Council Minutes

September 21, 2004 Meeting Minutes

BETHLEHEM CITY COUNCIL MEETING
Bethlehem, Pennsylvania
Tuesday, September 21, 2004 – 7:30 PM – Town Hall

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

President J. Michael Schweder called the meeting to order. Reverend Darrell Johnson, of East Hills Moravian Church, offered the invocation which was followed by the pledge to the flag. Present were Ismael Arcelay, Jean Belinski, Robert J. Donchez, Joseph F. Leeson, Jr., Gordon B. Mowrer, Magdalena F. Szabo, and J. Michael Schweder, 7.

4. APPROVAL OF MINUTES

The minutes of September 7, 2004 were approved.

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

Liability Insurance Ordinance

William Scheirer, 1890 Eaton Avenue, said he read the proposed amendments to the liability ordinance and thinks they look great.

6. OLD BUSINESS

Payment of Stranded Landfill Debt Service

Jean Belinski, Member of Council, recalled that Joseph F. Leeson, Jr., brought up the matter, and it was published in the newspaper, of where the $390,000 is coming from for payment for the debt service for the stranded landfill debt. Mrs. Belinski said she had voiced her opinion on several occasions and quoted from the Finance Committee Meeting of November 5, 2001, Pages 10 and 11, when she asked where the money was coming from:
“Attorney Carlucci [bond counsel] stated that, from the perspective of the financing documents, these are contractual arrangements that have been reviewed and interpreted. Attorney Carlucci confirmed that the way the bond issue is structured, and given the current status of the Bethlehem Authority, clearly the stream of revenue that is anticipated would be sufficient to maintain the Authority in a healthy economic status.”
Mrs. Belinski recounted that she asked a list of questions. She asked “is it possible that Bethlehem Authority customers may sue”. She said the answer was not likely “because the Bethlehem Authority has no customers; customers of water are customers of the City. No cost associated with the sewer plant transaction will be allocated to water customers of the City.” Mrs. Belinski quoted from minutes of the Bethlehem City Council Meeting of December 4, 2001, Page 4: “The amount to be made up in order to make the annual debt service payments for the Bond Issue are about $392,500. Those amounts would come through eventual sale of timber and conservation easements for which the Bethlehem Authority would pay advance payments to the City. The net impact of the General Fund aside from the annual $490,000 already in place would be zero.” Then moving on to a possible taxable bond issue, Bethlehem Authority power and purposes, dated November 3, 2000, Mrs. Belinski quoted from the bottom of the page that “other revenues of Bethlehem Authority such as water revenues would not be pledged or available for debt service on the taxable bond.” Mrs. Belinski stated when this letter was signed, directed to Joseph Leeson, Jr., Esquire, who at that time was City Solicitor, it was signed by Attorney Peter Carlucci, Bond Counsel.

Mrs. Belinski pointed out that now, we didn’t do the timbering, and the Nature Conservancy’s application for a conservation easement which would have generated the necessary funds to meet these expenses was turned down by the Authority because they said the conditions were too restrictive and especially the controlled burning and possible restricting of the volume of water in the future. Stating that, again, there has been a try at getting a conservation easement, Mrs. Belinski said this time forget the Nature Conservancy since the Tunkhannock Township Board of Supervisors would like to conserve at least 600 acres in Tunkhannock Township. Mrs. Belinski said she has the June 10, 2004 minutes of the Bethlehem Authority and the new Executive Director, Steve Salvesen, said he personally transcribes the tapes from the minutes of meeting and under the heading Tunkhannock Township he tells us his summation of the tapes from the meeting which, she said she fails to understand why he doesn’t keep the tapes so if anyone would want to check, the tapes aren’t there. She said our City Clerk keeps our tapes for maybe two years. In it Mr. Salvesen has recorded here “it does not appear that the Board will follow through on approving this easement request from Tunkhannock Township” which would probably generate us $1 million with the money from the Township, the County and the State. Mrs. Belinski said she called Mr. Altemose who is Chairman of the Tunkhannock Township Board who she said assured her that Tunkhannock Township’s request for this conservation easement will have very few restrictions and was sure it would be easy for the Authority and the City to live with. Mrs. Belinski was told by Mr. Altemose that he sent his paperwork in about one and a half weeks ago. Mrs. Belinski said she is wondering where this money is coming from to pay the debt service on the bond for the stranded landfill debt, and why isn’t the Authority acting on these petitions for a conservation easement which would generate some money.

Dennis Reichard, Business Administrator, responded that she is correct that it is the Authority that is to be doing the timbering, not the City, and said he is still waiting, also. He said the second question is also the Bethlehem Authority and he cannot answer that. Mr. Reichard said he is waiting for an opinion from Attorney Carlucci, Bond Counsel, to respond to Mr. Leeson’s memo.

Strategic Plan for Bethlehem Authority

Mrs. Belinski noted that she read in the newspaper that the Mayor was quoted as saying he doesn’t know why Council has asked for a forensic accounting of the Bethlehem Economic Development Corporation (BEDCO), and that the Mayor was criticizing Council for spending $10,000 for the review, which Mrs. Belinski said Council has every right to, from Council’s Professional Services Account. She said the Mayor was quoted as saying “that would buy half of a police car”. Mrs. Belinski then questioned the Mayor as to where Peter Wernsdorfer came from who is to be paid $50,000 as a facilitator for another committee consisting of eight members for the purpose of developing a Strategic Plan for the Bethlehem Authority. She said we now have Art Brooks, forestry consultant, who has a very well developed plan for the management of the watershed and for the timbering in the future of our trees. She said we’ve had over six years and at least two people involved in the selling of water, and in six years have not sold any water. Mrs. Belinski asked who authorized this expenditure and where in the budget is the line item for the $50,000 for this man who, she said, she guesses is an individual contractor.

