Council MInutes

December 16, 2008

BETHLEHEM CITY COUNCIL MEETING
10 East Church Street – Town Hall
Bethlehem, Pennsylvania
Tuesday, December 16, 2008 – 7:00 PM

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

President Donchez called the meeting to order. Pastor Mario Corado, Templo El Refugio, offered the invocation which was followed by the pledge to the flag. Present were Jean Belinski, Karen Dolan, Joseph F. Leeson, Jr., Gordon B. Mowrer, J. William Reynolds, J. Michael Schweder, and Robert J. Donchez, 7.

4. APPROVAL OF MINUTES

The Minutes of December 2, 2008 were approved.

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

2009 Budget

Robert Pfenning, 2830 Linden Street, complimented the Administration and Council on the budget hearings that were informative. Mr. Pfenning thought there was a lack of specific questions from Council Members about line items in the 2009 Proposed Budget, and no amendments to reduce the Budget other than those forwarded by the Administration. Mr. Pfenning concluded that Council feels the modified Budget submitted by the Administration contains reasonable estimates of the expenditures needed to provide the citizens with adequate public services and proper quality of life. Referring to Councilman Schweder’s fears of revenue shortfalls, Mr. Pfenning asked if the revenues are not met why should the citizens not be expected to pay for the services they receive through a tax increase.

Dana Grubb, 2420 Henderson Place, recalled that last May Members of Council supported the Mayor’s plan for use of the casino host fee and asked what happened to that plan in the 2009 Budget since the revenue is shown but not the expenditures. Mr. Grubb felt there is no accountability in the budget for the use of the fees, no measure of performance in meeting the Mayor’s five year plan, and the community is being robbed of gauging the casino’s impact on the budget. Mr. Grubb commented the only thing he has been able to determine is that $68,000 of the $1.3 million budgeted will be used for hiring three police officers mid-year. Mr. Grubb wondered how much of the remaining money will go to increasing the cash balance to between 5%-15% of the operating budget, or paying down debt, or reducing the City’s reliance on water and sewer revenue to cover operating expenses. Mr. Grubb thought that Council is falling short on holding the Administration accountable for the expenditures on which the casino host fee can be used. Mr. Grubb asked how Council will measure achieving those goals. Mr. Grubb complimented the Administration for the budget adjustments submitted to Council, and said he was disappointed that Council did not come up with their own recommendations. Mr. Grubb pointed out that across the board cuts are not unusual for City Council, and it gives the Administration the courtesy and flexibility to determine where cuts should be made since the Administration knows better where day to day cuts can be made. Remarking that if Council does not exercise its power of the purse it does not mean anything, Mr. Grubb thought it is incumbent on Council to weigh in on the budget. Mr. Grubb observed that the entire country is suffering through the lean economic times, and he thought Council could have done a better job.

Eddie Rodriquez, 1845 Linden Street, expressed that he agrees with the recycling program but disapproves of the yard waste. Mr. Rodriquez thought the security cameras are a very good thing and aids in the area of prevention, and added that he did a Spanish version for Channel 69 news on the issue. Mr. Rodriquez, stating the Police are doing a good job, urged the Police to continue to address various matters.

Bill Scheirer, 1890 Eaton Avenue, thought that Old Business and Communications were included as Agenda items on which the public can speak under the first Courtesy of the Floor.

Christopher Spadoni, City Council Solicitor, advised he would look into the matter and report back to Council.

6. OLD BUSINESS.

A. Tabled Items

None.

B. Unfinished Business

1. Establishing Article 314 – Security Cameras
2. Political Contributions and Expenditures – Proposed Ordinance
3. Gift of Real Estate – LVIP
4. Recreation Fees – Proposed Increases
5. Bill No. 28 - 2008 – Amending Zoning Ordinance – Various Sections

C. Old Business – Members of Council

None.

7. COMMUNICATIONS

A. City Solicitor – Easement Agreement – Pennsylvania Department of Transportation – Route 412

The Clerk read a memorandum dated December 11, 2008 from John F. Spirk, Jr., Esq., City Solicitor, to which was attached a proposed Resolution and Easement Agreement with the Commonwealth of Pennsylvania Department of Transportation to grant and convey approximately 0.090 acres of land as a slope easement associated with the removal of the stone arch bridge along State Route 412. Also attached was a letter from the Department of Transportation dated December 10, 2008 requesting that Council act on this matter this evening so that the bid opening for the project can occur early enough in 2009 to accommodate the goal of removing the bridge during the Easter holiday weekend which is critical to meeting the schedule for the highway improvements that will be constructed by the Las Vegas Sands.

President Donchez stated that Resolution 11 C is listed on the Agenda.

B. Director of Planning and Zoning – Comprehensive Plan Final Draft

The Clerk read a memorandum dated December 8, 2008 from Darlene Heller, Director of Planning and Zoning, stating that on November 6 the Planning Commission held a public meeting to gather input on the Draft City of Bethlehem Comprehensive Plan dated August 2008. On November 13 the Planning Commission voted unanimously to recommend approval of the Plan with eight revisions that were attached as a "Summary of Recommended Revisions to the Draft Comprehensive Plan". The draft plan was sent to the Lehigh Valley Planning Commission, all abutting municipalities and the school district to provide the opportunity to comment, and the comment letters were attached.

Mr. Reynolds, recalling that at the October 21, 2008 City Council Meeting Bill No. 28 – 2008 that amended various sections of the Zoning Ordinance was tabled, asked whether those changes are included in the Comprehensive Plan final draft.

Tony Hanna, Director of Community and Economic Development, replied no. Mr. Hanna advised the Comprehensive Plan that has been presented to City Council and the Planning Commission is precedent to changes in the Zoning Ordinance. The various changes to the Zoning Ordinance proposed in Bill No. 28 would be part of the rewrite of the Zoning Ordinance that is currently underway. Mr. Hanna further informed Mr. Reynolds that the Zoning Ordinance revisions may be completed in about six to nine months.

