Council Minutes

APRIL 1, 2003 Meeting Minutes

BETHLEHEM CITY COUNCIL MEETING
Bethlehem, Pennsylvania
Tuesday, April 1, 2003 – 7:30 PM – Town Hall

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

President Gregory called the meeting to order. Mrs. Belinski offered the invocation which was followed by the pledge to the flag. Present were Ismael Arcelay, Jean Belinski, John B. Callahan, Robert J. Donchez, J. Michael Schweder, Magdalena F. Szabo, and James S. Gregory, 7.

(Isamel Arcelay was sworn in as a Member of City Council at 7:00 PM prior to the City Council Meeting on April 1, 2003 after having been appointed by City Council on March 31, 2003 under Resolution 14,030 to fill the Council seat left vacant by James A. Delgrosso who resigned as a Member of Council effective March 12, 2003 due to his appointment by City Council to fill the vacancy in the Office of Mayor on March 11, 2003.)

President Gregory welcomed Ismael Arcelay as a Member of City Council.

Public Hearing - Creating New Zoning District - Industrial Redevelopment-Flexible
(IR-F) - Section 1317B; and Rezoning 509 Acres at Bethlehem Commerce Center
from HI Heavy Industrial to IR-F - Industrial Redevelopment - Flexible District

Prior to the consideration of the regular Agenda items, President Gregory called to order a Public Hearing to consider the following: 1. Zoning Text Amendment to create a new Zoning District, Industrial Redevelopment-Flexible (IR-F), Section 1317B, to promote economic revitalization of underutilized industrial property and provide suitable areas for the use of business and industry by permitting a variety of land uses and applying flexible design standards during the site plan approval process. This new Zoning Ordinance Section includes Special Requirements; Regulations for Use, Area, Yard and Building, Off-Street Parking and Loading, Signs; Additional Provisions; and Site Plan Review Requirements; and 2. Rezoning Request to rezone approximately 509 acres at the Bethlehem Commerce Center in the vicinity of Applebutter Road to effect the rezoning of the Majestic Realty Company tract located on the southerly side of Applebutter Road in the 16th Ward of the City of Bethlehem, Northampton County, being lands of Bethlehem Steel Corporation and CR Acquisition Corporation, as shown on Preliminary/Final Subdivision Plan of a Portion of the Lands of Bethlehem Steel Corporation, City of Bethlehem, and Lower Saucon Township dated December 17, 2002, revised March 6, 2003, Plan Number SD-1 (Sheet 3 of 10), from HI - Heavy Industrial to IR-F – Industrial Redevelopment – Flexible District.

7 A. Lehigh Valley Planning Commission - Zoning Text Amendment - IR-F; Rezoning Request - Bethlehem Commerce Center/Majestic - HI to IR-F

The Clerk read a letter (Communication 7 A) dated March 28, 2003 from Frederic Brock,
Assistant Director of the Lehigh Valley Planning Commission, as follows:

"The Lehigh Valley Planning Commission considered the above referenced matter at the
March 27, 2003 meeting pursuant to the requirements of the PA Municipalities Planning Code (MPC). The Commission voted to return the following comments for your use.

Land currently zoned Heavy Industrial is proposed to be rezoned into five other districts.
These are the Industrial Redevelopment, Industrial Redevelopment-Flexible, RM Residential, Shopping Center and General Commercial districts. The intention of the rezonings is to facilitate the redevelopment and reuse of the Heavy Industrial area. We support this effort. The Comprehensive Plan for Lehigh and Northampton Counties recommends the area for industry, business and office uses.

Studies for the preliminary engineering and the environmental overview are currently underway for the Route 412 Improvements project. The purpose of the project is to provide adequate capacity for the Bethlehem Commerce Center and Bethlehem Works developments. Absent improvements, the current road network would be inadequate to handle the traffic associated with these two developments. Some of the property is proposed for rezoning to the Shopping Center zoning district. Allowed uses in this district can generate large amounts of traffic. Contact with the engineering consultant for the studies, Gannett Fleming, revealed that the land use assumptions did not include shopping center type development. By memo of March 24, 2003, Gannett Fleming concluded that the preferred alternative for the Route 412 improvements could not handle the traffic that would be associated with the development of the property as possible under the Shopping Center zoning district. In view of the purpose of the Route 412 Improvements Project, we recommend that the City undertake one of two possible courses of action. The City should either not rezone the area to Shopping Center or the Route 412 project should be redesigned to provide adequate capacity in view of the anticipated shopping center traffic.

Three of the districts allow residential uses. While two of these districts are isolated from the remaining areas by Interstate 78, the Shopping Center district abuts land in heavy industrial uses. This raises the possibility that incompatible uses may be established in this area. The City should amend the ordinance so that such conflicts could not arise. Possibly, the City could eliminate residential uses from the Shopping Center district.

Development to the south of Interstate 78 will abut residential areas in Hellertown. The proposed rezoning of the property from Heavy Industrial to a combination of General Commercial and RM Residential increases the compatibility of development in this area with neighboring land uses. We recommend that the City coordinate with Hellertown to provide land uses that are both viable for the area and compatible with adjacent land uses.

One of the differences between the proposed Industrial Redevelopment - Flexible district and the Industrial Redevelopment district deals with steep slopes. The ordinance's steep slope provisions will not apply in the IR-F district. While we believe that development should be sensitive to natural feature limitations, we do not object to this proposed exemption because the steeply sloping areas within the IR-F district are man-made, not natural."

