Council MInutes

February 3, 2009

BETHLEHEM CITY COUNCIL MEETING
10 East Church Street – Town Hall
Bethlehem, Pennsylvania
Tuesday, February 3, 2009 – 7:00 PM

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

President Donchez called the meeting to order. Reverend Monsignor William H. Baver, of Sts. Simon and Jude Church, 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.

Executive Session

President Donchez announced that City Council met in Executive Session this evening, Tuesday, February 3 at 6:00 PM in the Mayor’s Conference Room for an update on litigation.

Citation – Honoring Joan Schrei

President Donchez noted that a Citation for Joan Schrei, who retired from the Public Works Department after 20 years of service, would be delivered to her since she was unable to be present at the meeting.

PUBLIC HEARING

Intermunicipal Transfer of Restaurant Liquor License Number R-15919 to One East Broad Street

Prior to the consideration of the regular Agenda items, President Donchez called to order a Public Hearing to receive public comment on the Application for the Intermunicipal Transfer of Restaurant Liquor License Number R-15919 owned by Merlo Restaurant Group, LLC, formerly licensed to conduct business at 135 Spring Street, Nazareth, Northampton County, Pennsylvania to One East Broad Street, Suite 100, Bethlehem, Northampton County, Pennsylvania, as required under Pennsylvania Liquor Code 47 P.S. Section 4-461 (b.3).

Attorney Theodore Zeller, representing Mountain Due, LLC, advised the trade name is Melting Pot that is a national franchise restaurant, the group is the local franchisee and has several restaurants in Pennsylvania. Attorney Zeller, affirming that the request is to move a liquor license into the City of Bethlehem, highlighted the fact that the group will abide by all health and zoning laws, and obtain the necessary permits. Attorney Zeller introduced Charlie LaRosa and Kevin O’Leary who represent the majority of the ownership interest in Mountain Due, LLC. The site is One East Broad Street, there are numerous restaurants in the immediate vicinity, there is a liquor licensee directly across the street, and the site is next to a community center and church. There are no windows on the side of the building facing the community center and church. Attorney Zeller explained the Melting Pot is a fondue concept, fine dining restaurant, it will have 152 seats, 13 bar stools, no music or live entertainment. The hours of operation will be Monday through Thursday from 5:00 p.m. to 10:00 p.m., Friday from 5:00 p.m. to 11:00 p.m., Saturday from 4:00 p.m. to 11:00 p.m., and Sunday from 4:00 p.m. to 9:00 p.m. The restaurant space will be 5,800 sq. ft. and there is about 600 sq. ft. in the basement for storage. There will be a patio of about 756 sq. ft. to the east on the side with seasonal outside seating. Attorney Zeller confirmed that a copy of the Application for License and Permit to be filed with the Pennsylvania Liquor Control Board was forwarded to the Members of Council. Mr. LaRosa has three different licenses through the Melting Pot restaurants in Pennsylvania, and in the combined 21 years they have been opened none have received one citation by the Pennsylvania Liquor Control Board. There is ample parking and public parking close by, no take out beer sales, and alcohol sales are about 20% of the total sales. The restaurant is planned to be opened in May 2009. Charlie LaRosa, 40 Brittany Boulevard, Marlton, New Jersey, upon inquiry from Attorney Zeller, advised the on-site manager will be Kevin O’Leary who has worked at the restaurants for seven years. Mr. LaRosa confirmed that what Attorney Zeller has stated is accurate.

Ms. Dolan inquired about not serving lunch. Mr. LaRosa explained the type of dining takes a long period of time of about 2-3 hours and is not set up for lunch service.

Mr. Schweder, noting that in the copies of the applications related to the license there is information that probably should not be part of the general information; i.e., social security numbers, suggested those be blackened out for the security of the individuals.

President Donchez acknowledged that the stated information will be blackened out.

Attorney Zeller added that the floor plan is also included in the packet of materials.

Ms. Dolan asked if the operators met with representatives of the church next door. Mr. LaRosa advised they have not yet met with them but the intent is to meet with them.

Public Comment

Dean Bruch, 555 Spring Street, inquired about the parking facilities. Attorney Zeller pointed out there is a public lot next to the community center and other public facilities nearby.

Terry Meixell, 56 E. Goepp Street, was notified by Attorney Zeller that the restaurant will be on the first floor, and the Suite 200 reflected on one of the pages should read Suite 100 as stated in all the other sections.

