Council MInutes

February 2, 2010

BETHLEHEM CITY COUNCIL MEETING
10 East Church Street – Town Hall
Bethlehem, Pennsylvania
Tuesday, February 2, 2010 – 7:00 PM

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

President Donchez called the meeting to order. Pastor J. Christian Giesler, Edgeboro Moravian Church, offered the invocation which was followed by the pledge to the flag. Present were Jean Belinski, David T. DiGiacinto, Karen Dolan, Eric R. Evans, Gordon B. Mowrer, J. William Reynolds, and Robert J. Donchez, 7.

4. APPROVAL OF MINUTES

The Minutes of January 19, 2010 were approved.

5. COURTESY OF THE FLOOR (for public comment on Ordinances and Resolutions to be voted on by Council this evening – 5 Minute Time Limit)

None.

6. OLD BUSINESS.

A. Tabled Items

None.

B. Unfinished Business

1. Bill No. 28 - 2008 – Amending Zoning Ordinance – Various Sections
2. Establishing Article 1716 – Landmarks and Properties of Historical Interest

C. Old Business – Members of Council

Veto of Northampton County Council Vote – Return of Funding for Commerce Center Boulevard

President Donchez affirmed that he sent a letter to John Stoffa, Northampton County Executive, requesting that he veto the legislation that was passed by Northampton County Council to require that the City of Bethlehem return $700,000 that had been provided for Commerce Center Boulevard. President Donchez noted that Mayor Callahan also sent a letter to County Executive Stoffa. President Donchez communicated that County Executive Stoffa did veto the legislation, and the outcome was that the City return approximately $300,000 of the $700,000 amount.

Unfinished Business – Removing Item 1

President Donchez advised that, on the next Council Agenda under Unfinished Business, Item 1 - Bill No. 28 - 2008 – Amending Zoning Ordinance – Various Sections will no longer appear since the proposal will be replaced when the new Zoning Ordinance is submitted this year.

Previously Proposed Legislation - Financial Reporting Requirements

President Donchez, referring to the Communication from former Council Member Leeson that was read into the record at the December 22, 2009 City Council Meeting concerning proposed legislation for financial reporting requirements, informed the Members that Finance Committee Member Evans has expressed interest in the proposal. President Donchez, noting that Mr. Evans would like to have the matter read into the record at the next City Council Meeting, said it can be referred to the Finance Committee for review.

Casino Host Fees and Treasurer’s Escrow Account

President Donchez, turning to the memorandum dated January 15, 2010 from Christopher Spadoni, City Council Solicitor, in response to the request made by Mrs. Belinski at the December 22, 2009 City Council Meeting, advised that the majority of Members favored options 2 and 3. Pointing out there was also some support for options 4 and 5, President Donchez said he would open up the matter for comment.

The referenced Options are as follows: Option 2 - Notify the Honorable Meg Holland, City Controller, as to the lack of notice by the City Administration and their non-compliance with Sections 121.08 (c) and (d); Option 3 - Adopt a Resolution setting forth the lack of notice as statutorily required with the caveat that further violations will result in remedial action by City Council. Options 4 and 5 are as follows: Option 4 - Adopt a Resolution that City Council receive periodic statements/communications from the Administration as to the receipts and expenditures of these funds and the Administration's strict compliance with Sections 121.08 (c) and (d); Option 5 - Notify the auditors of the City of Bethlehem and request review via the next Audit.

Mr. DiGiacinto noted he wanted to have considered options 2, 3, 4, 5, and 7. Mr. DiGiacinto thought options 3 and 7 were tied together and that option 4 could also be part of those discussions. Mr. DiGiacinto stated that notification of the Auditors is a necessity. Mr. DiGiacinto continued on to say he talked to the Controller last week to obtain an understanding of her position. The Controller was aware of the matter, and was going to address it regardless.

President Donchez commented if that is the consensus of Council a letter would be sent to the Auditors. President Donchez observed that option 4 relates to the proposal of former Council Member Leeson that Mr. Evans is interested in having reviewed in Finance Committee.

Ms. Dolan wondered whether the Public knows the explanation of the various Options. President Donchez advised that copies will be provided for the next City Council Meeting when the matter will be considered.