Planning Director Comments

Darlene L. Heller, Director of Planning and Zoning, pointing to a map of the entire Bethlehem Commerce Center area (site of former Bethlehem Steel Corporation operations), explained what is before City Council this evening is a portion of the area that is proposed to be rezoned from HI - Heavy Industrial to IR-F - Industrial Redevelopment-Flexible. Ms. Heller, further referring to the map, pointed out locations in the Bethlehem Commerce Center Area including Route 412, Shimersville Road, Applebutter Road, Lower Saucon Township to the north of Applebutter Road, Ringhoffer Road to the east, Easton Road to the south and also the municipal line with Lower Saucon Township. In addition, Cherry Lane is to the south, and the Borough of Hellertown abuts to the south. The Interstate 78 interchange is located nearby in addition to Route 412. The piece before City Council tonight has road frontage on Applebutter Road. It is not proposed that access be created onto Applebutter Road. Commerce Center Boulevard is proposed to be developed off Route 412 at the existing intersection with Coke Works Road and will be constructed to the limits of the IR-F zoning district. It is proposed to be developed by Majestic Realty Corporation, and the firm would be extending Commerce Center Boulevard into their property. Advising that the rest of the road network in the development would be private, Ms. Heller affirmed that Commerce Center Boulevard would be a public road. The project proposed at this location within the Bethlehem Commerce Center is a combination of industrial, distribution, warehouse, and office uses, and some commercial but is different from other industrial park development in other areas of the City. Ms. Heller informed the assembly that is why the zoning text amendment to create the IR-F district is proposed along with the zoning map change to rezone the property from HI to its own unique IR-F zoning district. While 509 acres is proposed to be rezoned from HI to IR-F, about 40 acres in Lower Saucon Township will be purchased by Majestic Realty for a total development of about 550 acres. Noting that the land is proposed to be owned by the developer, Ms. Heller stated that the developer will not be creating public streets and then selling off lots to end users as is typical in an industrial park development. Rather, within the proposed development are the layout, lots, private streets, access, and railroad siting proposed to be available to the uses, as well as a highway network. The reason for the configuration of Commerce Center Boulevard is to direct traffic, much of which would be truck traffic, out to Route 412 and potentially to Interstate Route 78. The only access permitted onto Applebutter Road or other rural roads would be emergency access.
Focusing on the Zoning Text Amendment to create an Industrial Redevelopment-Flexible (IR-F) zoning district, Ms. Heller explained it is similar to the currently existing Industrial Redevelopment (IR) zoning district. Ms. Heller continued on to explain it allows some additional manufacturing, warehouse, and processing operations that are not presently allowed in the IR zone. In addition, Ms. Heller pointed out that the design standards are slightly different. She exemplified that setbacks and building heights are not outlined in the IR zone. Because the area will be owned by one developer, for continuity purposes, the setbacks, building heights, lot coverage, and so on will be specified for the IR-F zone. In addition, parking requirements specifically related to larger trucks with driveway entrance is revised in the IR-F zone. Since the area is currently zoned HI-Heavy Industrial where the steep slope provisions do not apply, the steep slope provisions have been excluded from the proposed IR-F zoning district. Provisions have been added in the IR-F district where some other modifications can be considered as development is reviewed for street trees, utility lines, parking lots, buffering, and so on because there will be little access by the public. For those areas that are not visible from the public right of way there are provisions allowing the Planning Commission to consider waivers and modifications.

Council Comments

Mr. Callahan asked what manufacturing and processing uses in the proposed IR-F district are not allowed under the IR zone.

Ms. Heller responded some are very general and include wholesale, storage, and distribution. Tanning, curing, dyeing, and bulk processing are excluded from the IR district and allowed in the IR-F district. The manufacture of wood products is allowed in IR but planing mills, and bulk processing of wood and lumber that are not allowed in IR would be permitted in IR-F. The processing of food products is allowed in IR but excluded are meat and fish processing that would be permitted in IR-F.

Mr. Callahan inquired whether this would be the only area in the City to be zoned IR-F or whether IR-F zones would be created in other areas.

Ms. Heller, replying she does not anticipate that it would be, explained the reason for creation of the IR-F is because it is a large 550 acre development, there would be private roads, very little access by the public, and the area is unique in many ways. Ms. Heller informed the Members that in the near future revisions proposed in the Subdivision and Land Development Ordinance will be submitted since development on parcels of this size is not typically seen in the City. Ms. Heller commented she cannot foresee another development of this magnitude and type anywhere else in the City.

In response to Mr. Callahan, Ms. Heller highlighted the fact that other IR zoning districts are proposed for the Bethlehem Commerce Center area and also on Eighth Avenue.

Attorney James Broughal, representing the developer, thanked City officials for working with the group for four years. Attorney Broughal, affirming that Majestic Realty Company fully supports the proposal before City Council this evening, communicated that because of the unique nature of the development in terms of the fact that the Majestic company owns about 50 million square feet of industrial warehousing space in the United States, advised that the company does not as a matter of course sell off what they develop. Rather, they own property and lease it out. Attorney Broughal remarked that Majestic Realty Company's relationship in the City of Bethlehem will be long term as opposed to a firm that comes in, develops property, and then sells it off to many different property owners. Attorney Broughal added that Majestic Realty Company wants to build a relationship with the City. Attorney Broughal commented that, unless there are any specific questions for Bruce Anderson, of the engineering firm of Pidcock and Company, he can tell Council that what is before them will work for Majestic Realty Company with respect to development of the property and it is fully supported.