Attorney Christopher Spadoni, City Council Solicitor, noting that the protocol for City Council is to place the Resolution to authorize the liquor license transfer on the next Agenda, asked if Attorney Zeller would state for the record that would be within the time frame mandated by the Liquor Control Board.

Attorney Zeller, stating he would request that a Resolution be considered tonight, observed that another two weeks wait for the next City Council meeting would occur on the 44th day, given the fact that the governing body has to render a decision in 45 days.

Mr. Leeson suggested that the request to vote tonight be granted, and observed no objection has been heard from the Members of Council or the public. Mr. Leeson added it sounds like the kind of business that would be welcomed and that would be wanted in the downtown, and facilitation of the request would be a positive.

Attorney Zeller, expressing his appreciation, confirmed that in spite of the current credit market conditions, the operators have obtained financing and are ready to move forward.

The Public Hearing was adjourned at 7:15 p.m.

4. APPROVAL OF MINUTES

The Minutes of January 20, 2009 were approved.

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

President Donchez stated that under Agenda Item 11 a motion will be accepted to add a
Resolution to the Agenda for the Neighborhood Stabilization Program Grant Application, as well as the Liquor License Transfer request, so that anyone from the Public who wished to address those matters would be recognized under the first Courtesy of the Floor.

No one from the Public spoke under the first Courtesy of the Floor.

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
6. Establishing Article 1716 – Landmarks and Properties of Historical Interest

C. Old Business – Members of Council

None.

7. COMMUNICATIONS

A. Council Member Leeson – Proposed New City Ordinance – Bond Issue Items – Subject Matter Restrictions

The Clerk read a memorandum dated January 16, 2009 from Council Member Leeson to which was attached a proposed ordinance which would prohibit municipal borrowing for the purchase of automobiles.

President Donchez referred the matter to the Finance Committee.

B. Director of Planning and Zoning – Street Vacation – Portions of North Street, Marshall Street and Clinton Street

The Clerk read a memorandum dated January 13, 2009 from Darlene L. Heller, Director of Planning and Zoning, in which it was advised that the Planning Commission voted to recommend approval of the street vacation as submitted by Nitschmann LLC with the conditions noted in the Planning Bureau memorandum dated December 29, 2008.

President Donchez stated that the appropriate Ordinance will be listed on a future Council Agenda.

C. Director of Water and Sewer Resources – H2O PA Grant Application – Sewage Treatment Plant Renovations

The Clerk read a memorandum dated January 28, 2009 from David L. Brong, Director of Water and Sewer Resources, requesting consideration of a resolution authorizing an H2O PA Act Grant Application for the Sewage Treatment Plant Renovations. This grant is for recapitalization and expansion of the City’s wastewater utility that may include up to $72 million in overall improvements to the wastewater treatment process and collection system.

Dave Brong, Director of Water and Sewer Resources, advised that the City is in the final stages of obtaining approval from the Commonwealth of PA for the City’s Act 537 Plan that documents improvements for the wastewater collection and treatment facilities in the City to accommodate flows and loadings in the 25 year horizon. The level of investment will be incremental and a phased investment, but the investment is rather substantial at about $72 million and is of the magnitude of the Penn Forest Dam reconstruction. The City is seeking a $20 million grant through the State’s H20 PA Grant Program that was approved during the third quarter of 2008 although the application guidelines were not issued until December. Consequently, many municipalities are scrambling to get their applications together. Confirming that part of the application is a Resolution from the local governing bodies, Mr. Brong asked for Council’s support of the grant.

Mr. Brong affirmed to Mr. Schweder that the maximum grant allowed by the State is $20 million. Mr. Schweder queried whether the City would be required to provide a $20 million match in order to receive the grant funds. Mr. Brong, noting the program has a 50% matching requirement, explained if the project reaches the $20 million maximum the City would have to come up with the balance of the funding for the program. Mr. Schweder observed that could be $50 million. Mr. Schweder asked does the State require the Resolution to be passed, and what is the reason for the request. Mr. Brong informed Mr. Schweder it is in support of the grant application.

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

D. City Solicitor – Use Permit Agreement for Public Property – American Association of University Women, Bethlehem Branch – 2009 Book Fair

The Clerk read a memorandum dated January 28, 2009 from John F. Spirk, Jr., Esq., City Solicitor, to which was attached a proposed Resolution for a Use Permit Agreement for Public Property between the City and the American Association of University Women, Bethlehem Branch for use of the Memorial Pool Building for the 2009 Book Fair for the time period April 22 to April 25, 2009, according to the terms of the Agreement.