Mr. Reynolds stated he was not one of the Members of Council who favored the Options. Mr. Reynolds advised he had conversations with Dennis Reichard, Business Administrator, and Mark Sivak, Director of Budget and Finance, about the matter. Mr. Reynolds noted he also has frequent conversations with Mr. Sivak about the revenue and expenditures in the City’s Budget. Focusing on Option 4, Mr. Reynolds expressed his opinion that Council already receives enough financial reports to meet that requirement. Mr. Reynolds said he does not believe these Options are warranted at this point.

Mr. DiGiacinto, noting he also looks at the revenue and expenditure numbers, observed that the December 2009 report that included the 13 month period reflected that revenues were about $7.6 million behind and expenditures were about $4 million more than the revenue received.

Mr. Reynolds clarified he was not saying that the Finance Committee should not be aware but that he was explaining his personal opinions. Mr. Reynolds observed that unfortunately it is a cash flow situation. Mr. Reynolds expressed his personal feeling that the information and explanation given to him by Mr. Reichard is adequate.

President Donchez confirmed that at the February 16 City Council Meeting Options 2 and 3 will be considered, and there will be discussion on Options 4 and 5.

7. COMMUNICATIONS

A. Director of Parks and Public Property – PPL Right of Way Request – Pinehurst Road

The Clerk read a memorandum dated January 14, 2010 from Ralph E. Carp, Director of Parks and Public Property, to which was attached a Right-of-Way request for a Resolution from PPL Electric Utilities Corporation to construct, reconstruct, operate and maintain its electric and communication lines per the attached plan in the vicinity of Pinehurst Road.

President Donchez stated that the Resolution will be placed on the February 16, 2010 Council Agenda.

B. Director of Parks and Public Property – PPL Right of Way Request – Sand Island West

The Clerk read a memorandum dated January 14, 2010 from Ralph E. Carp, Director of Parks and Public Property, to which was attached a Right-of-Way request for a Resolution from PPL Electric Utilities Corporation to construct, reconstruct, operate and maintain its electric and communication lines per the attached plan in the vicinity of Sand Island West.

President Donchez stated that the Resolution will be placed on the February 16, 2010 Council Agenda.

C. Chief of Code Enforcement Bureau – Amending Article 1701 – Adopting the 2009 PA Uniform
Construction Code and Amending Article 1702 – Fees for the Enforcement of the PA Uniform
Construction Code

The Clerk read a memorandum dated January 28, 2010 from Craig B. Hynes, Bureau of Code Enforcement Chief, to which was attached proposed Ordinances amending Article 1701 to adopt the 2009 PA Uniform Construction Code and amending Article 1702 – Fees for the Enforcement of the PA Uniform Construction Code.

President Donchez announced that a Public Hearing will be held at the February 16, 2010 City Council Meeting.

D. City Solicitor – Records Destruction Resolution – Department of Community and Economic
Development – Health Bureau

The Clerk read a memorandum dated January 28, 2010 from John F. Spirk, Jr., Esq., City Solicitor, requesting a Resolution for the destruction of records from the Health 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 16, 2010 Council Agenda.

E. City Solicitor – Records Destruction Resolution – Controller’s Office

The Clerk read a memorandum dated January 28, 2010 from John F. Spirk, Jr., Esq., City Solicitor, requesting a Resolution for the destruction of records from the Controller’s Office. 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 16, 2010 Council Agenda.

F. Enterprise Zone Coordinator – Enterprise Zone Operational Grant – Pennsylvania Department of Community and Economic Development

The Clerk read a memorandum dated January 28, 2010 from Bekah Rusnock, Enterprise Zone Coordinator, to which was attached a proposed Resolution authorizing the filing of a proposal for funding with the Pennsylvania Department of Community and Economic Development for the City to obtain $50,000 annually in Pennsylvania Urban Enterprise Zone Funds and access to other Enterprise Zone resources. The City will assume the provision of the full local share of project costs and will reimburse the Commonwealth for the State’s share of any expenditures found to be ineligible.

President Donchez stated that the Resolution will be placed on the February 16, 2010 Council Agenda.

