Bethlehem Council MInutes

BETHLEHEM CITY COUNCIL MEETING
10 East Church Street – Town Hall
Bethlehem, Pennsylvania
Tuesday, July 16, 2013 – 7:00 PM

INVOCATION

PLEDGE TO THE FLAG

The Reverend Robert Bast, Emmanuel Evangelical Congregational Church, offered the invocation which was followed by the pledge to the flag.

1. ROLL CALL

President Eric R. Evans called the meeting to order. Present were Jean Belinski, David T. DiGiacinto, Karen Dolan, Robert J. Donchez, Michael D. Recchiuti, J. William Reynolds, and Eric R. Evans, 7.

PUBLIC HEARINGS

Prior to the consideration of the regular Agenda items, City Council conducted two Public Hearings.

Rezoning Request – 2344 Center Street – I – Institutional to R-RC – Residential Retirement Complex

President Evans called to order the first Public Hearing to consider a request to rezone 2344 Center Street in the vicinity of the unopened portion of Langhorne Avenue and Kirkland Village from I –Institutional to R-RC – Residential Retirement Complex, in the 14th Ward of the City of Bethlehem, Northampton County, Pennsylvania, totaling approximately 4.7781 acres.

Communications:

A. Director of Planning and Zoning – Zoning Map Amendment – Portion of 2344 Center Street owned by First Presbyterian Church – I Institutional to RRC Residential Retirement Complex

The Clerk read a memorandum dated June 17, 2013 from Darlene L. Heller, Director of Planning and Zoning, stating that at its June 13, 2013 meeting, the Planning Commission voted 3-0 to recommend approval of the zoning map amendment.

B. Lehigh Valley Planning Commission – Zoning Map Amendment – 2344 Center Street

The Clerk read a letter dated June 28, 2013 from David P. Berryman, Chief Planner, Lehigh Valley Planning Commission, stating that the Lehigh Valley Planning Commission reviewed the amendment at its meeting on June 27, 2013. The Commission considered the proposed map amendment a matter of local concern and offered no comments.

Planning and Zoning Director Comments

Darlene Heller, Director of Planning and Zoning, stated that the site of the rezoning proposal is an area almost five acres in size, and it does not have direct street access. The site abuts both the First Presbyterian Church and Kirkland Village and sits between them. It is an undeveloped flat open lawn area. Ms. Heller continued on to say that the First Presbyterian Church would be transferring the property to Kirkland Village if the rezoning is approved and affirmed that the Bureau has no objection. Ms. Heller stated the use would be in keeping and similar to the type of development that is already there for Kirkland Village.

Public Comment

Michael Peters, Attorney for Eastburn and Gray, informed the Members that he is at this Meeting on behalf of his client, Greenhouse Development LP, that owns a piece of property on 2349 Linden Street in Bethlehem, and Bethlehem Manor Village that owns a piece of property at 1838 Center Street in Bethlehem. Attorney Peters said there are a few comments he would like to stress on behalf of his clients. The first is that in 2008, the City of Bethlehem issued a Comprehensive Plan in which there is a future land use section. Attorney Peters related that, in the future land use section, the Zoning is Institutional at the present, and the contemplated future use remains Institutional. Highlighting the fact that in 2012 the City of Bethlehem underwent an extensive

revamping of its Zoning Ordinance, Attorney Peters pointed out the City again made the decision to keep the Zoning of that parcel Institutional. Based on a review of the limited amount of facts that his client have regarding the proposal, and knowledge of Bethlehem in general, Attorney Peters said there is no evidence or justification for a rezoning that they can comprehend. He stated that the Institutional use there is one of a limited number of Institutional uses within the City. Attorney Peters stated that on behalf of his clients he would object and ask Council to decline to amend the Zoning Map, comply with the Comprehensive Plan, and reaffirm the 2012 decision to stick with the Institutional zoning at that parcel.