Public Comments

Robert Kraus, 2231 Applebutter Road, Lower Saucon Township, advised that he lives across the street from property he believes is owned by Majestic Company. Mr. Kraus remarked that, after having listened to the presentation this evening, he still does not know what exactly will be across the street from his house. Mr. Kraus wondered whether such activities as woodworking and others will be ongoing 24 hours a day, particularly when he and his family and friends are outside. Mr. Kraus, indicating that the Conectiv energy plant is operating 24 hours a day, highlighted the fact that he hears a hum throughout his house that wakes him up at night. Advising he has spoken to a representative of Conectiv to ask if the company could possibly pay for windows to help insulate his house from the noise, Mr. Kraus stated he has not received a response. Pointing out that, in addition, lights are shining in his home and on his property, Mr. Kraus noted there are plans to put a tree in his front yard to help keep the lights down but this will not keep the light from shining in his house. Focusing on traffic, Mr. Kraus advised "there is a ton of traffic right now" on Applebutter Road. Noting it is supposed to slow down once construction is over, Mr. Kraus stated there will be 44 full time employees. Mr. Kraus questioned where all the construction traffic will go, and who will pay for the roads that will be torn up as a result of all the traffic. Mr. Kraus, informing the Members that he has a lot more questions, said he cannot ask them all now and acknowledged they cannot all be answered.

President Gregory, affirming there will be two readings of the Ordinances associated with the proposal, noted there will be additional meetings and issues can be addressed in more depth. President Gregory, noting that Lower Saucon Township receives monies from the landfill that is located in the municipality, expressed the hope that the Township would invest some of the monies to address some of the roadway related issues described by Mr. Kraus. President Gregory suggested that Mr. Kraus should address those concerns to Lower Saucon Township. President Gregory communicated that Mr. Kraus is welcome to come and speak to Bethlehem City Council at any time.

Mr. Kraus asked who in Bethlehem City Hall would answer a potential homeowner's question of what is being planned at the Bethlehem Commerce Center site.

Ms. Heller responded that the question could be raised with the Planning Bureau.

Mr. Kraus advised that a year ago last November he bought his home. His realtor came to City Hall and asked what was being built across the street and was told Conectiv would build one unit with 12 full time employees. However, Mr. Kraus highlighted the fact that there are six units across the street from his house and there will be 44 full time employees. Mr. Kraus wondered whether it was a lie or a mistake.

Mrs. Belinski, asking for Mr. Kraus' name and address, said she will be touring the Conectiv energy plant since she has other complaints about the horrendous noise and vibration.

Mayor Delgrosso clarified that the area proposed to be rezoned to IR-F-Industrial Redevelopment-Flexible is now zoned HI-Heavy Industrial which is a higher density than IR-Industrial Redevelopment.

President Gregory noted that the appropriate Ordinance will be placed on the April 15, 2003 Council Agenda for First Reading

The public hearing was adjourned at 7:50 p.m.

4. APPROVAL OF MINUTES

The minutes of March 18, 2003 were approved.

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

Bill No. 9 - 2003 and Bill No. 56 – 2002

Dennis Reichard, Business Administrator, addressed the Members of Council regarding Bill No. 9 - 2003 and Bill No. 56 - 2002. Mr. Reichard enumerated that Bill No. 9 - 2003, the 2003 Bond Issue, represents funding of $4.6 million for the Non-Utility Capital Projects and General Fund Equipment, in addition to an advance refunding of the 1999 Bond Issue of about $2.5 million. Mr. Reichard continued on to confirm that Bill No. 56 - 2002 on Final Reading this evening represents funding of $1.9 million in the form of a General Obligation Note in connection with a project to purchase the street lighting system from Pennsylvania Power and Light Company. Mr. Reichard recounted that in November 2002 there was a one year fixed rate of 2.7% on the General Obligation Note. Additional rates were solicited within the past few weeks, and National Penn Bank again had the best rate that is now down to 1.9% guaranteed for one year on a draw down type schedule.

Attorney Peter Carlucci, of the firm Eckert, Seamans, Cherin and Mellot, serving as bond counsel, reviewed the 2003 Bond Issue Ordinance provisions. Affirming that the 2003 Bond Issue represents a debt ordinance, Attorney Carlucci advised it is for issuance of a series of general obligation bonds, series of 2003, in the aggregate principal amount of $8,085,000. The purpose of the bond issue is to fund the 2003 Non-Utility Capital Projects financing, certain equipment purchases to be undertaken by the City, and to refund a portion of the City's General Obligation Bonds Series of 1999.

Darryl Peck, of Concord Public Finance company, financial advisor, explained the terms of the bonds. Mr. Peck noted that, as was discussed previously, underwriter firms were solicited and the award was made to Wachovia Bank since it offered the lowest underwriting discount. Mr. Peck, confirming that arrangements for the financing have been in process, reviewed the financing details contained in the handout dated April 1, 2003 given to the Members of Council this evening. Mr. Peck highlighted the fact that, as reflected on the first page of the handout showing the interest rate trend line for the past 22 years, the difference in the low rate is .18%. Turning to page 1, Mr. Peck confirmed that the Series A Bonds in the total amount of $4,580,000 will fund $531,660 in General Fund Equipment costs and $3,922,500 of Long Term Capital for the City's 2003-2004 Non-Utility Capital projects. Other Uses include $36,907.50 for Capitalized Interest for interest due this year that is not budgeted, Original Issue Discount (Premium) of $19,816.40 for prepaid interest, Discount of $17,404 that is the fee paid to the Underwriters to market and place the bonds. Focusing on the item of Bond Insurance - FGIC of $16,810, Mr. Peck affirmed that insurance was bid on a competitive basis at a very favorable cost of 29.1 basis points. Costs of Issuance were $62,169 and consistent with costs on First Reading. Turning to the Series B Bonds in the total amount of $3,505,000, Mr. Peck advised it is for an advance refunding of a portion of the City's 1999 Bond Issue and the proceeds will be placed in an escrow account to pay the bonds until they are callable on February 1, 2005. Mr. Peck pointed out that page 2 contains the amortization or debt service schedule for the Non-Utility Capital Projects to be financed over a ten year period so that there will be no impact to the General Fund through the structuring of this borrowing. Focusing on the Yield column, Mr. Peck noted that borrowing rates range from 1.2% to 3.7% with an average rate of yield of approximately 3.14% that is very favorable.