President Donchez stated that a Public Hearing on the Comprehensive Plan Final Draft will be scheduled at a later date.

8. REPORTS

A. President of Council

None.

B. Mayor

None.

C. Public Works Committee

Chairwoman Dolan presented an oral report of the meeting held on Tuesday, December 9, 2008 on the following subject: Amending Article 923 – Disposal and Discharge of Industrial Waste Regulations. The Committee recommended that Council approve the Ordinance.

D. Parks and Public Property Committee

Chairwoman Belinski presented an oral report of the meeting held this evening, December 16, 2008 prior to the City Council Meeting to review 15 subjects. The Committee tabled a request to extend the hours of the Golf Course Restaurant beyond 10:00 p.m., and requested further information regarding changes in the rental amount of the lease provisions.

9. ORDINANCES FOR FINAL PASSAGE

A. Bill No. 31 – 2008 – Adopting the 2009 General Fund Budget

The Clerk read Bill No. 31 – 2008, Adopting the 2009 General Fund Budget, on Final Reading.

Amendment to Bill No. 31 – 2008

Mr. Reynolds and Ms. Dolan sponsored the following Amendment:

That the following sections which read as follows:
SECTION 2. Appropriations in the sum of Sixty-Five Million, Nine Hundred Twenty-Four Thousand ($65,924,000) Dollars are hereby made from the General Fund as follows:

To the Council:
Personal Services $ 188,027
Materials and Supplies 1,240
Purchase of Services 82,445
Equipment 0

TOTAL $ 271,712

To the Mayor:
Personal Services $ 171,461
Materials and Supplies 2,800
Purchase of Services 5,535
Equipment 0

TOTAL $ 179,796

To the Controller:
Personal Services $ 163,717
Materials and Supplies 750
Purchase of Services 5,500
Equipment 0

TOTAL $ 169,967

To the Treasurer:
Personal Services $ 1,000
Materials and Supplies 0
Purchase of Services 0
Equipment 0

TOTAL $ 1,000

To the Bureau of Law:
Personal Services $ 241,513
Materials and Supplies 0
Purchase of Services 6,000
Equipment 0

TOTAL $ 247,513

To the Department of Administration:
Personal Services $1,875,639
Materials and Supplies 102,675
Purchase of Services 319,905
Equipment 76,600

TOTAL $2,374,819

To the Department of Community and Economic Development:
Personal Services $3,733,952
Materials and Supplies 196,259
Purchase of Services 2,100,765
Equipment 43,600

TOTAL $6,074,576

To the Department of Parks and Public Property:
Personal Services $2,554,001
Materials and Supplies 192,900
Purchase of Services 1,096,675
Equipment 4,000

TOTAL $3,847,576

To the Department of Public Works:
Personal Services $3,231,325
Materials and Supplies 366,600
Purchase of Services 2,254,091
Equipment 22,221

TOTAL $5,874,237

To the Department of Police:
Personal Services $11,098,285
Materials and Supplies 572,013
Purchase of Services 308,582
Equipment 32,100

TOTAL $12,010,980

To the Department of Fire:
Personal Services $8,904,171
Materials and Supplies 380,740
Purchase of Services 189,395
Equipment 45,200

TOTAL $9,519,506

To General and Civic Expenses:
Office Supplies, Postage, Equipment Maintenance,
Communications, and Continuous Improvement $ 292,000

Insurance, Social Security, Unemployment Comp.,
Workers Comp., Pensions, Accumulated Sick Leave,
Heart and Lung Act, Trust Payments, Defined
Contribution Plan Match $16,001,013

Landfill Transfer $ 879,042

Refunds and Prior Year’s Encumbrances $ 83,500

Unforeseen Contingencies, Professional Services Expenses $ 193,732

Memorial Day Decorations, Fourth of July Celebration,
Halloween Parade, Music Fund $ 69,030

U.S. Conference of Mayors $ 5,440

Sister City, PA League of Cities Dues, Fine Arts
Commission $ 33,950

Library $1,194,000

Debt Service $6,600,611

TOTAL $25,352,318

Shall be amended to read as follows:
SECTION 2. Appropriations in the sum of Sixty-Four Million, Nine Hundred Ninety-Four Thousand ($64,994,000) Dollars are hereby made from the General Fund as follows:

To the Council:
Personal Services $ 188,027
Materials and Supplies 240
Purchase of Services 78,445
Equipment 0

TOTAL $ 266,712

To the Mayor:
Personal Services $ 171,461
Materials and Supplies 2,100
Purchase of Services 5,535
Equipment 0

TOTAL $ 179,796

To the Controller:
Personal Services $ 163,717
Materials and Supplies 750
Purchase of Services 5,500
Equipment 0

TOTAL $ 169,967

To the Treasurer:
Personal Services $ 1,000
Materials and Supplies 0
Purchase of Services 0
Equipment 0

TOTAL $ 1,000

To the Bureau of Law:
Personal Services $ 244,029
Materials and Supplies 0
Purchase of Services 6,000
Equipment 0

TOTAL $ 250,029

To the Department of Administration:
Personal Services $1,826,097
Materials and Supplies 99,475
Purchase of Services 313,155
Equipment 71,600

TOTAL $2,310,327

To the Department of Community and Economic Development:
Personal Services $3,663,315
Materials and Supplies 138,289
Purchase of Services 1,902,365
Equipment 4,600

TOTAL $5,708,569

To the Department of Parks and Public Property:
Personal Services $2,554,001
Materials and Supplies 175,695
Purchase of Services 1,069,175
Equipment 4,000

TOTAL $3,792,871

To the Department of Public Works:
Personal Services $3,202,935
Materials and Supplies 320,770
Purchase of Services 2,218,091
Equipment 22,221

TOTAL $5,764,017

To the Department of Police:
Personal Services $10,985,831
Materials and Supplies 483,025
Purchase of Services 308,582
Equipment 32,100