David Harte, Vice President of Pennsylvania Venture Capital, stated they own a parcel at Center Street and Dewberry Avenue. Mr. Harte said at this time they would have to express their concern and objection to this proposal. Mr. Harte continued on to say it is because this evening he did not see any intended land use, so what this would do is to rezone some Institutional land to probably the highest density residential use within the City of Bethlehem in an area where it is surrounded by less densely populated areas. Mr. Harte stated he does not know how Council could vote on this proposal this evening without seeing at least a sketch plan of what the proposed use is and what the density would be.

Andrew Bohl, of Hanover Engineering, advised that he is representing the property owners in this rezoning application. It is proposed by the applicant to rezone this property and to have that property acquired by Kirkland Village that is a parent company. Mr. Bohl said, at a future date, they would like to develop the property consistent with the existing Kirkland Village use. Mr. Bohl pointed out that, if this parcel was not rezoned, they would have a dual zoning district on the same property, and that is why the applicant is looking to rezone this area in question.

President Evans, affirming there is no vote on the proposal this evening, confirmed that this is a Public Hearing only. President Evans advised that the Ordinance will be placed on the August 6, 2013 City Council Agenda for First Reading.

The first Public Hearing was adjourned at 7:10 p.m.

JAG Grant – Police Department

President Evans called to order the second Public Hearing on the proposed use of funds to be received under the 2013 Edward Byrne Memorial Justice Assistance Grant (JAG) in the amount of $32,445, of which up to $21,127 is allocated to the City of Bethlehem. The remaining $11,318 is allocated to the City of Easton for whom the City of Bethlehem serves as fiscal agent as required by federal guidelines. For serving as fiscal agent, the City of Bethlehem will receive an administrative fee of $1,131.

Craig Finnerty, Deputy Police Chief, explained that, as with the previous JAG Grants, the Police Department will continue to use the funds for computer hardware and all of the related software for the Police cruiser cars.

There was no Public Comment.

President Evans stated that Resolution 9 A is listed on the Agenda this evening.

The second Public Hearing was adjourned at 7:12 p.m.

2. APPROVAL OF MINUTES

The Minutes of July 2, 2013 were approved.

3. PUBLIC COMMENT

Abandoned Real Property – Bill No. 19 - 2013

Ted Mucellin, representing the Federal Property Registration Corporation, addressed the matter of Bill No. 19 – 2013, Abandoned Real Property. Mr. Mucellin, explaining that he helped advocate with the City to propose the new Ordinance and to develop it, said his company looks forward to bidding on the contract should Council approve the Ordinance. Mr. Mucellin commented that when the Bill comes up for a vote later in the Meeting he would be happy to answer any questions about how the program works.

4. OLD BUSINESS.

A. Old Business – Members of Council

None.

B. Tabled Items

None.

C. Unfinished Business

None.

5. COMMUNICATIONS

C. Director of Planning and Zoning – Miscellaneous Zoning Ordinance Amendments

The Clerk read a memorandum dated July 1, 2013 from Darlene L. Heller, Director of Planning and Zoning, to which was attached the June 12, 2012 memorandum forwarded to the Planning Commission by the Planning Bureau and the proposed Miscellaneous Zoning Ordinance Amendments as approved at the Planning Commission meeting of June 13, 2013.

Mr. Donchez and Ms. Dolan moved to schedule a Public Hearing on Tuesday, August 20, 2013 at 7:00 PM in Town Hall. Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Donchez, Mr. Recchiuti, Mr. Reynolds, and Mr. Evans, 7. The motion passed.

D. Intermunicipal Liquor License Transfer Request – McCarthy’s Irish Pub, Inc. – 534 Main Street

The Clerk read a letter dated July 9, 2013 from Howard Lieberman, of Business & Community Financing Solutions, requesting the transfer of Liquor License No. R 12253 from Northampton Sidelines Sports Bar and Grill, LLC, 854 Washington Avenue, Northampton County, Northampton, Pennsylvania to McCarthy’s Irish Pub, Inc., 534 Main Street, Northampton County, Bethlehem, to be used in conjunction with the operation of Granny McCarthy’s Tea Room and related dining areas.

