Council MInutes

March 16, 2010

BETHLEHEM CITY COUNCIL MEETING
10 East Church Street – Town Hall
Bethlehem, Pennsylvania
Tuesday, March 16, 2010 – 7:00 PM

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

President Donchez called the meeting to order. Reverend William Kuntze, of Christ Church – United Church of Christ, 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 March 2, 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)

Bill No. 9 – 2010 – Refinancing Bond Issues – Refunding of 2002 Bonds, 2003A Bonds, 2004 Bonds, 2004A Bonds and 2006 Note

Dana Grubb, 2420 Henderson Place, referring to Bill No. 9 – 2010, noted there is approximately $300,000 of potential savings for the refinancing of the Bond Issues and asked what will happen to the savings. Dennis Reichard, Business Administrator, replied the debt service payments will be reduced that are currently not budgeted at a reduced amount. In further response to Mr. Grubb, Mr. Reichard advised the money would be in savings unless City Council would decide to use it for something else. Mr. Grubb urged that the savings be set aside for contingency.

Mr. DiGiacinto, acknowledging the debt service reduction is unbudgeted, observed that cash will be freed-up. Mr. Reichard, affirming that is correct, restated that debt service is fully budgeted and the reduction in the debt service amount as a result of the refinancings will be savings. Mr. Reichard confirmed that the money will be left in savings. Mr. Reichard advised that Daryl Peck, of Concord Public Finance, is in attendance this evening to answer any questions regarding Bill No. 9 – 2010.

6. OLD BUSINESS.

A. Tabled Items

None.

B. Unfinished Business

1. Establishing Article 1716 – Landmarks and Properties of Historical Interest
(Assigned to Preservation Plan Task Force)

C. Old Business – Members of Council

Letter to Pennsylvania Gaming Commission - Requesting Completion of Bethlehem Sands Project

President Donchez, recounting that the Resolution to request completion of Bethlehem Sands Project was Tabled at the March 2, 2010 City Council Meeting, noted he subsequently asked that Christopher Spadoni, City Council Solicitor, contact the Members of Council regarding the drafting of a letter rather than a Resolution and to inquire to whom the letter should be addressed and the contents. President Donchez communicated this was done to obtain a sense of direction as to what Members of Council wanted. President Donchez affirmed that the Members of Council have before them this evening an initial draft letter, a second draft letter with changes offered by Mr. DiGiacinto, and a memo from Attorney Spadoni with a summary from the Bethlehem Sands. Rather than a Resolution, President Donchez questioned whether it is the consensus of City Council to go forward with a letter to the Pennsylvania Gaming Commission, whether the Members want to go forward with the initial draft letter from Attorney Spadoni, or the second draft that incorporates the changes offered by Mr. DiGiacinto.
Ms. Dolan read the first change in the second draft with Mr. DiGiacinto’s suggested changes as follows: [ Economic conditions have caused the temporary ] There has been cessation of construction by Bethlehem Sands upon the mall, convention space, and hotel.

Ms. Dolan, commenting why not admit there is a reason for it, observed that the economic conditions have caused the temporary cessation of construction and said she would want to see the initial wording remain. Ms. Dolan added it is not wise to ignore the economic reality right now and it probably was the cause for the slowdown in construction. Ms. Dolan affirmed to President Donchez that she would prefer the wording in the initial draft letter as follows: Economic conditions have caused the temporary cessation of construction by Bethlehem Sands upon the mall, convention space, and hotel. Ms. Dolan continued on to say that Council should build on the more hopeful language that was presented by the Sands because Council cannot rest its opinion on second-hand behind the scenes sources as contained in a newspaper article.

Ms. Dolan then turned to the paragraph on page 2 of the second draft letter with Mr. DiGiacinto’s suggested changes as follows: Please accept this correspondence on behalf of Bethlehem City Council [ requesting ] that the Members of Council want the Bethlehem Sands to fulfill the commitment they made to the City of Bethlehem and to complete the entire approved plan including, but not limited to, completion of the mall, convention space, and hotel, and to provide the City of Bethlehem with quarterly updates as to the project's completion.

Ms. Dolan inquired if Mr. DiGiacinto is asking that the word requesting be deleted.

Mr. DiGiacinto responded to Ms. Dolan that he would rather build on the fact that the Sands made a commitment to the City and they should fulfill it.

Ms. Dolan suggested the words expects or looks forward to Bethlehem Sands fulfilling their commitment that they made to the City of Bethlehem. Ms. Dolan thought that Council should admit what is on their minds in writing a letter.

Mr. Mowrer, commenting that businesses make commitments to the City all the time, pointed out the City is not in a position to hold them to what they claim they want to do. Mr. Mowrer did not think that attacking the Sands is going to help, and could turn them away. Mr. Mowrer stressed that the Sands has already said they are going to restart construction of the hotel so at this point Council should let them do it.

President Donchez queried whether Members of Council favor the initial draft or the language suggested by Mr. DiGiacinto.

