435 Hamilton Street

Allentown, Pa. 18101

Allentown

Minutes - Final

City Council

Wednesday, October 26, 2022

5:30 PM

Council Chambers

Roll Call

7 -

Present:

Candida Affa, Cynthia Mota, Daryl Hendricks, Ed Zucal, Ce-Ce Gerlach, Joshua

Siegel, and Natalie Santos

ORDINANCES FOR FINAL PASSAGE (To be Voted On):

Ms. Cynthia Mota stated that the budget meetings will be Special Council

meetings – we will take up legislative items if need be. This evening

plan to act on legislation forwarded by the Budget and Finance Committee,

afterwards, beginning our budget overview with a presentation by the

Mayor and then we will move on to the Finance Department.

15-5103

Bill 39 Budget and Finance Committee (Siegel, Santos, Hendricks),

October 4, forwarded favorably with a proposed amendment to reduce the

allocation to $1m - an amendment that needs to be proposed and acted on

at the council meeting this evening.

Amending the 2022 ARPA Fund Budget to provide for a transfer of One

Million Five Hundred Thousand ($1,500,000) Dollars to Da Vinci Science

City, LLC.

Administration

Sponsors:

Attachments: Bill 39 $1.5m ARPA to Da Vinci

New Science Center 2019 Concept Research - Feb 18 Presentation to

EOC

DA VINCI ARPA REQUEST MAY 2022v2

summary

Ordinance #15850

Mr. Joshua Siegel stated this Bill was forwarded favorably 3 - 0 from the

Budget and Finance Committee Meeting to a Special Council meeting.

Ms. Cynthia Mota asked if there were any comments.

Ms. Ce Ce Gerlach stated that she would like to amend the amount to

$250,000. She stated that she is basing it off of the fact that there have

been a number of grants that DaVinci has applied for which if they get

should be more than $1.5 million. Knowing that we can always go back if

they were not to get those grants and allocate more money similar to how

on a different item that the county is allocating money a little upfront and if

the cost increased, they are going to give them the rest of the money for the

IronPigs. Similar to the type of perspective.

Ms. Cynthia Mota asked who has a question and/or who would like to.

Ms. Candida Affa stated that she would like to discuss this because she

would like to make an amendment.

Attorney Charles Smith stated that Ms. Affa can make a motion to amend,

the motion to amend.

Ms. Candida Affa stated that she would like to amend the amendment of

Ms. Gerlach. She stated that although she agrees with her with the grants.

She brought up a good point. She stated that she would like to change the

amount to $500,000 with the same stipulations that Ms. Gerlach brought

forward about the grants.

A motion was made by Ce-Ce Gerlach, seconded by Natalie Santos, that this Bill

be amended to change the initial amendment at $250,000 to $500,000.

4 - Candida Affa, Ed Zucal, Ce-Ce Gerlach, and Natalie Santos

3 - Cynthia Mota, Daryl Hendricks, and Joshua Siegel

Yes:

No:

Enactment No: 15850

Mr. Joshua Siegel stated that he believes that both of the projects are

paramount of importance for the city's perspective of Community

Development and Economic Development. He certainly understands the

concerns of his colleagues. The city has to be a partner and a steward in

making these two projects come to fruition. In particular to the DaVinci

Science Center, this is a once in a lifetime opportunity to redefine the

downtown and particular to do a great service to our school children and

our kids, especially for Allen and Dieruff. Nearly 50 percent of the children

will be in walking distance to the DaVinci Science Center and give them

state of the art learning opportunities, especially in the fastest growing

fields of STEAM. They are essentially moving numbers around without

really considering the consequence. There is a finely crafted budget for

each of these projects. They are arbitrarily adjusting the allotment and

putting both of these projects in jeopardy. He understands the

consternation about the number and the myriad of problems the city faces

and obviously we talked about this a thousand times. We cannot make this

a zero-sum gain. We have to stop pitting one organization from another

and stop pitting one social problem against another. We can invest in

anti-violence and community redevelopment and housing and also make

sure we invest in two long term projects that are going to have a

transformational impact on the city and have had a transformational impact

on the city in case of the IronPigs. It is responsible to make sure that we

make these two investments. There is a huge return on investment and

thinks that both of these projects in terms of creating jobs and creating rich

cultural assets. Let's have a public safety component as well. If we keep

kids occupied downtown with good learning experiences, connect them to

jobs and positive activities, it is a public safety aspect as well. Both

organizations have shown that they are committed and also being job

creators for Allentown residents. He encouraged his colleagues to allocate

as closely to the initial amount as originally requested and change the way

we look at this because this is not about pitting two organizations against

the residents of Allentown. It is not about choosing one organization over

our concern for gun violence and public safety. That is not the mentality that

we need to operate from. This is about making sure we invest in the future

of Allentown and the future of our kids and the future of job creation and

really the future of this region to be competitive with everyone else. He

stated that they will be making a tremendous mistake if they fail to make

these two investments as originally asked and originally stated.

Ms. Cynthia Mota asked Mr. Siegel what is the amount that he is asking.

Mr. Joshua Siegel stated that he is perfectly amenable to the $1.5 million,

but he is certainly not going to bring it down to $500,000. The rest of the

body needs to discuss obviously, we have a motion of $500,000. He

stated that he would prefer $1 million or $1.2 million or $1,250,000 at the

minimum. He stated that the he doesn't think $500,000 is going to be

sufficient. He agrees that the city has helped apply for grants on behalf of

DaVinci, but this is an immediate and certain allocation versus an

application process that may or may not yield an actual tangible amount of

money. He prefers that it stays at $1.5 million. He asked if anybody had a

more reasonable number that is not $500,000 or below. He would be

amendable of hearing that amount.