David Brong, Director of Water and Sewer Resources, said he is the veteran of the strategic planning process and said that for the six organizations that he has put together strategic plans for and with, each and every one of those processes were facilitated by somebody who was an impartial, unbiased objector to lead a group of diverse people through this process. He said Peter Wernsdorfer is that facilitator. He is from the industry, has had some time consulting in the field for twenty-some years. Mr. Brong said he felt that he is clearly an outstanding person to facilitate this strategy and basically help not only the City but also the Authority work through what could be some differences of opinion and things that could derail the entire process. He said the funds came from a line item in the Capital Budget called Future Years Planning that was set aside by the Authority precisely for this endeavor. Mrs. Belinski said she thought the person was hired by the City. Mr. Brong said yes he was, he hired him. Mrs. Belinski asked then if we were giving the Authority money to pay him. Mr. Brong said no it is the City out of the Water Capital Fund. Mrs. Belinski said she had never heard of Mr. Peter Wernsdorfer and asked what his background is that he is going to do this wonderful job that nobody has been able to accomplish so far. Mr. Brong said Peter Wernsdorfer is the President of Integrated Water Services which is a consulting firm that has recently gotten off the ground. He has spent a significant amount of his time most recently for CMA Consulting, a municipal utility-consulting organization. He said Mr. Wernsdorfer was available, the price was right, he had the right personality, he is local, he understands the issues, and Mr. Brong said he felt he was perfect to facilitate the process. Mr. Brong said, to make no mistake, that it is our strategy, but an unfacilitated strategic planning process seldom works. Mrs. Belinski further questioned Mr. Brong regarding two real estate agents who she read in the paper were to be part of the team, and wondered why real estate agents were being brought in. Mr. Brong said there are a handful of people on call basically sitting in the bleachers that could serve to give us an outside opinion in areas where we may not have the expertise. He said real estate is one, that there are no real estate people in City Administration. So, he said, when we have those needs, perhaps a need for a little bit more global economic development perspective, we have those people that have been put on call, basically. They are not going to be full time members of the process but they will be available in the need that we have a use for them. Mr. Brong said we do not have time to get hung up on issues, when we need answers, when we need an outside perspective, we will call them in and we will get the process off the dime so that we can make sure that our deliverable is available in December. Mrs. Belinski said she still does not understand why we need this strategic plan. Everybody has been talking for a long time for a strategic plan. She said we have the timbering under control with Mr. Brooks’ excellent plan to manage our watershed. Mrs. Belinski said she doesn’t know where these water customers are coming from, for six years we have tried to find customers and still do not seem to be been able to do it. Mrs. Belinski asked if we are planning to sell off watershed land. Mr. Brong said categorically no. He said the timbering plan is a small microcosm of the strategic plan. The strategic plan includes not only the commercial issues like potential customers, potential other revenue generating opportunities, the rates that we are charging, but also the costs of operations, the technologies that should be implemented, and the problems that exist with regard to capacity that need solutions. Mr. Brong advised that all needs flushing out because if anyone is of the opinion that a good sound plan exists for these businesses, it does not. That is what we are in the process of. Mrs. Belinski said she agrees. She said we have a filtration plant that is working at half capacity, we have a new engineering consulting firm that says they can fix it and will not cost us any money. She said we know we have ten filters and to redo one will cost $100,000 and the media in those filters has all come to the end of its useful life. That is what we have to do, it is going to cost money and nothing is being done. Mrs. Belinski said we are going to go out and get water customers. But, she said we can’t get more water customers if we can’t filter any more water. She said we are at capacity now. Mr. Brong said he thinks we are all painfully aware of that, and said the solution to the capacity problem comes before the customers, absolutely. Mrs. Belinski said Schoor DePalma, engineering consultants, have been on the payroll for a long time at the Authority, and what have we seen now? Mr. Brong said we actually have a pretty good plan as far as the resolutions of those issues. He said he thinks for the first time there are a number of people in the operations line of business in the water area that have some belief in the solutions that exist right now. Mrs. Belinski said she wishes Council would be let in on what the solutions are. Mr. Brong said in due time that would be part of the budget processing. Mrs. Belinski highlighted the fact that, in addition to the Director of Water and Sewer Resources, there is Mr. Salvesen, Executive Director of the Bethlehem Authority, who was supposed to come up with a strategic plan and who was also supposed to sell the water, none of which has come to fruition. She said now we have another $50,000 consultant, and the Mayor tells us we are wasting money that could buy half of a police car, which is the ironic part of it she said she doesn’t understand. Mrs. Belinski thanked Mr. Brong.

President Schweder recognized Magdalena Szabo, Member of Council, who asked Mr. Brong how many people or companies applied for this $50,000 job. Mr. Brong responded that three major organizations were interviewed. A bid was put on the street, three organizations were interviewed, Peter Wernsdorfer was one of them. He said Mr. Wernsdorfer was chosen, he was the best option.

Ms. Szabo said that some months ago she said she saw an ad in the PLCM flyer to fill a position in the Water Bureau. She asked if that position was filled and what the position was. Mr. Brong said if it was an advertised position it was probably the Superintendent of Water and Sewer Maintenance, and yes, that position was filled. Ms. Szabo asked if we always had that position. Mr. Brong said that it was vacated by Gus Dancho.

Robert J. Donchez, Member of Council, questioned the strategic plan and if it will also include an issue that has been talked about before about really defining very clearly the roles of the City and the roles of the Authority, because as has been said, there is a lot of gray. He asked if this will be part of this review of the strategic plan, even though we are looking at a plan for the future, but will it clear up the roles of the Authority and roles of the City. Mr. Brong agreed that has been a much discussed issue and he intends to clear it up. Mr. Donchez asked if a report would be expected by the end of the year. Mr. Brong said the organizational issues will be included in that strategic plan.

Mayor John B. Callahan stated that the issue of clarifying of duties and delineating lines of responsibility is something that he stressed vehemently to both Mr. Salvesen and Mr. Brong as they move forward with the plan, and what that plan would look like and what the goals would be at the end of that plan in terms of outcome. The Mayor said to rest assured that is an ongoing concern of the Administration and that will be addressed during the course of the strategic planning process. He said we know why we are spending the $50,000 for the consultant, we are expecting to get something out of that as a result. The Mayor said he thinks he has made it clear it is certainly within Council’s prerogative to order an audit for whatever it is that they wish to, there is money in Professional Services to do it. He says he doesn’t quarrel with that at all, it was just that there was nothing other than a comment or concern from an employee, and no one has come to him with a concern, about BEDCO funds. The Mayor said if they were concerned, and they wish to share it with him, he is certainly open to hearing that. He said when pressed as to why the audit was ordered, there was really no reason that he could discern from the newspaper stories. Mayor Callahan said he simply pointed out the fact that $10,000 could buy half a police car, and doesn’t quarrel with the decision to move forward with an audit. The Mayor said we certainly know what we are expecting to receive as a result of our $50,000 for a consultant. Mrs. Belinski said she hopes so.

Ms. Szabo asked if Council could see the credentials of the person who was hired. Mayor Callahan responded yes. Ms. Szabo said to the Mayor she hates this “tit for tat” but said some of the traveling around and the expenses at conventions, the Democratic Convention and other places, would buy the other half of the police car. Mayor Callahan said no expenses have been incurred as a result of him traveling to the Democratic Convention. He said the vast majority is paid for either by the people who requested to have him there or out of his campaign funds. In response to Ms. Szabo’s comment, Mayor Callahan said he finds that going to certain conventions to be helpful, and he said he is requested to speak and take part in a number of conventions.

President Schweder addressed the Mayor and said he would like to follow up and recall that Mr. Salvesen, who is not here tonight, called a meeting which he thinks was at the end of November last year. Mr. Salvesen was present, Ronald Donchez of the Bethlehem Authority, and he thinks Michael Alkhal, Director of Public Works, was present, and then-Mayor Delgrosso, and Mr. Callahan. He said the discussion that took place at that time was that Mr. Donchez had raised the concerns that the failure to have a strategic plan in place and someone to work on that was something of the utmost importance to the Authority and the City. President Schweder recalled that Mr. Donchez had instructed Mr. Salvesen to go about starting this project, which Mr. Donchez reported at the meeting. Mr. Schweder said at that meeting we acceded to Mr. Callahan’s wishes as the Mayor-elect when he was said to us that was really not the job of the Bethlehem Authority, that it was the job of the Administration to develop the strategic plan. President Schweder said he recalls he or someone else asked who would do that, and whether we needed outside people. Mr. Callahan at that time said no because the person who was going to do the strategic plan was the person who Mr. Callahan was going to find as part of a nation-wide search to replace the director of the Water Department who Mr. Callahan indicated he had lost faith in at that point. President Schweder continued on to recount that the person who was brought in to be the Director of Water and Sewer Resources would be the one who would facilitate and direct the strategic plan, and it would be the City’s responsibility. President Schweder questioned whether now Mayor Callahan decided that was the wrong approach to take at that point, or how did things change now that we have somebody else who is going to be working on this?

