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Bethlehem Council MInutes
BETHLEHEM CITY COUNCIL MEETING
10 East Church Street – Town Hall
Bethlehem, Pennsylvania
Tuesday, August 5, 2014 – 5:30 PM
INVOCATION
Reverend Debra Hess, St. Thomas United Church of Christ, offered the invocation which was followed by the pledge to the flag.
PLEDGE TO THE FLAG
1. ROLL CALL
President Reynolds called the meeting to order. Present were Bryan G. Callahan, Karen Dolan, Eric R. Evans, Michael D. Recchiuti, Cathy Reuscher, Adam R. Waldron, and J. William Reynolds, 7.
PUBLIC HEARING
Intermunicipal Transfer of Retail Restaurant Liquor License to 530 Pembroke Road
Prior to the consideration of the regular Agenda items, President Reynolds called to order a Public Hearing to receive public comment on the request for the Intermunicipal Transfer of Retail Restaurant Liquor License No. R-7878 owned by Phoenicia Fine Middle Eastern Cuisine LLC, formerly licensed to conduct business at 154 Northampton Street, Easton, Northampton County, Pennsylvania to Weston Place, LLC, 530 Pembroke Road, Bethlehem, Northampton County, Pennsylvania.
Attorney Paul Harak advised he is representing the applicant, Weston Place, LLC. They are proposing to move the liquor license from the City of Easton to the City Bethlehem because it is an intermunicipal transfer and the City of Bethlehem has already exceeded its quota. Attorney Harak affirmed he is at the Public Hearing to ask for City Council’s permission for the liquor license transfer through a Resolution. Attorney Harak confirmed that the Resolution when approved is submitted with the Pennsylvania Liquor Control Board (LCB) package and is sent to the LCB for approval. Attorney Harak pointed out for purposes of reference that the property is located at 530 Pembroke Road and is the former Lantern Restaurant. Attorney Harak explained the principal of Weston Place, LLC is Anthony Spagnola who is at the Meeting tonight to answer any questions. Attorney Harak stated as he understands it the restaurant will serve comfort food and American food, will be a neighborhood restaurant and very similar to the former Lantern Restaurant.
Mr. Evans, noting he had a question about management, observed that Mr. Spagnola has another restaurant on the South Side of Bethlehem and will be opening this one in the future. Mr. Evans wondered who would be managing the new location, as Mr. Spagnola has two liquor licenses, and inquired who would be at the new restaurant.
Mr. Spagnola responded his manager will be Lauren Sunday who is at the Meeting and will answer any questions Council Members may have. Mr. Spagnola affirmed that she will be running the day to day operations.
Mr. Evans recalled that the location has been a restaurant for some time under a number of different names. Mr. Evans, stating he drove by the location today, complimented Mr. Spagnola on the work being done on the building that looks good. Mr. Evans asked what is the plan for the downstairs basement area because there is a lot of space there.
Mr. Spagnola replied the downstairs will be a banquet facility but with no late night activity, and nothing past midnight. He added it would be a facility for funerals, weddings, reunions, and things like that.
Mr. Evans, commenting that the facility downstairs would not be used every day, inquired how it was used in the past for special events.
Mr. Spagnola reiterated the downstairs would be a banquet facility and stated that the restaurant upstairs will be open regular hours.
Mr. Evans observed there is a lot of space shown on the floor plan, and he was just curious as to how this space would be used.
Attorney Harak pointed out the City has a Resolution they complied with and that requires anyone within 500 feet to get notice of this proceeding. It also requires posting at three conspicuous spaces on the property and they also did that. Attorney Harak affirmed that he filed an affidavit with the City Clerk’s Office that was done in excess of 10 days before today’s date as required.
Ms. Dolan asked the procedure for courtesy of floor related to this application. President Reynolds advised when Members of Council are done with any questions or comments he will recognize the public for comments as is standard for these hearings, added the Resolution would be placed on the August 19 City Council Agenda for consideration.