Mr. Daryl Hendricks stated that he was the one who originally made the

motion on this in the committee from $1.5 million to $1 million. He urged

his colleagues to stick with that amount. He stated that he believes it is a

fair amount. This is an institution that will mirror that of the Franklin Institute

in Philadelphia. This will be there for the children. Both are very great

opportunities for our children and adults alike. This is going to be

transformational for school children here in the city of Allentown. He

encouraged his colleagues not to vote on the amendment, but to leave it as

formally amended at $1 million.

Ms. Ce Ce Gerlach stated that she from the beginning has been pushing

for a process so it is fair, it is transparent and so that the big organizations

like DaVinci and the IronPigs and CACLV and all these large organizations

and the smaller organizations would be on some type of even footing. She

stated that they went through this whole conversation about having public

testimony and having these experts come in. They had them all come in.

We listened. We learned. The administration put out a press release that

talked about if you want to seek this money, give his office a call and talk

through the application process. Council was given the application. They

were given essentially were CDBG guidelines. The same kind of

guidelines CDBG follows, and we were told that this is going to be the

process. At that time, a number of us have expressed concerns about

certain organizations. These two, skipping ahead of that process. They

have applied before Council even had the conversation about applications

under the old administration. These were concern. Honestly, he was

hesitant to even to say yes to any amount to either organization despite the

credible amount of work that DaVinci has put into this. They have an

advisory committee made up of the people in the community figuring how

they are going to hire Allentown residents. They committed to having the

museums for all which will allow low-income folks to enter into their facility

for real cheap, like $2. She stated that she sees that. She sees the effort

has been made which she is more incline to say something knowing that all

circumstances change and grants might not be awarded and this could be

revisited if they needed more because she does think that based on the

efforts that she has seen them make and if you look at the application you

were supposed to get applications a long time ago, but we got them last

night and DaVinci is 109 pages. For any of them that sat on that CDBG

committee, that mirrors a CDBG application. They are thick and thorough.

They went through and they have their staff listed. Their salaries are listed.

Their ethnicity is listed. Their municipality is listed. It is an awesome

application. Her hesitancy to do the million is what appears to be a lack of

a consistent process for everyone and also knowing that we can go back

and if need be do more. She stated that she did not see in the email and

may have missed it. She stated that she saw the summary of the score, but

did not see the rubric.

Ms. Cynthia Mota asked if Ms. Gerlach was seeking clarification.

Mr. Seth O'Neill stated that he did send that.

Ms. Ce Ce Gerlach stated that he might have to help guide her. She stated

that Council did just get this last night and may have missed it. She stated

that she saw the rubric that was used to determine the score, but she could

not find the completed rubric with how they ranked on each item. Se stated

that she just sees the summary.

Mayor Matt Tuerk stated that there are four items.

Mr. Michael Hanlon stated that they are hanging on the website if someone

wants to look at them.

Ms. Ce Ce Gerlach stated that they have the application. That is the first

document. That is what Leonard Lightner sent us. Way back when, there

is language from the feds, the CDBG process, and then there is a summary

which has the cumulative score for both organizations, but there is not a

breakdown of on this item they got three out of five. On this item, they got

two out of five. She is wondering who did the scoring. Was there a

committee. She stated that she knows that the county has an ARPA

committee that determines this.

Attorney Charles Smith stated that where we are right now is that they are

debating the issue of the motions to amend to $500,000.

Ms. Ce Ce Gerlach stated yes, part of her rationale for the $500,000 and

not the $1 million is the lack of the full understanding. She stated that if she

is out of line, she will back off.

Ms. Cynthia Mota stated that what she does not understand is that they had

enough time to ask questions. Even when they were here presenting and

you did mention that this was going to be something so good for our

community. And yet, you are not willing to.

Ms. Ce Ce Gerlach stated that as she expressed that the reason she has

her hesitancy is not knowing how the scores and she read the scores of 90

out of 100. An awesome score for DaVinci which it puts them up at the

100 percent category for funding. If you score between 90 and 100, you

get 100 percent funding. She stated that if she is taking that application

into consideration about how much money they should be allocated, she

would like to know how that score was determined and who determined it.

She stated that she thinks that is fair, but if she is out of line, she will stop.

Ms. Candida Affa stated that she would like to echo Ms. Gerlach's

statements and Mr. Siegel's. She stated that she believes this is going to

be great for our community. She is certainly looking forward to it. She

stated that $1.5 million for them and $1.5 million is $3 million we are

looking at. She stated that if they can find a sweet spot where they can all

come together. She stated that Ms. Gerlach's point which changed her to

$500,000 is the fact that there are grants out there and there are many

grants that they are going to get. If something should happen and you are

not able to and we do have the money. We are looking this ARPA fund and

they are looking at $1.5 and $1.5. That is $2 million just this one alone.

We will save ourselves $1 million and we can put that back in our ARPA

fund. We can still help with the DaVinci Center if they fail with the grants or

if something should happen, the city will be there for that. For now, she

believes that $500,000 is fair and one of the reasons she is going for it is

the fact that the money is there. If you are having problems and you can't

get the grants, the money is there. We can come back and we can do it

again. She asked if Council can do that.

Attorney Charles Smith stated that he does not know the answer to that.

This has been kicking around at $1.5 million. He stated to Ms. Affa that this

is in front of Council tonight. He can look to see if there is an opportunity for

a second bite of the apple, if that is what you are asking.

Mr. Michael Hanlon stated that this is a budgetary question. The money

would go back into the ARPA fund and they can adjust the ARPA fund.

Whenever they want, correct?

Ms. Candida Affa stated that is exactly what she was trying to say.

Mayor Matt Tuerk stated that one consideration that they should keep in

mind. It does not affect their discussion tonight. The funds do need to be

expended by the end of 2026 for projects like this and committed by 2024.

The process that is developed is a result in a commitment of ARPA funds

does need to be completed by December 31, 2024.