TOTAL $11,809,538

To the Department of Fire:
Personal Services $8,904,171
Materials and Supplies 320,790
Purchase of Services 189,395
Equipment 45,200

TOTAL $9,459,556

To General and Civic Expenses:
Office Supplies, Postage, Equipment Maintenance,
Communications, and Continuous Improvement $ 277,000

Insurance, Social Security, Unemployment Comp.,
Workers Comp., Pensions, Accumulated Sick Leave,
Heart and Lung Act, Trust Payments, Defined
Contribution Plan Match $15,966,013

Landfill Transfer $ 879,042
Refunds and Prior Year’s Encumbrances $ 83,500

Unforeseen Contingencies, Professional Services Expenses $ 173,732

Memorial Day Decorations, Fourth of July Celebration,
Halloween Parade, Music Fund $ 69,030

U.S. Conference of Mayors $ 5,440

Sister City, PA League of Cities Dues, Fine Arts
Commission $ 33,950

Library $1,194,000

Debt Service $6,600,611

TOTAL $25,282,318

Voting AYE on the Amendment to Bill 31 - 2008: Ms. Dolan, Mr. Leeson, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 6. Voting NAY: Mrs. Belinski, 1. The Amendment passed.

Mr. Schweder, stating he did not believe he can legally vote for the Budget since State law requires that all Budgets be balanced, asserted there is no way the Budget is balanced. Mr. Schweder said the revenues will not support the amount of spending in the Budget. Mr. Schweder recounted that at the Final Budget Meeting he had explained that the revenue estimates in the last three to four Budgets had fallen multi-million dollars short of what was proposed for those budgets and as of December 5 the Budget was $8.5 million under projected revenue for the current fiscal year. Mr. Schweder continued on to recall he had said that if every cent came in the Budget would still probably come up short. Mr. Schweder noted that Mr. Leeson, Chairman of the Finance Committee, related that the City Controller pointed out there was a multi-million dollar deficit that was being carried over. Mr. Schweder thought that Members of Council looking at the Budget realistically would understand that revenues are not going to increase in 2009 over the figures of 2008. Continuing on to say businesses do not believe that in terms of their revenues, Mr. Schweder pointed out that evidence, such as in the headline of USA Today, shows over 95% of people in the country are worried about the financial conditions. Mr. Schweder denoted that a local company, Air Products, was the latest to announce layoffs today. Mr. Schweder stated that, regardless of the merits of what the revenues are being spent on, the revenues in no way can reach the point to balance the Budget. Mr. Schweder said it is for that reason he is going to oppose the Bill because he thought Council has a legal requirement to do so. Pointing out several other matters he thought Council should be very concerned about, Mr. Schweder stressed the debt service in the Budget is $6.6 million versus $2.7 million in 2004, and has increased by $3,900,000 since 2004. Mr. Schweder continued on to observe other things that have gone on in that period of time such as of October 31 the City has lost $25-$30 million of the value of its pension investments and denoted that November was even a worse month so that number will be exceeded. Mr. Schweder recounted that four years ago the bond salesman told Council that money should be borrowed to take care of the shortfall in pension benefits and that an increase of only 7%-10% a year for the next 10-15 years would be needed. However, Mr. Schweder highlighted the fact that the investment returns are down probably 35% and making a 29% return over the next several years is never going to happen. Mr. Schweder asserted that fiscal mistake after fiscal mistake has been made and the City has not owned up to what is a legitimate Budget over this period of time. Observing that past Budgets have come in with deficits and this one will do the same, Mr. Schweder stressed no one can dispute that based on the facts and the numbers over the last three years since the numbers have been wrong and understated. Mr. Schweder thought it was improper for Council to vote for something that is not balanced and a conflict with the oath of office.

Mr. Reynolds asked what the Administration projected the year end figures would be.

Dennis Reichard, Business Administrator, responded he did not think the City would end 2008 with a deficit.

Mr. Reynolds, noting he will be supporting the Bill, said after sitting through the Budget Hearings, looking at the cuts proposed by the Administration, and talking to Department Heads about the cuts, he thought the ability to deliver some of the basic City services was being cut. Mr. Reynolds, while expressing that everyone hopes the economy will turn around in 2009, communicated he would not be comfortable voting to lay off people. Mr. Reynolds said when he looks at the services the City is obligated to deliver and what Council’s job is he feels as if there is nothing else to cut in the Budget. Mr. Reynolds communicated that after the Administration’s cutting back on the revenue projections he is comfortable with where the City is going financially in 2009. In looking at the City’s financial picture in general and acknowledging that the 2009 economy nationwide might not be as rosy as one would like, Mr. Reynolds stated the City’s financial picture has improved in the last several years. He continued on to say real estate values have continued to rise, debt is being paid down faster, and financial decisions were made in the past over which one does not have control currently. Mr. Reynolds thought that, as far as what can be controlled, the City’s financial picture is improving and the City is moving in the right direction that is reflected in the General Fund Budget. Mr. Reynolds said he will be voting yes on the Bill.

Ms. Dolan, denoting she has heard Mr. Schweder say he does not believe in the numbers and the numbers do not speak to the truth, thought Mr. Schweder probably always lacked faith in this Administration. Ms. Dolan observed that, in spite of Mr. Schweder’s comments, the City has had excellent audits, and the 2007 Audit came out perfectly clean. Ms. Dolan highlighted the fact that as of last week the City has yet to borrow money from the Treasurer’s Escrow Account. Pointing out that revenues and expenses in the 2009 Budget have been cut, Ms. Dolan thought that to cut them further would be reckless. Communicating she does have faith in the Administration and believes they are telling the truth, Ms. Dolan reiterated that the Audits are good, and she sees no reason why she should not have faith in the Administration another year.