Mr. Callahan wished Mr. Spagnola good luck with the project, and added that he worked at the Lantern Restaurant when he was 12 years old washing dishes. Mr. Callahan recalled it was a popular family restaurant at the time, and up until 4 or 5 years ago they had Freedom High School faculty luncheons and dinners in the downstairs area. Mr. Callahan thanked Mr. Spagnola for doing a great job in restoring the restaurant.
Mr. Recchiuti thanked Mr. Spagnola for his continued investment in the City that includes his establishment on the South Side which is a well run operation, and he expressed the hope that Mr. Spagnola will run this new place in the same manner.
Mr. Spagnola affirmed he will be running the new place in the same manner.
Mr. Recchiuti asked if he has had the zoning approvals.
Mr. Spagnola replied that he has.
Public Comment
Tom Carroll, 248 East Union Boulevard, related he also remembers many years of going to the Lantern Restaurant. Mr. Carroll stated he also knows the owner of the proposed license and knows he runs a very good business. Mr. Carroll advised he is not at the Meeting to object to Mr. Spagnola or his business. Mr. Carroll explained he would like to point out that with regard to this application his concern is related to question number 23 that specifically states the building to be licensed is not located within 300 feet of any church, school, hospital, public playground, or charitable institution, except as follows, and it is indicated in the signed application that there are no exceptions. Mr. Carroll informed the assembly that the location is 80 feet or less from the Salvation Army that is a charitable institution. Mr. Carroll expressed he is not saying he believes he is bringing this objection up and that means the applicant cannot get the license. Mr. Carroll commented what he thinks it means is that they should have placed that on the application, because his concern is the repeated inaccuracies of LCB applications within the City of Bethlehem with regard to this particular question regarding the existence of charitable institutions within 300 feet of a proposed licensee. Mr. Carroll stated this seems to always be the case where the applicant always marks no, and he wonders where this comes from, and added this is a legitimate concern. Mr. Carroll highlighted the fact that the response to question 23 is that the Salvation Army is located at 521 Pembroke Road in Bethlehem, it is a charitable institution in every sense of the word, and is clearly less than 300 feet from the proposed premises. Mr. Carroll said his concern is that the applicant correct it before the process is finally done. Mr. Carroll commended the efforts to improve this neighborhood, and added it looks like they are doing a great job with the renovations so far.
Attorney Harak stressed this is an oversight on his part, he will submit an amendment to that question to change the answer and list the non-profit and the address. Attorney Harak apologized for the oversight and restated he will fix it.
Bill Scheirer, 1890 Eaton Avenue, noted that he grew up a few blocks from the location of the restaurant so he is familiar with it. Mr. Scheirer said the error Mr. Carroll pointed out reminded him of the liquor license application at Market Street and Heckewelder Place a few years ago. The same kinds of mistakes were made and the Liquor Control Board had actually sent an investigator to the neighborhood who certified there was nothing of importance at this nearby location. Mr. Scheirer agreed with Mr. Carroll and Attorney Harak, but said before this is approved they should make sure it is correct. Mr. Scheirer pointed out it is good to make sure that things are properly correct before being approved.
The Public Hearing was adjourned at 5:45 p.m.
2. APPROVAL OF MINUTES
The Minutes of January 30, 2014; February 3, 2014; and July 15, 2014 were approved.
3. PUBLIC COMMENT
None.
4. OLD BUSINESS.
A. Members of Council
None.
B. Tabled Items
None.
C. Unfinished Business
1. Article 112 – Campaign Finance Reports
5. COMMUNICATIONS
A. Assistant City Solicitor – Amendment No . 2 to Sublease Agreement – Illick's Mill
at Monocacy Park
The Clerk read a memorandum dated July 22, 2014 from Matthew J. Kloiber, Assistant City Solicitor, to which was attached a proposed Resolution and associated Amendment No. 2 to Sublease Agreement for Council's consideration, with Illick's Mill Partnership/The Gertrude B. Fox Environmental Center at Illick's Mill.
President Reynolds stated that the Resolution will be placed on the August 19 Agenda.