Mr. Evans, expressing his agreement with the initial draft letter for the first page, confirmed to President Donchez that he does not want any changes on the first page. Mr. Evans, turning to the second page, noted he prefers the wording of fulfill the commitment, but not the complete change suggested by Mr. DiGiacinto. Mr. Evans, in response to President Donchez noted that the sentence could be phrased: Please accept this correspondence on behalf of Bethlehem City Council that it requests the Bethlehem Sands to fulfill the commitment they made to the City of Bethlehem and to complete the entire approved plan including, but not limited to, completion of the mall, convention space, and hotel, and to provide the City of Bethlehem with quarterly updates as to the project's completion.

Mr. Reynolds commented he would be more likely to leave the initial letter drafted as it was originally by Attorney Spadoni which very closely reflects the Resolution he supported at the March 2 Council Meeting that was eventually tabled. Mr. Reynolds observed that the City only has so much power and the use of the word requesting on the second page is consistent with Council’s power.

Mrs. Belinski expressed her agreement with the initial draft letter.

Ms. Dolan, explaining she is trying to have a more positive letter, commented that sending a positive message that Council anticipates everything happening is sometimes stronger than an admonishment. Ms. Dolan affirmed that she is in agreement with the wording of the first page as originally drafted. Ms. Dolan suggested that the paragraph on page 2 be revised to read as follows: Please accept this correspondence on behalf of Bethlehem City Council which greatly anticipates Bethlehem Sands fulfillment of the commitment they made to the City of Bethlehem and to complete the entire approved plan including, but not limited to, completion of the mall, convention space, and hotel, and to provide the City of Bethlehem with quarterly updates as to the project's completion. Ms. Dolan expressed that, by stating it positively that Council anticipates that the project will be done, Council is showing support and at the same time expectation and enthusiasm. Ms. Dolan said she is suggesting the wording because she thinks the word requesting is too weak versus anticipating and looking forward to it. Ms. Dolan questioned why, after the statements of the Sands about restarting the hotel construction project, Council would be requesting because the Sands has stated they will do it.

President Donchez affirmed that the majority of the Members of Council are in favor of page 1, as written originally.

President Donchez asked Christopher Spadoni, City Council Solicitor, to recite what Ms. Dolan had said. Attorney Spadoni responded that the last paragraph should read as follows: Please accept this correspondence on behalf of Bethlehem City Council which greatly anticipates Bethlehem Sands’ fulfillment of the commitment they made to the City of Bethlehem to complete the entire approved plan including, but not limited to, completion of the mall, convention space, and hotel, and to provide the City of Bethlehem with quarterly updates as to the project's completion. Ms. Dolan affirmed that is her suggested revision.

Mr. DiGiacinto, commenting he does not think anybody here knows for sure why the Sands did not complete the project, communicated he is not fully convinced that it was economic conditions. Mr. DiGiacinto explained he is not in favor of giving the Sands an excuse in a letter to not complete the project, and observed that among the reasons could be they did not want to finish the project, or they did not want to spend the money, or they diverted money to other projects. Mr. DiGiacinto continued on to remark he does not think Council knows for certain that the Sands will finish the project because they said so. Mr. DiGiacinto noted that on the second page he was trying to ask the Sands to fulfill a commitment made at that time to Members of Council and the Administration.

President Donchez, advising he spoke with Robert DeSalvio, President of Sands BethWorks yesterday, and also spoke to him about three weeks ago, stated that he had asked Attorney Spadoni to follow-up on his conversation with Mr. DeSalvio. Noting that Mr. DeSalvio had indicated the Sands was getting close to jump-starting specifically the hotel project, President Donchez informed the Members that although no firm date was given Mr. DeSalvio seemed very positive and optimistic that it would be within a very short period of time. President Donchez asked Mr. DeSalvio to send a memorandum to City Council but he said that would have to be discussed with company representatives. President Donchez affirmed that it had been basically the same conversation when Attorney Spadoni spoke with Mr. DeSalvio.

President Donchez, asking the consensus of the Members of Council on the second page of the letter, inquired whether the Members preferred the initial draft as prepared by Attorney Spadoni, or the changes suggested by Mr. DiGiacinto and Ms. Dolan.

Mr. DiGiacinto indicated his acceptance of the changes offered by Ms. Dolan. President Donchez, advising he would also be in agreement, turned to the Members of Council and confirmed that the majority of Council favor the changes offered by Ms. Dolan on the second page of the letter.

Mr. Reynolds pointed out that the process this evening allowed everyone to hear Council’s thoughts on the matter.

President Donchez, noting the consensus of the Members, asked Attorney Spadoni to make the changes as agreed to by the Members of Council. President Donchez asked that an email copy and a hard copy be provided the Members of Council to review the final letter before it is sent to the Pennsylvania Gaming Commission with copies to the respective parties.

7. COMMUNICATIONS

A. Housing and Community Development Planner – Revised Housing Rehabilitation Guidelines

The Clerk read a memorandum dated March 11, 2010 from Irene Woodward, Housing and Community Development Planner, to which was attached a proposed Resolution revising the Housing Rehabilitation guidelines. The proposed changes included both increasing the amount of funding a homeowner is eligible to receive and incorporating energy efficiency items into the renovations. The additional funding eligible for homeowners addressed both the rising costs in construction as well as providing funding for energy efficient improvements to take place.
President Donchez stated that the Resolution will be placed on the April 6, 2010 Council Agenda.