Mr. Donchez asked what would be the total General Fund debt with the 2003 Bond Issue. Mr. Peck replied the current annual General Fund debt service is $2,960,000. Dennis Reichard, Business Administrator, informed Mr. Donchez that the City's total General Fund debt is about $17 million.

Mr. Peck, continuing on with the financing details associated with the 1999 Bond Issue Refunding, called attention to column 19, Rate, and noted that the current interest rates being paid on the 1999 bonds range from 4.4% to 5.05%. On page 4, containing the amortization schedule for the Series B of 2003 Bond Issue comprising the Refunding of the 1999 Bonds, column 52 shows Yields ranging from 1.2% to 3.25%. Mr. Peck pointed out that, through the refinancing, the Present Value Savings is $84,901.25 or 2.59% by refunding the 1999 Bonds. Mr. Peck noted that the 1999 refunding is facilitated by the new money borrowing for the 2003 Bond Issue by which costs of issuance are shared. Mr. Peck highlighted the fact that column 59 shows that Savings of $84,170 will be achieved in the current fiscal year by the refunding while savings of approximately $30,000 will be realized in 2004.

Mayor Delgrosso, focusing on page 4, column 57 titled, Annual Debt Service, noted it is comparable to a wrap-around debt service schedule so that the City's annual debt service payments remain relatively equal with the issuance of future new debt as reflected in page 5.

Mr. Peck, turning to page 5, affirmed it is referred to as a forward planning wrap around schedule. Mr. Peck pointed out that column 1, General Fund Existing Debt Service, shows debt service diminishing so that the 2003 debt can be incurred without increasing the current General Fund Debt Service. Mr. Peck continued on to say that column 2 shows the debt service to be incurred for the 2003 Bonds, column 3 is the General Fund Total Debt Service after the 2003 Bond Issue financing, and column 4 shows the Margin for Additional Debt Service. Mr. Peck, explaining the wrap around debt service schedule that takes into account new future debt being added, pointed out that column 5 reflects the fact that $3,700,000 of additional debt could be added in 2005, for example, and not have the City's General Fund Debt Service increase.

Mr. Peck affirmed to Mr. Donchez that the Forward Planning Wrap-Around Schedule gives the City the opportunity, as has been done in the past, to issue Bonds every two years for the Non-Utility Capital Improvements program.

Attorney Carlucci informed the Members that the bond purchase agreement from Wachovia Bank has been reviewed and the terms reflect the substance of the presentation and are customary for a financing of this size. Attorney Carlucci confirmed that the Bond Issue Debt Ordinance, Bill No. 9 - 2003, before City Council for consideration this evening would authorize the issuance of the General Obligation Bonds Series 2003 bearing the terms, interest rates, and maturities as described by Mr. Peck. In addition, the bonds are secured with the pledge of the City's full faith, credit, and taxing power, authorizes the appropriate officers of the City to execute, deliver and take action with respect to the documents necessary to consummate the financing. It also exercises the City's option to call that portion of the 1999 Bonds that will be refunded. Those are bonds that are maturing in 2005 out to the end of their maturity in 2010.

Mr. Callahan asked if the 2003 Bond Issue includes items of equipment that would cost less than $50,000. Mr. Peck replied yes. Mr. Callahan inquired if these items would last less than the term of the Bond. Mr. Peck responded that the equipment to be financed will be paid off over five years rather than in the 10 years of the Bond. Mr. Callahan queried whether the Administration endorses the 2003 Bond Issue. Mayor Delgrosso said the Council has not made a change in the Budget so there is no other choice but to endorse it. Mayor Delgrosso continued on to clarify that, in reality, as the Bond Issue is set up, the first payments go to paying off the small equipment in five years with the same interest rates as are imposed for the entire Bond Issue. Attorney Carlucci added that the early maturities have been allocated to various assets with shorter lives while the later maturities are allocated to assets with longer lives. Mr. Callahan asked if Mayor Delgrosso's Administration endorses the type of borrowing being talked about. Mayor Delgrosso responded by saying "do I endorse it, no I don't like it, but I think in order to make the…small equipment [purchases] that was put in the budget by this Council…I think that I accept Council's position and move forward." Mr. Callahan inquired if Mayor Delgrosso is recommending that Council approve the 2003 Bond Issue Ordinance. Mayor Delgrosso replied "we have no choice because [it is in the Budget]...". In further response to Mr. Callahan, Mayor Delgrosso stated he did not have a change of heart but rather respects Council's position.