B. City Solicitor – Highway Safety Project Grant – DUI Program
The Clerk read a memorandum dated July 17, 2014 from William P. Leeson, City Solicitor, to which was attached a copy of the Highway Safety Project Grant Proposal and Budget Summary submitted by the Police Department to the Pennsylvania Department of Transportation in connection with the Impaired Driving Program Contract. The grant will provide funds through September 30, 2015 for DUI program sobriety checkpoints and expanded DUI enforcement operations.
President Reynolds stated that the Resolution will be placed on the August 19 Agenda.
C. Mayor Donchez – Request to Fill Open Positions – Housing Rehabilitation
The Clerk read a memorandum dated July 25, 2014 from Robert J. Donchez, Mayor, requesting that City Council review and approve the positions of Rehab Technical Specialist and Rehab Financial Specialist at the second Council Meeting in August. The position of Housing Rehab Finance Specialist will open August 8, pending a retirement, and the Housing Rehab Technical specialist is part-time and is open.
President Reynolds stated that the Resolution will be placed on the August 19 Agenda.
D. Director of Community and Economic Development – Redevelopment Assistance Capital Program Application – Majestic Realty Company
The Clerk read a memorandum dated July 31, 2014 from Alicia Karner, Director of the Community and Economic Development Department, requesting consideration of a Resolution in order for the City and Majestic Realty Company to complete a Redevelopment Assistance Capital Program application. There will be no financial commitment on the City’s part for the project, but it is necessary for the City to act as a pass through for the funds. The project includes construction of common roadway and related infrastructure at the Majestic Bethlehem Center industrial park at Commerce Center Boulevard. The project budget is $38,750,000 that includes $19,250,000 of RACP funds. The Resolution authorizes submission of the application as well as preparation of a cooperation agreement between the City and Majestic for the pass through of funds.
President Reynolds stated that the Resolution will be placed on the August 19 Agenda.
E. Housing and Community Development Planner – Keystone Grant – Bethlehem Area
Public Library
The Clerk read a memorandum dated July 28, 2014 from Jessica Khouri, Housing and Community Development Planner, requesting consideration of a Resolution authorizing application for a Keystone Grant that will be passed through the City to the Bethlehem Area Public Library.
President Reynolds stated that the Resolution will be placed on the August 19 Agenda.
F. City Solicitor – Second Amendment to Tower Lease Agreement – T-Mobile Northeast LLC, Successor to Omnipoint Communications Inc. – South Mountain Park
The Clerk read a memorandum dated July 31, 2014 from William P. Leeson, Esq., City Solicitor, attached to which was a proposed Resolution and associated Second Amendment to Tower Lease Agreement for Council’s consideration, with T-Mobile Northeast LLC, successor to Omnipoint Communications Inc. for the South Mountain Park Site at 1508 E. University Avenue.
President Reynolds stated that the Resolution will be placed on the August 19 Agenda.
G. City Solicitor – Use Permit Agreement for Public Property – Celtic Fest, Inc. d/b/a
Celtic Cultural Alliance – Celtic Classic 2014, 2015 and 2016
The Clerk read a memorandum dated July 31, 2014 from William P. Leeson, Esq., City Solicitor, attached to which was a proposed Resolution and associated Use Permit Agreement for Council’s consideration, with Celtic Fest, Inc. d/b/a Celtic Cultural Alliance for the Celtic Classic 2014, 2015 and 2016 at various City Properties and Streets.
President Reynolds stated that the Resolution will be placed on the August 19 Agenda.
H. City Solicitor – Amending Article 157 – Civil Service Board
The Clerk read a memorandum dated July 31, 2014 from William P. Leeson, Esq., City Solicitor, attached to which were proposed revisions to City Article 157 related to Civil Service. These proposed revisions implement changes made by the General Assembly to the Third Class City Code. The revisions were drafted in accordance with the recently adopted modifications to the Third Class City Code and in conjunction with the Optional Charter Law applicable to the City.
President Reynolds referred the matter to the Human Resources and Environment Committee.
6. REPORTS
A. President of Council
None.
B. Mayor
None.