Mrs. Belinski, pointing out she has been on the Finance Committee for 13 years, said at one of the recent Finance Committee meetings Mr. Leeson asked about the projections to the end of the year, and in addition the estimate of the 2009 year end projection would have been almost $3.36 million. Mrs. Belinski continued on to point out $2 million is going to be taken from the $4 million Stakeholders Agreement as a one time revenue source as a result of the new development proposed at Easton Avenue and Route 33, and questioned what is going to come from the Treasurer’s Escrow Account to see the City through the end of the year. Mrs. Belinski recalled the year before $2 million was taken from the Treasurer’s Escrow Account. While acknowledging the Administration did make cuts, Mrs. Belinski pointed out it is still a 1.7% increase over last year’s Budget. Mrs. Belinski questioned how does the City end the year with a $3.6 million deficit, and asserted the City is borrowing next year’s property tax to pay off the debt for this year, and there is no increase in taxes. Mrs. Belinski said she cannot vote for the Bill.

Mr. Schweder communicated it is naïve to not understand the basics of audits in that it has nothing to do with the bottom line but rather the appropriateness of expenditures. Mr. Schweder observed that most of the taxpayers in the City do not have guaranteed jobs, and do not spend their lives in the public sector. Mr. Schweder pointed out that many people have suffered layoffs and it will continue. Mr. Schweder stressed the notion that in the public sector anyone has a lifetime guarantee of a job is an absurdity, or guaranteed benefits for life, and retirement benefits. Mr. Schweder highlighted the fact that if there is a budget with 84% or 88% in personnel costs the only way cuts can be made is probably through layoffs or abolishing jobs. Communicating he is not suggesting that necessarily is what needs to be done, Mr. Schweder commented it probably does. Mr. Schweder said that is why he offered an amendment not to specifically suggest certain cuts but to go after the budget figures because he would ask anyone at the table to debate or dispute the figures that come from the Budget books over the last three years.

Mr. Reynolds stated he did not refer to the Audit. Mr. Reynolds, noting he was in the audience for the last several Budget reviews, said he has heard discussions about the idea that the finances are not necessarily accurate. Mr. Reynolds expressed he may have been more likely to vote with Mr. Schweder’s amendment to reduce the Budget by $1,070,000 if he would have seen what were the specific cuts. Mr. Reynolds, explaining he is not saying that someone who has a public sector job will have it for life, said he is not hearing any proposed layoffs and is not seeing any place in the Budget were such a cut could be made. Mr. Reynolds pointed out it was decided not to add positions in the Budget that were needed because financially the City was unable to do so. Mr. Reynolds, stressing he is not naïve about what is being voted on tonight, said he joins with Council Member Dolan in the belief that people are living in a City that has succeeded, and although the City is not perfect it is moving in the right direction. Mr. Reynolds stated he is ready to vote on the Budget.

Mr. Mowrer said he will vote for the Budget and is basically satisfied with the process. Mr. Mowrer stated the Administration has responded by taking things out of the Budget and rechecking the revenues. Mr. Mowrer, pointing out he has sat through a lot of budgets, commented he thinks the City has done as well as possible, and added he will continue to watch the Budget.

Ms. Dolan, stating she knows the difference between an audit and a budget, noted that audits are designed in part to catch illegalities such as hiding or shifting of funds. Denoting that Mr. Schweder is saying what is being done tonight is against the law, Ms. Dolan said she does not think that is the case. Ms. Dolan recounted she had said at the past Budget meeting that some colleagues thought it was appropriate to slash $1 million from the Budget and yet no one was talking about increasing the taxes. Ms. Dolan pointed out the Administration had worked with Council to come up with Budget cuts, and she felt it was wise for Department Heads to make the decisions regarding the various specific cuts. Relating that while Mr. Schweder was speaking about Budget numbers the Mayor and Mr. Reichard were shaking their heads, Ms. Dolan stressed they know much more about their cuts and revenue projections and said she would like to hear from them.

Mayor Callahan, acknowledging it has been a long budget process and that a one statement summary would not do the effort justice, stated the Administration stands behinds the numbers in the Budget. Mayor Callahan stated that important adjustments were made given the deterioration of the regional economy, the City, and around the world. Mayor Callahan advised that last year’s Audit from an unbiased professional organization had no material findings. Mayor Callahan enumerated the General Fund balances as per the 2007 Audit, as follows: 2005 - $10,927; 2006 - $344,690; and 2007 - $1,371,082.

Mr. Schweder explained the point he made is not the balance in the funds but rather what was projected as revenue and what came in. Mr. Schweder said that is the deficit. Mr. Schweder restated the figures are from the official documents of the Administration. Mr. Schweder denoted that Council was told there would be $64,000,000 of revenue in 2008 and as of December 5 the revenue was $54,000,000.

President Donchez stated he will support the General Fund Budget and the amendment. President Donchez thought the Members of Council would have offered many more amendments if the Administration had not come in with the $930,000 of reductions. President Donchez, agreeing that 2009 will probably be a very difficult year and there may not be a turnaround until 2010, thought the cuts were a responsible thing to do and it was difficult for the Department Heads. President Donchez thought revenues have to monitored extremely closely, month by month and quarterly, and Council needs to be provided with the expenses. President Donchez noted that the pension bond to which Mr. Schweder referred is a concern, and the decline in investments as has been seen in other states. Reiterating he will support the General Fund Budget, President Donchez said the cuts were responsible and Members of Council would usually offer many cuts such as in overtime and temporary help but those cuts were proposed by the Administration with the support of Council.

Voting AYE on Bill No. 31 – 2008, as amended: Ms. Dolan, Mr. Leeson, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 5. Voting NAY: Mrs. Belinski, and Mr. Schweder, 2. Bill No. 31 – 2008,
hereafter known as Ordinance 2008-31, was declared adopted.

B. Bill No. 32 – 2008 – Adopting the 2009 Water Fund Budget

The Clerk read Bill No. 32 – 2008, Adopting the 2009 Water Fund Budget, on Final Reading.

Voting AYE: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 4. Voting NAY: Mrs. Belinski, and Mr. Schweder, 2. Bill No. 32 – 2008, hereafter known as Ordinance 2008-32, was declared adopted.

