Council MInutes

January 19, 2010

BETHLEHEM CITY COUNCIL MEETING
10 East Church Street – Town Hall
Bethlehem, Pennsylvania
Tuesday, January 19, 2009 – 7:00 PM

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

President Donchez called the meeting to order. Father Kevin Bobbin, Holy Infancy Church, offered the invocation which was followed by the pledge to the flag. Present were Jean Belinski, David T. DiGiacinto, Karen Dolan, Eric R. Evans, Gordon B. Mowrer, J. William Reynolds, and Robert J. Donchez, 7.

4. APPROVAL OF MINUTES

The Minutes of January 4, 2010 were approved.

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

None.

6. OLD BUSINESS.

A. Tabled Items

None.

B. Unfinished Business

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

C. Old Business – Members of Council

Casino Host Fee-Treasurer’s Escrow Account – Recommendations

President Donchez requested the Members of Council review the recommendations contained in a memorandum dated January 15, 2010 from Christopher T. Spadoni, Council Solicitor, in response to Councilwoman Belinski’s memorandum. He advised the issue could be addressed at the February 2, 2010 Council Meeting.

7. COMMUNICATIONS

A. City Solicitor – Use Permit Agreement for Public Property – Star of Bethlehem Festival – Riverside Wine Festival

The Acting Clerk read a memorandum dated January 14, 2010 from John F. Spirk, Jr., Esq., City Solicitor, to which was attached a proposed Resolution and Use Permit Agreement for Public Property between the City and the Star of Bethlehem Festival for use of various City properties for the time period May 20, 2010 to May 25, 2010 for the Riverside Wine Festival.

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

8. REPORTS

A. President of Council

1. President Donchez announced the following Committee Assignments for 2010-2011:

COMMUNITY DEVELOPMENT PARKS AND PUBLIC
COMMITTEE PROPERTY COMMITTEE

Karen D. Dolan, Chairwoman Eric R. Evans, Chairman
Jean Belinski Gordon B. Mowrer
Gordon B. Mowrer J. William Reynolds

FINANCE COMMITTEE PUBLIC SAFETY COMITTEE

J. William Reynolds, Chairman David T. DiGiacinto, Chairman
David T. DiGiacinto Karen D. Dolan
Eric R. Evans Eric R. Evans

HUMAN RESOURCES AND
ENVIRONMENT COMMITTEE PUBLIC WORKS COMMITTEE

Gordon B. Mowrer, Chairman Jean Belinski, Chairwoman
Jean Belinski Karen D. Dolan
David T. DiGiacinto J. William Reynolds

2. Authorities, Boards, Commissions Appointees/Liaisons

President Donchez announced the following appointees/liaisons:

Preservation Planning Task Force – Ms. Dolan
Lehigh Valley Planning Commission – Mr. Mowrer
Lehigh Valley Economic Development Corporation – President Donchez
Bethlehem Authority – Mrs. Belinski
Bethlehem Housing Authority – Ms. Dolan
Bethlehem Marketing Council of the Chamber of Commerce – Tourism – Mr. Evans
Lehigh Valley Planning Commission – Mr. Mowrer
Library Board – Mrs. Belinski and Mr. Reynolds
Parking Authority – Mr. DiGiacinto
Recreation Commission – Mrs. Belinski
Redevelopment Authority – Mr. Mowrer
Blighted Property Review Committee – Ms. Dolan

B. Mayor

None.

9. ORDINANCES FOR FINAL PASSAGE

A. Bill No. 1 – 2010 – Amending Article 911 – Water Regulations – Fire Flow Test

The Acting Clerk read Bill No. 1 – 2010 - Amending Article 911 – Water Regulations – Fire Flow Test, on Final Reading.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. Bill No. 1 - 2010, hereafter to be known as Ordinance 2010-1, was declared adopted.

10. NEW ORDINANCES

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

President Donchez stated that at the Council Meeting on January 4 the Bill was approved by a vote of 3 to 2, however under State law 4 votes are needed to approve an Ordinance. President Donchez explained that since this is a new City Council, a member of the minority does not have to make the motion to reconsider. President Donchez then asked if there was a motion to consider Bill No. 2 – 2010 on the agenda. Mr. Reynolds made the motion, seconded by Mr. DiGiacinto.