C. Parks and Public Property Committee
Chairwoman Reuscher represented an oral report of the Parks and Public Property Committee on Tuesday, July 29, 2014 at 7:00 p.m. in Town Hall on the following: Article 941 – Parks - Proposed Revisions. The Members of the Committee unanimously recommended that the Law Bureau draft proposed amendments to Article 941 to include suggestions made by the Committee, and to schedule a Parks and Public Property Committee meeting to continue further review of Article 941.
7. ORDINANCES FOR FINAL READING
A. Bill No. 20 – 2014 – Amending Article 1701.02 – Sprinkler System Alarms
The Clerk read Bill No. 20 – 2014 – Amending Article 1701.02 – Sprinkler System Alarms, on Final Reading.
Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. Bill No. 20 – 2014, now known as Ordinance 2014-21, was adopted.
B. Bill No. 21 – 2014 – Amending Article 149 – Blighted Property Review Committee
The Clerk read Bill No. 21 – 2014 – Amending Article 149 – Blighted Property Review Committee, on Final Reading.
Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. Bill No. 21 – 2014, now known as Ordinance 2014-22, was adopted.
8. NEW ORDINANCES
A. Bill No. 22 – 2014 – Amending General Fund Budget – Health Bureau and Police Justice Assistant Grant (JAG)
The Clerk read Bill No. 22 – 2014 – Amending Article 149 – Blighted Property Review Committee, sponsored by Mr. Recchiuti and Mr. Waldron, and titled:
AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE GENERAL FUND BUDGET FOR 2014.
Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. Bill No. 22 – 2014 was passed on First Reading.
B. Bill No. 23 – 2014 – Amending Sewer Capital Budget – Pennworks Grant
The Clerk read Bill No. 23 – 2014 – Amending the 2014 Sewer Capital Budget, sponsored by Mr. Recchiuti and Mr. Waldron, and titled:
AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
THE CAPITAL BUDGET FOR SEWER UTILITIES
FOR 2014.
Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. Bill No. 23 – 2014 was passed on First Reading.
C. Bill No. 24 – 2014 – Amending Article 121.05 – Contracts; Personal Property Purchase
The Clerk read Bill No. 24 – 2014 – Amending Article 121.05 – Contracts; Personal Property Purchase, sponsored by Mr. Recchiuti and Mr. Waldron, and titled:
AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
ARTICLE 121 OF THE CODIFIED ORDINANCES
ENTITLED FINANCE
President Reynolds reminded Council this is the First Reading of the Bill, and the Final Reading would be at the August 19 City Council Meeting that will be an opportunity for anyone to make additional comments or amendments.
Ms. Dolan asked if this has already gone through the Finance Committee.
Mr. Recchiuti, affirming that it has, added it was reviewed during the last Finance Committee Meeting and it passed 3-0.
Ms. Dolan commented she supposes it can still be discussed at the second reading on August 19.
President Reynolds pointed out that Council Members can have any conversation at this Meeting as well.
Ms. Dolan noted her first question would be as it stands right now are these things that will officially become the responsibility of the Mayor and the Department of Administration, and are they being exercised by City Council currently. Ms. Dolan mentioned it states the contract administration for the City, including, but not limited to authority as to preparation of specifications, etc. It basically says the bidding process is changing with or without formal bidding.
Mr. Recchiuti advised the bidding process is not being changed and that is not the intent. The State law provides that anything above $18,000 has to be bid and awarded publicly. Mr. Recchiuti explained that the proposed amendment would require contracts over $50,000 to come to Council for approval. Mr. Recchiuti, affirming that the State law bidding process is already being followed, confirmed the proposal is not changing that at all. He highlighted the fact that under the Third Class City Code City Council has the power to approve contracts, and around 1960 City Council gave that power to the Administration. The proposal is just taking a bit of that power back and Council would be looking at contracts that are over $50,000 and also contracts for Professional Services.
Ms. Dolan mentioned this is something that Mr. Recchiuti has been discussing for a while. Mr. Recchiuti replied yes. Ms. Dolan commented that the Bill is trying to cure what was done in the 1960’s that relinquished City Council’s powers that were given to it by the Third Class City Code and is reaching somewhat of a halfway point toward what was expected of City Council. She added that it is taking back what Council gave away in the 1960’s. Mr. Recchiuti stated that is correct.