Mayor Callahan responded that he disagrees, that he did not indicate that we would not need the consultant for this process. He said he did not want this process to be consultant driven and felt that it would be the incoming Director of Water and Sewer Resources who would be best to lead this process, and thinks it is clear that Mr. Brong has a strong handle on the process and is going to be doing just that, leading the process. The plans of whatever use that we will make of a consultant, to reiterate what Mr. Brong has said, that in the times when we feel that we need to go out to get a level of expertise or a third party objective opinion on something that is a sticky point as we work our way through the plan, we will go out and seek that opinion. He said whether it is a real estate professional or, in this case, the consultant. Mayor Callahan said he felt we had enough expertise in-house and, clearly, Mr. Brong has had a lot of expertise in the private sector in strategic planning and is one of the strengths in his coming forward as a candidate for this position, and thinks he will prove to be an outstanding leader of such a process. Mayor Callahan said, as Mr. Brong indicated, that sometimes even in the private sector it is necessary to go out and seek the advice of consultants. He said he is not one who rushes out to look for advice on the part of consultants, but knows that there are times when they are necessary. The Mayor said he knows he never indicated that we would never need a consultant in the course of the strategic planning process, and did indicate, indeed, it would be the City’s role in leading this process.

President Schweder said, in conclusion, then what the Mayor is saying is that at the time he did say that he thought in-house personnel were capable of doing that. He said he still thinks that is the answer to this and is not sure why we have added somebody else to this process when it seemed clear to him that everyone who sat in that meeting that day understood that the Mayor was going to bring the best possible person in here who, in fact, would do that. That is what he really thought was the commitment the Mayor had made. Mayor Callahan said to President Schweder that he doesn’t think he heard him correctly, as he said he never indicated that we would never need a consultant, and did indicate that this was not a process that he wanted to be consultant-driven. He said he felt like he had the expertise in-house to begin the process and, in fact, it was Mr. Salvesen who wanted to go out and pursue looking at potential consultants at that time to come in and start the process. Mayor Callahan said he actually slowed Mr. Salvesen down and said that he didn’t think that was a good idea and that we should wait until we have a Director of Water and Sewer Resources in place because it was that person that he wanted to lead the process and that person he wanted to have input as to when and where and how much we would need outside consultants. Again, Mayor Callahan said he knows he did not indicate that there would never be a time when we wouldn’t seek the advice of outside consultants. He said he hasn’t changed his opinion one bit. President Schweder said thank you to the Mayor for making his point.

7. COMMUNICATIONS

A. Chairman of Human Resources and Environment Committee - Courtesy of the Floor – Time Limits

The Acting Clerk read a memorandum dated September 17, 2004 from Ismael Arcelay, Chairman of the Human Resources and Environment Committee, to which was attached a draft Resolution recommended by the Committee at its September 9, 2004 meeting, amending Rule 3 B of the Rules of Council to institute a time limit for individuals who address City Council under the Courtesy of the Floor.

Mr. Arcelay stated that a proposed Resolution was reviewed by the Committee. Mr. Arcelay made a motion that after consideration of the proposed Resolution that all language after “in excess of twelve minutes” be removed from the Resolution. He said he feels that all language up to that point accomplishes what was intended to accomplish originally. President Schweder stated that, under the proposed amendment, what Mr. Arcelay is proposing is that it would read: “Courtesy of the Floor is extended for public comment as set forth in Rule 3 hereinabove but in no event shall one individual address Council during Courtesy of the Floor for a period of time in excess of twelve (12) minutes”, and the rest of the language, that reads as follows, be stricken: “At the sole and exclusive discretion of the President of Council, the twelve (12) minute time limit during Courtesy of the Floor established herein may be extended for a period of time to be determined by the President of Council.” Ms. Szabo seconded the motion. Mr. Schweder advised Council will not be voting on the Resolution itself tonight because under the Rules it would have to appear in writing this evening and then would be voted on at the next Council meeting.

Robert Donchez stated that he appreciated the Committee considering the ten minutes to twelve minutes, but would never support a time limit of two, three or five like other communities and school districts. He said this, in his opinion, may be the lesser of evils. Mr. Donchez said he does believe that the President of City Council should have the discretion to allow people, if he decides to, to go beyond the twelve minutes. He said he is opposed to this change and the reason is that he thinks that most people who come before City Council, in his ten years of being on Council, will speak less than twelve minutes. Mr. Donchez said occasionally we do have people who obviously go beyond, but when there are very controversial issues with a packed house, very emotional issues, rezoning issues, for example, from the Ballyard, to the Landfill, to Friedensville Road, to Lowe’s, to name a few, he thinks that one of the reasons why we have conducted ourselves with decorum and professionalism and with great control is because of the fact that in some instances we have allowed people at the discretion of the President to go beyond the twelve minutes, and that diffuses, he said, in his opinion, a great deal of tension, that we allow the public to speak. He said he thinks we should have vested in the President the ability to allow a person to go beyond the twelve minutes, and thinks it is a mistake not to, just to go strictly at twelve and cut that person off, or, if you have one representative, for example, that is making a presentation on behalf of a group, and that person goes beyond twelve minutes to cut him off. Mr. Donchez said he thinks it is a mistake, the way the Committee voted on this is the way City Council should vote on this issue. He said he thinks there needs to be some latitude, and there needs to be some discretion. He said he feels that decision must be made by the President, no matter who the President is. Mr. Donchez said he will vote no with this amendment, and feels very strongly that there are exceptions to the rule here and the President should have that latitude to make that decision.

Mrs. Belinski said she is sorry she was not here for that meeting, but had she been here she said she would have voiced her concerns because she said she sat in the audience for eight years and many times got up to speak. She said she never thought she was redundant and thought she was always to the point, and always researched thoroughly every issue she spoke to. Mrs. Belinski said she is very much opposed to any time limits being set. Most of the people have consideration and she thinks the authority of the President would be usurped. She said we elected Mr. Schweder to be the President, or anyone sitting in the President’s chair, and he rules Council and it is his decision when to tell someone that time is up. Mrs. Belinski said she thinks our President should control how long people speak, and agrees with Mr. Donchez, on the whole over the years, no one really abuses the privilege. Mrs. Belinski said she is totally against any time limits at all and will vote nay.

Gordon Mowrer, Member of Council, said he agrees with Mr. Donchez by limiting it to twelve minutes and if the President of City Council allows more, that is fine.