The Acting Clerk read Bill No. 2 - 2010, Guaranty of Bethlehem Authority Bonds to Refinance the 1998 Guaranteed Water Revenue Bonds, sponsored by Mr. Evans and Mr. DiGiacinto, and titled:

AN ORDINANCE OF THE COUNCIL OF THE CITY OF BETHLEHEM, LEHIGH AND NORTHAMPTON COUNTIES, PENNSYLVANIA, DETERMINING TO INCUR DEBT IN THE PRINCIPAL AMOUNT NOT TO EXCEED $11,600,000 IN CONNECTION WITH THE REFUNDING BY BETHLEHEM AUTHORITY (THE “AUTHORITY”) OF CERTAIN LEASE RENTAL DEBT HERETOFORE LAWFULLY INCURRED BY THE AUTHORITY AS EVIDENCED BY THE AUTHORITY’S OUTSTANDING CURRENT INTEREST BONDS DESIGNATED AS GUARANTEED WATER REVENUE BONDS, SERIES OF 1998 (THE “1998 BONDS”); DETERMINING THAT SUCH DEBT SHALL BE INCURRED AS LEASE RENTAL DEBT TO BE EVIDENCED BY A SERIES OF GUARANTEED WATER REVENUE BONDS, SERIES OF 2010, TO BE AUTHORIZED AND TO BE ISSUED BY THE AUTHORITY; BRIEFLY DESCRIBING THE PROJECT REFINANCED BY THE 1998 BONDS AND SPECIFYING THE REMAINING USEFUL LIFE OF SAID PROJECT; AUTHORIZING AND DIRECTING THE MAYOR, THE PRESIDENT OF THE COUNCIL, THE CITY CONTROLLER, THE CITY TREASURER, THE BUSINESS ADMINISTRATOR OR THE CITY CLERK OF THE CITY TO PREPARE, VERIFY AND FILE, AS APPLICABLE, THE DEBT STATEMENT AND OTHER APPROPRIATE DOCUMENTS REQUIRED BY THE LOCAL GOVERNMENT UNIT DEBT ACT, 53 PA. C.S. § 8001 ET SEQ., AS AMENDED AND SUPPLEMENTED, AND, UPON RECEIPT OF APPROVAL OF THE PENNSYLVANIA DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT, TO EXECUTE, ATTEST, ACKNOWLEDGE AND DELIVER, AS APPROPRIATE, (I) A SEVENTH SUPPLEMENTAL CONTRACT AND LEASE, BETWEEN THE AUTHORITY, AS LESSOR, AND THE CITY, AS LESSEE, SUPPLEMENTING A CONTRACT AND LEASE, DATED AS OF JANUARY 1, 1992, AS HERETOFORE AMENDED AND SUPPLEMENTED, BETWEEN SAID AUTHORITY, AS LESSOR, AND THE CITY, AS LESSEE, AND (II) A GUARANTY AGREEMENT WITH RESPECT TO AFORESAID GUARANTEED WATER REVENUE BONDS, SERIES OF 2010; APPROVING THE FORMS OF SAID SEVENTH SUPPLEMENTAL CONTRACT AND LEASE AND SAID GUARANTY AGREEMENT; CONSENTING TO THE ASSIGNMENT OF SAID SEVENTH SUPPLEMENTAL CONTRACT AND LEASE BY THE AUTHORITY, AS SECURITY, TO THE BANK OF NEW YORK MELLON, AS TRUSTEE UNDER A TRUST INDENTURE, DATED AS OF JANUARY 1, 1992, AS HERETOFORE SUPPLEMENTED AND AMENDED, AND AS FURTHER SUPPLEMENTED AND AMENDED BY A FIFTH SUPPLEMENTAL TRUST INDENTURE, AND AUTHORIZING DELIVERY OF SAID GUARANTY AGREEMENT TO SAID TRUSTEE; SPECIFYING THE MAXIMUM LEASE RENTALS TO BE PAID BY THE CITY PURSUANT TO SAID SEVENTH SUPPLEMENTAL CONTRACT AND LEASE AND THE SOURCE OF PAYMENT OF SUCH LEASE RENTALS; GUARANTEEING PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE AFORESAID GUARANTEED WATER REVENUE BONDS, SERIES OF 2010 AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO; SPECIFYING THE MAXIMUM AMOUNT OF THE GUARANTY OBLIGATIONS OF THE CITY PURSUANT TO SUCH GUARANTY AGREEMENT; PLEDGING THE FULL FAITH, CREDIT AND TAXING POWER OF THE CITY WITH RESPECT TO THE GUARANTY AGREEMENT; AND PROVIDING FOR PROPER OFFICERS OF THE CITY TO TAKE ALL OTHER REQUIRED, NECESSARY OR DESIRABLE RELATED ACTION IN CONNECTION WITH SAID PROJECT, SAID SEVENTH SUPPLEMENTAL CONTRACT AND LEASE, AND SAID GUARANTY AGREEMENT.