President Reynolds advised that he had a conversation yesterday with David DiGiacinto, Controller, who had offered a few suggestions about some procedural aspects that he then mentioned to Chairman Recchiuti before the Meeting this evening. President Reynolds added these are things to be aware of as far as the way the process works and it was a very informed conversation. President Reynolds noted some of the things that fit into what Chairman Recchiuti has included in the proposal are things that the Controller’s Office is already doing. He communicated it is something the Controller’s Office decided to take on in the past seven months or so. President Reynolds continued on to say he thinks it should not be put on the Controller to do these things he is doing voluntarily. President Reynolds explained he thinks it should be given to City Council rather than the Controller having to look for all of these things when it is not something that is mandated for him to do, even though it is helpful to be a watchdog for everyone. President Reynolds stated there were a few ideas that Mr. DiGiacinto had discussed with him that he thought were very valuable, and he shared those with Mr. Recchiuti before the Meeting, so there may be an amendment or two, or clarification of language, before the Bill is considered on Final Passage at the August 19 City Council Meeting.
Mr. Recchiuti pointed out that he did discuss with John F. Spirk, Jr., Esq., City Council Solicitor, some of those changes that were passed on from the Controller. Mr. Recchiuti commented he will talk to the Controller and see if there is some language that fits the needs, and he will come forward with an amendment.
Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. Bill No. 24 – 2014 was passed on First Reading.
D. Bill No. 25 – 2014 – Amending Article 913 – Water Rates and Charges – Water Rate Increase
The Clerk read Bill No. 25 – 2014 – Amending Article 913 – Water Rates and Charges – Water Rate Increase, sponsored by Mr. Recchiuti and Mr. Waldron, and titled:
AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
ARTICLE 913 OF THE CODIFIED ORDINANCES
ENTITLED WATER RATES AND CHARGES.
President Reynolds asked Mayor Donchez if Mr. Brong could speak about the proposed rate increase, since there are three new Members of Council since the original conversation last year at Budget time. President Reynolds queried if a condensed version could be presented of how the City arrived at this point by which this is the rate increase that Council is being asked to approve.
David Brong, Business Administrator, advised the City has consultants who propose a rate increase to the PUC. The PUC basically suspends it, reviews the detail of the rate increase, and ultimately gives the City two different options in order to settle the case. Mr. Brong stated number one is through a mediation negotiation process and number two is through full litigation. The City does not typically litigate because of the expense and the time. The City worked through the accelerated process and came out with a rate increase of about $1.1 million incremental to the Water Fund. Mr. Brong informed the Members that the order was given by the Administrative Law Judge the day after the award to make these rates effective, and this process fulfills that. Recalling that in preparing the budget the expectation was a rate increase of about 9½%, Mr. Brong pointed out the rates reflected in the Bill are somewhat less than that. Mr. Brong further advised there is going to be somewhat of a favorable timing based on the award and the City’s ability to implement the rate, so that the Water Fund is okay. Mr. Brong added certainly he will talk more about that at the next meeting as well.
President Reynolds noted the same rate increase will be paid by the City of Bethlehem residents as well as those who use water who are outside the City of Bethlehem.
Mr. Brong, replying yes, affirmed the City’s water system is a regional water system and serves 10 different municipalities. He stated the PUC represents the rate payers outside of the City. He said City Council has the rate setting capacity for all rate payers within the City, and typically the City makes sure the two are alike.
Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. Bill No. 25 – 2014 was passed on First Reading.