President Schweder said Mr. Arcelay spoke to him after the meeting because he said he does know it was Mr. Arcelay’s intent to do this with a limit of twelve, or ten minutes at that time, before it was compromised. He said with the additional language that allows the discretion to the President of Council, it is his belief that the Rule then becomes oxymoronic. He said if you include the sole exclusive discretion of the President, he can assure that most Presidents sitting here will simply never enforce the rule because if you arbitrarily have the ability to do this, you are not going to stop anyone from speaking. President Schweder said he thinks the power with that should rest with Council as it does with other chambers, and what would be done by accepting Mr. Arcelay’s amendment by taking it out is that on the evening of the meeting it is determined that something is a highly charged issue, we would do what any other chamber would simply do, Council, by a majority vote, would vote to suspend the rule and it would not be left up then to the sole discretion of the President of Council to determine whether the length of time of any individual is changed, it is that the Members of Council could, in fact, do that. He said that is the way it was done and is done in most other legislative bodies, whether they be at the local, the state, or federal level. He said what he is suggesting is that with the language as it is written now giving the discretion to the President, there is really no rule which limits any of this discussion. He said he is going to vote in favor of the amendment as it is proposed by Mr. Arcelay in the belief that would give us something, and would give all of us, by majority vote, the right to determine when an individual should have the right to move beyond the time frame as stated by our rules.

The Members of Council voted, as noted below, to remove the following sentence: “At the sole and exclusive discretion of the President of Council, the twelve (12) minute time limit during Courtesy of the Floor established herein may be extended for a period of time to be determined by the President of Council.”

Voting AYE: Mr. Arcelay, Mr. Leeson, Ms. Szabo, and Mr. Schweder, 4.

Voting NAY: Mrs. Belinski, Mr. Donchez, and Mr. Mowrer, 3.

President Schweder noted that the authorizing Resolution, as amended by the deletion of the sentence, will be listed on the October 5, 2004 Agenda.

B. Proposed Amendments to Liability Insurance Ordinance

The Acting Clerk read a memorandum dated September 10, 2004 from Joseph F. Leeson, Jr., Member of Council, to which was attached a proposed amendment to Bill 37 – 2004 to simplify and strengthen the original proposal.

President Schweder stated that the amendment will be considered on Final Reading of Bill 37 this evening.

C. City Clerk – Amending Article 150 – Board of Appeals

The Acting Clerk read a memorandum dated September 15, 2004 from Cynthia H. Biedenkopf, City Clerk, requesting consideration and adoption of proposed amendments to Codified Ordinance Article 150 – Board of Appeals, as a result of the passage of Ordinance 4254 – Adopting New Article 1701 – Pennsylvania Uniform Construction Code.

President Schweder stated that the appropriate Ordinance will be listed on the October 5 Council Agenda.

D. Business Administrator – 2005 Preliminary Budget Estimate – Pensions

The Acting Clerk read a memorandum dated September 15, 2004 from Dennis W. Reichard, Business Administrator, listing estimates of the financial requirements of the Police, Fire, Officers and Employees, and PMRS pension plans and minimum municipal contribution to the plans for 2005 budget purposes, as required under Act 205.

President Schweder stated that the Communication is for information only at this time.

E. Director of Public Works – Supplemental Engineering Agreement – Paint Mill Bridge

The Acting Clerk read a memorandum dated September 15, 2004 from Michael Alkhal, Director of Public Works, to which was attached an amendment to Supplemental Engineering Agreement for Costs of Services During Construction. This amendment adds funds in the amount of $294,675.33 for a new Part III Costs of Services During Construction, and adds funds in the amount of $2,299.79 to augment the existing Part II Final Design. The City will be reimbursed 95% of the costs. PennDOT requires a resolution authorizing the Mayor and City to enter into the amended Agreement for the Paint Mill Bridge Project.

President Schweder stated that Resolution 11 E is listed on this evening’s Agenda.

F. Director of Parks and Public Property – Southside Recreation Coordinator

The Acting Clerk read a memorandum dated September 17, 2004 from Charles A. Brown, Director of Parks and Public Property, to which was attached a copy of the Contract for Youth Services along with the City Solicitor’s requested changes, the Work Plan for the Southside Recreation Coordinator, and an explanation of funding.

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

Mrs. Belinski, Chairwoman of the Parks and Public Property Committee, stated that the matter will be on the agenda of the Parks and Public Property Committee Meeting scheduled for Thursday, September 30, 2004 at 7:30 PM in Town Hall.

8 . REPORTS

A. President of Council

None.

B. Mayor

1. Administrative Order – William Fitzpatrick – Zoning Hearing Board

Mayor Callahan appointed William Fitzpatrick to the Zoning Hearing Board effective until June 2007. Mr. Donchez and Mr. Leeson sponsored the Resolution.

Motion to Table

Mrs. Belinski asked that this appointment be tabled. Mrs. Belinski said since we have been having problems with the Zoning Board, and suing our own Zoning Hearing Board, she thinks it is very important to scrutinize resumes and said she has some questions. Mrs. Belinski asked if it can be tabled until the next meeting so she can get answers to her questions. Ms. Szabo seconded the motion to table to give Mrs. Belinski time to satisfy her questions.

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

2. Administrative Order – Mona Turner – Sister City Commission

Mayor Callahan appointed Mona Turner to the Sister City Commission effective until September 2007. Mr. Leeson and Mr. Mowrer sponsored Resolution 14,467 to confirm the appointment.

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

Commending City Workers after Flood

Mayor Callahan commended the City’s Police, EMS, and Fire Department, Public Works, and Parks and Public Property workers for their outstanding efforts on Saturday in response to the flooding from Hurricane Ivan. He said Bethlehem was hit relatively hard especially in the Monocacy Creek and Saucon Creek areas, and it got a little precarious at times with the Lehigh River and the concerns there. The Mayor said in typical Bethlehem fashion, both the citizens in the community and the workers from the City of Bethlehem did an outstanding job from the Department Heads right on down. He commended everyone for a job well done.

President Schweder joined the Mayor in thanking everyone and thanked the Mayor on behalf of all the Members of Council for making sure they were apprised of things as they went on through the day. He said the phone calls the Mayor made to him allowed him to call the other Members of Council and said they are all appreciative and are thankful for that.

D. Human Resources and Environment Committee

Mr. Arcelay, Chairman of the Human Resources and Environment Committee, presented an oral report of the Committee’s meeting held September 9, 2004 on the following subject: Amending Rules of Council – Rule 3B – Courtesy of the Floor – 10 Minute Time Limit Proposal.

E. Community Development Committee

Ms. Szabo, Chairwoman of the Community Development, presented an oral report of the Committee’s meeting held September 16, 2004 on the following subject: Proposed 2005 CDBG and HOME Programs.

Ms. Szabo also presented an oral report of the Community Development Committee meeting held prior to this evening’s City Council Meeting on the following subject: City of Bethlehem Health Bureau Programs.

9. ORDINANCES FOR FINAL PASSAGE

A. Bill No. 36 – 2004 – Amending General Fund Budget – Medical Expenses and Fire Department - Grant

The Acting Clerk read Bill No. 36 – 2004 – Amending General Fund Budget – Medical Expenses and Fire Department – Grant, on Final Reading.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 36 – 2004, hereafter to be known as Ordinance 4274, was declared adopted.

B. Bill No. 37 – 2004 – Maintaining Liability Insurance - $10 Million Minimum

The Acting Clerk read Bill No. 37 – 2004 – Maintaining Liability Insurance - $10 Million Minimum, on Final Reading.

Amendment to Bill No. 37 – 2004

Mr. Leeson made a motion to amend Bill No. 37 – 2004, seconded by Mr. Donchez.