C. Bill No. 33 – 2008 – Adopting the 2009 Sewer Fund Budget

The Clerk read Bill No. 33 – 2008, Adopting the 2009 Sewer Fund Budget, on Final Reading.

Voting AYE: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 4. Voting NAY: Mrs. Belinski, and Mr. Schweder, 2. Bill No. 33 – 2008, hereafter known as Ordinance 2008-33 was declared adopted.

D. Bill No. 34 – 2008 – Adopting the 2009 Golf Course Enterprise Fund Budget

The Clerk read Bill No. 34 – 2008, Adopting the 2009 Golf Course Enterprise Fund Budget, on Final Reading.
Amendment to Bill No. 34 – 2008

Mr. Reynolds and Ms. Dolan sponsored the following amendment:

That Section 1 which reads as follows:

SECTION 1. Appropriations in the sum of One Million, Six Hundred Two Thousand ($1,602,000) Dollars are hereby made from the Golf Course Enterprise Fund as follows:

Golf Course Enterprise Fund:
Personal Services $ 682,246
Materials and Supplies 185,850
Purchase of Services 703,904
Equipment 30,000

TOTAL $1,602,000

Shall be amended to read as follows:

SECTION 1. Appropriations in the sum of One Million, Five Hundred Twenty-Two Thousand ($1,522,000) Dollars are hereby made from the Golf Course Enterprise Fund as follows:

Golf Course Enterprise Fund:
Personal Services $ 680,246
Materials and Supplies 162,350
Purchase of Services 673,404
Equipment 6,000

TOTAL $1,522,000

Voting AYE on the Amendment to Bill No. 34 - 2008: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 5. Voting NAY: Mrs. Belinski, 1. The Amendment passed.

Voting AYE on Bill No. 34 – 2008, as amended: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 4. Voting NAY: Mrs. Belinski, and Mr. Schweder, 2. Bill No. 34 – 2008, hereafter to be known as Ordinance 2008-34, was declared adopted.

E. Bill No. 35 – 2008 – Adopting the 2009 Liquid Fuels Fund Budget

The Clerk read Bill No. 35 – 2008, Adopting the 2009 Liquid Fuels, on Final Reading.

Voting AYE: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 4. Voting NAY: Mrs. Belinski, and Mr. Schweder, 2. Bill No. 35 – 2008, hereafter known as Ordinance 2008-35 was declared adopted.

F. Bill No. 36 – 2008 – Adopting the 2009 Capital Budget for Non-Utilities

The Clerk read Bill No. 36 – 2008, Adopting the 2009 Capital Budget for Non-Utilities, on Final Reading.

Amendment to Bill No. 36 – 2008

Mr. Reynolds and Ms. Dolan sponsored the following Amendment:

That the following sections which read as follows:

SECTION 2. Appropriations in the sum of Sixteen Million, Eight Hundred Twenty-Eight Thousand, One Hundred Ninety-Four Thousand ($16,828,194) Dollars are hereby made from the sources indicated in Section 3 hereof as follows:

Parks and Public Property
Bethlehem Golf Club 732,000
City Center Improvements 196,900
DAR Memorial House Renovations 10,000
Facility Capital Improvement Plan 694,133
Fire House Repairs 86,000
General Pool Improvements 200,000
Mechanical System Upgrade 200,000
Monocacy/Saucon Cr Erosion Con/Gabions 207,225
Municipal Ice Rink 81,382
Park/Playground Improvements 268,000
Roof, Safety Fire Code 90,000
Sand Island Improvements 634,770
Skate Park 278,369
South Bethlehem Greenway Phase 1 1,350,000
Southside Recreation Programs 24,500
Stone Wall Renovations 100,000
Vehicle/Equipment Replacement 311,500

Total Parks & Public Property 5,464,779

TOTAL NON-UTILITY CAPITAL $16,828,194
(Net Other Funds)

Section 3. The expenditures listed in Section 2 hereof shall be made from the following sources:

2009 Bond $ 7,593,900
2007 Bond 3,295,415
2005 Bond 27,659
Federal & PA Grants 3,621,025
County Grants 416,293
Cash/Misc. 1,873,902

TOTAL $16,828,194

Shall be amended to read as follows:

SECTION 2. Appropriations in the sum of Sixteen Million, Nine Hundred Twenty-Eight Thousand, One Hundred Ninety-Four Thousand ($16,928,194) Dollars are hereby made from the sources indicated in Section 3 hereof as follows:

Parks and Public Property
Bethlehem Golf Club 432,000
City Center Improvements 196,900
DAR Memorial House Renovations 10,000
Facility Capital Improvement Plan 694,133
Fire House Repairs 86,000
General Pool Improvements 200,000
Mechanical System Upgrade 200,000
Monocacy/Saucon Cr Erosion Con/Gabions 207,225
Municipal Ice Rink 81,382
Park/Playground Improvements 268,000
Roof, Safety Fire Code 90,000
Sand Island Improvements 634,770
Skate Park 478,369
Southside Recreation Programs 24,500
Stone Wall Renovations 100,000
Vehicle/Equipment Replacement 311,500

Total Parks & Public Property 5,564,779

TOTAL NON-UTILITY CAPITAL $16,928,194
(Net Other Funds)

Section 3. The expenditures listed in Section 2 hereof shall be made from the following sources:

2009 Bond $ 7,293,900
2007 Bond 3,295,415
2005 Bond 27,659
Federal & PA Grants 4,021,025
County Grants 416,293
Cash/Misc. 1,873,902

TOTAL $16,928,194

Voting AYE on the Amendment to Bill No. 36 – 2008: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 5. Voting NAY: Mrs. Belinski, 1. The Amendment passed.

Voting AYE on Bill No. 36 – 2008, as amended: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 4. Voting NAY: Mrs. Belinski, and Mr. Schweder, 2. Bill No. 36 – 2008, hereafter known as Ordinance 2008-36, was declared adopted.