Ms. Candida Affa stated a year from now.

Mayor Matt Tuerk stated two years from now.

Ms. Cynthia Mota asked if there were any other questions from Council or

the public.

Ms. Sharon Fillegan, Allentown, stated that she understands that the idea is

not to pit organizations against each other, but there are some things in the

community that deserves to be looked at as a crisis. She stated housing

she does not think that there were almost 1100 Allentown School District

children who are homeless are going to benefit from the DaVinci Center. It

is almost like the house is on fire and we are making a garden. There are

some things that need a focus. if all that money is allocated and they sound

like amazing projects. She is not saying they are not or not worthy, but you

can with priorities. She was on the corner of Seventh and Gordon this

weekend when the shooting happened and what she was struck after the

shot was that was a child and a child running away. These things can be

helped. It has been shown time and again that community programs make

neighborhoods safer. She knows that money has been allocated to these

things and housing. Allentown is 25 out of the whole nation, we are 25

overvalued. There is a 17 percent increase in rents in the past year which

is eight times the normal increase. When it comes to people, you can look

at the big programs and that is fantastic, but you have to come down to the

people and take care the urgent things first and recognize that they are

crisis.

Ms. Lin Kriss, Controller, DaVinci Science Center and an Allentown

resident. She will be the spokesperson for the DaVinci Science Center

this evening. Several staff and trustees are also in attendance. She

thanked Council for taking their comments. She joined the DaVinci

Science staff this past summer because of the opportunity to be a part of

an organization investing in downtown Allentown to make a difference in

the lives of children and families. She was born and raised in the Lehigh

Valley. She attended college in Allentown, worked over 20 years on

Hamilton Street at three different locations and have been living in the city

for over 30 years. Her father and his two brothers started their own

businesses in the first ward in the 1970s. Her father and his two brother

stated their own businesses. All three businesses with the support of the

city became 48 plus years of success. In addition, her grandfather helped

pioneer the West Park Civic Association. Needless to say the

neighborhoods of Allentown are personal to her and her family. The city is

her home and a place where she and her husband are raising their

daughter and two dogs. She stated that she is here tonight to ask them to

consider investment of the $1.5 million in city ARPA funds for the new

downtown city Science Center. She stated as the Controller, she brings

unique perspective to the financial requirements to the projects to be

successful. She would like to share with them briefly why the $1.5 million in

support from the City of Allentown is so important. As you know from the

Science prior comments to Council, the total project cost is $72 million.

We raised $64 million and have a $8 million gap to fill. While $64 million is

a lot of money, we need to raise the full $72 million to realize the projects

full vision. Falling short of our means that we will not have the resources to

fully develop the program and experiences that will well attract over

400,000 people to downtown Allentown each year. Bringing new

businesses to our shops and restaurants. Falling short also means we will

not have the resources to provide the kinds of sustained programming that

will help make a difference for our kids after school on weekends and

during summer months. It is really important to raise all the money for the

project upfront. She stated that as Controller she is most concerned if they

are not able to close the $8 million funding gap, they may need to incur

debt that needs to be paid by the Science Center overtime from our

operating funds. The new facility will be costly to operate. We need to

ensure that we have the angle on the operating dollars to be financially

sustainable. Having to pay off long-term debt will eat into our available

operating dollars. Furthermore, it will eliminate our ability to provide

access to the exhibits and programs for residents who could not afford to

pay the Science Center fees. The DaVinci Science Center has a bold

vision to expand the educational opportunities for youth who live in the

neighborhood surrounding the new center and throughout our city. Our new

downtown facility will have an entire floor dedicated to the state-of-the-art

classrooms, labs, maker spaces, and a special area of pre-school children

with programs in English and Spanish. Programs during out of school

hours will engage Allentown youth and put productive activities that will put

skills and open doors for future careers. They want to make sure that every

child in this city has access to these programs and Council can help them

do that. She knows from DaVinci colleagues that many people told them

not to build downtown and cautioned about the challenges they will face

drawing an audience from outside the city. The DaVinci Science Center

chose to move forward and build their new facility in downtown Allentown

because we believe in this city. She stated that she believes in this city

and the ability to make a difference here both economically and

educationally. We need support to reduce the funding gap and help ensure

we open a new facility on solid financial footing. Your commitment of $1.5

million will make a big difference. As a Controller, she recognize the

daunting task we face evaluating the distribution of these ARPA funds. As

a resident of Allentown, she appreciates the city has many priorities to

address. As a parent, she understands how important for our children to

have access to place like the DaVinci Science Center. Places where they

can learn and grow. All of us at the DaVinci Science Center realize that the

city has many priorities to address. They support the investment in the

IronPigs. They hope that Council will give the same consideration to major

educational resources in the heart of downtown that will benefit Allentown

residents for decades to come. She thanked Council for their

consideration and support.

Mr. Pas Simpson, Allentown, stated that he is here to support the DaVinci

Center. With the loss our new superintendent, STEAM education is

important. We are talking about STEAM education versus a baseball field.

If we are going to move some money around, take that from the IronPigs.

That is not as important. When we are investing in the future of our

children, that is so key. STEAM education, we are talking about math,

technology, and things that they are not going to get from ASD. ASD has

been failing our children, unfortunately, for a very long time and they are

about to take a couple steps back with our leadership. If we are going to

take away the money that is going to the DaVinci Center. We will actually

harm our children and creating more spaces for violence. Education is the

key and a way up. He stated that they focus on the four Es in his

organization which is education, employment, entrepreneurship, and

emotional support which sometime mean mental health. The DaVinci

Center helps us take care of three of those things. Education, employment,

and allows some people to think about entrepreneurship. If you are going

to make a difference, make the difference in the places that count and let's

make our moves and take money from the places that don't mean as much.