President Donchez stated that the Resolution will be placed on the February 17 Agenda.

E. City Solicitor – Records Destruction Resolution – Police Department

The Clerk read a memorandum dated January 28, 2009 from John F. Spirk, Jr., Esq., City Solicitor, requesting a Resolution for the destruction of records from the Police Department. The Law Bureau reviewed the Municipal Records Retention Act and the records fall within categories where destruction is permitted.

President Donchez stated that the Resolution will be placed on the February 17 Agenda.

F. City Solicitor – Records Destruction Resolution – Tax Bureau

The Clerk read a memorandum dated January 28, 2009 from John F. Spirk, Jr., Esq., City Solicitor, requesting a Resolution for the destruction of records from the Tax Bureau. The Law Bureau reviewed the Municipal Records Retention Act and the records fall within categories where destruction is permitted.

President Donchez stated that the Resolution will be placed on the February 17 Agenda.

G. Housing and Community Development Planner – Neighborhood Stabilization Program – Grant Application

The Clerk read a letter from Irene Woodward, Housing and Community Development Planner, to which was attached a proposed Resolution authorizing the application for a grant from the Pennsylvania Department of Community and Economic Development for approximately $2 million through the Federal Neighborhood Stabilization Program (NSP) to address the property foreclosure issue within the City.

President Donchez stated that, under Agenda Item 11, he will accept a motion to add the requested Resolution to the Agenda for consideration.

8. REPORTS

A. President of Council

1. Councilmanic Appointment – Robin Metzler – Recreation Commission

President Donchez reappointed Robin Metzler to membership on the Recreation Commission, effective until January 2014. Mr. Reynolds and Mr. Leeson sponsored Resolution 2009-32 to confirm the appointment.

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

B. Mayor

None.

9. ORDINANCES FOR FINAL PASSAGE

None.

10. NEW ORDINANCES

None.
11. RESOLUTIONS

A. Authorizing H2O PA Grant Application – Sewage Treatment Plant Renovations

Mr. Reynolds and Mr. Leeson sponsored Resolution 2009-33 that authorized the execution of an application for an H2O PA grant of $20,000,000 from the Commonwealth Financing Authority to be used for recapitalization and expansion of the City of Bethlehem wastewater utility.

Mr. Schweder pointed out that in the second paragraph of the Resolution Council is authorizing and designating the Mayor and the Controller to execute all documents and agreements between the City and the State to facilitate and assist in obtaining the requested grant funding. Mr. Schweder questioned if it means that the authority is given to the Mayor and the Controller and then the Administration would come back before Council to make a determination on the financial ability to meet the match requirement and whether or not to do it.

John F. Spirk, Jr., Esq., City Solicitor, replied from what was just read it sounds as though it would authorize the signing of the documents to facilitate the application.

Mrs. Belinski asked what is the source of funding if the City has to provide $50 million towards the project.

Mayor Callahan, pointing out that the project cost is still $72 million, observed it would be less dollars for the City if the grant were received. Mayor Callahan noted it would not have to be local matching dollars, and the match could come from other sources such as State or Federal dollars. Mayor Callahan advised the City will continue to pursue opportunities for funding the Wastewater Treatment Plant. In further response to Mrs. Belinski, Mayor Callahan commented the City is not in a position at this point to know what the impact might be on water and sewer rates. Mayor Callahan, highlighting the fact that the Wastewater Treatment Plant was built in 1953, stated it is time to modernize and expand the Plant. Mayor Callahan added the City has been working on the Act 537 Plan for 10 years and the point is being reached when action needs to be taken.

Ms. Dolan inquired about the grant timeline.

Mayor Callahan, replying it is felt that the projects for water, wastewater, stormwater, flood mitigation meet the State’s criteria very well, expressed the hope that a grant will be received.

Mr. Brong advised the grant timeline is six years.

Mayor Callahan, advising it is not anticipated that $72 million worth of work will be done in the next few years, explained the project will be phased incrementally over time and there will not be the need to immediately borrow $72 million or whatever the final number is, or to spend money before it needs to be spent.

Mr. Mowrer inquired whether the Resolution is purely in support of the application for the grant.

Mayor Callahan responded in the affirmative.

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

B. Certificate of Appropriateness – 217 Broadway

Mr. Reynolds and Mr. Leeson sponsored Resolution 2009-34 that granted a Certificate of Appropriateness to renovate the façade at 217 Broadway.