B. Housing and Community Development Planner – 2009 Public Housing/Section 8 Income Limits

The Clerk read a memorandum dated March 11, 2010 from Irene Woodward, Housing and Community Development Planner, that provided notification of the latest revised household income limits for Housing and Community Development related activities and their applicability to various CDBG funded activities. This data is used to determine program benefits according to the federal statutory intent of the Housing and Community Development Act, as amended.

President Donchez stated that the Communication is for information only, and no action is required.

C. Director of Parks and Public Property – Sale of Parcel of City-Owned Land – Auburn Street

The Clerk read a memorandum dated March 12, 2010 from Ralph E. Carp, Director of Parks and Public Property, regarding a request from Ms. Colleen Miller on behalf of Dreamers Storage, Inc. expressing interest in acquiring City property identified as Tax Parcel No. P7-19-2A located on NS Auburn Street in the Sixteenth Ward, Northampton County. The request was reviewed by the Parks and Public Property Department and the City Solicitor’s Office, it was recommended that the City proceed with the sale, and that an alternative sale agreement be executed for the land as the parcel is an unusual and unique parcel of real estate with no potential recreational value or use to the City.

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

8. REPORTS

A. President of Council

Executive Session

President Donchez announced that an Executive Session was held this evening, Tuesday, March 16, 2010 at 6:00 PM in the Mayor’s Conference Room, prior to the City Council Meeting, to receive an update on Litigation Matters.

B. Mayor

1. Administrative Order – Basil Dolphin, M.D., M.P.H. – Civil Service Board – Engineers and Electricians

Dennis W. Reichard, Acting Mayor, read Mayor Callahan’s appointment of Basil Dolphin, M.D., M.P.H. to the Civil Service Board – Engineers and Electricians, effective until February 2012. Mr. DiGiacinto and Mr. Mowrer sponsored Resolution No. 2010-29 to confirm the appointment.

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

2. Administrative Order – H. Frances Doyle – Redevelopment Authority

Dennis W. Reichard, Acting Mayor, read Mayor Callahan’s reappointment of H. Frances Doyle to the Redevelopment Authority, effective until March 2015. Mr. Mowrer and Mr. Reynolds sponsored Resolution No. 2010-30 to confirm the appointment.

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

3. Administrative Order – Nancy L. Topping – Sister City Commission

Dennis W. Reichard, Acting Mayor, read Mayor Callahan’s reappointment of Nancy L. Topping to the Sister City Commission, effective until March 2013. Mr. Mowrer and Mr. Reynolds sponsored Resolution No. 2010-31 to confirm the appointment.

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

Chairman Reynolds presented an oral report of the Finance Committee meeting of Wednesday, March 10, 2010 at 7:00 PM in Town Hall on the following subjects: Proposed Debt Refinancing - 5 Issues - Refunding of 2002 Bonds, 2003A Bonds, 2004 Bonds, 2004A Bonds, and 2006 Note; Golf Fund – 2009 Year End Adjustments; Non-Utility Capital Fund – 2009 Year End and 2010 Adjustments; Non-Utility Capital Fund – 2009 Year End Adjustments; CDBG and HOME Programs – 2009 Year End Adjustments; Proposed New Ordinance – Amending Article 121 – Fiscal Policy and Financial Reporting; Miscellaneous Accounts Receivable; Treasurer’s Escrow Account Borrowing – December 31, 2009; and Finance Committee Discussion Items.

9. ORDINANCES FOR FINAL PASSAGE

A. Bill No. 3 - 2010 – Amending Article 1701 – Adopting 2009 Pennsylvania Uniform Construction Code (PA UCC)

The Clerk read Bill No. 3 - 2010, Amending Article 1701 – Adopting 2009 Pennsylvania Uniform Construction Code, on Final Reading.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. Bill No. 3 - 2010, hereafter to be known as Ordinance No. 2010 - 3, was declared adopted.

B. Bill No. 4 - 2010 – Amending Article 1702 – Revising Fees for the Enforcement of the Pennsylvania Uniform Construction Code

The Clerk read Bill No. 4 – 2010, Amending Article 1702 – Revising Fees for the Enforcement of the Pennsylvania Uniform Construction Code, on Final Reading.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. Bill No. 4 - 2010, hereafter to be known as Ordinance No. 2010 - 4, was declared adopted.

10. NEW ORDINANCES

A. Bill No. 5 - 2010 – Amending the 2010 Golf Course Enterprise Fund Budget – 2009 Year End Adjustments

The Clerk read Bill No. 5 - 2010 – Amending the 2010 Golf Course Enterprise Fund Budget – 2009 Year End Adjustments, sponsored by Mr. Evans and Mr. DiGiacinto, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA,
AMENDING THE GOLF COURSE ENTERPRISE
FUND BUDGET FOR 2010.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. Bill No. 5 – 2010 was declared passed on First Reading.

B. Bill No. 6 - 2010 – Amending the 2010 Non-Utility Capital Fund Budget – 2009 Year End and 2010 Adjustments

The Clerk read Bill No. 6 – 2010 – Amending the 2010 Non-Utility Capital Fund Budget – 2009 Year End and 2010 Adjustments, sponsored by Mr. Evans and Mr. Reynolds, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE 2010 CAPITAL BUDGET FOR NON-UTILITIES.