This is in the heart, center city. The IronPigs is a county thing. That means

that there are other municipalities that can invest to the IronPigs. There are

other municipalities that benefit from the IronPigs. They are not the

Allentown IronPigs. The DaVinci Center will be in the heart of our city.

Where we can do more. We can ask for more. He gave Lin Erickson a

heck of a lot of credit for the amount of diversity that she has brought in. He

stated that he does not agree with everything, but he agrees with the

investment necessary for our children. He was glad that Councilwoman

Gerlach was able to clarify that we can separate the vote between the

money that is going to DaVinci Center and the money that is going to the

IronPigs. They are not the same. We have been talking about the DaVinci

Center money, but no one is talking about the IronPigs. Why do they need

$1.5 million. Why are we not discussing that. That is at the next discussion

because he needs to be sure because we need to invest in our children

and education is where it starts. Give as much as you can to DaVinci and

take as much as we can from the IronPigs.

Attorney Charles Smith stated to Council to ask people to confine their

comments to the matter that's in front of them.

Ms. Cynthia Mota stated which is DaVinci.

Attorney Charles Smith stated that they are on Bill 39 and Bill 40 will be

addressed in its normal course.

Ms. Nicole Estano, senior from Dieruff High School, stated that she really

likes the DaVinci Science Center because they bring science to life. It is

really fun and interesting to go and see all the exhibitions they have. She

would love to have this Science Center comes here, especially for her

brothers because for them, learning became interesting and entertaining.

They don't even know they are learning. They absolutely love going to the

DaVinci Science Center and she loves seeing their spark of excitement

when she tells them they are going there. Her mom loves taking them

there. They are usually home all the time and they need those interactive

activities that DaVinci offers. Mostly, she loves it because it is a place

where both her love for arts and science come together. She is very

excited for the new Center to come to Allentown. It is such a great

opportunity for the Allentown students. She knows many, many of her peers

would love for this DaVinci Science Center to be here in Allentown.

Milagros Canales, president - Old Fairgrounds Neighborhood Association,

stated that she supports the $1.5 million going to the DaVinci Center. This

summer, she did a grandma day camp for her granddaughters. They had

an opportunity to go to DaVinci with kids who have never been. She told

Council, they lit up. Her granddaughter is a little bossy and she does not

know where they get that from. They were telling the kids what to touch and

what not to touch, but the staff was so good. The girls came home with a

bigger vocabulary what they can do in science. It was amazing. Her

daughter, Rebecca Ramos sits on the MPP with Dan Bosket, and she was

one of the people that said we needed this in the downtown area. This is a

walkable community that is needed. Before, she went to the one on Cedar

Crest when they used to have Star Wars and there was no parking and it

was hard to get into and it wasn't what she could see. If the city is going to

give $1.5 million to something, she would like to see that. Not only we are

going to have our kids looking at other kids, who looks like them. Staff that

looks like them representing them. People who live in the city and who

understands what city life looks like, who understands the dynamics that we

bring. Also, they teach you in a language that is not brought down to them,

but is understandable and comprehensive on all levels. The fact that some

of the staff is bilingual can help those who can maneuver and speak to

them to their core who they are. She stated that she is so much in favor of

this and cannot wait to officially be there. This is the best investment we

can do as a city is to invest something that is right here in the heart of us.

Remember, we always talking about how we want to connect the dots and

we want to bring all the neighborhoods down here. This is a way to open

that door.

Ms. Ruby Cruz, Allentown, thanked everybody and every organization for all

your hard work and for making this community a better place. Everything

that has been going on in center city and all of the developments, it is

beautiful. She stated that she loves it. It is also exciting to know that this

Bill scored 90 percent out of 100. It must mean that they obviously need the

funding. She is curious as to how that is determined. Is there a breakdown

for the need of this funding. She asked about how is the dollar amount

determined for any application when an organization applies. She feels if

they have until 2024, what is the rush. If they received $325,000 and you

meet somewhere in the middle and leave that money to other organizations

that might be hindered because this money is sitting dormant. She stated

that she would like that to be considered. She seconded what Mr.

Simpson said. There are so many other places that the money can come

from. She stated that she is curious as to how it is being decided that this

amount is needed because it is a lot of money and they are a lot of

organizations that may need it. At that time where they won't.

Ms. Lin Erickson, DaVinci Science Center, thanked Council for

considering funding for the DaVinci Science Center. She stated that she

wants to clear up a couple of points that have come up in the conversation.

The first is they really need the money. They have raised $64 million

bringing it to downtown Allentown. That is a huge amount of money. The

largest nonprofit project in the region by far taking out the colleges,

universities and healthcare is an enormous undertaking. The last dollars

are very, very hard. The challenge they face now is that they are in

construction. They went ahead to make sure that they were not hit by the

escalating prices. If you can get some of the prices locked in. They were

told to expect the prices to go up at least another 15 percent. They went

ahead, but if they do not raise all the dollars, some of the things her

colleague just mentioned will be true. If we have to take on debt and we

don't get those dollars, they will not be able to fully develop those projects

and bring the number of people downtown that we would like to because

we won't have the kind of experience. The second is if they decide to take

on a little bit more debt for operations. They did that in 2005 when they

built the current facility. It about killed them in the recession. The strain it

puts on operations when you have huge amount of debt service to pay is

extraordinary. It would mean cutting back on what they would be able to do

for the children and the access type programs because they would not have

the staff to support them. She stated that the last point that she wanted to

make was the fact that they are in construction, the building will get a

Certificate of Occupancy in December/January. Just a little over a year

from now. When you apply for grants, it takes six to eight months to actually

get them. Many times, you can't enter into new contracts with that grant.

You can't get the money retroactively. We need to get these dollars now in

order to continue moving forward to complete the project and not have debt

service later.