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

C. Certificate of Appropriateness – 2 West Third Street

Mr. Reynolds and Mr. Leeson sponsored Resolution 2009-35 that granted a Certificate of Appropriateness to install signage at 2 West Third Street.

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

D. Certificate of Appropriateness – 701 East Fourth Street

Mr. Reynolds and Mr. Leeson sponsored Resolution 2009-36 that granted a Certificate of Appropriateness to install a window at 701 East Fourth Street.

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

Motion – Adding Resolution 11 E

Ms. Dolan and Mr. Reynolds moved to suspend the Rules of Council and add Resolution 11 E to the Agenda. Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Leeson, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 7. The motion passed.

E. Authorizing Neighborhood Stabilization Program Grant - DCED

Mr. Reynolds and Mr. Leeson sponsored Resolution 2009-37 that authorized the execution of a grant application through the Pennsylvania Department of Community and Economic Development under the Neighborhood Stabilization Program (NSP) for approximately $2 million to be used to acquire and rehabilitate foreclosed and/or abandoned properties within the City of Bethlehem’s Neighborhood Stabilization Program target area.

Mr. Schweder asked if the Resolution is required by the State.

Irene Woodward, Housing and Community Development Planner, replied yes.

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

Motion – Adding Resolution 11 F

Mr. Leeson and Mr. Mowrer moved to suspend the Rules of Council and add Resolution 11 F to the Agenda. Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Leeson, Mr. Mowrer, Mr. Reynolds, Mr. Schweder, and Mr. Donchez, 7. The motion passed.

F. Authorizing Intermunicipal Liquor License Transfer – One East Broad Street

Mr. Leeson and Mr. Mowrer sponsored Resolution 2009-38 that approved the Intermunicipal Transfer of Restaurant Liquor License No. R-15919 owned by Merlo Restaurant Group, LLC, formerly licensed to conduct business at 135 Spring Street, Nazareth, Northampton County, Pennsylvania to One East Broad Street, Suite 100, Bethlehem, Northampton County, Pennsylvania.

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

12. NEW BUSINESS

Public Hearing and Committee Meeting Announcements

President Donchez announced a Committee of the Whole Meeting on Wednesday, February 25 at 7:00 PM in Town Hall to hold a Public Hearing on the Comprehensive Plan.

Chairman Leeson announced a Finance Committee meeting on Tuesday, February 10 at 4:30 PM in the Mayor’s Conference Room.

Standing of Resolutions

Mr. Schweder pointed out that this evening City Council authorized by Resolution a $20 million State grant application, approved a Liquor License Transfer, and a State grant application under the Neighborhood Stabilization Program for housing in the City. Mr. Schweder observed the irony is that now Resolutions actually do have weight and standing again. Mr. Schweder continued on to say that after 46 years of City Councils voting on Resolutions, Resolutions took a hiatus in meaning four months ago when there were various rulings and statements that Resolutions did not have standing, and were of short duration. Mr. Schweder denoted that what Council voted on tonight were things that do matter and were approved by Resolution. Mr. Schweder expressed the hope that going forward the legal respect that Resolutions have in the process is shown, and that they do have standing and meaning. Mr. Schweder, observing that was confirmed tonight, highlighted the fact that the State required that Resolutions be passed for enactment. He added they were not short-standing recommendations and were of a permanent nature.

Mr. Reynolds communicated that in the past it was heard that the bodies of Council and the Administration needed to agree to move forward on matters. Mr. Reynolds thought one of the reasons why the Resolutions are required is in order for the State to see that the legislative body and the Administration agree on the City moving forward in a certain direction. Mr. Reynolds observed that, in the Five Points situation, there was a difference of opinion and the State said they were not moving forward until there was concurrence on what the City wanted to move forward with.

Mr. Reynolds asked Attorney Spadoni to state the difference between Resolutions and Ordinances.

Attorney Spadoni, referring to his memorandum, stated both are expressions of the legislative intent of City Council. Attorney Spadoni noted both are binding on this body and the City of Bethlehem pursuant to the authority granted by the legislature of the Commonwealth of Pennsylvania. Attorney Spadoni commented that, in large measure, an Ordinance sometimes considers a penal clause, but both are legislative enactments of this body.

13. COURTESY OF THE FLOOR

Golf Course Restaurant; Recycling Center

Chuck Nyul, 1966 Pinehurst Road, commenting that the City is the landlord of Starter’s Golf Course Restaurant, asked is Starter’s going to pay taxes on the business that is located on the City’s property.