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

The Acting Clerk read the Amendment to Bill No. 37 – 2004, sponsored by Mr. Donchez and Mr. Leeson:

“That Bill No. 37 – 2004 is hereby deleted in its entirety and replaced with the following:

AN ORDINANCE OF THE COUNCIL OF THE CITY OF
BETHLEHEM, LEHIGH AND NORTHAMPTON COUNTIES,
PENNSYLVANIA, ADDING ARTICLE 128 “INSURANCE”
TO THE CITY’S ADMINISTRATIVE CODE.

SECTION 1. The Council of the City of Bethlehem hereby ordains that the following new Article 128 of the Codified Ordinances of the City of Bethlehem is adopted and enacted:

128.01 The City of Bethlehem will purchase and continuously maintain liability insurance coverage, from insurance carriers with an A.M.Best rating of not less than “A-“, in an amount of not less than $10.0 million.

128.02 The Mayor shall annually submit to Council, at the time of annual submission of the recommended budget, a listing of the name of the City’s insurance carrier(s), applicable policy limits, insurance deductibles, together with any other information requested from time to time by Council concerning the City’s insurance program.

128.03 In the event that material and substantial modifications or changes in the amounts of insurance coverages, the amounts of deductibles, or the scope of coverage are proposed, the same will be submitted for prior review by City Council, before any such changes are implemented.

SECTION 2. All ordinances and/or resolutions or parts thereof, insofar as the same are inconsistent herewith, are hereby expressly repealed.”

Mr. Leeson, said he circulated to all Members of Council and the Administration some proposed amendments to the ordinance. He acknowledged the excellent idea of his colleague, Mr. Donchez, to do this. Mr. Leeson said the three minor changes are to set a financial responsibility minimum standard for any insurance carrier that writes coverage for the City of Bethlehem with an A.M.Best rating of not less than “A-“, and said historically that has been what we have done anyway, so it is implementing that standard and mandating it. He said the second change is really a housekeeping issue, the original ordinance required the Administration to submit an annual report on our insurance program, and said that one of the things he has observed over the years is there is always uncertainty as to when to submit it and the format to submit reports, timing, etc. He said he thought it would be an orderly process to put it in the budget book, and then from year to year it would just reappear on a logical basis. That was Section 2. Mr. Leeson said Section 3 is if the Administration or even insurance carriers propose material and substantial modifications to the amounts of coverage that we have, or the scope of coverage that will be submitted to Council for review, we would not be in a position to approve them, just a review situation. So if we felt that some action needed to be taken or we needed some funding authorization to get us the kind of coverage we need, we would be able to respond to needs and recommendations as well as for our own thoughts on the process. Mr. Leeson said these are the reasons for the requested changes and requested approval.

Voting AYE on the Amendment: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Amendment passes.

Mayor Callahan asked Mr. Leeson if he would be agreeable to striking from the amendment the word “approval” by City Council. Mr. Leeson said that had been taken out. Mayor Callahan commented on the history of insurance coverage that the City has had going back to 1998 so it is clear where the Administration is now and where we have been and what the direction will be from this Administration moving forward because it has been an issue as a result of the Hirko case and probably will be ongoing. He said in the years 1998 to January 2001, the City had $4 million of maximum coverage, for January 2001 to January 2002 we had $7 million, and $7 million in subsequent years to 2003. It was up in the year 2003 to $11 million and in May 2003 it was lowered again to $7 million, and in July this year to present we upped it to $12 million. Mayor Callahan wants to make it clear to everyone that the City currently has $12 million, and we certainly do not anticipate ever going below $10 million, and appreciates Council weighing in on this issue. He said if you go back through recent years there has been times when the City has had as little as $4 million of insurance and $7 million of insurance as recently as last year. The Mayor said the City will be kept secure and safe from an insurance and liability perspective.

Voting AYE on Bill 37 – 2004, as amended: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill 37 – 2004, hereafter to be known as Ordinance 4275, was declared adopted.

10. NEW ORDINANCES

A. Bill No. 38 – 2004 – Rezoning South Mountain – CS, RM and RG to RR-Residential

The Clerk read Bill No. 38 - 2004, Rezoning South Mountain – CS, RM and RG to RR-Residential, sponsored by Mr. Leeson and Mr. Mowrer, and titled:

AN ORDINANCE AMENDING PART 13 OF THE CODIFIED ORDINANCES OF THE CITY OF BETHLEHEM, PENNSYLVANIA,
AS AMENDED, KNOWN AS THE ZONING ORDINANCE OF THE
CITY OF BETHLEHEM, PENNSYLVANIA, BY AMENDING THE
CITY ZONING MAP.

President Schweder stated that through this process, he thinks, regrettably, there were a number of individuals who came before Council who thought the action that is being taken would be able to prevent the actions that have taken place with the three proposals that Darlene Heller, Director of Planning and Zoning, provided to Members of Councils over the past week. President Schweder said this will obviously not correct what some of those individuals in the community were concerned about. He said, regrettably, those did take place. When you look at the history of when the steep slope was enacted, and some of this terrain is not technically part of that to begin with, President Schweder said he thinks there was a belief by Council at that point that that would have prevented things like this from taking place. President Schweder said that with what is being passed tonight and, hopefully, pass again in two weeks on final motion, is that it will significantly reduce what could be done up on the mountain. He said he met with Ms. Szabo and Christopher Spadoni, Council Solicitor, today to talk about this and it is really more or less a stop gap at this point and to make a determination what above and beyond needs to be done to protect the things that he thinks that the community and all of us hold dear. President Schweder said he thinks that all of Council will be voting for this tonight, but more work will be needed on this.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 38 – 2004 was declared passed on First Reading.

B. Bill No. 39 – 2004 – Amending Article 543 – Residential Permit Parking – Adding 900 Block of East Fifth Street

The Acting Clerk read Bill No. 39 – 2004, Amending Article 543 – Residential Permit Parking – Adding 900 Block of East Fifth Street, sponsored by Mr. Leeson and Mr. Mowrer, and titled:

AN ORDINANCE AMENDING ARTICLE 534 OF
THE CODIFIED ORDINANCES OF THE CITY
OF BETHLEHEM, AS AMENDED, ENTITLED
RESIDENTIAL PERMIT PARKING, BY
REDEFINING RESIDENTIAL PARKING PERMIT
ZONE K.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 39 – 2004 was declared passed on First Reading.

C. Bill No. 40 – 2004 – Amending Article 342 – Re-enacting LERTA – Enterprise Development Area

The Acting Clerk read Bill No. 40 – 2004 – Amending Article 342 – Re-enacting LERTA – Enterprise Development Area, sponsored by Mr. Donchez and Mr. Leeson, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
ARTICLE 342 OF THE CODIFIED ORDINANCES
OF THE CITY OF BETHLEHEM, ENTITLED
LOCAL ECONOMIC REVITALIZATION TAX
ASSISTANCE - ENTERPRISE DEVELOPMENT
AREA, BY CONTINUING THE LERTA PROGRAM
THROUGH DECEMBER 2006.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 40 – 2004 was declared passed on First Reading.