E. Bill No. 26 – 2014 – Bethlehem Authority Water Revenue Bond – Water Capital Projects
and Refunding
AN ORDINANCE OF THE COUNCIL OF THE CITY OF BETHLEHEM, LEHIGH AND NORTHAMPTON COUNTIES, PENNSYLVANIA (THE “CITY”), DETERMINING TO INCUR DEBT IN THE PRINCIPAL AMOUNT NOT TO EXCEED $73,600,000 ; DETERMINING THAT SUCH DEBT SHALL BE INCURRED AS LEASE RENTAL DEBT TO BE EVIDENCED BY A SERIES OF GUARANTEED WATER REVENUE BONDS, SERIES OF 2014, TO BE AUTHORIZED AND TO BE ISSUED BY BETHLEHEM AUTHORITY (THE “AUTHORITY”); BRIEFLY DESCRIBING THE PROJECT FOR WHICH SAID DEBT IS TO BE INCURRED AND SPECIFYING THE REALISTIC 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 EIGHTH 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 2014; APPROVING THE FORMS OF SAID EIGHTH SUPPLEMENTAL CONTRACT AND LEASE AND SAID GUARANTY AGREEMENT; CONSENTING TO THE ASSIGNMENT OF SAID EIGHTH 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 SIXTH 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 EIGHTH SUPPLEMENTAL CONTRACT AND LEASE AND THE SOURCE OF PAYMENT OF SUCH LEASE RENTALS; GUARANTEEING PAYMENT OF THE PRINCIPAL OF AND INTEREST ON AFORESAID GUARANTEED WATER REVENUE BONDS, SERIES OF 2014 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 EIGHTH SUPPLEMENTAL CONTRACT AND LEASE, AND SAID GUARANTY AGREEMENT.
President Reynolds confirmed that the Bond Issue was considered at the Finance Committee meeting on July 14. President Reynolds noted that in addition to Mr. Brong and Edward Boscola, Director of Water and Sewer Resources, a few members of the Bethlehem Authority are at this evening’s Meeting and also Scott Shearer with PFM for any particular questions that anyone may have. Highlighting the fact that this is First Reading of the Bill tonight, and Final Reading will be at the August 19 City Council Meeting, President Reynolds asked if Mayor Donchez or Mr. Brong wanted to add anything as far as the timeline is concerned.
Mr. Brong advised the market is favorable and since the City had been pointing to this day for the better part of three years in multiple settings the time is right to do this. Mr. Brong added it is a good deal and one that is very productive. The Bond Issue provides the water operation the necessary capital that it needs and it allows the City to permanently finance a line of credit that has to be negotiated and settled this year. Mr. Brong communicated that it takes the lion’s share of the outstanding principal in water debt, it takes advantage of the current interest rate climate, and combines all of those initiatives. Mr. Brong added that the City has a deal that solves the problem, reduces the base with the Water Fund, and he thinks it is an extremely productive transaction.
Mr. Callahan, expressing his agreement, said he believes this is a smart move and will stabilize the Water Authority well into the next decade. Mr. Callahan noted he is in favor of the proposal and congratulated Mr. Brong on the work that was done.
Mr. Evans thanked the groups involved in putting the Bond Issue together. Mr. Evans acknowledged there has been a lot of work in the background with the Administration, the Water Authority, and also with Scott Shearer and the PFM group. Pointing out it is a good deal, Mr. Evans expressed his agreement with Mr. Callahan and Mr. Recchiuti, and noted the financing proposal was worked through in committee. Mr. Evans liked the fact that it follows a capital plan, and pointed out that the Water Fund is very capital intense and needs the ability to either borrow or provide that funding internally. Mr. Evans noted this Bond Issue does a little bit of both, it provides a nice balance, and although some future borrowings will be needed they are down the road and are planned out according to projections over a 10 year period. Mr. Evans noted the timeline matches up with the projected capital expenses that will be needed for the water system of around $38 million of investment in the next 10 years, and that is accounted for in the model. Mr. Evans highlighted the fact that refinancing two bonds that are callable will provide better rates, as well as an obligation note that is outstanding, and putting them together as Mr. Brong said provides $5 million of immediate capital, lowers the annual debt service by $500,000 and provides the ability for some internal funding. Mr. Evans communicated these are all positives and he will support the Bill this evening.
Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. Bill No. 26 – 2014 was passed on First Reading.
