Road

Mrs. Belinski and Mr. Leeson sponsored Resolution 15,021 that approved installation of a traffic signal at the intersection of East Broad Street, Wood Street, and Hawthorne Road, subject to the approval of the Pennsylvania Secretary of Transportation, and in accordance with the Pennsylvania Vehicle Code and the Regulations for traffic signs, signals, and markings of the Pennsylvania Department of Transportation.

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

C. Certificate of Appropriateness – 99 West Broad Street

Mrs. Belinski and Mr. Leeson sponsored Resolution 15,022 that granted a Certificate of Appropriateness to paint the storefront and replace the awning at 99 West Broad Street.

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

D. Certificate of Appropriateness – 402 North New Street/1 and 7 East Church Street

Mrs. Belinski and Mr. Leeson sponsored Resolution 15,023 that granted a Certificate of Appropriateness to replace the bay roof and paint the building at 402 North New Street/ 1 and 7 East Church Street.

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

12. NEW BUSINESS

Rescheduling First Meeting in April – April 3 to April 10, 2007

Mr. Mowrer and Mr. Leeson moved to reschedule City Council’s first meeting in April from Tuesday, April 3 which is Passover to Tuesday, April 10 at 7:30 PM in Town Hall.

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

Committee Meeting Announcements

Committee Chairs listed below announced the following meetings:

Ms. Dolan – Human Resources and Environment Committee – March 21
Mrs. Belinski – Parks and Public Property Committee – March 27
Mr. Mowrer – Public Works Committee – March 28
Mr. Leeson – Finance Committee – April 5
Ms. Szabo – Community Development Committee – April 10
Mr. Donchez – Public Safety Committee – April 11

13. COURTESY OF THE FLOOR

City Budget and Bond Issue

Dana Grubb, 2420 Henderson Place, said he would not tout spending 99% of what is budgeted given the revenue situation and thought the City should probably be spending less.

Mr. Grubb suggested that drug forfeiture money should be reviewed as a possible revenue source for the Police Department filing system. Mr. Grubb suggested that automobile purchases might be delayed pending receipt of substantial building permit fees, rather than borrowing money to buy them. Mr. Grubb thought it makes sense for the City to try to leverage outside funding sources and only have to provide a small portion of City funds, but questioned whether the funding sources have been approved and are budgeted. Mr. Grubb further thought the City should look at the conditions placed on the funding to determine if it makes sense to pursue those outside sources.

Marilyn Hartman, 931 High Street, applauded Mr. Leeson for standing strong on fiscal responsibility. Ms. Hartman thought it is time for the City to venture into new ways and strategies of finding money for projects such as for trees. Turning to Mr. Mowrer’s comments, Ms. Hartman observed that a school could sponsor a tree and civic organizations could participate, and added that perhaps money could be raised for the $16,000 needed for the Police equipment. Ms. Hartman expressed the hope that when City business is discussed people are respectful and listen to each other.

Honoring Charles Brown

Also stating she came to the Meeting this evening to honor Charles Brown, Ms. Hartman thanked Charles Brown for all his work for the City and expressed that his work will stay with the City.

City Budget and Bond Issue

Robert Pfenning, 2830 Linden Street, thought the City does not have a contingency fund. Mr. Pfenning informed the assembly that a skate park will be created in Nazareth funded partially by Northampton County. Mr. Pfenning said Northampton County is considering building a new administration building at Gracedale because they are out of space at the courthouse. Mr. Pfenning wondered whether the Ordinance means that the grant requires a matching grant or that grant funds happen to be co-mingled. Mr. Pfenning remarked about an $84,000 price for a Police utility vehicle. Focusing on the LERTA Ordinance, Mr. Pfenning thought the School District is still waiting for City input, and said it has not come before Northampton County. Referring to his comments at the last Council Meeting, Mr. Pfenning said at the Pennsylvania Gaming Congress he was told they would be going after the horse funding, and added that in Governor Rendell’s comments it was noted the gaming funding was aiding the horse race industry. Referring to the host fee, Mr. Pfenning noted there was nothing in a recent Bethlehem Press newspaper article about money for addiction services. Mr. Pfenning said as a taxpayer he does not like the Mayor’s proposal of subsidizing the advertising and promotional expenses of select businesses in the City.

Various Issues

Edwin Rodriquez, 1845 Linden Street, asked if an Ordinance could be adopted to address the tinting of front windows of buildings so that law enforcement officials could see what is going on inside. Mr. Rodriquez said at 929 Wyandotte Street there are underground springs causing damage, tree limbs, and boulders that may have fallen into the underground springs, and asked for information about the matter. Mr. Rodriquez, noting there are trees in the 900 block of Wyandotte Street that are top heavy, pointed out if the trees fall there will be problems on northbound 378. He added that a utility pole was replaced but the old one is still there, and asked that it be removed. Mr. Rodriquez, saying garbage collection needs to be enforced more, noted he gave pictures to Mrs. Belinski that other Members of Council can view. Mr. Rodriquez asked when the project at 602 Ontario Street and Itaska Street will be done and how it will be funded, and stressed it is very important, and the neighborhood is dangerous in view of drug dealings and stabbings.

City Budget and Bond Issue

Mary Pongracz, 321 W. Fourth Street, stressing she is very discouraged at what she heard tonight, said it seems that a dollar is worth more than the life of a child, or of a Police Officer in a car that is not fit to drive. Remarking that no one makes up a perfect budget, Ms. Pongracz questioned who is the Finance Committee Chairman to make the decisions on prioritization. Ms. Pongracz wondered why the Finance Committee has waited so long to come up with all of the changes. Ms. Pongracz asserted that some Members of Council are fighting against the Mayor and Administration, and the citizens suffer. Ms. Pongracz stated when dollar signs are put before any thing else in the City the population is jeopardized. Ms. Pongracz expressed disbelief that anybody would vote against asbestos abatement. Ms. Pongracz stressed that anyone’s life is worth more than a dollar, and certainly is worth more than a balanced budget that is not a reality.

Interest Cost - Tree

William Scheirer, 1890 Eaton Avenue, disagreed with the Administration on the interest cost of a tree, and explained his calculation in arriving at an interest cost of $100.

Speaking into Microphones

Stephen Antalics, 737 Ridge Street, said he was not out of order in asking earlier that people speak into the microphone so that citizens who elect their representatives can hear what is going on which is the purpose of a public meeting.

14. ADJOURNMENT

The meeting was adjourned at 10:05 p.m.