Ms. Dolan asked the reason for the decrease in the line items for the North by Northwest projects. Chairman Reynolds, affirming that funds were drawn down, observed the decrease reflects money spent in the fourth quarter of 2009 and the line items had to be adjusted.

Ms. Dolan inquired about the Energy Block Grant line item that was being established. Mr. Carp advised that the City is anticipating receiving $702,100 in Federal Stimulus money through the Federal government’s energy efficiency program. Ms. Dolan asked what was requested to obtain the stimulus money. Mr. Carp responded there are seven projects that are detailed for the expenditure of Federal stimulus money that are coupled with an investment grade audit done of all the City buildings to do comprehensive energy efficiency upgrades that would total $3 million. Mr. Carp added that some of the stimulus money will be used for certain improvements and the rest will be done through performance contracting where the savings will pay off the debt service.

Ms. Dolan asked if the decrease in the Sand Island Improvements line item is due to utilization of funds or a cut in the Northampton County grant. Mr. Carp recalled that monies were spent on the boat launch and Sand Island West improvements. Ms. Dolan queried what is the status of the Northampton County Open Space funding to help the City with the Sand Island improvements. Mr. Carp advised that the City is working with Lehigh County to obtain monies through the Green Futures Fund, and there is a pledge from Lehigh County to match some dollars for Sand Island West, Clearview, and West End Parks.

Ms. Dolan inquired whether funding from Northampton County through the Open Space Preservation fund will be received for the Greenway. Mr. Carp indicated that a response could be obtained from the Planning and Zoning Bureau. Ms. Dolan asked for an update on the matter.

Mr. Reynolds highlighted the fact that Federal Stimulus funds going towards the important energy efficiency upgrades project is a good example of the positive use of Federal Stimulus funds.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. Bill No. 6 – 2010 was declared passed on First Reading.

C. Bill No. 7 - 2010 – Amending the 2010 Community Development Budget – 2009 Year End Adjustments

The Clerk read Bill No. 7 – 2010 – Amending the 2010 Community Development Budget – 2009 Year End Adjustments, sponsored by Mr. Evans and Mr. Reynolds, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE COMMUNITY DEVELOPMENT BUDGET FOR 2010.

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

D. Bill No. 8 - 2010 – Amending Article 121 – Fiscal Policy and Financial Reporting

The Clerk read Bill No. 8 – 2010 – Amending Article 121 – Fiscal Policy and Financial Reporting, sponsored by Mr. Evans and Mr. DiGiacinto, and titled:

AN ORDINANCE AMENDING ARTICLE 121 OF THE
CODIFIED ORDINANCES OF THE CITY OF BETHLEHEM,
PENNSYLVANIA, AS AMENDED, ENTITLED FINANCE,
BY ADDING NEW SECTION 121.11, FINANCIAL REPORTING
TO CITY COUNCIL

Ms. Dolan, wondering if there would be duplication of what City Council already receives, and if the Gaming Local Share account information is availably publicly already, wanted to know whether the information is available on-line. Ms. Dolan stated she wants to make sure that all of the reports are necessary and that the only way the information could be obtained is by printing it. Ms. Dolan said she does not want the information to be printed out for her since she can get it by e-mail. Ms. Dolan requested that it be noted that information does not need to be printed out, and added it should be considered on a regular basis to reduce the amount of paper.

President Donchez commented that Ms. Dolan could notify the City Clerk’s Office that she prefers to receive the information via e-mail.

Mr. Reynolds explained the proposed Ordinance that was approved in the Finance Committee consisted of three sections. In the first section, the Analytical Reports that are addressed are already forwarded to City Council and the section puts in it writing so that it can be followed by future Administrations. Pointing out that the Gaming Local Share funds addressed in the second section are unrestricted, Mr. Reynolds affirmed that reports on the use of the funds will have to be reported by future Administrations in light of the ability to fund projects that may be politically popular. Focusing on the Accounts Payable and Accounts Receivable Reports in section three, Mr. Reynolds highlighted the fact that there is currently no centralized tracking. The Finance Committee was informed by the Business Administrator’s Office that a way will be identified to centralize the information and forward the information to City Council. In the future, it will be available on the computer system.

Mr. Evans advised that the proposal was based on some of the points included in a proposal from former Finance Committee Chairman Leeson. Mr. Evans stated that all three reports are critical for the Members of Council to receive. Mr. Evans continued on to say the Ordinance will require that the reports be submitted and will set the time frame so that the information is not dated when it is received and still meaningful. The Gaming Local Share Account report, that would not be lengthy, was geared towards preventing what occurred last Fall and improving transparency. The Accounts Payable and Accounts Receivable Reports are tools also for the Finance Committee to review, and will provide a detailed understanding of monies coming in and what has not been paid so that there can be a better grasp of cash flow. Questions can be raised as to why payments are not being received, and collection efficiencies can be achieved.

President Donchez, stating it is an excellent Ordinance, communicated that it encourages accountability and transparency, and is a very good move in the right direction.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. Bill No. 8 – 2010 was declared passed on First Reading.