G. Bill No. 37 – 2008 – Adopting the 2009 Capital Budget for Water Utilities

The Clerk read Bill No. 37 – 2008, Adopting the 2009 Capital Budget for Water Utilities, on Final Reading.

Voting AYE: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 4. Voting NAY: Mrs. Belinski, and Mr. Schweder, 2. Bill No. 37 – 2008, hereafter known as Ordinance 2008-37, was declared adopted.

H. Bill No. 38 – 2008 – Adopting the 2009 Capital Budget for Sewer Utilities

The Clerk read Bill No. 38 – 2008, Adopting the 2009 Capital Budget for Sewer Utilities, on Final Reading.

Voting AYE: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 4. Voting NAY: Mrs. Belinski, and Mr. Schweder, 2. Bill No. 38 – 2008, hereafter known as Ordinance 2008-38, was declared adopted.

I. Bill No. 39 – 2008 – Adopting the 2009 Community Development Budget

The Clerk read Bill No. 39 – 2008, Adopting the 2009 Community Development Budget, on Final Reading.

Voting AYE: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 4. Voting NAY: Mrs. Belinski, and Mr. Schweder, 2. Bill No. 39 – 2008, hereafter known as Ordinance 2008-39, was declared adopted.

J. Bill No. 40 – 2008 – Adopting the 2009 9-1-1 Fund Budget

The Clerk read Bill No. 40 – 2008, Adopting the 2009 9-1-1 Fund Budget, on Final Reading.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 6. Bill No. 40 – 2008, hereafter known as Ordinance 2008-40, was declared adopted.

K. Bill No. 41 – 2008 – Fixing the 2009 Tax Rate for All City Purposes

The Clerk read Bill No. 41 – 2008, Fixing the 2009 Tax Rate for All City Purposes, on Final Reading.

Amendment to Bill No. 41 - 2008

Mr. Reynolds and Ms. Dolan sponsored the following amendment:

That the following sections which read as follows:

SECTION 1. That a tax be paid and the same is hereby levied on all persons and real property within the said City subject to taxation for City purposes for the fiscal year, as follows:

Tax for the year 2009 for General City purposes, the sum of seven and
one tenth (7.10) mills on each dollar of assessed valuation [or the sum of
seventy-one (71.00) cents on each one hundred dollars of assessed valuation];

For Recreation purposes, the sum of eighty-nine hundredths (.89) mills
on each dollar of assessed valuation [or the sum of eight and nine tenths
(8.90) cents on each one hundred dollars of assessed valuation];

For Debt purposes, the sum of four and thirty-six hundredths (4.36)
mills on each dollar of assessed valuation [or the sum of forty-three and six
tenths (43.60) cents on each one hundred dollars of assessed valuation];

For Landfill Debt purposes, the sum of four tenths (.40) mills on
each dollar of assessed valuation [or the sum of four (4.0) cents on each
one hundred dollars of assessed valuation];

For Hirko Settlement Debt purposes, the sum of five tenths (.50)
mills on each dollar of assessed valuation [or the sum of five (5.0) cents
on each one hundred dollars of assessed valuation];

For Library purposes, the sum of eighty-five hundredths (.85) mills on
each dollar of assessed valuation [or the sum of eight and five tenths
(8.5) cents on each one hundred dollars of assessed valuation] to wit:

Mills on Each Cents on Each One
Dollar of Hundred Dollars of
Purpose Assessed Valuation Assessed Valuation

General 7.10 71.00

Recreation Levy .89 8.90

Debt 4.36 43.60

Landfill Debt .40 4.00

Hirko Settlement Debt .50 5.00

Library .85 8.50

Total - All Purposes 14.10 141.00

Shall be amended to read as follows:
SECTION 1. That a tax be paid and the same is hereby levied on all persons and real property within the said City subject to taxation for City purposes for the fiscal year, as follows:

Tax for the year 2009 for General City purposes, the sum of seven and
five hundredths (7.05) mills on each dollar of assessed valuation [or the sum of
seventy and five tenths (70.50) cents on each one hundred dollars of assessed valuation];

For Recreation purposes, the sum of eighty-eight hundredths (.88) mills
on each dollar of assessed valuation [or the sum of eight and eight tenths
(8.80) cents on each one hundred dollars of assessed valuation];

For Debt purposes, the sum of four and forty-one hundredths (4.41)
mills on each dollar of assessed valuation [or the sum of forty-four and one
tenth (44.10) cents on each one hundred dollars of assessed valuation];

For Landfill Debt purposes, the sum of four tenths (.40) mills on
each dollar of assessed valuation [or the sum of four (4.0) cents on each
one hundred dollars of assessed valuation];

For Hirko Settlement Debt purposes, the sum of five tenths (.50)
mills on each dollar of assessed valuation [or the sum of five (5.0) cents
on each one hundred dollars of assessed valuation];

For Library purposes, the sum of eighty-six hundredths (.86) mills on
each dollar of assessed valuation [or the sum of eight and six tenths
(8.60) cents on each one hundred dollars of assessed valuation] to wit:

Mills on Each Cents on Each One
Dollar of Hundred Dollars of
Purpose Assessed Valuation Assessed Valuation

General 7.05 70.50

Recreation Levy .88 8.80

Debt 4.41 44.10

Landfill Debt .40 4.00

Hirko Settlement Debt .50 5.00

Library .86 8.60

Total - All Purposes 14.10 141.00

Mr. Schweder inquired if the Bill puts in sync the changes made in the reductions in the General Fund. Mr. Reichard responded yes.

Voting AYE on the Amendment to Bill No. 41 - 2008: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 5. Voting NAY: Mrs. Belinski, 1. The Amendment passed.

Voting AYE on Bill No. 41, as amended: Ms. Dolan, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 4. Voting NAY: Mrs. Belinski, and Mr. Schweder, 2. Bill No. 41 – 2008, hereafter known as Ordinance 2008-41, was declared adopted.