Mr. Recchiuti and Ms. Dolan moved to schedule a Public Hearing on Tuesday, August 6 at 5:30 PM in Town Hall. Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Donchez, Mr. Recchiuti, Mr. Reynolds, and Mr. Evans, 7. The motion passed.

President Evans asked the Clerk to read additional Communication 5 E into the record.

E. Director of Planning and Zoning – Greenways, Trails and Recreation Grant

The Clerk read a memorandum dated July 15, 2013 from Darlene L. Heller, Director of Planning and Zoning, to which was attached a proposed Resolution for a grant application for a Greenways, Trails and Recreation Grant offered through the Pennsylvania Department of Community and Economic Development and the Commonwealth Finance Agency. The request is for $50,000 in grant funds to be matched by $50,000 in local funds for a total project cost of $100,000.

President Evans stated that under Agenda Item 9, he will accept a motion to add the Resolution.

6. REPORTS

A. President of Council

None.

B. Mayor

None.

Controller’s Report

President Evans recognized the Controller to present the Controller’s Report.

Robert Pfenning, Controller, presented his Second Quarter 2013 Report. Mr. Pfenning first spoke about confirming purchase orders that are purchase orders issued after the good or service has been ordered. He added not only is it not a good business policy, it is also illegal under Codified Ordinance Article 111.01 and under the State law. Confirming that he sent to City Council his three months report last Friday, Mr. Pfenning pointed out that progress is being made this year towards having no confirming purchase orders. Mr. Pfenning thanked the Administration for the cooperation he has received in working towards that goal. As part of this process, Mr. Pfenning advised he has contacted all the Department Heads and met with the CI purchasing committee to pre-audit all disbursements to make sure they are correct. Mr. Pfenning informed the Members that an acceptable invoice has on it the purchase order number provided by the individual who ordered the good or service. A process has been started whereby if invoices coming into Accounts Payable and Financial Services do not have that information, they are sent to the Department and the Department has the obligation to get a new invoice from the vendor with the information on it. This only applies to regular purchase orders, and does not apply to contracts or to blankets that are issued earlier in the year encumbering funds for the entire year or most of the year. Mr. Pfenning explained the Controller’s Office is trying to make sure the encumbrance laws are followed. Mr. Pfenning expressed the hope that at the CI Committee meeting on August 13 everyone will be on board. In September, the Controller’s Office will start enforcing this so that any payment that comes through with an invoice stamped insufficient and does not have prior approval of either the Controller or Deputy Controller will result in the check being voided.

Mr. Pfenning addressed the RCAP Grant for the Lehigh Valley Performing Arts School recently approved by City Council. Mr. Pfenning noted that according to State procedure when RCAP Grants are initially set up City Council must approve the original agreement and the original cooperation agreement between the City and the sub-grantee, that in this case is the School. Mr. Pfenning affirmed that, in accordance with State procedures, City Council never sees the documents again, and does not see any other changes in the Grant or increases. Mr. Pfenning, pointing out that some of the RCAP Grants do increase, advised that Majestic’s Grant for the area at Route 412 and Route 78 started at $1,000,000 and is now $19,000,000. The RCAP for the Farr’s building at Broad and New Streets started at $300,000 and is now $600,000. Mr. Pfenning, focusing on the RCAP Grant for the Lehigh Valley Performing Arts School to be built on the South Side, pointed out that the Administration advised there will be no financial commitment on the City’s part with the project. However, Mr. Pfenning informed the Members there are administrative costs. He stated the City receives from the sub-grantee various expenditure documentation, checks it, and then forwards it to Harrisburg for approval and reimbursement, so there is City personnel time involved. In addition, the standard cooperation agreement between the City and the sub-grantee specifies that the sub-grantee cannot get any RCAP funds if they owe any money to the City. Consequently, the Controller’s Office has to determine whether or not anything is owed to the City. Mr. Pfenning explained that, since the standard cooperation agreement requires the City of Bethlehem to reimburse the Commonwealth of Pennsylvania for ineligible expenditures, if something goes wrong and the sub-grantee does not pay back the money then the City will get billed. Mr. Pfenning communicated that he wanted to make sure City Council is aware of this.