Mayor Matthew Tuerk thanked Mr. Hendricks for mentioning The Franklin

Institute. It brought to his mind his dad briefly telling a story about a kid from

a poor part of Philly. The only neighborhood being bused down to The

Franklin Institute and playing in that gigantic park. He stated that he does

not know if any of them had the chance to visit. One of the core

experiences you can have in Philadelphia. It instilled in him the love of

science and ultimately lead him to pursue a Ph.D. at the University of

Colorado and develop technology for mag degeneration drugs and a host

of other treatments for ailments that would affect people across the globe.

These science centers have an opportunity to inspire kids of all

backgrounds and all ages to pursue something interesting. He stated that

his oldest Mel is pursuing a degree in Environmental Science now at

Washington College in part of the tremendous experiences that she had

learning a DaVinci Science Center. It is a very real benefit to making these

investments. He stated that he wants to be respectful of the comment that

Mr. Smith made in regard to staying on topic with a single project, but these

comments should be considered for both of these projects. This is a larger

investment in our youth. When we make these investments in our youth in a

city like Allentown, we are investing in educational opportunities for our

kids. We are making investments in economic opportunity whether there

are construction projects associated with these various projects. We are

making investments on these economic opportunities on job creation that

has been talked about in downtown Allentown and for the eastside. We are

talking about investments in tourism. People coming to Allentown and

spending additional dollars. We are talking about investment in improving

an environment that sustains a healthier outcome for all of our residents. All

things that go to stem things like homelessness and gun violence. Things

that are a crisis that do affect us now. It is a worthwhile investment. The

other thing to consider and he is going to ask them to consider at least in

the case of DaVinci Science Center and talks about bringing roughly

400,000 residents downtown annually. There is a very real economic

impact with 400,000 plus visitors every year that we can count on in the

future. Whatever Council chooses to invest, whether it is $1 million or $1.5

million, you should consider that as an upfront investment that will be

amortized over many, many years. The investment that brings DaVinci to

our downtown or keeps the IronPigs on the eastside and is an investment

that would be amortized over a very long period of time and should repay

itself many times over for our city and the youth in our city. He stated those

are the only comments that he wishes to make from the administration.

Attorney Charles Smith stated that he would like to recap with the

acknowledgement from the Clerk that he is viewing this correctly at this

time, but what he sees in front of them is that they have Bill 39 and that is

for $1.5 million. It was a primary amendment to reduce that $1.5 million to

$250,000. Then there was a secondary amendment, amending the

primary amendment from $250,000 to $500,000. He stated that he

believes what's in front of Council at this time is whether to accept that

amendment to $500,000 and then we will back our way out of what is in

front of you to get back to Bill 39. He asked Mr. Hanlon before any votes to

please say with clarity what is it Council is voting on.

Ms. Cynthia Mota stated that they have to first vote on this. She asked if

she could make an amendment.

Attorney Charles Smith stated once they get to the amendment. He does

not know when Ms. Gerlach when she amended and seconded the

secondary amendment. He does not know what Ms. Gerlach's intent is in

regard to original motion that she made. He stated that they should work

their way from the secondary and start with the $500,000 and if that

passes, we are at $500,000 and then we are back at Bill 39 and someone

could make a faurther amendment at that point. He stated that they need to

work themselves out of where they are which is that they have a primary

and secondary amendment in front of them right now.

A motion was made by Candida Affa, seconded by Ce-Ce Gerlach, that this Bill

be amended to change the amount to $500,000 with the same stipulations that

Ms. Gerlach brought forward about the grants.

7 -

Yes:

Candida Affa, Cynthia Mota, Daryl Hendricks, Ed Zucal, Ce-Ce Gerlach, Joshua

Siegel, and Natalie Santos

Enactment No: 15850

Ms. Ce Ce Gerlach asked if she is going to vote on this and she

understands again for some you may not see a direct correlation between

her line of questioning and this particular item, but there is since there is a

rubric that was used that was determined that this item qualified for ARPA

funds. She asked for clarification as to how that happened who was on that

committee. Who determined this? Who rated them 90?

Mayor Matthew Tuerk stated that he is going to ask Mr. O'Neill to remind

him, but he thinks it was CDBG Scoring Committee with the same

members.

Ms. Ce Ce Gerlach stated no, it could not have been.

Mayor Matthew Tuerk stated that it included a member of the Mayor's

office, a member of the CED department, and a member of HUD under

CED.

Ms. Ce Ce Gerlach asked if that is the current CED Director. Is that Ms.

Kistler? Is that Mr. Lightner?

Mayor Matthew Tuerk stated that it was under Mr. Lightner and a member

of HUD and a member of CED. The member of CED is no longer at CED,

he is in the Department of Public Works.

Ms. Ce Ce Gerlach stated no member of Council was on that committee.

Mayor Matthew Tuerk stated that is correct.

Ms. Ce Ce Gerlach stated that she did not know that committee existed.

That is new. Fun times. Great. She stated $1 million. She stated that she

feels so bad. It is not DaVinci. It is not your application. It is lack of the fact

that we are just now finding out who was on a committee to score you. That

is the issue she is having. Council is getting applications last night. We

don't have the rubric that was used. We have the summary. We don't have

the rubric and meanwhile we have people coming to us talking about all

these other issues that is going on and that is her challenge is the lack of a

transparent process in this whole thing.

Ms. Cynthia Mota asked if there were any other questions from the dais.

Ms. Candida Affa stated that this is just a question, she does not know and

does not really have much to do with it. After listening to all of this,

everybody was talking about the children, the children. Everyone on the

dais wants a community center. That is going to cost millions of dollars.

That is for the children. Those are funds we are able to give if we don't give

to other ones. She will be willing to give a million dollars to the DaVinci

Center and zero to the IronPigs if that is what we are looking at with the

children and community. It is the Lehigh Valley IronPigs. This is so

confusing and difficult for us and everybody brought up children. She

stated that she was listening intently and what they said about the children,

this DaVinci Center is going to be great for them. Also, we are talking

about a community center that we want to build for the children. All this stuff

we are talking about with our community and our children, she will go for the

million dollars to DaVinci, but she does not want to give anything to the

IronPigs.