E. Bill No. 9 – 2010 – Refinancing Bond Issues – Refunding of 2002 Bonds, 2003A Bonds, 2004 Bonds, 2004A Bonds and 2006 Note

The Clerk read Bill No. 9 – 2010 – Refinancing Bond Issues – Refunding of 2002 Bonds, 2003A Bonds, 2004 Bonds, 2004A Bonds and 2006 Note, sponsored by Mr. Evans and Mrs. Belinski, and titled:

AN ORDINANCE OF THE COUNCIL OF THE CITY OF BETHLEHEM, LEHIGH AND NORTHAMPTON COUNTIES, PENNSYLVANIA, AUTHORIZING AND DIRECTING THE ISSUANCE OF GENERAL OBLIGATION BONDS, SERIES OF 2010 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $13,000,000 PURSUANT TO THE LOCAL GOVERNMENT UNIT DEBT ACT OF THE COMMONWEALTH OF PENNSYLVANIA, 53 PA. C.S. CHS. 80-82 (THE ACT); PROVIDING THE PROCEEDS OF THE BONDS SHALL BE APPLIED TO CARRY OUT THE REFUNDING OF THE REMAINING OUTSTANDING GENERAL OBLIGATION BONDS, SERIES OF 2002 (THE 2002 BONDS), GENERAL OBLIGATION BONDS, SERIES A OF 2003 (THE 2003A BONDS), GENERAL OBLIGATION BONDS, SERIES OF 2004 (THE 2004 BONDS), GENERAL OBLIGATION BONDS, SERIES A OF 2004 (THE 2004A BONDS) AND GENERAL OBLIGATION NOTE, SERIES OF 2006 (THE 2006 NOTE) ("REFUNDING PROGRAM") (THE 2002 BONDS, 2003A BONDS, 2004 BONDS, 2004A BONDS AND 2006 NOTE COLLECTIVELY REFERRED TO AS "PRIOR BONDS"), SETTING FORTH THE ESTIMATED USEFUL LIFE OF THE IMPROVEMENTS FINANCED BY THE PRIOR BONDS; DETERMINING THAT SALE OF THE BONDS SHALL BE A PRIVATE SALE UNDER THE ACT, AND DETERMINING THAT THE BONDS SHALL BE NONELECTORAL DEBT OF THE CITY; FIXING THE INTEREST PAYMENT DATES, DENOMINATIONS AND REGISTRATION, TRANSFER AND EXCHANGE PRIVILEGES OF THE BONDS AND PROVIDING FOR BOOK ENTRY BONDS THROUGH DEPOSITORY TRUST COMPANY; SETTING FORTH THE MATURITY DATES, PRINCIPAL MATURITIES AND CURRENT INTEREST RATES OF EACH SERIES OF BONDS AND ESTABLISHING A REQUIRED SCHEDULE OF PAYMENTS WITH RESPECT TO THE SINKING FUNDS, AS HEREINAFTER ESTABLISHED, IN ORDER TO AMORTIZE THE BONDS; ESTABLISHING THE REDEMPTION PROVISIONS OF THE BONDS, BOTH OPTIONAL AND MANDATORY;