Mr. Pfenning discussed the use of Bond Issue funds for repairs. Mr. Pfenning emphasized that, if City repairs can be charged to the Bond Issue accounts, the City can put off paying for them until the future with taxpayer funds. Mr. Pfenning noted that the Local Government Unit Debt Act clearly allows payment for extraordinary maintenance and repairs, about which he has discussed with the Administration, Bond Counsel, and the City Solicitor’s Office. However, Mr. Pfenning stressed it is not the best practice as put forth by the Governmental Finance Officers Association because those repairs are supposed to be expensed. It is not a simple issue sometimes because it is a question of whether the repair fixes an item or whether it extends the useful life in which case it should be a Bond Issue or a Capital expenditure. Mr. Pfenning noted that in approving several 2013 Bond invoices Council did approve a number of repair bills for garage doors and an air conditioner. Mr. Pfenning pointed out that as far as he knows those repairs did not extend the useful life of any of the assets. Consequently, payment of $5,591 was approved because the law says it can be done. Mr. Pfenning highlighted the fact that the problem becomes when using Bond money to pay for something today it comes out of debt service sometime later, and the City is adding an interest cost to the taxpayers. Mr. Pfenning continued to say he does not know why rationally it was decided that it is good to put such items on the City’s credit card and pay back the debt in the future with a higher cost but City Council did this. Mr. Pfenning likened the situation to the taxpayers’ need for the Fire Department’s garage door to open when there is a fire. Mr. Pfenning noted the Administration agreed to look at this issue and hopefully expand repair budgets for current expenditures.

Mr. Pfenning, focusing on Revenues and Receivables, advised that, independently, the Controller’s Office estimated the annual Casino Host Fees with three different methods to get a range of results. All three showed a predicted shortfall in excess of $300,000. Turning to the new $600,000 revenue item titled First Responders Fee in the 2013 Budget, also referred to as the Amusement Tax, Mr. Pfenning pointed out that the Ordinance was effective February 6, 2013. Mr. Pfenning advised that he, Dennis Reichard, Business Administrator, and Jennifer Doran, Assistant City Solicitor, agree that any tickets that went on sale prior to the Ordinance effective date would not be covered by the Ordinance. The reports are due quarterly and one month after the end of the first quarter the City collected $23,442 out of the $600,000 budgeted. Mr. Pfenning denoted the third quarter report that will come in the end of October is probably the biggest because Musikfest takes place during that quarter. Mr. Pfenning expected the third quarter to be very good, but indicated it will be seen what happens and it may be a stretch to get to $600,000. He added the highest payer of the tax in the first quarter was ArtsQuest that paid about $10,000.

Mr. Pfenning, relating that last year Council adopted Resolution 2012-107 that is the Musikfest Use Agreement, affirmed it is a three year agreement that was revised and originally passed in 2011, and amended in 2012. Mr. Pfenning noted that in 2012 the City’s EMS Bureau did not provide ambulance services, but may be doing so this year. Mr. Pfenning pointed out the Resolution passed last year stated that, after 2012 Musikfest, the City will look at the 2012 expenses and come back and discuss the matter with City Council for the 2013 fees and services. Mr. Pfenning, highlighting the fact that Musikfest will have started prior to the next City Council Meeting on August 6, noted he understands that Mr. Reichard did provide City Council with a memorandum today indicating that a $110,000 contribution from Musikfest will be the appropriate amount for 2013 Musikfest.