Attorney Carlucci confirmed that the other Ordinance before Council this evening, Bill No. 56 - 2002, would authorize and approve a borrowing in the maximum amount not to exceed $1,900,000. Attorney Carlucci advised this debt will be evidenced by a General Obligation Note of the City and will carry the terms that Mr. Reichard described earlier, and bear interest of 1.9%. Affirming this is a short term borrowing, Attorney Carlucci informed the Members it has a maturity of 25 months, with a final maturity date of June 15, 2005. The money is available to be drawn down for costs associated with the purchase from Pennsylvania Power and Light Company (PPL) by the City of the street lighting system over an initial 13 months period ending June 15, 2004. Attorney Carlucci affirmed that the Note is secured by the pledge of the full faith, credit, and taxing power of the City. Attorney Carlucci, explaining the Note is structured as a construction type loan meaning the money is available to be drawn down to pay costs, said there would be no debt service payments due on the Note until such time as monies are drawn. At that time, the City would be required to pay interest only semi-annually on June 15 and December 15, with the first interest payment due December 15, 2003. The full amount of the outstanding principal plus any accrued interest would be due and payable on maturity that is June 15, 2005. Attorney Carlucci pointed out that the City is not precluded from making any prepayment of principal should it so desire and prepayment can be made without penalty.

6. OLD BUSINESS

Rezoning Request – Former Durkee Property – Response from Lehigh Valley Economic
Development Corporation

Mrs. Belinski recalled that Tony Hanna, Director of Community and Economic Development, was to have the Lehigh Valley Economic Development Corporation submit to Mrs. Belinski data in support of their endorsement of the request to rezone the former Durkee property on Eighth Avenue as stated in their letter dated January 24, 2003. Mr. Hanna agreed to check into the matter tomorrow.

7. COMMUNICATIONS

B. Director of Public Works – Paint Mill Bridge Project – Upgrade of Railroad Crossing

The Clerk read a memorandum dated March 20, 2003 from Michael Alkhal, Director of Public Works, to which was attached a proposed resolution to authorize the Pennsylvania Department of Transportation to file an application with the Pennsylvania Public Utility Commission on behalf of the City of Bethlehem, concerning a project to upgrade the highway/railroad at-grade crossing in the area of the Paint Mill Bridge project which is being coordinated with the work of the replacement of the Paint Mill Bridge. The City of Bethlehem will enter into a reimbursement agreement with the Pennsylvania Department of Transportation for reimbursement of 95% of the design and construction costs paid to Norfolk Southern for this improvement of the railroad crossing across Schoenersville Road.

President Gregory stated that the authorizing Resolution will be placed on the April 15, 2003 Agenda.

C. Rezoning Request – Northeast Quadrant of Route 412 and Cherry Lane – HI to RM Overlay and CG

The Clerk read a letter dated March 25, 2003 from Bryan Ritter, President of Jena Engineering Corporation, requesting the rezoning of the parcel of land located at the northeast quadrant of Route 412 and Cherry Lane from HI – Heavy Industrial into two separate zoning districts listed as Parcel A to RM – Residential Overlay District and Parcel B to CG – General Commercial.

Motion – Scheduling Public Hearing

Mr. Donchez and Mrs. Belinski moved to schedule a Public Hearing on Tuesday, May 6, 2003 at 7:30 PM in Town Hall. Voting AYE: Mr. Arcelay. Mrs. Belinski, Mr. Callahan, Mr. Donchez, Mr. Schweder, Ms. Szabo, and Mr. Gregory, 7. The motion passed.

D. Zoning Text Amendment Request – Creek Road and Friedensville Road – RR Overlay District

The Clerk read a letter dated March 27, 2003 from Attorney Ronald J. Reybitz, representing Robert Kiel, equitable owner of property located at Creek Road and Friedensville Road, requesting a text amendment to the RR District via an overlay.

Motion – Scheduling Public Hearing

Mr. Arcelay and Mrs. Belinski moved to schedule a Public Hearing on Wednesday, May 21, 2003 at 7:30 PM in Town Hall. Voting AYE: Mr. Arcelay. Mrs. Belinski, Mr. Callahan, Mr. Donchez, Mr. Schweder, Ms. Szabo, and Mr. Gregory, 7. The motion passed.

E. City Solicitor – Use Permit Agreement – 2003 Borinquenfest

The Clerk read a memorandum dated March 27, 2003 from Joseph F. Leeson, Jr., City Solicitor, to which was attached a proposed Use Permit Agreement between the City and the Puerto Rican Cultural Coalition for use of the area beneath the Hill-to-Hill Bridge for the 2003 Borinquenfest from June 23 to July 3, 2003.

President Gregory stated that the authorizing Resolution will be placed on the April 15, 2003 Agenda.

F. City Solicitor – Use Permit Agreement – 2003 Boutique at the Rink

The Clerk read a memorandum dated March 27, 2003 from Joseph F. Leeson, Jr., City Solicitor, to which was attached a proposed Use Permit Agreement between the City and St.

Luke’s Hospital & Health Network for use of the Municipal Ice Rink for the 2003 Boutique at the Rink for the period May 5 to June 17, 2003.

President Gregory stated that the authorizing Resolution will be placed on the April 15, 2003 Agenda.

G. City Solicitor – Use Permit Agreement – 2003 Celtic Classic

The Clerk read a memorandum dated March 27, 2003 from Joseph F. Leeson, Jr., City Solicitor, to which was attached a proposed Use Permit Agreement between the City and Celtic Fest, Inc. for use of various public properties and streets for 2003 Celtic Classic for the period September 13 through September 29, 2003.

President Gregory stated that the authorizing Resolution will be placed on the April 15, 2003 Agenda.