L. Bill No. 43 – 2008 – Amending Article 342 – Continuing LERTA through December 2010

The Clerk read Bill No. 43 – 2008, Amending Article 342 – Continuing LERTA through December 2010, on Final Reading.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 6. Bill No. 43 – 2008, hereafter known as Ordinance 2008-42 was declared adopted.

M. Bill No. 44 – 2008 – Amending Article 933 – Recycling

The Clerk read Bill No. 44 – 2008, Amending Article 933 – Recycling, on Final Reading.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 6. Bill No. 44 – 2008, hereafter known as Ordinance 2008-43, was declared adopted.

Ms. Dolan requested that the City Clerk forward a copy of the strike-through version of the Ordinance to the EAC so they can review it, and next year it can be seen how the program has worked.

10. NEW ORDINANCES

A. Bill No. 45 – 2008 – Amending Article 923 – Disposal and Discharge of Industrial Waste Regulations

The Clerk read Bill No. 45 – 2008, Amending Article 923 – Disposal and Discharge of Industrial Waste, sponsored by Mr. Reynolds and Ms. Dolan, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
ARTICLE 923 OF THE CODIFIED ORDINANCES
ENTITLED DISPOSAL AND DISCHARGE OF
INDUSTRIAL WASTE REGULATIONS.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 6. Bill No. 45 – 2008 was declared passed on First Reading.

B. Bill No. 46 – 2008 – Amending Zoning Ordinance – Article 1324 - Fees for Appeal and Article 1325 – Notice of Hearings

The Clerk read Bill No. 46 – 2008, Amending Zoning Ordinance – Article 1324 – Fees for Appeal and Article 1325 – Notice of Hearings, sponsored by Mr. Reynolds and Ms. Dolan, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE ZONING ORDINANCE OF THE CITY OF BETHLEHEM,
ARTICLE 1324, TITLED ADMINISTRATION, PERMITS AND PENALTIES,
SECTION 1324.03, FEES, AND ARTICLE 1325, TITLED ZONING HEARING BOARD,
SECTION 1325.04, NOTICE OF HEARINGS

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 6. Bill No. 46 – 2008 was declared passed on First Reading.

11. RESOLUTIONS

A. Authorizing Records Destruction – EMS

Mr. Reynolds and Ms. Dolan sponsored Resolution 2008-211 that authorized the disposition of the public records from Emergency Medical Services, as listed in Exhibit A, according to schedules and procedures for the disposition of records as set forth in the Municipal Records Manual approved on July 16, 1993 and Resolution 13,076.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 6. The Resolution passed.

B. Authorizing Records Destruction – Compliance Office

Mr. Reynolds and Ms. Dolan sponsored Resolution 2008-212 that authorized the disposition of the public records from the Human Resources, Compliance Office, as listed in Exhibit A, according to schedules and procedures for the disposition of records as set forth in the Municipal Records Manual approved on July 16, 1993 and Resolution 13,076.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 6. The Resolution passed.

C. Authorizing Execution of Easement Agreement – Pennsylvania Department of Transportation – Route 412

Mr. Reynolds and Ms. Dolan sponsored Resolution 2008-213 that authorized the execution of an Easement Agreement with the Commonwealth of Pennsylvania Department of Transportation for the purpose of granting and conveying approximately 0.090 acres of land as a slope easement on a portion of property of the City of Bethlehem along State Route 412, according the terms of the agreement.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 6. The Resolution passed.

Considering Resolutions as a Group

Mr. Reynolds and Ms. Dolan moved to consider Resolutions 11 D through 11 H as a group. Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 6. The motion passed.

D. Certificate of Appropriateness – The Miller’s House

Mr. Reynolds and Ms. Dolan sponsored Resolution 2008-214 that granted a Certificate of Appropriateness to stabilize the structure with masonry repairs and the installation of tie-rods with exterior metal tie backs at The Miller’s House.

E. Certificate of Appropriateness – 439 High Street

Mr. Reynolds and Ms. Dolan sponsored Resolution 2008-215 that granted a Certificate of Appropriateness to install storm windows at 439 High Street.

F. Certificate of Appropriateness – 44 East Market Street

Mr. Reynolds and Ms. Dolan sponsored Resolution 2008-216 that granted a Certificate of Appropriateness to construct a Memorial Garden at the front of Trinity Episcopal Church at 44 East Market Street.

G. Certificate of Appropriateness – 80 West Market Street

Mr. Reynolds and Ms. Dolan sponsored Resolution 2008-217 that granted a Certificate of Appropriateness to install a projecting sign and awning at 80 West Market Street.

H. Certificate of Appropriateness – 346 West Street

Mr. Reynolds and Ms. Dolan sponsored Resolution 2008-218 that granted a Certificate of Appropriateness to install storm windows at 346 West Street.

Voting AYE on Resolutions 11 D through 11 H: Mrs. Belinski, Ms. Dolan, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 6. The Resolutions passed.

12. NEW BUSINESS

Budget Hearings – Scheduling

President Donchez thanked all involved for their assistance in the scheduling of the Budget Hearings.

Resolution - Golf Course Restaurant – Hours of Operation

Mr. Reynolds said he would like to entertain a motion to place before the Members the Resolution that was discussed at the preceding Parks and Public Property Committee meeting to allow the Golf Course Restaurant to remain open until Midnight.

President Donchez noted that Christopher Spadoni, City Council Solicitor, advised that a motion to Suspend the Rules is needed.

Mr. Reynolds moved to Suspend the Rules. There was no second to the motion. The motion died.

13. COURTESY OF THE FLOOR

City Council Meetings – Mayor’s Attendance

Bill Scheirer, 1890 Eaton Avenue, asked the Mayor to put forth reasons why his attendance at City Council Meetings promotes good government. Mr. Scheirer said an alternative to the Mayor having an open door is questions during Courtesy of the Floor at the end of a Council Meeting similar to a press conference but with the public. Members of Council and the public could then see if a question is an example of a more general situation that could profitably be addressed. He continued on to say possibly a more important reason for the Mayor to be present at Council Meetings is that statements made by the public pose a problem with no immediately apparent solution and Courtesy of the Floor becomes a community forum for ideas, and there is value in having various representatives of City government present. Mr. Scheirer further stated it is beneficial for the Mayor to be present at Council Meetings in light of the fact that he is a member of the National League of Cities’ policy committee on energy, environment, and natural resources, he is president of the Pennsylvania League of Cities and Municipalities, and contribute his knowledge to the community forum.