9. RESOLUTIONS
A. Authorizing Use Permit Agreement for Public Property – Greater Lehigh Valley Chamber of Commerce – Downtown Bethlehem Association – 2014 Bethlehem VegFest
Mr. Recchiuti and Mr. Callahan sponsored Resolution 2014-133 that authorized execution of the Use Permit Agreement between the City of Bethlehem and the Greater Lehigh Valley Chamber of Commerce through the Downtown Bethlehem Association, for use of various City property for the 2014 VegFest on August 23, 2014 from 7:00 AM to 7:00 PM. according to the Agreement.
Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. The Resolution passed.
B. Designating Fair Housing Officer
Ms. Dolan and Mr. Callahan sponsored Resolution 2014-134 that designated Jessica Khouri as the Fair Housing Officer for the City of Bethlehem.
Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. The Resolution passed.
C. Authorizing Records Destruction – Controller’s Office
Ms. Dolan and Mr. Callahan sponsored Resolution 2014-135 that authorized disposition of records from the Controller’s Office as listed in Exhibit A.
Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. The Resolution passed.
Motion – Considering Resolutions 9 D through 9 G as a Group – Certificates of Appropriateness
Mr. Callahan and Mr. Waldron moved to consider Resolutions 9 D through 9 G as a group. Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. The motion passed.
D. Certificate of Appropriateness – 1200 Spring Street
Ms. Dolan and Mr. Callahan sponsored Resolution 2014-136 that granted a Certificate of Appropriateness for the 650kw emergency generator installed behind the building on the property, and not visible from the street at 1200 Spring Street.
E. Certificate of Appropriateness – 201 East Third Street
Ms. Dolan and Mr. Callahan sponsored Resolution 2014-137 that granted a Certificate of Appropriateness to paint signs onto the building at 201 East Third Street.
F. Certificate of Appropriateness – 1324 Prospect Avenue
Ms. Dolan and Mr. Callahan sponsored Resolution 2014-138 that granted a Certificate of Appropriateness to replace in-kind railing above the front porch at 1324 Prospect Avenue.
G. Certificate of Appropriateness – East Third and Polk Streets
Ms. Dolan and Mr. Callahan sponsored Resolution 2014-139 that granted a Certificate of Appropriateness to change the original design for the entrance canopies from precast concrete to glass and steel at East Third and Polk Streets.
Voting AYE: Mr. Callahan, Ms. Dolan, Mr. Evans, Mr. Recchiuti, Ms. Reuscher, Mr. Waldron, and Mr. Reynolds, 7. The Resolutions passed.
10. NEW BUSINESS.
Committee Meeting Announcements
Mr. Callahan announced that a Community Development Committee meeting will be held on Wednesday, August 27, 2014 at 7:00 p.m., in the Mayor’s Conference Room, on the following subjects: Rail Initiative; South Bethlehem Community Initiatives; Wayfinding Sign Project; CDBG Consolidated Plan and updates on: Keystone Innovation Zone, Recycling Initiatives, and the CRIZ.
Mr. Callahan added that a Community Development Committee Meeting will also be held on Wednesday, October 15, 2014 at 7:00 p.m. in Town Hall on the proposed 2015 CDBG and HOME Programs and Consolidated Plan for 2015-2019.