Ms. Cynthia Mota stated that we are talking about Bill 39. We are talking

about DaVinci. We have to stick with Bill 39. She asked if there were any

other comments from the dais. She asked if there were comments from

the public.

A motion was made by Daryl Hendricks, seconded by Cynthia Mota, that this Bill

be amended to Increase from the initial Amendment of $250,000 then from

$500,000 to $1 million.

7 -

Yes:

Candida Affa, Cynthia Mota, Daryl Hendricks, Ed Zucal, Ce-Ce Gerlach, Joshua

Siegel, and Natalie Santos

Enactment No: 15850

A motion was made by Cynthia Mota that this Ordinance be approved as

amended. The motion carried by the following vote:

7 -

Candida Affa, Cynthia Mota, Daryl Hendricks, Ed Zucal, Ce-Ce Gerlach, Joshua

Siegel, and Natalie Santos

Enactment No: 15850

15-5102

Bill 40 Budget and Finance Committee (Siegel, Santos, Hendricks),

October 4, forwarded favorably as proposed.

Amending the 2022 ARPA Fund Budget to provide for a transfer of One

Million Five Hundred Thousand ($1,500,000) Dollars to Coca Cola Park for

COVID-19 Safety Improvements.

Administration

Sponsors:

Attachments: Bill 40 $1.5 M ARPA - COCA COLA PARK

Application 6-3-2022

ARPA Application 5.15.22

Memo from Mayor Matt Tuerk regarding Step Up To the Plate -

IronPigs (Coca - Cola Park)

Mr. Joshua Siegel stated that this Bill was forwarded favorably, 3 - 0 to a

Special Committee Meeting for full consideration.

Ms. Candida Affa stated that she already stated how she felt and would like

to expand on it a little bit. She thinks Major League Baseball is holding the

city hostage. They put zero money into this. Our stadium is about 12 - 15

years old. She sees no reason, but she knows they are good for the

community and it is a great brand. She knows all of that. She has lost

sleep over this. We discussed this so many times. She stated that she

flipped and flopped, but when the DaVinci Center situation came up and

$1.5 million. That is $3 million from the ARPA funds. If we can save $2

million by just giving DaVinci a million and not giving the IronPigs anything,

we save $2 million. Something for a Community Center. Something for

homeless. More Police Officers and so many other things and the county

now has chipped in a lot more money which they should. It is the Lehigh

Valley IronPigs. There are a lot of municipalities that they are not asking.

Are they asking Emmaus, Easton or Bethlehem. No, they are only asking

Allentown for $1.5 million. She does not see how it, but it helps our

economy in some ways. It helps taxes. When it comes to our community,

we need to take care of ourselves. We need infrastructure, we need to do

for homeless, police officers. She stated that she thinks this ARPA money

should be spent on the city taxpayers. The DaVinci Center is something

she truly believes it is going to be great. Other than that let's spend the

money on us.

Mr. Joshua Siegel that he does not know much that he can say to be frank

that would change anybody's mind. He is not nor has he ever been against

spending money on violence, corruption, public safety, programs like

mental health responders to co- responders. He stated that he has never

been against to building additional affordable housing. He has never been

against addressing the homelessness issue in the city of Allentown. But

the operative difference between those concerns and this is that these are

shovel ready projects that we can invest in that has ROI that we can track.

He stated that he has not seen in the year and a half that this money has

been ahead of us and in front of us and in a pile a tangible concrete

proposal put forth to address any of those things. We are not just going to

hand over a $2 million check to an organization to address homelessness

without knowing what the proposal is and what the specific program itself is

going to be and exactly how it is going to be used to address that concern.

If an organization comes forward tomorrow with a violence interruption plan

and they ask for $2 million, he will gladly cut that check in a heartbeat. If an

organization comes forward tomorrow and has a proposal to build 80 units

of affordable housing and they need $1.5 million. He stated that it sounds

good to him. He will cut that check. The reality is that and he has said from

the beginning that they have to stop creating zero sum games analysis.

We have to stop making it about one versus the other. the City of Allentown

has cut and clawed and stride to become a state-of-the-art premier

midsized city and organizations like the IronPigs and organizations like

DaVinci are what allows us to create economic opportunities and through

economic opportunities, we create economic mobility. We create

opportunities to attract new businesses which creates new jobs, which

creates new opportunities for people to find gainful employment to support

themselves and their families. Organizations like the IronPigs aren't just

business partners and not just economic development assets, they are

community partners. It we are shutting the door to the IronPigs, we are

shutting the door on charitable contributions to sports leagues across the

city that keep kids off the streets and keep them safe. We are shutting the

door to making sure we finance baseball teams for our youth. When we

shut the door on those kids, we give them nowhere else to go. He stated

that he knows it seems like an alien concept and he knows it seems like we

are asking ourselves to put economic development before children and

poor family, but that is the complete opposite. By shutting the door on an

asset like this, we are making it harder for the city of Allentown to be

competitive economically. It would be a regional place where people want

to bring their businesses to or raise their families. These are quality of life

issues. He stated that he does not know if he is going to change anybody's

mind, but it seems likely that it will be dropped down to zero and ultimately

at the end of the day, we are going to look back in a year and a half from

now and the IronPigs may be closing up shop as the Phillies won a World

Series and we are going to be the Council and the administration that lost

the IronPigs. That is going to be our legacy. He stated that he believes

that. Maybe some of you don't. Maybe some of you think that it won't

happen. He stated that he thinks Trenton thought that and many cities

thought that. He stated that he does not think this is a zero sum game. He

stated that they can do all the things that we care about. At the end of the

day, $18 million does not go that far. We are not going to solve all of

Allentown's problems overnight. There are a whole host of things that

require state and federal investment. He stated that $18 million barely

scrapes the surface and the neglect that the city experienced over the

decades. Programs like these. Projects like these actually do provide a

tangible investment and it's a one-time investment. If we put $2 million

towards a program, when those funds dry up, guess what, those programs

go away and so does the benefit, so does the outcome, so does the

impact. This is something that is going to endure for generations and so

are the benefits of that. He stated that they will leave it at that and they will

make their own decisions.