D. Bill No. 41 – 2004 – Amending Article 343 - Re-enacting LERTA – North Side Central Business District

The Acting Clerk read Bill No. 41 – 2004 – Amending Article 343 – Re-enacting LERTA – North Side Central Business District, sponsored by Mr. Leeson and Mr. Mowrer, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
ARTICLE 343 OF THE CODIFIED ORDINANCES
OF THE CITY OF BETHLEHEM, ENTITLED
LOCAL ECONOMIC REVITALIZATION TAX
ASSISTANCE - NORTH SIDE CENTRAL BUSINESS
DISTRICT, BY CONTINUING THE LERTA PROGRAM
THROUGH DECEMBER 2006.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 41 – 2004 was declared passed on First Reading.

E. Bill No. 42 – 2004 – Amending Water Capital Budget – Water Collection and Treatment, and Water Control – Overtime

The Acting Clerk read Bill No. 42 – 2004 – Amending Water Capital Budget – Water Collection and Treatment, and Water Control – Overtime, sponsored by Mr. Leeson and Mr. Mowrer, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE 2004 CAPITAL BUDGET FOR WATER
UTILITIES.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 42 – 2004 was declared passed on First Reading.

F. Bill No. 43 – 2004 – Amending Community Development Budget – South Side Lighting and North Side Planning.

The Acting Clerk read Bill No. 43 – 2004 – Amending Community Development Budget – South Side Lighting and North Side Planning, sponsored by Mr. Donchez and Mr. Leeson, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE COMMUNITY DEVELOPMENT BUDGET FOR
2004.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 43 – 2004 was declared passed on First Reading.

11. RESOLUTIONS

A. Authorizing Execution of Local Law Enforcement Block Grant – Community Policing

Mr. Donchez and Mr. Leeson sponsored Resolution 14,468 which authorized the Mayor to execute the grant award documents for a $21,033 Local Law Enforcement Block Grant, so as to enhance the City’s Community Policing and related enforcement efforts.

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

B. Appointing Local Law Enforcement Block Grant Advisory Board

Mr. Donchez and Mr. Leeson sponsored Resolution 14,469 which appointed the Local Law Enforcement Block Grant Advisory Board, authorized to make non-binding recommendations to the City for the use of funds under the program.

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

C. Authorizing Execution of Winter Traffic Services Agreement – PennDot – 2004/2009

Mr. Leeson and Mr. Mowrer sponsored Resolution 14,470 which authorized the Mayor and the Controller to execute the Pennsylvania Department of Transportation’s Winter Traffic Services Agreement for the winter seasons 2004/2005 through 2008/2009.

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

D. Approving Disposition of Records – Police Department

Mr. Donchez and Mr. Leeson sponsored Resolution 14,471 which authorized the disposition of records from the Police Department listed on Exhibit A in accordance with the Municipal Records Manual.

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

E. Authorizing Execution of Supplemental Engineering Agreement – PennDot – Paint Mill Bridge

Mr. Donchez and Mr. Leeson sponsored Resolution 14,472 which authorized the Mayor and the Controller to execute Supplemental Engineering Agreement No. 050217-C between the Commonwealth of Pennsylvania Department of Transportation, and the City of Bethlehem for the Paint Mill (Schoenersville Road) Bridge over the Monocacy Creek Project, in accordance with the Agreement made a part hereof.

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

Motion – Considering Resolutions 11 F through 11 M as a Group

Mr. Donchez and Mrs. Belinski moved to consider Resolutions 11 F through 11 M as
a group.

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

F. Certificate of Appropriateness – 425 Center Street

Mr. Donchez and Mr. Leeson sponsored Resolution 14,473 which granted a Certificate of Appropriateness to install light fixtures on the new brick piers at 425 Center Street.

G. Certificate of Appropriateness – 52-58 East Wall Street

Mr. Donchez and Mr. Leeson sponsored Resolution 14,474 which granted a Certificate of Appropriateness to replace the grass planting strip along the curb at 52-58 East Wall Street.

H. Certificate of Appropriateness – 57 East Wall Street

Mr. Donchez and Mr. Leeson sponsored Resolution 14,475 which granted a Certificate of Appropriateness to replace the existing slate roofing at 57 East Wall Street.

I. Certificate of Appropriateness – 38 West Market Street

Mr. Donchez and Mr. Leeson sponsored Resolution 14,476 which granted a Certificate of Appropriateness to change the paint colors at 38 West Market Street.

J. Certificate of Appropriateness – 25 East Market Street

Mr. Donchez and Mr. Leeson sponsored Resolution 14,477 which granted a Certificate of Appropriateness to install a lamppost at 25 East Market Street.

K. Certificate of Appropriateness – 415-417 Linden Street

Mr. Donchez and Mr. Leeson sponsored Resolution 14,478 which granted a Certificate of Appropriateness to paint the exteriors of 415-417 Linden Street.

L. Certificate of Appropriateness – 424 Center Street

Mr. Donchez and Mr. Leeson sponsored Resolution 14,479 which granted a Certificate of Appropriateness to replace the existing sidewalk and restore the retaining walls at 424 Center Street.

M. Certificate of Appropriateness – 79 West Market Street

Mr. Donchez and Mr. Leeson sponsored Resolution 14,480 which granted a Certificate of Appropriateness to alter the exterior of 79 West Market Street.

Voting AYE on Resolutions 11 F through 11 M: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolutions passed.

12. NEW BUSINESS

Sinkholes

Mrs. Belinski said today she spent some at the home of Mr. and Mrs. George Kalata who had sinkholes develop on their property at 2304 Lafayette Avenue several years ago when it cost them (they are in their eighties) at that time $30,000 from their life’s savings to fill the sinkholes that our previous Director of Water and Sewer Resources said was an act of God and the City is not responsible. Mrs. Belinski said our insurance company has just recently offered to settle and give them $5,000. She said because of Saturday’s storm she was told they now have two more sinkholes. She said they have already spent $30,000 of their own money and a good portion of the street was redone and they were promised that the rest of the street would be redone. Mrs. Belinski said she was there and across the street saw two depressions, two more sinkholes that are forming, and the concrete contractor who did the work originally said that had the City acted and repaired the rest of the street, these new sinkholes would not be there today. Mrs. Belinski asked what could be done about this and where the City stands on this.