ESTABLISHING THE NOTICE REQUIREMENTS WITH RESPECT TO THE REDEMPTION OF
THE BONDS; ACCEPTING A BID FOR PURCHASE OF THE BONDS AND AUTHORIZING EXECUTION OF THE BOND PURCHASE AGREEMENT; DESIGNATING A PAYING AGENT AND REGISTRAR; DESIGNATING A PLACE AND METHOD OF PAYMENT OF THE BONDS AND INTEREST THEREON AND MAKING CERTAIN COVENANTS WITH RESPECT TO THE TAX FREE STATUS THEREOF; ESTABLISHING THE SUBSTANTIAL FORMS OF THE BONDS AND THE PAYING AGENT'S CERTIFICATE RELATING THERETO; AUTHORIZING EXECUTION AND AUTHENTICATION OF THE BONDS; PROVIDING FOR THE REGISTRATION OF THE BONDS, THE MAINTENANCE OF RECORDS OF REGISTERED OWNERS AND TRANSFER OF THE BONDS; DESIGNATING A SINKING FUND DEPOSITORY; COVENANTING TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS AND PLEDGING THE FULL FAITH, CREDIT AND TAXING POWER OF THE CITY TO SUCH PURPOSE; ESTABLISHING A SINKING FUND FOR THE BONDS AND AUTHORIZING AND DIRECTING PAYMENT THEREFROM; SETTING FORTH CERTAIN PROVISIONS WITH RESPECT TO THE INVESTMENT OF MONIES THEREIN; DESIGNATING A SINKING FUND DEPOSITORY; SETTING FORTH CERTAIN RIGHTS OF THE PAYING AGENT AND BONDHOLDERS IN THE EVENT OF DEFAULT AND OTHER RIGHTS OF THE PARTIES WITH RESPECT TO THE BONDS; PROVIDING FOR THE CIRCUMSTANCES UNDER WHICH THE ORDINANCE MAY BE AMENDED OR MODIFIED; PROVIDING FOR THE TERMS, CONDITIONS AND COVENANTS WITH RESPECT TO THE BOND INSURER, IF ANY, FOR THE BONDS; AUTHORIZING AND DIRECTING SPECIFIED OFFICERS OF THE CITY TO DO AND PERFORM CERTAIN SPECIFIED, REQUIRED OR APPROPRIATE ACTS; AUTHORIZING THE EXECUTION OF DOCUMENTS FOR SETTLEMENT AND THE PAYMENT OF ISSUANCE EXPENSES; DECLARING THAT THE DEBT TO BE INCURRED IS WITHIN THE LIMITATION IMPOSED BY THE ACT UPON INCURRING OF SUCH DEBT BY THE CITY; AUTHORIZING AND DIRECTING PROPER OFFICERS OF THE CITY TO DELIVER THE BONDS UPON EXECUTION AND AUTHENTICATION THEREOF, UPON RECEIPT OF PROPER PAYMENT OF THE BALANCE DUE THEREFOR, AND ONLY AFTER SPECIFIED APPROVAL, AS REQUIRED, OF THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE COMMONWEALTH OF PENNSYLVANIA; SETTING FORTH CERTAIN COVENANTS RELATING TO THE FEDERAL TAX STATUS OF THE BONDS; PROVIDING FOR COMPLIANCE WITH SECURITIES AND EXCHANGE COMMISSION RULE 15c2-12; COVENANTING TO PAY OVER AT SETTLEMENT SUFFICIENT MONIES TO PROVIDE FOR THE PAYMENT OF THE PRIOR BONDS OF EACH SERIES TO BE REFUNDED IN ACCORDANCE WITH THE REFUNDING PROGRAM AND AUTHORIZING AND DIRECTING CERTAIN OTHER ACTIONS AND APPROVING DOCUMENTATION WITH REGARD TO THE REFUNDING, AND ESTABLISHING SINKING FUNDS FOR THE BONDS BEING REFUNDED; PROVIDING FOR THE USE OF AND MAKING A COVENANT AS TO THE ADEQUACY OF THE PROCEEDS TO BE PAID OVER TO THE PAYING AGENT FOR PURPOSES OF THE REFUNDING; PROVIDING FOR THE ISSUANCE OF IRREVOCABLE INSTRUCTIONS TO THE PAYING AGENT FOR THE PRIOR BONDS SUBJECT TO OPTIONAL REDEMPTION TO CALL SAID PRIOR BONDS FOR REDEMPTION ON CERTAIN SPECIFIED DATES, AND ESTABLISHING THE FORM OF SUCH IRREVOCABLE INSTRUCTIONS AND THE NOTICE OF REDEMPTION; PROVIDING FOR NOTICE TO ANY BOND INSURER; PROVIDING FOR SEVERABILITY OF PROVISIONS OF THE ORDINANCE; PROVIDING FOR REPEAL OF ALL ORDINANCES OR PARTS OF ORDINANCES SO FAR AS THE SAME SHALL BE INCONSISTENT; PROVIDING WHEN THIS ORDINANCE SHALL BECOME EFFECTIVE.

Mr. Reynolds, affirming that the Finance Committee was in favor of refinancing five issues, denoted that two of the bonds are set to expire in a few years, and it is an opportunity to gain savings even though the overall threshold of 3% might not be achieved for two of the five issues. Mr. Reynolds pointed out that refinancing the five issues would net approximately $300,000 in savings.

Mr. DiGiacinto pointed out another key point is that the timing might be right to refinance since interest rates are probably at a more favorable level. Mr. DiGiacinto confirmed the Finance Committee agreed with the refinancing of the five issues, the calculations were probably conservative, and the results might be better.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. Bill No. 9 – 2010 was declared passed on First Reading.

11. RESOLUTIONS

A. Authorizing Records Destruction – Purchasing Bureau

Mr. DiGiacinto and Mr. Reynolds sponsored Resolution 2010-32 that authorized the disposition of the public records from the Purchasing Bureau as listed in Exhibit A, according to schedules and procedures for the disposition of records as set forth in the Municipal Records Manual approved on December 16, 2008 and Resolution 2010-6.

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

Motion – Considering Resolutions as a Group

Mr. Reynolds and Mr. Evans moved to consider Resolutions 11 B through 11 F as a group.

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

B. Certificate of Appropriateness – 262 East Market Street

Mr. DiGiacinto and Mr. Mowrer sponsored Resolution 2010-33 that granted a Certificate of Appropriateness to repaint the privacy lattice on the rear porch with a historic color to match the exterior trim of the house at 262 East Market Street.

C. Certificate of Appropriateness – 520 Main Street

Mr. DiGiacinto and Mr. Mowrer sponsored Resolution 2010-34 that granted a Certificate of Appropriateness to install a wall-mounted sign above the storefront window and entry door at 520 Main Street.

D. Certificate of Appropriateness – 411 First Avenue

Mr. Mowrer and Mr. Reynolds sponsored Resolution 2010-35 that granted a Certificate of Appropriateness to install a six-foot high, natural finish wood privacy fence to screen an above ground pool at 411 First Avenue.

E. Certificate of Appropriateness – 504 Main Street

Mr. Mowrer and Mr. Reynolds sponsored Resolution 2010-36 that granted a Certificate of Appropriateness to change the business name on an existing awning at 504 Main Street.