Mr. Pfenning, relating he has asked City Council to review Codified Ordinance Article 121.11 and update it, commented that so far nothing has happened. He noted that the Article calls for a quarterly report of aged accounts receivable and accounts payable, and none of those reports have been prepared for City Council or the Controller’s Office from the time that the Ordinance was passed in 2010. Mr. Pfenning highlighted the fact that there is no centralized accounts receivable system in the City so it would be hard to prepare the report. The closest measure is the online report for Miscellaneous Receivables that as of yesterday indicated there were $73,215 of bills unpaid 120 days or more. Mr. Pfenning added some of those will never be collected, and some are liens that are not written off until the lien is settled.

7. ORDINANCES FOR FINAL READING

None.

8. NEW ORDINANCES

A. Bill No. 19 – 2013 – Establishing Article 1732 – Abandoned Real Property

The Clerk read Bill No. 19 – 2013 – Establishing Article 1732 – Abandoned Real Property, sponsored by Mr. Donchez and Mr. DiGiacinto, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM, COUNTIES OF LEHIGH AND NORTHAMPTON, COMMONWEALTH OF PENNSYLVANIA, ESTABLISHING ARTICLE 1732 OF THE CODIFIED ORDINANCES ENTITLED “ABANDONED REAL PROPERTY”; PROVIDING FOR PURPOSE, INTENT AND APPLICABILITY OF THE ORDINANCE; REQUIRING THE REGISTRATION AND MAINTENANCE OF CERTAIN REAL PROPERTY BY MORTGAGEES; PROVIDING FOR PENALTIES AND ENFORCEMENT, AS WELL AS THE REGULATION, LIMITATION AND REDUCTION OF ABANDONED REAL PROPERTY WITHIN THE CITY; PROVIDING FOR SEVERABILITY, REPEALER AND AN EFFECTIVE DATE

Mr. Recchiuti pointed out the typographical error in Section 3 that should state Section 2.

President Evans noted there are neighborhoods in the City where there is one house at which issues have occurred that result in an abandoned property situation. He highlighted the fact that just one house can change the way a neighborhood looks. President Evans, expressing the hope that the Ordinance will be as effective as the City thinks it might be, stated he is pleased the City is moving forward with the Ordinance.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Donchez, Mr. Recchiuti, Mr. Reynolds, and Mr. Evans, 7. Bill No. 19 – 2013 was passed on First Reading.

9. RESOLUTIONS.

A. Authorizing 2013 Edward Byrne Memorial Justice Assistance Grant

Mr. Donchez and Mr. Recchiuti sponsored Resolution 2013-129 that authorized the execution of the Police Department’s application for the 2013 Edward Byrne Memorial Justice Assistance Grant (JAG) in the amount of up to $32,445 of which up to $21,127 will be allocated to the City of Bethlehem Police Department. The remaining amount will be allocated to the City of Easton. The City of Bethlehem will serve as fiscal agent for the grant, and will receive an administrative fee from the City of Easton in the amount of up to $1,131. The grant will be used by the Police Department to continue improvements in computer hardware and software.

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

B. Authorizing License Agreement – Lehigh and Northampton Transportation Authority – Bus
Shelters

Mr. Donchez and Mr. Recchiuti sponsored Resolution No. 2013-130 that authorized the execution of a License Agreement between the City of Bethlehem and Lehigh and Northampton Transportation Authority for the purpose of granting permission to use and occupy the street right-of-way of the City at the locations listed in Exhibit A for the installation of transit shelters, according to the terms of the Agreement.

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

C. Authorizing Amendment to Use Permit Agreement – ArtsQuest – Festival Sites –Musikfest

Mr. Donchez and Mr. Recchiuti sponsored Resolution No. 2013-131 that authorized the execution of an Amendment to the Use Permit Agreement for Festival Sites to remove the premises on Lehigh Street that was recently sold to the Bethlehem Parking Authority.