Michael Alkhal, Director of Public Works, said there were some water breaks at that intersection, and there were some sinkholes and there were some repairs. He said that was last summer some time, and great pains were taken by the City to excavate and find the eye of the sinkholes to the extent that they could within the City right-of-way, to find the voids, and to fill them properly. Mr. Alkhal said he was on the site several times with the Streets Superintendent and we excavated in some cases beyond where we were obligated in order to make sure it didn’t happen again. He said we made all the repairs that were necessary at that time within the right-of-way. He said there was a property that had a sinkhole that remained unattended to on private property for quite some time which he doesn’t think was repaired. Mr. Alkhal stated that he honestly did not think that anyone could definitively determine what the causes of the sinkholes were, whether the water main contributed to it or whether it was stormwater runoff causing this. He said he doesn’t know if it is the latest incidence of more sinkholes appearing and if any of them were in the street. Mrs. Belinski said it is right on the other side of where the new pavement was put in from the last sinkhole on their property in their yard. Mr. Alkhal said if it is on private property, you need to try to take some steps to force a fix if possible, he’s not sure, he’d have to discuss that with Planning, Zoning and the Law Bureau, to see what can be done. He said the City tries to take care of those things beyond the right-of-way. If they involve sidewalks, the City tries to push it for safety reasons and facilitate a repair quicker than normally takes place. Mrs. Belinski said there was another one across the street that was not on the Kalata property. The insurance companies on the whole say no they are not going to cover sinkhole damages. The insurance company claims they agreed to do the work and extended the work they were doing. Mrs. Belinski thought the City filled in the rest and it cost the City $19,000. But she does not understand why the insurance company would in this case do the work and finish it up for what should have been the City’s responsibility, $19,000 worth of work. Mr. Alkhal said he is not sure what that is about. He stated, typically, insurance companies only cover the structure if you have sinkhole insurance, the rest they don’t even touch. He said they could check into it. Mrs. Belinski said she thinks there must be something that can be done to help the Kalatas. Mr. Alkhal said if there are any signs of concern in the street in the right-of-way area, the City gets on it right away in order not to allow that part of the area to contribute to it in any way. Mr. Alkhal noted that, pertaining to private property, he would have to discuss that with the Law Bureau. Mrs. Belinski mentioned another recent event of a sinkhole on Butztown Road, the judge ruled against it, costing the people $60,000 because it was found when it was excavated that when the City originally installed those lines, they didn’t have the proper gravel and foundation and support for the lines. She said she is wondering if that could be possible in this area. Mr. Alkhal said he doubted it because they have done some recent repairs. Mrs. Belinski noted there was a cross street but she doesn’t recall where it was but once there was a street that was repaved at a corner property, and the rest of the street wasn’t done and whoever was there from Public Works said they would be back to fix it but it was found out there were more problems. Mr. Alkhal said he would check into it.

Response to Bond Issue

Mr. Leeson thanked Dennis Reichard, Business Administrator, and said he appreciated his prompt and thorough response to his inquiry about the Bond Issue. He said he had a couple of questions, focusing on the debt service coverage ratios for the City’s municipal bond issues, to be followed up on. Mr. Leeson said the debt service coverage ratios are mandated in almost all municipal bond transactions in Pennsylvania, they are not optional, they are mandatory. He said by way of illustration, in the trust indenture that we have with the Bank of New York, it is mandated, which is what really triggered the initial memorandum written to Mr. Reichard. Mr. Leeson said he had concerns that we were not meeting those ratios which was confirmed in Mr. Reichard’s memorandum. Mr. Leeson asked Mr. Reichard if he knew how many bond issues are not in compliance on with the debt service coverage ratio, and asked if it was just the landfill bond issue or are there more. Mr. Reichard responded that he thought there were a couple of the Authority issues and said he was meeting this week with Ronald Donchez, Chairman of the Bethlehem Authority Board, to discuss coverage ratios and also reducing the interest rate on one of the bond issues to pick up additional savings to help some of the shortages in the ratios. Mr. Reichard said there were numbers well over $1 million and said it is nowhere near that. He said it will be resolved, he is meeting this Thursday, and will respond. Mr. Leeson said there are two financial components as he sees it. First, he said is what to do with the Water Fund and the money that is taken out of it, but he said the entire separate issue is the failure to meet the debt service coverage ratios, a technical default on the trust indentures. Mr. Reichard said he spoke to Peter Carlucci, Bond Counsel, and said he felt more of a concern is not making the principal and interest payment, that is the number one concern to the bond holder. Mr. Reichard said the coverage ratio monies just go into one of the Authority’s accounts and those accounts could be used to pay debt service and also to pay for maintenance. We have a lot of excess in the amount of $2 to 4 million if you combine the bond investment improvement and the maintenance fund accounts. In the maintenance fund we have to keep $2 million, and we are well over that. Mr. Reichard said his main concern is making sure we have the money to pay the principal and interest, and obviously our payroll. He said the coverage ratios do not get him as nervous because of the monies that they have that they can use to repay those ratios. Mr. Reichard said he will be meeting with Mr. Donchez and Attorney Carlucci and hopes to resolved that on Thursday. Mr. Leeson said he felt Mr. Reichard was right that the first priority is payment of principal and interest, and that has been paid in full, and acknowledges that. Mr. Leeson said he feels this is not a matter to be taken lightly. Mr. Reichard said he and Mr. Donchez have had discussions on this since last summer, almost a year, and it’s not that we have been taking it lightly, it is known that the Water Fund is struggling, and the timbering has not happened yet. Mr. Reichard said his responsibility as Business Administrator is to look at what he feels are the important issues, and feels that principal and interest are extremely important payments that we need to make. He said the Water Fund now has about $10 million worth of debt service, so about 53 percent of the funding is debt service. Mr. Leeson then asked Mr. Reichard if it is his intent to comply with the debt service coverage ratios. Mr. Reichard said, yes, it has always been his intent to comply, there is give and take in negotiations with the Authority and there are funds available there that can be used to help us out. He said we are at a time now where the Water Fund needs some help.

Update on K-9 Funds

Ismael Arcelay, Member of Council, asked Francis Donchez, Police Commissioner, for an update on funds for the K-9 unit. Commissioner Donchez said Mr. Arcelay’s memo had mentioned a grant, which was not correct. He said the funds that were talked about paying for an additional canine was not a grant, it was from the equitable sharing account, monies from the DEA. He said we have a full time task force member assigned to the DEA Task Force. When they seize money, whether it be Reading, Allentown, we get a cut out of that. The money comes back to the equitable sharing account to be used for law enforcement operations and that can include equipment and training, and there are specifications what it can be used for. Commissioner Donchez said it can be used to purchase or train canine. The Commissioner said he researched our canine usage and in the year 2004 to date we have had only nine canine usage reports, which is nine reports for two canine. Commissioner Donchez said that some of that equitable sharing money is earmarked for some equipment which they would like to purchase. He said he cannot justify adding a third canine when we really do not have much usage of the two that we have. He said they are a great tool, they are available when needed. He said he thinks they are probably one the best public relations tools that we have. Commissioner Donchez said, however, he does not see the need to add a third. Mr. Arcelay asked then if that money would stay in that account in case the need arises in 2005 or 2006. Commissioner Donchez said yes, the money is there. He said we are very careful of what we spend, we don’t spend it arbitrarily. He said there have been big purchases made, new hand guns for the whole department, the crime van, which was approximately $26,000. Commissioner Donchez said he suspects there will be money there in 2005 and 2006 and then some. He said the DEA Task Force does a great job and they continue to funnel money back to us as our portion in participating in that.

Condition of Charles A. Brown

Magdalena Szabo asked on the condition of Charles A. Brown, Director of Parks and Public Property. Jody Reppert, Business Manager, Department of Parks and Public Property, replied that he is doing fine. Mayor Callahan noted that he is out of the hospital, and said that as difficult it was for so many people to deal with the flooding, he thought it must have really been painful for Charlie to be in the hospital on Saturday while everyone else was out and about doing everything they could to react to the flood. Mayor Callahan said he talked to him numerous times on Saturday and would have to guess they had to tie him down because he was trying very hard to direct all the operations. The Mayor said on Monday morning he was driving down to the Colonial Industrial Quarters, and saw Charlie driving out with Jane Persa from his department, already surveying the damage to the area. The Mayor said he was at staff today and back on his feet and that you cannot keep Charlie Brown down for very long. Ms. Szabo thanked the Mayor and said we are all glad he’s improved, but all know he overdoes it, too.