H. Deputy Director of Community Development – Temporary Assistance to Needy Families Grant Application

The Clerk read a letter dated March 28, 2003 from Dana B. Grubb, Deputy Director of Community Development, to which was attached a proposed resolution for a Temporary Assistance to Needy Families (TANF) Grant Application to the PA Department of Community and Economic Development, for funding assistance in a total amount of $150,000 which would provide housing rehabilitation resources for up to an additional nine units of either owner-occupied or rental housing with matching requirements being satisfied by the City’s existing commitment of CDBG funding to housing rehabilitation activities.

President Gregory stated that the authorizing Resolution is listed on the Agenda this evening.

8 . REPORTS

A. President of Council

Public Hearing - Rezoning Former Durkee Property - Eighth Avenue

President Gregory restated that a Public Hearing is scheduled on Tuesday, April 8, 2003 at 7:30 PM in Town Hall on the request to rezone the former Durkee property on Eighth Avenue.

Council Committee Revisions

President Gregory announced the following Council Committee revisions, as a result of the naming of Mr. Arcelay to fill the vacant Council seat: Mr. Arcelay will replace James Delgrosso on the Human Resources and Environment Committee, and serve as Chairman, will replace Mr. Delgrosso on the Public Safety Committee, and will replace Mr. Callahan on the Parks and Public Property Committee.

B. Mayor

1. Administrative Order – Joseph F. Bacak – Board of Health

Mayor James Delgrosso appointed Joseph F. Bacak to the Board of Health, effective until January 2006. Ms. Szabo and Mr. Donchez sponsored Resolution 14,031 to confirm the appointment.

Voting AYE: Mr. Arcelay. Mrs. Belinski, Mr. Callahan, Mr. Donchez, Mr. Schweder, Ms. Szabo, and Mr. Gregory, 7. The Resolution passed.

2. Administrative Order – Dr. David G. Beckwith – Board of Health

Mayor James Delgrosso appointed Dr. David G. Beckwith to the Board of Health, effective until January 2004. Ms. Szabo and Mr. Donchez sponsored Resolution 14,032 to confirm the appointment.
Health Bureau and Health Board

Mr. Schweder, noting that during his term on City Council he has raised questions about the role of the Health Bureau and its relationship with Northampton County, commented it seems things may be moving in that direction. Mr. Schweder continued on to say that, during the Budget debates last year, he supported the elimination of some positions within the Health Bureau. Mr. Schweder commented that, as he has said to individuals who served on the Board of Health, the previous Administration's treatment of those individuals certainly did not represent one of the City's finest hours. Highlighting the fact that Dr. Beckwith had served since the 1970's and indicating that Dr. Haggerty had served for many years as well, Mr. Schweder stressed that much more respect should have been shown to the individuals given their years of service. Mr. Schweder expressed he is pleased that the four individuals have decided to come back and serve again on the Board of Health. Mr. Schweder asserted there are many questions that will have to be posed and answered with respect to the future status of the Health Bureau. Mr. Schweder, restating he is pleased that the individuals have had the interests of the City first and foremost in their minds and have decided to return, communicated he is pleased that the Mayor has asked the individuals to consider serving on the Board again, and added that the City will again be well served by these individuals.

President Gregory noted that he was expecting to speak to the matter once all of the individuals were confirmed as he would assume because it is the general feeling among Members of Council that they are very pleased to have the Board of Health back in place. President Gregory expressed that the reason why members of the Board of Health resigned was because some positions in the Health Bureau were recommended by the Administration for elimination in the 2003 Budget with which City Council agreed. President Gregory, while recognizing the difficulty in doing so because of the fact that the Budget has been passed, expressed the hope that Mayor Delgrosso would do everything he can to see that those positions come back into the Health Bureau. Highlighting the fact that a representative from the Commonwealth of Pennsylvania said that the City has an excellent Health Bureau, President Gregory remarked what happened was a sad thing and expressed this hopefully is a first step in restoring the Health Bureau to its former strength.

Mr. Schweder stated that, from having had conversations, the resignations from the Board of Health were not tendered simply because positions in the Health Bureau were eliminated. Mr. Schweder said the resignations were tendered because of the lack of input that the members of the Board of Health had on those decisions. Recounting that one of the Members of Council had asked the question of the then Health Bureau Director if he could come back with recommendations to alter elimination of positions in his Bureau, Mr. Schweder pointed out that kind of input was never sought through the process and was what led to the resignations. Mr. Schweder expressed his belief that the individuals are willing to come back because they believe they will have input in the process and the decision making.

President Gregory, communicating he would not disagree with the lack of input, said the lack of input led to some fierce budget battles between him and the Administration, and to the resignation of the Health Bureau Director. Rather than debate the issue again, President Gregory said once more he is thrilled that the Administration has brought the individuals back on the Board of Health and expressed the hope that it will be a big step in getting the Health Bureau back up to par. In regards to joining a County health department, President Gregory stated one of the reasons why people in the City had refused to join the Northampton County dispatching services was because they did not trust the County. President Gregory added there are many reasons why they might have those same considerations. President Gregory continued on to note he was glad to see some of the comments of Mayor Delgrosso stating that, if Northampton County were to consider an integration of the City's Health Bureau, then many things the City is already doing would remain with the City. President Gregory stressed he would be nervous about having the City's Health Bureau touched by the County at this time to any degree.