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

Motion – Adding Resolution 9 D

Mrs. Belinski and Ms. Dolan moved to add Resolution 9 D. Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Donchez, Mr. Recchiuti, Mr. Reynolds, and Mr. Evans, 7. The motion passed.

D. Authorizing Grant Application – Greenways, Trails, and Recreation Program (GTRP)

Mr. Donchez and Mr. Recchiuti sponsored Resolution 2013-132 that authorized the application for a Greenways, Trails, and Recreation Program (GTRP) grant through the Pennsylvania Department of Community and Economic Development and the Commonwealth Finance Agency in the amount of $50,000 to be used for further planning and development of a Bethlehem Area Trail System.

Ms. Dolan asked for an explanation of the Bethlehem Area Trail System.

Darlene Heller, Director of Planning and Zoning, advised that the City worked with an open space committee and Lehigh Valley Greenways. Ms. Heller, communicating that the Greenway in South Bethlehem has been very successful and very well received, explained it has a lot more potential. Ms. Heller advised that the feasibility study will provide information on how the Greenway can connect to the Saucon Rail Trail, Walking Purchase Park, the Delaware and Lehigh Trail, Monocacy Way, and other trails that are existing but not entirely connected. There are plans for marketing and signage programs, and the City wants to take a closer look at some of the economic development benefits of creating a trail system in Bethlehem and beyond. The City has support from the Pennsylvania Department of Conservation and Natural Resources (DCNR), Lehigh Valley Planning Commission (LVPC), Lehigh Valley Greenways, and other groups. Ms. Heller noted it is unique to have a trail system in an urban core. Ms. Heller confirmed the City will be asking for a $50,000 grant from the State that would be matched with funds the City is getting from other partnerships and through in-kind services. Ms. Heller added that a determination would be made in the Fall as to which municipalities will be receiving funding.

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

10. NEW BUSINESS.

Rescheduling Time - August 6, 2013 City Council Meeting - 5:30 PM

President Evans re-announced that the time of the first City Council Meeting in August on Tuesday, August 6, 2013 is rescheduled to 5:30 PM, instead of 7:00 PM.

Committee Meeting Announcement

Chairman DiGiacinto announced a Community Development Committee meeting on July 25, 2013 at 4:30 PM in Town Hall on the following subject: Proposed Miscellaneous Zoning Ordinance Text Amendments.

11. PUBLIC COMMENT

Rail Transit Authority - Lehigh Valley

Kirk Raup, 818 W. Union Boulevard, recalled that towards the beginning of this year he distributed a copy of a draft resolution to effect proceeding with the effort he is trying to make to create a Rail Transit Authority for the Lehigh Valley. Advising he has not had a formal response from any of the three Cities of Allentown, Bethlehem, and Easton just yet, Mr. Raup noted he has contacted all three Cities. Mr. Raup pointed out that he will be meeting with Easton Mayor Panto next Wednesday. Mr. Raup stated he is happy to announce tonight that the City of Allentown informed him they will propose their drafted Resolution tomorrow night at their Council Meeting. Mr. Raup said he is asking if Bethlehem will begin to address this more directly and extend to him the courtesy of talking more closely with City Council either in Committee or as a Committee of the Whole to explain what he is seeking. Mr. Raup communicated that with Allentown taking some action he would like to see Bethlehem follow. Mr. Raup explained his main request tonight is to talk about this proposal with the Members of Council in more detail and with more dialogue. Mr. Raup stressed he thinks that rail service is extremely important to the Lehigh Valley and especially to Allentown, Bethlehem, and Easton that will benefit directly from this service.

President Evans stated that he will speak to Mr. Raup after the Meeting.

Stephen Antalics, 737 Ridge Street, communicated that what he tried to say at the past two Meetings was very simple but he was amazed how a simple statement was not understood. Mr. Antalics expressed his opinion that the Invocation should include everyone and he does not want it to get into any form of discrimination. He thought that the person giving the Invocation should speak to everyone.

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