13. COURTESY OF THE FLOOR

Watershed

William Scheirer, 1890 Eaton Avenue, said that at the last meeting of the Water Authority they went into an Executive Session to consider a personnel matter. Mr. Scheirer said he and Gregg Bortz, Express-Times, Nicole Radzievich, Morning Call, Stephen Antalics, Peter Wernsdorfer were asked to leave. Mr. Wernsdorfer was asked a few questions from the press and Mr. Scheirer asked if the strategic plan would include the Watershed and he said “only from the standpoint of nutrients”. Mr. Scheirer then asked if that would mean the type of forest that is there or whether or not there is a forest at all. He replied, “no, only from the standpoint of development”. Mr. Scheirer said he is puzzled after hearing Mr. Brong this evening say that the Watershed would not be sold. Mr. Scheirer said he would have liked to hear that no part of the Watershed would be sold, and maybe Mr. Wernsdorfer meant something different by the word “development” than he thought he meant. Mr. Scheirer then said his question for the Administration would be is there any possibility that the strategic plan that comes out of this facilitation would have a recommendation that any part of the Watershed would be sold.

Mayor Callahan replied that being they are in the early stages of the plan to give a definitive answer at this point would be wrong. Mayor Callahan said he wouldn’t want to limit the planning at this point and want to be open minded to the process and what is going to come out of this, but said he certainly finds it highly unlikely and doubtful at this point.

Time Limit

Stephen Antalics, 737 Ridge Street, with respect to Mr. Donchez’s comments, said he attended the original meeting and asked a question about emotional versus statistical recommendation for limitation. Tonight’s decision, he said, he thinks is also emotional because Mr. Donchez, Acting President, was confronted with a gentleman who has a reputation for speaking for 45 minutes. In the process of the long dissertation, Mr. Donchez was able to intercede and question the gentleman and cut him down to eleven minutes. Mr. Antalics thinks that is significant and commends Mr. Donchez on his wisdom, and said it is a shame that the Council didn’t take advantage of his wisdom.

Bethlehem Authority

Mr. Antalics said going back to 1937 to the original Water Authority under Mayor Pfeifle, the Bethlehem Water Authority, which later became the Bethlehem Authority, commented if you proceed through the process of what the state said was an Authority, and each person’s mission, the Authority, Administration, and Council, and if each group knew their mission, there would be practically no major discussions here or special meetings with the forester because everyone knew what their job was. He said the best way he can summarize would be that everyone is getting into the pie, it has gotten very political, and it reminds him of Abbott and Costello’s “Who’s on First and What’s on Second”.

Recent Resolutions

Mr. Antalics said he looked at three recent resolutions, one being the Patriot Act, the second being Limitation of Courtesy of the Floor, and the third being the Renaming of the Plaza and at a common denominator as to how each of these potential resolutions address the health and welfare of the community and the wellbeing of the public. Mr. Antalics said the Patriot Act resolution was never resolved, it carried on for a period of 7 to 9 months with very concerned citizens coming before Council making very intelligent, well researched presentations and their concern was the welfare of the community in terms of their civil rights. Mr. Antalics said he is looking at how to place the other two resolutions, Limitation of Courtesy of the Floor and Renaming City Plaza, and how they impact on the wellbeing of the community. Mr. Antalics said he really has a serious problem if he uses a common denominator to have ignored the pleas of intelligent people, and in many cases, the best the City has to offer. He said we have seen the best of Bethlehem citizens coming up and asking for a resolution for the welfare of the general community, and it was ignored. He said we have these other two resolutions which really are becoming political. Mr. Antalics asked where is the wisdom here in terms of looking at the common denominator, the wellbeing and welfare of the general community. When you look at that and see that the Patriot Act resolution was ignored, all he said he can say is “for shame”.

Insurance Liability

Dana Grubb, 2420 Henderson Place, thanked Council, and in particular, Councilman Donchez, in pursuing the insurance liability issue. He said in the past some decisions were made due to budgetary pressures and they were “pennywise and pound-foolish” and we have seen the results of that.

Rezoning South Mountain

Mr. Grubb commented on the issue of the rezoning of South Mountain, and said he is heartened to hear that at least some of Council is willing to further pursue the issue of zoning on the mountain. He said, in his opinion, the South Mountain is a geographic feature by which a lot of people identify the City of Bethlehem and it has a wonderful natural area and none of it should be compromised in any way. Mr. Grubb said he thinks that type of character in our community needs to be preserved. Beth Works, Bethlehem Commerce Center, and other sites throughout the community, he said in his opinion, provide more than ample opportunity to grow our community and grow our tax base. Mr. Grubb said he would be saddened to see a level of development attained on the South Mountain that would diminish the character that it adds to the City of Bethlehem and is glad to hear some of Council and others will continue to review that issue and continue to look at the zoning issues regarding the South Mountain and its relationship to the City of Bethlehem.

Time Limit

David Sanders, 69 East Goepp Street, on the subject of the ten minute or twelve minute speaking before City Council, asked Council if he came to the next meeting and signed up to speak for ten minutes, would he be able to relinquish his ten minutes to someone else, and thereby giving them possibly 20 minutes or possibly 24 minutes. President Schweder replied that his initial reaction to that would be no, that Council has not voted on that, but it will be reviewed.

Rezoning South Mountain

Santiago Rivera, 1349 Lynn Avenue, stated that he spoke at the last City Council Meeting and had requested to see if the lot, 1349 Lynn Avenue, could be excluded from the rezoning, which is already utilized as a commercial building and under the current RM zoning it would allow him to convert it into either a childcare facility or possibly a funeral home. He said under RR those options would be eliminated. He said he is requesting that the zoning map could be redrawn and move the property line that is RM right behind his property and be moved up and include that corner lot as part of the RM. Ms. Szabo asked where on Lynn Avenue it is located. Mr. Rivera said it is at the intersection of William and Lynn, the old firehouse, an existing structure. Mr. Rivera said he shares the property line with Bethlehem Housing. Ms. Szabo agreed that it should be included and looked into. Mr. Rivera said he thinks it would be a detriment if he had to establish a single family home as his only option because he doesn’t have much interest in building a single-family home at that intersection due to the traffic anticipated to develop on the Lynn Avenue/William Street corridor. He said also the fact it is next to Bethlehem Housing, it is just under the water tower, and across the street he believes there is a five-acre lot owned by the City, and can’t imagine the City placing single-family homes there. Mr. Rivera said he would imagine it would be used for some official use and if we do get the development anticipated on the William Street side, he wouldn’t be surprised if there wouldn’t be a need for a firehouse or something, which could be located right across the street since the City no longer owns the existing firehouse that was there. Mr. Rivera asked for Council’s consideration.

President Schweder asked what the current use is of the building. Mr. Rivera said it is going to be the headquarters for Magic Woman Personalized Services, a detailed cleaning service for commercial and residential properties as well as lawn care. He said he anticipates moving in after remodeling probably in the December time frame.

14. ADJOURNMENT
The meeting was adjourned at 9:25 p.m.
ATTEST:

Acting City Clerk