Mayor Delgrosso explained the Administration has taken the position that it will have to live within the budgetary means it has been given by City Council which the Health Bureau and individuals going back on the Board of Health understand. Mayor Delgrosso pointed out they have been made aware that the Administration will work with them on everything it does particularly the matter of the logistics of Northampton County taking over a health bureau. Mayor Delgrosso assured Council that, throughout the process, the Administration will make sure that the health services for the people in the community are the same as or better than today. Mayor Delgrosso confirmed he has spoken with all of the individuals who work in the Health Bureau and others to inform them about the matter so that they understand the Administration's position.

President Gregory asked if the former Health Bureau Director has been contacted and whether he has expressed any interest in returning. Mayor Delgrosso explained that, in view of a possibility of joining with the County, he does not think it would be fair to install a full time Health Bureau Director until there are further discussions with Northampton County about the length of the process. Expressing the hope that it will be a long process, President Gregory remarked "the last thing we want to do is jump in there". Referring to comments of the representative of the Commonwealth of Pennsylvania that the City was in such good shape before the Board of Health was dismantled, President Gregory pointed out that would put the City in the position of applying for more bioterrorism grant money. However, President Gregory commented that because the Health Bureau was dismantled the City probably lost some additional funding. President Gregory said he wants to make sure before the County contemplates anything that the City takes a long, hard look at the issue.

Mayor Delgrosso advised that the Administration will share information with City Council concerning the matter.

Voting AYE: Mr. Arcelay. Mrs. Belinski, Mr. Callahan, Mr. Donchez, Mr. Schweder, Ms. Szabo, and Mr. Gregory, 7. The Resolution passed.

3. Administrative Order – Eleanor J. Massi – Board of Health

Mayor James Delgrosso appointed Eleanor J. Massi to the Board of Health, effective until January 2005. Ms. Szabo and Mr. Schweder sponsored Resolution 14,033 to confirm the appointment.

Voting AYE: Mr. Arcelay. Mrs. Belinski, Mr. Callahan, Mr. Donchez, Mr. Schweder, Ms. Szabo, and Mr. Gregory, 7. The Resolution passed.

4. Administrative Order – Dr. Sally Haggerty – Board of Health

Mayor James Delgrosso appointed Dr. Sally Haggerty to the Board of Health, effective until January 2007. Ms. Szabo and Mr. Donchez sponsored Resolution 14,034 to confirm the appointment.

Voting AYE: Mr. Arcelay. Mrs. Belinski, Mr. Callahan, Mr. Donchez, Mr. Schweder, Ms. Szabo, and Mr. Gregory, 7. The Resolution passed.

Ms. Szabo, informing President Gregory that she has asked to be a participant in the discussions about the redesigning of the Health Bureau, expressed the hope that would be acceptable to him. President Gregory expressed his concurrence.

Mr. Callahan, communicating that he would not want his silence to be taken as agreement, expressed his understanding was that, in preparation of the Mayor's proposed budget for 2003, the Department Heads as well as the Health Bureau Director were all given direction in terms of the financial straits of the City and the bottom line number required for each department and bureau. Mr. Callahan said, unfortunately, the Health Bureau Director came in with a budget that was 100% higher than the year before. Consequently, in the absence of making his own cuts, the cuts were made for him. Mr. Callahan said that is why the two jobs in the Health Bureau were eliminated. Acknowledging that "in the 11th hour there was an attempt to find other areas to make those cuts", Mr. Callahan said he feels "it was too little too late" and did not think "they were meaningful cuts in the sense that the only real way to cut was to cut those jobs and we were going to find those same costs in the Health budget the following year. It was really just shifting money." Confirming that he stands by his vote to eliminate the jobs and he does not take it lightly, Mr. Callahan stressed "in difficult financial times we need to make difficult decisions, and I feel they were the right ones, and I really feel those job losses really rest squarely on the head of the director. Had he come in with a budget that was within reason he might not have needed to cut those jobs."

Mr. Schweder, recalling that Mr. Callahan had asked the head of the Health Bureau to come in with a new budget at the eleventh hour, observed if Mr. Callahan now thinks that was the eleventh hour and not the way to do it then perhaps what Mr. Callahan was asking for was something that did not need to go back and be worked on. Mr. Schweder explained the vote he cast was because of his belief that those positions probably should have been eliminated and the direction that the matter was going. Mr. Schweder, continuing on to point out that the resignations of Board of Health members came seven days later, said "they came about because of the cavalier statements that were made by the former Mayor in the press after this was done as if these individuals could be easily replaced…". Mr. Schweder communicated he thinks that the process was offensive to the Board of Health members, particularly in view of the length of time they served, and was inappropriate treatment. Mr. Schweder advised it was the contention of the Board of Health members that they did not have input into the process. Stating that these individuals would not be coming back into their board positions unless they believed they were going to have input, Mr. Schweder added that, obviously, for legal reasons the City is required to have a Health Board, and they will have to make the determination of how that is structured. Mr. Schweder noted that in talking to them they feel that will be accomplished now and he thinks that is the way the City needs to move forward.

Mr. Callahan explained his point was that the Health Bureau Director was given very clear direction, as were the other department heads, very early on in the budget process to come in with a budget that would fit in the fiscal constraints the City was facing. Mr. Callahan continued on to say the Health Bureau Director did not do that and so the cuts were made for him, and it was really that simple.

Ms. Szabo, highlighting the fact that the 2003 Budget has been voted on and is now closed, pointed out that Council now has the opportunity to build a program that the Members approve of in cooperation with the County.