Various Issues

Terry Meixell, 56 East Goepp Street, noted he sent to the Members of Council a letter on ethics. Mr. Meixell remarked it seems that the City is bending over backwards on behalf of the Golf Course Restaurant including spending money on code violations and the City is hurting for money. Mr. Meixell commented that the City is to receive a new fire engine but does not have the money to pay for it. Mr. Meixell noted his survey states that the majority of people are against the Five Points enhancement, and added he does not see the benefits of it. Mr. Meixell asserted that not many of the City officials have an ethical conduct. Mr. Meixell requested that he be provided with an answer why certain things are happening in the City. Mr. Meixell observed that an outside firm is going to assess the downtown business districts, and the City is going to match funds. He questioned why the work is being subbed out if the City is hurting for money. Mr. Meixell expressed that since the leaves and snow are not picked up fast enough an outside concern is going to be hired to do it, and every resident in the City is going to pay for it. Mr. Meixell stated that Council should represent the people they were elected to represent and not special interest groups.

Northampton County Gambling Impact Committee

Robert Pfenning, 2830 Linden Street, informed the assembly that on December 8, 2008 the Northampton County Executive disbanded the Northampton County Gambling Impact Committee. Mr. Pfenning advised at the last meeting he had four members of the committee talk with their counterparts in Bensalem Township in Bucks County since they have two years of operational experience with the casino at Philadelphia Park. Mr. Pfenning passed on some of the comments made. The Hellertown Police Chief mentioned the increase in EMS calls, and there was no additional impact on the Police through the opening, traffic problems were minimal since all infrastructure was in place, Bensalem Township hired 20 new Police Officers with the host fees and new equipment, traffic was spread out through the day with no tie-ups. The comment of the District Attorney’s office was an immediate increase in theft and identification theft. One of the District Justices will cover the hotel, retail, and conference center and the other will cover the casino and parking garage, and both felt they needed increased staff. Mr. Pfenning said John McGeehan from the Northampton County prison talked to his counterparts and there was no increase in felonies but there was an increase in misdemeanors. There was little impact on the Human Services bureau, anecdotal evidence of impact on seniors, and problems with underage gambling.

Audit and Budget

Mr. Pfenning said audits are not meant to guarantee the validity of financial statements and are to fairly present the statements, and the limited scope of the time and effort does not mean that any and all irregularities will be found.

Mr. Pfenning urged the Administration and Council to talk about the same comparisons such as accrual basis fund balance that included the same $2 million in cash referenced by Mr. Schweder in the revenue stream.

Various Issues

Eddie Rodriquez, 1845 Linden Street, said the container on the 400 block of Wyandotte Street needs to be brought back alongside the building or to the back so that others do not do the same. Mr. Rodriquez commented that Council should perform better than they have. Mr. Rodriquez said he did not want his comments regarding the Mayor’s car omitted in the minutes and raised further questions. Mr. Rodriquez, asserting that Council has seen proof that people do not want the one way streets in the Five Points vicinity, questioned why Council is voting in favor of the one way traffic pattern and not in accordance with the wishes of residents and business owners. Mr. Rodriquez stressed that Council should do what is right for the people.

Expressions of Thanks

Dana Grubb, 2420 Henderson Place, expressed appreciation for the information received from the City Clerk’s Office, and thanked Council for adding a note at the top of the Agenda to ask that cell phones be turned off.

Martin Tower – Blight Designation

Stephen Antalics, 737 Ridge Street, remarked that the Planning Commission under duress approved the designation of blight for Martin Tower at Eighth Avenue. He noted that in 2007 an area in Chicago was declared blighted because a developer wanted to improve the interior of buildings in order to bring in high-end clients. Mr. Antalics questioned what is blighted in the Martin Tower area, especially in light of the recent Lowe’s development, and asserted that blight is internal in the building as was the situation in Chicago. Mr. Antalics pointed out the person who owns the Martin Tower building will benefit from the blight designation because they will put in high-end condominiums. Mr. Antalics referred to a deed from Lehigh County stating there are three owners of the Martin Tower building which are Ashley, and Eaton Avenue development that are each 25% owners, and SWB is 50% owner. Mr. Antalics explained that after much work he discovered that SWB is Herrick Company that is a multi-billion dollar company in Florida with assets all over the country. The tax records from Lehigh County are sent to Boca Raton, Florida that is the home to Mr. Herrick. Mr. Antalics questioned why the Herrick company was not at the Planning Commission meeting, and why someone with a 25% interest is pleading for money and asking for a blight designation. Mr. Antalics stressed that the public will not benefit from the development of Martin Tower, and the Administration argued for it. Mr. Antalics urged Council to demand that the majority owner be in the City, and ask why Pennsylvania should put up public monies for a company that is in Florida. Mr. Antalics suggested that eminent domain be used to take over the Martin Tower building and demolish it.

Parking – South Side

Brandon Kerrigan, 4 West Fourth Street, explained the apartment in which he lives is zoned commercial, he cannot get a street parking permit, and two other lots are rented out. Mr. Kerrigan asked what is the plan for more parking in the area, and pointed out more apartments are being developed. Mr. Kerrigan communicated that money to pay for parking tickets could be better used to help local businesses. President Donchez advised there is a plan for more parking at the Flatiron Building within the next two years. Mr. Kerrigan noted he does not have a labeled truck for his business, and queried if there is a quicker parking solution. President Donchez suggested that Mr. Kerrigan meet with the Mayor and Police Commissioner after the Meeting.

The meeting was adjourned at 8:30 p.m.