F. Certificate of Appropriateness – 258 East Market Street

Mr. Mowrer and Mr. Reynolds sponsored Resolution 2010-37 that granted a Certificate of Appropriateness to remove the paint and restore the brick to its original appearance at 258 East Market Street.

Voting AYE on Resolutions 11 B through 11 F: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. The Resolutions passed.

12. NEW BUSINESS.

Committee Meeting Announcement

Chairman DiGiacinto re-announced the Public Safety Committee meeting on April 27, 2010 at 7:00 PM in Town Hall.

13. COURTESY OF THE FLOOR

Bethlehem Fields – Lights

Joan Madzarac, 2704 Easton Road, Lower Saucon Township, notified the assembly that the caps on the double lights located in the Bethlehem Fields development across from her bedroom do not keep the glare from lighting up her home and entering her bedroom. Ms. Madzarac stressed it is as bright as dawn when the drapes are open at night. When the tenants of Bethlehem Fields leave their porch lights on her entire dining room and kitchen are lit up. The floodlight from Building I reflected on her television in her living room when the snow bent the bushes on her property. Ms. Madzarac stressed that she cannot escape the offending lights. Ms. Madzarac informed City officials that she is not going to give up because she is fighting for her life and well-being while Boyd Wilson is fighting to keep their profits. Ms. Madzarac queried what if the project changes hands. Ms. Madzarac advised that from 9:00 PM to 10:00 PM one evening the lights from Bethlehem Fields lit up the whole front of her home, and the interior. Relating that on August 3, 2009 Boyd Wilson told the neighbors they do not want to spend money to change the lights, Ms. Madzarac said it may become necessary. Informing the Members that Ms. Samuelson was at the site in August and saw what happened when the lights were turned off and expressed agreement, Ms. Madzarac wondered what changed her mind. Ms. Madzarac, stating that Mr. Cryder also saw the effect of the lights on the homes, remarked that he, too, changed his opinion. Ms. Madzarac, pointing out that the problem is still obvious, asserted there should be no light spillover onto Lower Saucon Township properties. Ms. Madzarac recounted that when Building H’s porch lights were recessed over Boyd Wilson’s objections she came to the City Council Meeting and thanked Mayor Callahan and Attorney Kelly because it worked. Expressing she is grateful to the City for helping her, Ms. Madzarac notified City officials the street lights that had been turned off in August were later turned on again. Ms. Madzarac exclaimed that all the neighbors want is for the lights to be shining on the properties of the Bethlehem Fields development and not into the neighbor’s homes and properties in Lower Saucon Township.

Sodexho Employees - Petition

Dwayne Best, 423 East Broad Street, advised he is an employee of Sodexho at Lehigh Valley Hospital – Muhlenberg. Mr. Best advised he is at the meeting to speak on behalf of Sodexho employees across the Lehigh Valley. Informing the assembly the employees are currently organizing a union to improve the work conditions, Mr. Best said although Sodexho is a multi-billion dollar corporation the employees have low wages and unaffordable benefits, along with being disrespected and intimidated by management. Mr. Best related he was called into the manager’s office and interrogated about union organizing and was told he would be watched. Mr. Best said he filed an unfair labor practice against Sodexho and testified before the Labor Board. Mr. Best added that his co-workers are afraid of losing their jobs. Mr. Best stated he is at the Meeting to ask for support, and said it would be helpful if his co-workers saw that Council was being supportive. Mr. Best notified the Members he has a support pledge that has been signed by Allentown City Council Members and other elected officials, and he would like Bethlehem City Council Members to sign as well.

President Donchez affirmed that the information provided by Rosina Belcourt, Organizer – SEIU 32BJ, was forwarded to the Members of Council and Attorney Spadoni.

Various Issues

Eddie Rodriquez, 1845 Linden Street, thanked Mr. Alkhal for responding to his questions regarding PennDot. Mr. Rodriquez, affirming that he distributed pictures to the Members of Council of intersections on the South Side where work was done by PennDot on handicapped ramps, said if PennDot should renege on modifying or changing the pie-shaped concrete forms there is a photographic record. Mr. Rodriquez advised he was told today by a PennDot representative that the pie-shaped concrete forms would not be in the Five Points area. Mr. Rodriquez requested that inspectors look at the storefronts that are covered with newspapers and flyers, particularly on Fourth Street. Mr. Rodriquez pointed out that on private property there are vehicles with no license plates and flat tires. In addition, Mr. Rodriquez noted that furniture is appearing on porches again. Mr. Rodriquez thanked the Police Commissioner for the cooperation on drug busts, and requested more help in that area. Michael Alkhal, Director of Public Works, affirmed to Mr. Rodriquez that the lanes on the south end of the Minsi Trail Bridge are being extended and it will take place between now and the end of the construction season.