Ms. Cynthia Mota thanked Mr. Siegel and stated that she does agree with

him. If the IronPigs go away, it will be a horrible thing for the city of

Allentown.

Mr. Daryl Hendricks stated that he would like to mimic some of the

comments made by his colleague, Mr. Siegel. One thing that is very

important to him is that they have a developing waterfront right now which

will end with possibly thousand housing units on the Waterfront which is a

stone's throw from Coca Cola Park. What they are possibly doing is taking

away another tourism and recreational venue for those people who will be

living there. Not say the entire city of Allentown. Our schoolchildren who

are able to utilize the park for high school baseball games, for charitable

causes. He stated that he is a member of a nonprofit charitable

organization and they have allowed his organization to utilize it and to raise

funds for it and this is for children. The biggest reason here is again, it

comes down to children. Giving them an opportunity to visit a site like this

to be so close in the city of Allentown. He stated that he will make an

amendment after this to give them an equal amount as of that of the Da

Vinci Center. Both are very important to the city of Allentown in supporting

them and again, supporting children. He stated that is most important to

him.

Ms. Cynthia Mota thanked Mr. Hendricks and asked if he is making an

amendment.

Ms. Ce Ce Gerlach stated no.

Attorney Charles Smith stated Mr. Hendricks would like to make a motion

on the reduction of $0 to be moved.

Ms. Ce Ce Gerlach stated that the question at hand is not whether or not

they are baseball fans or believe that the IronPigs is an asset. The question

at hand is who owns the stadium. The county owns the stadium. She

stated that she was at the meeting on October 12th where the

Commissioners put forth the budget. She read quotes: Geoff Brace,

president of the County Commissioners said it's not often that an item has

complete board sponsorship, especially when we are talking about an item

of this magnitude. Everyone on the Commissioners supported $3 million

because they understand that is a county asset. Also, he said that the face

financial realities that they face as decision makers and the impact that this

will have. He stated that the taxpayers prompted him to bring this forward.

She stated that Commissioner Beitler said the county owns the facility and

is something that they inherited. They paid for those construction bonds.

Commissioner Elbich said they are responsible for the welfare of the

county. They do get benefits from the team being here. The $3 million that

the county is allocating is contingent upon the IronPigs extending their

lease. It will also amend the lease to say that in the future there is

refinancing of debt that the county and the stadium would split the benefits

of that 50/50. That is not currently in there. The county stands to benefit

because it is their stadium. She stated that this is not Allentown's stadium

and when she read the application, the application states that the IronPigs

will be going to other municipalities to seek funding. She stated that she

did not hear any from Ms. Affa's point of any other municipalities that is

going to be giving forth funding. Maybe that has changed, but as of the last

time it was a presentation Northampton, Macungie and all the other small

towns and Bethlehem and Easton. In terms of the last meeting that they

had on this issue where it was stated that the amount on the paper of $3

million was incorrect. It wasn't. It is just that it is a little detailed so the $2.3

million that was referenced prior is being given to the IronPigs from the

county for construction costs. If construction costs, but if construction costs

go over the $2.3 million, they will then give them the extra to get up to that

$3 million. They are getting the $3 million if they need it. She stated that

Allentown is an urban city in which has urban problems and have parks,

playgrounds and pools to fix. She stated that she wants to make sure they

get fixed. The city has a gun violence situation when someone was shot

again on her goddaughter's block. They came home from visiting a

college, with happy joy, joy and thinking about the future and all that she can

be and dreaming, hoping and all of that then they get the phone call that

once again someone on her block was shot. Is it her brother, is it her

sister, is it her mom. That is the reality that they are facing in Allentown

and that is how she is basing her vote. That is why she made the motion

for zero dollars to the IronPigs. It is a county owned stadium.

Ms. Cynthia Mota asked if there were any other comments from the dais or

the public.

Mr. Kurt Landis, General Manager - IronPigs, stated that they stood here

before and he appreciates the time Council has put into these

conversations. He stated that he represents all of their opinions but with all

due respect. It is difficult. This is a project that benefits kids. The IronPigs

work time and time again to do things that benefit the city of Allentown.

Regardless, if it is a county owned facility, the IronPigs spends millions of

dollars to support the city of Allentown nonprofit organizations. It is a

family-friendly affordable location. He agrees with Ms. Affa that it is

frustrating with major league baseball, but they are $1.5 million short. The

entire community has come together to support this project. The state,

Lehigh County, Northampton County, he stated that they are in the city of

Allentown. We are very proud of that. He stated that they are proud to be

in Allentown. They need this last piece to complete the entire funding

element. With that, they will be able to stay in Allentown and Lehigh County

and support the community for years to come. To allow kids to play at the

ballpark. To provide kids and families a place that they can be safe and off

the streets. They have education days at the ballpark to invite kids with the

opportunity to learn using baseball as a tool to learn about math and

science, language art, and social studies. It is a place for high school

games. He apologized for not being more prepared for remarks, but it is

hard to imagine for everything that they do and aim to do for the entire

community and for Allentown to have a support of zero when they work

tremendously hard day in and day out to represent the community and

represent the city to do amazing things. They draw 600,000 people per

year. They support local businesses and spend millions of dollars with the

city of Allentown businesses. He stands and recognizes their points and

concerns. it is not them threatening to leave. They don't have a choice. If

major league baseball chooses and they do not make these improvements,

they will take the IronPigs away. It is not what they want. They want to be

here forever, but he can't imagine risking not being here and the tourism

and the benefits that come because where we are right now. He thanked

Council for their consideration.