President Gregory stressed what was done by the Administration at that time to eliminate three positions in the Health Bureau that were 90% funded by the State and that served Bethlehem residents almost 100% "was probably one of the worst financial decisions that was ever made by this or any Administration". Adding that although four of seven Council Members agreed with him, President Gregory highlighted the fact that, because State statute required five votes to overrule, those Health Bureau positions were eliminated from the 2003 Budget. President Gregory reiterated that because of the loss of those positions and related factors the possibility of losing other money then had to be faced by the City. President Gregory stressed that was a big mistake in his opinion.

C. Finance Committee

Mr. Callahan, Chairman of the Finance Committee, presented an oral report of the Committee’s meeting held March 18, 2003 on the following subjects: Professional Services Contract Amendment – Water Treatment Plant Improvements; Transfer of Funds – Liquid Fuels Fund – Union Boulevard Railroad Crossing; Transfer of Funds – Snow Removal; Amending Non-Utility Capital Budget – Year End Figures; Amending Community Development Budget – CDBG – Year End Figures; Amending Community Development Budget – HOME – Year End Figures; Amending Non-Utility Capital Budget – Veterans’ Memorial Park; Amending Non-Utility Capital Budget – Fire Department - Equipment Encumbrance and Exercise Machine.

Chairman Callahan also presented an oral report of the Finance Committee’s meeting held April 1, 2003 prior to the City Council Meeting on the following subjects: Transfer of Funds – 2001 and 2003 Bond Issues – Communications Center Upgrade; and Non-Utility Capital Budget Adjustment – South Side Streetscape/Lighting.

9. ORDINANCES FOR FINAL PASSAGE

A. Bill No. 9 – 2003 – 2003 Bond Issue and 1999 Bond Issue Refunding

The Clerk read Bill No. 9 – 2003 – 2003 Bond Issue and 1999 Bond Issue Refunding, on Final Reading.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Callahan, Mr. Donchez, Mr. Schweder, Ms. Szabo, and Mr. Gregory, 7. Bill No. 9 – 2003, hereafter to be known as Ordinance 4182, was declared adopted.

Mr. Callahan, communicating he is glad this Council decided to approve the 2003 Bond Issue, recalled there was a lot of controversy about the "smaller ticket items" comprising equipment to be purchased for the General Fund. Mr. Callahan continued on to express his thoughts that "certainly in a perfect world we would like to pay for those items with money from our General Fund but that perfect world…situation does not exist in the City right now. We had a number of options. We could have eliminated that important equipment of fleet cars or lift trucks, we could have raised taxes…to pay for that equipment, or we could have borrowed as we did in this bond. Given that the City continues to retire more debt than it takes on, as was discussed earlier this evening, I definitely feel it was a prudent move on our part, given the financial state of the City, and the importance of that equipment, that we had the City borrow that we did. And, I'm happy to see that this Council reversed its earlier Resolution and advocated for those same policies."

President Gregory noted that, although he did not vote along with then Council Member Delgrosso on the issue, he certainly strongly agrees looking back that there were other better ways to do it, and does not think it was the smartest way to do things. President Gregory expressed that, as was said at the time, it is like using a credit card for something that probably should have been paid for in another way. In further response to Mr. Callahan, President Gregory remarked that if taxes had been raised a certain amount over a period of years then the City would not be in that financial situation or the one it is in today. President Gregory asserted the City should have never been in the financial situation it was where it had to use a Bond Issue to pay for those types of small equipment items.

B. Bill No. 11 – 2003 – Rezoning West Second Street and Union Station Plaza – HI to CB

The Clerk read Bill No. 11 – 2003, Rezoning West Second Street and Union Station Plaza – HI to CB, on Final Reading.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Callahan, Mr. Donchez, Mr. Schweder, Ms. Szabo, and Mr. Gregory, 7. Bill No. 11 – 2003, hereafter to be known as Ordinance 4183, was declared adopted.

C. Bill No. 56 – 2002 – General Obligation Note – Municipal Street Lighting System Acquisition

The Clerk read Bill No. 56 – 2002, General Obligation Note – Municipal Street Lighting System Acquisition, on Final Reading.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Callahan, Mr. Donchez, Mr. Schweder, Ms. Szabo, and Mr. Gregory, 7. Bill No. 56 - 2002, hereafter to be known as Ordinance 4184, was declared adopted.

10. NEW ORDINANCES

A. Bill No. 12 – 2003 – Amending Community Development Budget – CDBG and HOME Programs – Year End Figures

The Clerk read Bill No. 12 – 2003, sponsored by Mr. Donchez and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE COMMUNITY DEVELOPMENT BUDGET FOR
2003.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Callahan, Mr. Donchez, Mr. Schweder, Ms. Szabo, and Mr. Gregory, 7. Bill No. 12 – 2003 was declared passed on First Reading.

B. Bill No. 13 – 2003 – Amending Non-Utility Capital Budget – Year End Figures, Veterans’ Memorial Park, and Fire Department Equipment

The Clerk read Bill No. 13 – 2003, sponsored by Mr. Donchez and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE 2003 CAPITAL BUDGET FOR NON-UTILITIES.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Callahan, Mr. Donchez, Mr. Schweder, Ms. Szabo, and Mr. Gregory, 7. Bill No. 13 – 2003 was declared passed on First Reading.

11. RESOLUTIONS

A. Transfer of Funds – Liquid Fuels Fund – Union Boulevard Railroad Crossing

Mr. Donchez and Mrs. Belinski sponsored Resolution 14,035 which transferred $12,500 in the Liquid Fuels Fund Budget from the Road Maintenance Operating Supplies Account to the Union Boulevard Railroad Crossing Account, to upgrade repair of the crossing by Norfolk Southern from standard blacktop/wood to concrete in order to increase the life of the project.