3425 Gail Lane

Ken Kraft, 3445 Gail Lane, stated he is a member of the Zoning Hearing Board. President Donchez confirmed that the Members of Council received a memorandum from Joseph Kelly, Assistant City Solicitor, regarding the issue about which Mr. Kraft will address the Members of Council. Mr. Kraft, noting that Gail Lane is located in the vicinity of Pine Top Trail and the Camel’s Hump area, affirmed it is in the RR – Residential Zone that is the most restrictive zone in the City. Mr. Kraft explained that an organization called Hope House rented a home at 3425 Gail Lane and opened a business to care for adults with disabilities. Mr. Kraft, commenting that the organization received a Certificate of Occupancy for a regular home, said they did not tell the City what they were doing and a couple weeks later about 9-10 cars were in front of the house that is located in a cul-de-sac. Mr. Kraft informed the Members that he called John Lezoche, Zoning Officer, and was told that the organization would be allowed to have the use by right. Mr. Kraft sent a letter and received a response from Attorney Kelly who said they are allowed to do it by right. Mr. Kraft notified the Members the business has three shifts, five cars are coming into the neighborhood at 7:00 AM, 3:00 PM, and 11:00 PM, and the business has only one resident now. Mr. Kraft was told by the woman in charge that the organization is allowed by the State to have three people living there. Adding that each of those three people could have five caregivers 24 hours a day, seven days a week, Mr. Kraft stressed that could amount to 15 cars. Mr. Kraft, referring to the City’s Zoning Ordinance, read the Purpose of the RR Residential District as stated in Section 1304.01. Mr. Kraft remarked that Attorney Kelly made an error regarding Section 1304.02, Use Regulations, paragraph (c) (6) Residential Treatment Facility. Mr. Kraft continued on to refer to Section 1325.08, Special Conditions and Safeguards for Special Exception Uses, paragraphs (j) and (k) (V) and informed the Members that the application never came to the Zoning Hearing Board. Stressing now that the facility is there the onus is on him, Mr. Kraft highlighted the fact that he has lived in Bethlehem all his life since 1961, and he has to pay $400 to file an application to the Zoning Hearing Board of which he is a member and get a lawyer to fight this. Mr. Kraft asked that City Council take up the matter. Mr. Kraft, advising it was stated that the facility is protected under the Federal Fair Housing Act, pointed out the law provides that a valid, unaddressed concern about inadequate parking facilities could justify denying the application if another type of facility would ordinarily be denied by permit for such parking problems. Mr. Kraft confirmed that he sent pictures to City Council showing the amount of cars parked there every day.

President Donchez asked Christopher Spadoni, City Council Solicitor, to review the matter and forward an opinion prior to the next City Council Meeting, and a copy will be sent to Mr. Kraft.

City Budget

Terry Meixell, 56 East Goepp Street, making reference to holding the Administration accountable for spending, said he did not understand using money from the next year’s escrow account to pay for the last year’s bills. Mr. Meixell thought there should be an audit on what has transpired in the last few years. He remarked that sooner or later bills will come due and will have to be paid for. Mr. Meixell thought that Council should start enforcing the regulations on the books. He questioned what the money was spent for, and observed the budget should be balanced. Mr. Meixell noted that funding for auditing assistance was placed in City Council’s budget but the Members later took it away. Mr. Meixell stressed there should be accountability for different projects, and Council holds the purse strings.

Unsolicited Newspapers

Dana Grubb, 2420 Henderson Place, explained that he has seen in various neighborhoods unsolicited newspapers in plastic bags that have been tossed in front of homes where they may remain on lawns and sidewalks, and sometimes may pile up. Stressing it is a littering issue in the City, Mr. Grubb expressed it is a growing concern, is something the City should look into, anti-littering laws should be enforced if they can be, and the City should put an end to this if there is a way to do it.

Zoning Issues

Al Bernotas, 1004 Johnston Drive, exclaimed he was flabbergasted in hearing the zoning issue presented this evening by Mr. Kraft who is a member of the Zoning Hearing Board. Mr. Bernotas thought it highlighted a lot of issues with zoning in general. Mr. Bernotas noted that Mr. Kraft was not present at the Zoning Hearing Board meeting of August 26, 2009 when the Elias Farmers Market variance was heard. Mr. Bernotas pointed out that if a zoning ordinance is not being enforced, and a citizen contacts the Zoning Officer who turns down the request, then the citizen must pay $300-$400 to apply to be heard before the Zoning Hearing Board. Mr. Bernotas thought the price for a citizen to apply to be heard before the Zoning Hearing Board should be $10 versus a developer who can spend $300-$400 and make it part of their expense stream. Mr. Bernotas expressed his understanding is that the job of the Zoning Officer is to enforce the law literally but not to interpret the law, and matters can go to the Zoning Hearing Board for interpretation.

Bill No. 6 – 2010 – Amending 2010 Non-Utility Capital Fund Budget

Mary Pongracz, 321 W. Fourth Street, referring to Bill No. 6 – 2010 – Amending 2010 Non-Utility Capital Fund Budget, asked why the City is paying $79,511 for the One Way Pairing project at Five Points that was voted down. Ms. Pongracz, further pointing out that there are several line items in the Bill pertaining to the Greenway project, thought the line items should be grouped together so that the total can easily be seen. Ms. Pongracz asked why the Mountain Drive Reconstruction item appears on two pages in the Bill. Ms. Pongracz complimented Chairman Reynolds on his running of the Finance Committee meeting.

Irish Heritage

Stephen Antalics, 737 Ridge Street, related stories about his Irish neighbors, about an Irish rooming house in which he stayed in London, and an Irish pub in Philadelphia, and added that the Irish have a great sense of humor.

The meeting was adjourned at 8:30 p.m.