11. PUBLIC COMMENT.
Various Issues
Peter Crownfield, 407 Delaware Avenue, addressing bicycle riding in the City, said he sees people riding on the wrong side of the street and riding on the sidewalks all of the time. Mr. Crownfield, pointing out it is quite dangerous on the sidewalks especially if the bicyclists are not going slow, said he does not think it is legal to ride on the sidewalks but it is common. Mr. Crownfield questioned why, when the City has rules, they are not enforced. Mr. Crownfield stressed that the signage is very inconsistent on the Fahy Bridge in that there are signs that say cyclists should keep off the bridge but he has no idea what that sign means. Mr. Crownfield added there is another sign on the Columbia Street ramp that says cyclists dismount but if they are riding up the Columbia Street ramp to go across the bridge in the traffic lane of course we do not want them to dismount. He continued on to say if they ride on the sidewalk we do want them to dismount so the signage is not clear at all. Mr. Crownfield advised that another law that is not enforced is idling. Mr. Crownfield stated that diesel idling is prohibited by Pennsylvania law at 5 minutes per hour but it is pretty lax, and he has seen trucks idle 20 minutes at one stop. Mr. Crownfield thought the City should be looking at auto idling as well since the Lehigh Valley is plagued by serious air quality problems and diesel pollution, and ground level ozone that comes from automobiles idling primarily. Mr. Crownfield, turning to the Greenway, stressed it is inconceivable to him to have had this Greenway just for people to walk and bike on and generally get exercise, but there is no drinking water along the way. Mr. Crownfield stated there should be a drinking fountain at least every two or three blocks, and he has never seen a new park that did not have a drinking fountain. Mr. Crownfield, focusing on signage for the Greenway, said he noticed a group of students at Lehigh University in the city planning class were also talking about the lack of creative interpretive and historical signage. Mr. Crownfield urged the City before they do something boring and routine to maybe get together with these people and see what they have in mind. He noted it sounds like they want to get some creative ideas going. Mr. Crownfield advised the real reason he came to the Meeting tonight is to talk about climate issues. Remarking that the City does not seem to take this very seriously, some people do and some people do not, Mr. Crownfield observed that is their privilege, but he thinks it is irresponsible that the City has not made climate a serious issue. Mr. Crownfield said there are still deniers out there but are vastly out numbered, the science has left them in the dust, but he does not know why the City does not take this more seriously. Mr. Crownfield stressed there are many things the City can do and the City has done some good things already, primarily to save money. Mr. Crownfield enumerated that the City changed to LED traffic lights years ago, and LED street lights most recently, that are very good moves, and there has been good work done at the sewage treatment plant capturing methane. Mr. Crownfield queried what will be done about the population in general, the City’s workforce, and the having vehicles idling all over town. Mr. Crownfield, commenting the exception is to see a vehicle that is not a City vehicle that is not idling, said it wastes money and throws more greenhouse gasses into the environment, there is no reason for it, and it could easily be prevented. Mr. Crownfield believed the City needs to get serious about this and start doing something, and it is the responsibility of the City to behave responsibly.
Leasing to Outside Agencies
Stephen Antalics, 737 Ridge Street, commenting that the Mayor received some unfinished business from the previous Administration, said one was the use of City property in terms of leasing to outside agencies and, as a result, he has attempted to look at the problem in a uniform manner. Mr. Antalics said he received recently an email that he found very disturbing and caused him great concern. Mr. Antalics continued on to say, prior to that, everything about it was hearsay information which cannot be confirmed, and further said he will read part of the email, as follows: I will do everything I can to prevent this lease from going to City Council forcing them to make the rational decision you should have made but when made by Council will be construed as political. This is the decision of your Administration, and we will explain our closed doors, and cancel programs, and possibly have a vacancy of this building as a result of your decision, you are the Mayor, you shape the City. Mr. Antalics stated it is written by the executive director of the Fox Environmental Center, it raises many issues, it bothers him and he cannot remain silent. Mr. Antalics commented that the question is what source of power does the Fox Environmental Center have over the Mayor. Mr. Antalics said the ex-CEO of the Fox is also a Member of City Council. Mr. Antalics stated that he looked into this with older members of the City who understand City government, and this is the first time to their recollection this has ever happened that a City Council Member interfered with the operation of the Administration to try and sandbag it. Mr. Antalics believed that is a blatant display of power and arrogance. Mr. Antalics said what also bothers him is there has been no response by anyone about this issue, and in another form of government these people would have been taken to task. Mr. Antalics asserted this should not happen in our government, it is a first in the City which is a black mark on City Council. Mr. Antalics remarked that as a citizen he recommends that the President of Council either censor this person or write a letter of formal reprimand that the citizens can see. Mr. Antalics said he will wait for an answer if anyone cares to answer. Mr. Antalics remarked this is the way it is, it has been kept quiet under the rug, and this is exactly why we have a grand jury now. He said the power of subpoena and taking an oath will give us the answers that are forthcoming and we will then finally know the truth.
12. ADJOURNMENT
The meeting was adjourned at 6:30 p.m.