Mr. DiGiacinto commented that his questions as Councilman-Elect may have stimulated the conversation this past week. He said he has had an opportunity to speak with the financial advisor, the Bethlehem Authority, the Executive Director of the Bethlehem Authority, the Director of the Water and Sewer Resources Department, and the Controller of the Authority, and all of his questions have been answered. Mr. DiGiacinto said he feels comfortable with moving forward on the refinancing. He added that during the budget period last December he did not pick up on how important this $253,000 was in the budget. He said David Brong, Director of Water and Sewer Resources, pointed out that it was in his presentation; however, Mr. DiGiacinto said he felt it was not very clear or highlighted in the budget book and suggested that in the future mention should be made or footnoted as to any bond refinancing. Mr. DiGiacinto said he felt that in the future things should not be budgeted without approval. He said with regard to the comment about the taxpayers and how important this is that we are talking about ratepayers when we are talking about the Water Authority, and the taxpayers are a subset of that. He noted that after having attended some of the Finance Committee Meetings there are more savings that could have been had three or four months ago than what was presented, roughly at the 3% threshold, at the last meeting. Mr. DiGiacinto remarked that the savings are very important. He said this also makes the furor that was caused by this not being passed, the $382,000 that the General Fund is going to pass over to the Water Fund, also extremely important. He said if the $253,000 was that important, then the $382,000 needs to happen also.

Mr. Evans commented that he thinks it makes sense to do this, the length of the term is not being increased, the principal is not being increased, and by taking advantage of the current rates the savings in debt service will be approximately $467,000. He said that at the December 9, 2009 meeting it was 4.77%, above the 3% threshold, and had fallen to as low as 3.27% in late December. He stated he does not know what it will be by the time it gets to the market, but at this point it is close to a half million dollars and he supports taking advantage of this.

Mr. Reynolds said he echoes his colleagues’ comments. He noted that often the market is in flux in what can be saved from week to week depending on the state of the market and that if this could have been taken care of two weeks ago the City would have been able to get even more back. Mr. Reynolds said he hopes the City will get more back than originally anticipated and can take advantage of the market.

Mr. Mowrer stated that he is in favor of this now although was against it previously because of the way it was presented.

Ms. Dolan thanked Mr. DiGiacinto for doing his due diligence and appreciated his emails and memos in keeping the Members of Council up to speed on his investigations into the matter. She said she is definitely supporting this.

President Donchez commented that he will support this as he did two weeks ago. He said he thinks this is like refinancing a house, it is a savings and hopes that the rates are favorable and there will be a savings of 3 percent or more.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. Bill No. 2 – 2010 was declared passed on First Reading.

11. RESOLUTIONS

A. Accepting Elm Street Operational Grant – North By Northwest Initiative

Mr. Evans and Mr. DiGiacinto sponsored Resolution No. 2010-11 that authorized the execution of a Agreement between the City and the Pennsylvania Department of Community and Economic Development to accept funds for the Elm Street Operation Grant – North by Northwest Initiative in the amount of $50,000 for Year 4 and $50,000 for Year 5 for administrative expenses for the purpose of pursuing the Elm Street Plan. The City will assume the provision of the full local share of the project costs and will reimburse the Commonwealth for the State’s share of any expenditures found by DCED to be ineligible.

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

B. Accepting PennDot PCTI Funds – South Bethlehem Greenway

Mr. Evans and Mr. DiGiacinto sponsored Resolution No. 2010-12 that authorized the acceptance of Pennsylvania Community Transportation Initiative (PCTI) funds from the Department of Transportation in the amount of $1,640,000 for the continued development of the South Bethlehem Greenway.

Ms. Dolan commented that she felt this was great news and asked for an explanation between the relationship between the Pennsylvania Community Transportation Initiative, Department of Transportation and the Greenway.

Tony Hanna, Director of Community and Economic Development, explained that the significant portion of the funding for the Greenway came through the Department of Transportation as part of several program initiatives. He said this is similar and a much larger initiative as part of the stimulus funding that flowed through PennDot but really relates to transportation enhancements, so it is an enhancement project administered by the Department of Transportation. As part of a competitive process last year an application was made and the City was successful in receiving the most significant grant for the development of the Greenway. Ms. Dolan asked if it was a matching grant. Mr. Hanna said a match was in place but PennDot is basically providing a direct grant for the construction. Ms. Dolan asked if it was a you pay and get reimbursed kind of grant. Mr. Hanna replied yes.

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

C. Certificate of Appropriateness – 458 Center Street

Mr. Reynolds and Mr. Mowrer sponsored Resolution No. 2010-13 that granted a Certificate of Appropriateness to make revisions to the previously approved plans to renovate 458 Center Street.

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

D. Certificate of Appropriateness – 446 Main Street

Mr. Reynolds and Mr. Mowrer sponsored Resolution No. 2010-14 that granted a Certificate of Appropriateness to revise the wall sign approved on August 12, 2009 at 446 Main Street.

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

12. NEW BUSINESS.

None.