Mr. Nyul remarked that the Recycling Center area is a disaster, is not cleaned up, and the chain link fence is broken where large items such as refrigerators are dropped off. Highlighting the fact that the Recycling Center is visible from the Golf Course across the street, Mr. Nyul remarked that a golfer sees a mess. Mr. Nyul suggested that large concrete blocks be placed at the recycling area for large items, the fence be replaced, and the shrubbery should look nicer.

Mr. Schweder wondered if there is an answer for Mr. Nyul’s question regarding payment of taxes.

Dennis Reichard, Business Administrator, affirmed that the building in which the Golf Course restaurant is located is owned by the City and the City does not pay taxes because it is tax exempt. Mr. Reichard advised, however, that the operator does pay earned income and mercantile taxes, for example.

Golf Course Restaurant; Funding Programs; Five Points Traffic Plan

Terry Meixell, 56 E. Goepp Street, said it costs the City over $2,300 a month in electric and heat to keep the golf course restaurant building open and he does not see how the City can charge the operator $1,000 a month. Mr. Meixell remarked the taxpayers are losing money.

Mr. Meixell commented he does not hear about any funding going towards the pumps on the South Side, and wondered why it is not a major concern of the City. Mr. Meixell said over $8 million had to be borrowed at the end of the year from certain projects to make budgets. Continuing on to say it does not make sense that the City is giving money for low interest loans such as to wealthy people for Martin Tower and the Farr Building, Mr. Meixell said businesses are getting low interest loans, and he did not see how this could be possible.

Mr. Meixell recalled that he stated numerous flaws in the Five Points One Way Pairs proposal and yet the City is still moving forward with it. He heard that 90% of the people are for it but does not understand that figure given the number of people who signed petitions against the plan. Mr. Meixell thought the $500,000 should be used instead to fix the pumps at the pumping station.

Various Issues

Eddie Rodriquez, 1845 Linden Street, stressed that more vice officers are needed, especially in view of the added number of people who will be coming into the City when the casino opens. Mr. Rodriquez asked why the entire wall at Yosko Park is not fixed since it is breaking and vines are holding up the stones, and asked that the matter be addressed before something happens. Mr. Rodriquez wondered why City employees are working at the Illick’s Mill project, and how much money is owed by the Illick’s Mill Partnership. Mr. Rodriquez asked how much work was done on the erosion problems, and why money was not used for the railroad ties. He further questioned why stones are not being cleaned up in the creek area, and added there are large potholes in the roadway area, and branches overlapping the pavilion. Mr. Rodriquez stated something should be done before someone gets hurt. Mr. Rodriquez stressed that no respect is given to the residents in the Five Points area in view of the One Way Pairs project. Mr. Rodriquez affirmed he submitted over 200 signatures of those not in favor of the project, and asserted there will be problems. Mr. Rodriquez questioned why incidents are not properly reported.

Ms. Dolan informed Mr. Rodriquez that Charles Brown, the former Director of Parks and Public Property, and Don Cunningham, former Mayor, gave her and students from Liberty High School permission to work on Illick’s Mill. She further stated the City signed a lease with the group to take over a former lease that was in existence with a subcommittee of the Jaycees that could not continue with the project. Ms. Dolan pointed out that the building was in a deteriorated condition when the Illick’s Mill group took it over. Ms. Dolan advised that Mr. Brown was formerly on the Illick’s Mill Partnership board of directors and he regularly sent crews to Illick’s Mill, and it was calculated what the Illick’s Mill partnership would pay, what the School District would do and pay for, and what the Parks Department would do and pay for. Ms. Dolan advised that is all on record at City Hall. Ms. Dolan explained that the City did the bidding because they can issue bid requests on large projects. She added there were hundreds of thousands of dollars of State grants and all but $18,000 of the grants related to that time period has been repaid.

Snow Removal and Economic Conditions

Dean Bruch, 555 Spring Street, said the City has been doing a terrific job with removal of the snow. Noting, however, it stops at Franklin Street and that Spring Street from Main to Franklin is very bad, Mr. Bruch explained he had to pump his brakes several times. Referring to the State grants requested this evening, Mr. Bruch highlighted the fact that the Governor will be speaking tomorrow and will say what will not be in the State’s budget. Mr. Bruch communicated that money is tight all over, many businesses are laying off and are not making money.

The meeting was adjourned at 8:00 p.m.