G. Director of Parks and Public Property – DCNR Grant Resolution

The Clerk read a memorandum dated January 27, 2010 from Ralph E. Carp, Director of Parks and Public Property, to which was attached a proposed Resolution authorizing the application for a DCNR grant to continue the construction phases of the Bethlehem Skateplaza.

Mr. Reynolds noted there was an impressive turnout for the groundbreaking ceremony for the Skateplaza, and credited Ralph Carp, Director of Parks and Public Property, for the project. Mr. Reynolds, observing the high degree of enthusiasm for the project, pointed out that the Skateplaza can be a project about which the City will be very proud.

Mr. Evans asked if the $250,000 DCNR grant is for Phase 2 of the Skateplaza project. Mr.
Carp replied yes.

Ms. Dolan highlighted the fact that there was an article in a skateboard magazine publication and it was called the greatest showing of solidarity among skaters in skating history. Ms. Dolan remarked that the Skateplaza will be an amazing project, she is looking forward to seeing how it develops, and stated it will be an asset to the City.

President Donchez stated that the Resolution will be placed on the February 16, 2010 Council Agenda.

H. City Solicitor – Site Agreement – TowerOne Bethlehem – North Central Fire Station – High Street

The Clerk read a memorandum dated January 25, 2010 from John F. Spirk, Jr., Esq., City Solicitor, to which was attached updated Site Plan Exhibit pages to the Site Agreement with TowerOne Bethlehem 001, LLC previously forwarded.

President Donchez referred the matter to the Parks and Public Property Committee.

8. REPORTS

A. President of Council

None.

B. Mayor

1. Administrative Order – Amanda Hannon Davis – Fine Arts Commission.

Mayor Callahan reappointed Amanda Hannon Davis to the Fine Arts Commission effective until February 2013. Mr. Evans and Mr. Reynolds sponsored Resolution 2010-15 to confirm the appointment.

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

9. ORDINANCES FOR FINAL PASSAGE

A. Bill No. 2 - 2010 – Guaranty of Bethlehem Authority Bonds to Refinance the 1998 Guaranteed Water Revenue Bonds

The Clerk read Bill No. 2 - 2010 – Guaranty of Bethlehem Authority Bonds to Refinance the 1998 Guaranteed Water Revenue Bonds, on Final Reading.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. Bill No. 2 - 2010, hereafter to be known as Ordinance 2010 - 2, was declared adopted.

10. NEW ORDINANCES

None.

11. RESOLUTIONS

None.

12. NEW BUSINESS.

Committee Meeting Announcements

Chairman Evans announced a Parks and Public Property Committee meeting on Wednesday, February 10, 2010 at 7:00 PM in Town Hall on the Riverside Wine Festival, and TowerOne Bethlehem Site Agreement.

President Donchez advised that, due to schedules of the Committee members, Finance Committee Meetings will be held at 7:00 PM, rather than 4:30 PM, and a memorandum of notification will be forwarded by Chairman Reynolds. Chairman Reynolds suggested that the meetings be held in Town Hall instead of the Mayor’s Conference Room.

13. COURTESY OF THE FLOOR

Lights – Bethlehem Fields

Joan Madzarac, 2704 Easton Road, Lower Saucon Township, informed the Members that on January 18, 2010 caps were put on six lights by Dunrite Electric, although neighbors had complained about ten lights in addition to flood and porch lights. Ms. Madzarac called the City’s Electrician on January 19 to advise the lights were still shining into the homes. The City Electrician did go to the site, used a light meter, and he told Ms. Madzarac that he was satisfied. Ms. Madzarac exclaimed everything is not fine and the lights are still shining into the neighbors houses. Ms. Madzarac observed there are acorn type lights on Founders Way and questioned why those style lights cannot be installed that would face away from the neighbors houses. Stressing that the neighbors did not ask for this problem, Ms. Madzarac asserted the problem was brought to them, and it was created by zoning and planning. Ms. Madzarac said she is at the Council Meeting again to beg that the lights are not directed into her house. Stating she does not want to go through another summer as last summer, Ms. Madzarac asked that something be done before a neighbor suffers heat exhaustion from having to keep their houses closed to shut out the lights. Ms. Madzarac questioned whether any Members of Council have seen the situation.

President Donchez informed Ms. Madzarac that a copy of the memorandum from Michael Alkhal, Director of Public Works, will be provided to her.