13. COURTESY OF THE FLOOR

Various Issues

Eddie Rodriquez, 1845 Linden Street, congratulated the Police Department, Police Commissioner Stuart Bedics, and the Special Operations Unit for their efforts with regard to the recent drug activity that was stopped that was meant to come into Bethlehem. He complimented the Mayor and the others for doing a good job. Mr. Rodriquez remarked that he thinks the Police are doing their job but thinks the community should be involved and there should be more public education. He said there should be more public contact with the Police. Mr. Rodriquez then commented that he does not agree with the Skate Park because it involves many young people, there is liability involved, and he thinks the negative environment will set in. He then turned to the problem of the trees that are falling down in the Illick’s Mill Road and Route 378 areas and throughout other certain sections of the City. Mr. Rodriquez requested City officials to look into this and requested that letters be sent to the property owners to take care of their properties. He said he believes this to be a dangerous situation.

Various Issues

Robert Pfenning, 2830 Linden Street, commended Councilman DiGiacinto for bringing up the points concerning the refinancing of the Water Revenue bonds and said the City put the cart before the horse and hopefully that will change in the future. Mr. Pfenning, referring to the LOOP, questioned if it is public policy to subsidize bus routes just to get riders and if that is what is behind the LOOP program. He commented that if the public policy is to encourage people to go from the north side downtown to the south side downtown and back, that is good public policy, he would support that and it would probably have some validity to be budgeted. He said he does not think that just having a bus placed to transport people to the Sands and south side residents to the north side and NCC students, is good public policy because there are other bus routes that need some support. Mr. Pfenning remarked that there are a lot of good, positive things going on in the City but that the negative seems to be swept under the rug all the time. He said with the Sands Casino there are a lot of good things, jobs and development, but nothing is said about the addiction problem and he said there are unfinished structures there. Mr. Pfenning said you do not hear about the downside. He stated that for all the good stuff like the Sands and the Greenway, there’s a lot of bad stuff that is not dealt with. Mr. Pfenning then mentioned that later this week Northampton County Council may be voting on an ordinance concerning taking some shrub and sign money back from the City for Commerce Center Boulevard and thinks that stems from a misconception about the realities of the finances of Bethlehem. He said he thinks there should be a little more concern going forward.

Various Issues

Dana Grubb, 2420 Henderson Place, remarked that he agreed with the comments regarding the Bethlehem Authority financing and said he thought that it needed to be done with the conditions that were imposed on it. He said it is very much like a refinancing of a mortgage except that when you apply to refinance your mortgage you don’t go out and spend the money or make plans for it until you actually get the refinancing approved. He commented that he shares Councilman DiGiacinto’s concern and said the City doesn’t budget grants until they are approved and the City should not be budgeting savings from any bond refinancing or bond issues until they are approved. Mr. Grubb said he looks forward to Council’s follow-through on Council Solicitor Spadoni’s recommendation. Mr. Grubb stated that the law was broken and it is up to Council to enforce it. Mr. Grubb said he received some phone calls from residents in the Laufer/Atlantic Street area who were promised security cameras that have not been installed yet. He said the residents are very concerned, there have been some instances of vandalism, and they would like to see follow- through in that area. Mr. Grubb, recalling when he was an employee, mentioned that given the number of festivals in the City some employees of the Public Works and Parks Departments called Bethlehem “Carnival City” because all they seemed to be doing was working on festivals around the City. He thought that regarding the proposal for the Star of Bethlehem Festival called Riverside Wine Festival the City needs to be careful. He said these are wonderful attractions for the City but the taxpayers are funding City resources to take care of the City, not support festivals. He said he noticed in the agreement language that stated the City would do nothing but provide public safety services and they will be reimbursed. Mr. Grubb said he has been around long enough to know that the City ends up providing support. He said as a taxpayer he is getting tired of that because he sees the conditions of the parks and there are streets that need work. He did commend the Parks Department on improvements that are being made. He said the public maintenance gets deferred but time is always found for festivals. He stated that he thinks the City should be selective going forward given the demands that are being placed on limited City resources.

Lectures by Lehigh University

Bill Scheirer, 1890 Eaton Avenue, stated that Lehigh Professor John Pettegrew was planning to speak but was unable to attend. President Donchez noted he received an email that will be forwarded to all Members of Council from the Professor who intends coming to a future meeting. Mr. Scheirer explained that Professor Pettegrew’s idea is to provide one professor per month to give a lecture in Town Hall on the subject of their choosing. Mr. Scheirer said he thought this benefits the professors because they have requirements to do community service, and it benefits the citizens because some of these lectures could be interesting. Mr. Scheirer believes this is something that could take hold and would be something that the City of Bethlehem would be known for and felt that this venue is an excellent place to do such a thing. He said he feels that the symbolism is great, it takes place in Town Hall with Lehigh reaching out to the City, and this is really something that should be encouraged.

The meeting was adjourned at 7:35 p.m.