Sands Casino – Host Fees and Other Matters

Robert Pfenning, 2830 Linden Street, distributed to the Members of Council his calculations of the Bethlehem Local Share Revenue generated from Sands Casino 2009 Gross Terminal Revenue and of the 2010 Budget Analysis, and a graph. He explained his calculations of the State, City and County distributions from May through December 2009, January 2010 amounts including the Sands catch-up check, and April, July and October 2010 budgeted distributions based on a $210 win per slot per day. Mr. Pfenning said the Budget shortfall will be $151,277.18. He also provided the 2009 actual operating results for Atlantic City, the Pennsylvania House Committee on Appropriations Budget Parameters, and Sands possible third quarter 2010 table games host fees using the Pennsylvania House Committee on Appropriations Budget Parameters. Mr. Pfenning estimated a potential shortfall of $189,771. Mr. Pfenning noted that the COO of the Sands spoke at a conference last week in Las Vegas and mentioned Bethlehem. Also mentioned was the disappointment with the financial performance so far but it takes about 17 months to establish performance at slots parlors, or about October 2010. Mr. Pfenning added that the table games may come in September 2010, and it was mentioned by the COO that there are no immediate plans to resume hotel construction at the Sands Casino in Bethlehem.

President Donchez affirmed that the Pennsylvania Gaming Board will hold a public hearing in Town Hall tomorrow at 10:00 AM on the renewal of the Sands Casino license.

Actions of Administration and Council

Dana Grubb, 2420 Henderson Place, stressed that elected and appointed officials cannot hold others accountable but not be held responsible when a law is broken. Mr. Grubb remarked that over $2.3 million was misappropriated by the Administration late last year, and that City Council has the responsibility to hold the Mayor and the Administration accountable. Mr. Grubb said that based on communications he has had with State and Federal law enforcement officials there is the option of having the District Attorney pursue legal remedy. Mr. Grubb noted that the Administration could have come to Council when they identified the need for additional funds to cover expenses as was required. However, Mr. Grubb stated that the Administration chose the option to proceed without Council’s authorization which was breaking the law. Mr. Grubb asked that the Members stay true to the electorate and pursue holding the Mayor and Administration accountable. Mr. Grubb communicated that such offenses erode trust and respect between two levels of government and the citizens, and he wondered whether there were other times such conduct was undertaken that was not uncovered.

Various Issues

Eddie Rodriquez, 1845 Linden Street, said there is an increase in bank robberies and thefts of merchandise from stores. He added there has been demagnetizing of ticketed items at CVS. Mr. Rodriquez further stressed that drug activity produces a negative environment and addicts will go to any length to hurt anyone in their path of destructive behavior. Mr. Rodriquez again requested that video surveillance cameras be installed at Easton Avenue, Union Boulevard, and Stefko Boulevard, and at Pawnee and Dakotah Streets. He pointed out that the cameras can catch the negative activity and be admissible in court. Mr. Rodriquez felt that the cameras installed at Mohican and Pawnee Streets could have waited. He further stated that sometimes cameras are placed in wrong positions and too low such as the camera at Itaska Street that was damaged. Mr. Rodriquez said that posts such as PPL posts should not be so close to corners so that vehicles can pass safely and damage is not done. Mr. Rodriquez requested that it be ensured that youth are not bringing any types of weapons into the schools.

Actions of Administration and Council

Stephen Antalics, 737 Ridge Street, said that Mr. Grubb raises a serious question that involves the integrity of City government. Mr. Antalics thought it was upon City Council to take this matter very seriously and make the Administration responsible for the laws that have been created.

Mary Pongracz, 321 W. Fourth Street, requested a list of Committee meetings. Ms. Pongracz said the question is what can be done, and whether the situation can be improved. Ms. Pongracz observed it is easy to be critical, and City officials have a difficult job. Ms. Pongracz denoted that officials oversee a large City with a lot of economic development and activities. Ms. Pongracz added that everyone is entitled to respect.

Dave Sanders, 6 E. Washington Avenue, urged the Members of Council to look into the Budget and said maybe it is time to make a change. Mr. Sanders thought it is time to move forward. Mr. Sanders observed that the City is doing well.

The meeting was adjourned at 7:50 p.m.