Mr. Pas Simpson, Allentown, apologized to Mr. Siegel stating that he was

not being disrespectful. He agrees that the IronPigs deserve some type of

money. He just does not think it is from Allentown. They are Lehigh County

like Ms. Gerlach said. He stated that they don't even have a burgeoning

baseball program in Allentown. Out of all the sports in Allentown, that is

probably the least that they have. To put $1 million, $1.5 million is wasteful.

It is not serving their children. There is no baseball team. The last one they

had was Mountainville and lost that a year ago. Whose children are we

serving. He agrees that it is a great tourism spot. There are other

municipalities that are benefiting a lot greater. Emmaus has a baseball

team. Bethlehem has a baseball team. He stated that he can keep

naming. Allentown doesn't. Those municipalities should make up the

difference. If they choose to help out behind that because they are in our

city, awesome. For us to lead the charge when they are a county

municipality and all the other municipalities in Allentown and around the

county also benefit from them. Allentown is probably the poorest of those

municipalities and we are going to give up the most. It doesn't make

sense. This is a one-time investment, but also this is the one-time we have

this money. Make sure we are fiscally responsible and good stewards of

this money.

Mr. Joe Finley, co - owner of IronPigs, stated that it is ironic that Josh

brought up the Trenton Club/Trenton Thunder because you are looking at

the guy that was the co-owner of the Trenton Thunder who used to be the

AA affiliate of the New York Yankees in the state capital of New Jersey.

The one thought he will leave Council with as they ponder these issues, is

that the third largest city in Pennsylvania where the state capital of New

Jersey lost an AA Yankees is a legacy of this city and this committee is

going to be the loss of the AAA Phillies.

Ms. Cynthia Mota asked if there were any other public comments.

Ms. Sharon Finn, Allentown, stated just because he brought of the Yankees

that made her think she is going to guarantee that the Bronx is not

responsible for the improvements to Yankee stadium.

Ms. Heather Harlen, Emmaus, stated that she wished she lived in

Allentown. When she was looking for a home with her husband and they

were looking for a home in Allentown and it was the year that the school

district cut 400 positions because of budgetary reasons. They ended up

moving to Emmaus because it was very hard to pay taxes in the city that

didn't value children enough to fully fund the school. She stated that she

knows the school district and the city funding is different. It was a value

choice that they had to make. She always told people make her regret not

living in Allentown. Make her regret that choice. When she hears all this

funding for the IronPigs, she understands and gets the financial aspects

and get what the IronPigs brings to the community. If we are going to have

the waterfront and the NIZ, let them pay for the IronPigs because she

promised $1.5 million out of the pockets of these developers is nothing to

them.

Mayor Matt Tuerk stated that he wants to speak to an idea that somehow

reflected what Councilman Siegel referred to a zero-sum gain. He flipped

it a little away from the organizations that they are talking about between

the city and the county. He stated that he does not have a full accounting of

the ways that the county supports activities in the city of Allentown. He

stated that they will be making a grave mistake to get into you pay for this

and I pay for this thing with the county. He stated that he can speak directly

with the support that the crisis intervention specialist that ride along with our

police department and make sure the city is appropriately treating people

who are suffering from mental health crisis. That is the way the county has

invested in the city of Allentown and supporting the city of Allentown and

has shown an interest in the continuous support. He stated that he does

not think they can continue to support the program with the level of vigor that

he would hope they would giving the potential circumstances with the city

not supporting improvements to Coca Cola Park. The park is in fact in the

city of Allentown. There is $125,000 approximately annually in taxes that

has been generated from activities at Coca Cola Park. There has been for

the 14 years that the team has occupied the park which simple math, 14 x

$125,000 = $1.75 million of revenue that has come to the city of Allentown

at no cost to us. The city has yet to invest in the facility and is now faced

with a decision about investment in a facility that will certainly be here with

support in many years to come and continue to generate revenue for our

city of Allentown. He does not want to see his administration or City

Council get into a match with the county over who should be paying for

what. We are collaborators and partners with the county of Lehigh. The

city has a mutual interest in Coca Cola Park, in safety in the city of

Allentown. We have a mutual interest in housing in the city of Allentown.

The city has a mutual interest in economic development in the city of

Allentown. We have a mutual interest in supporting our kids in the city of

Allentown. He will leave the last comment in terms of investment that the

team make it into the city of Allentown in the form of support for our

recreational facilities across the city, particularly Andre Reed Park on the

eastside. It is not certain that if City Council chooses not to make an

investment in Coca Cola Park that the team will be gone or we will lose the

team. The mere probability of an existential threat like that suggest that

City Council reconsider the idea of not providing support at all for the

IronPigs and at least match to this point supported DaVinci on.

Ms. Candida Affa stated that one thing that they are forgetting is that this is

a business. This is not a community thing that they have to chip in. This is

a business owned by major league baseball. One of the richest

organizations in the world. She stated that they come hat in hand asking

the city for $1 million. Has anyone asked MLB for the money. This is a

business, and you are asking us to invest in a business with our ARPA

funds. Funds that are supposed to be used to help, restore and regenerate

things that happened during COVID. Now, you lost a season, she stated

that she understands that, but many people lost their businesses. Once

again, remember, this is a business.

A motion was made by Ce-Ce Gerlach, seconded by Candida Affa, that this Bill

be amended to Zero Dollars.

4 - Candida Affa, Ed Zucal, Ce-Ce Gerlach, and Natalie Santos

3 - Cynthia Mota, Daryl Hendricks, and Joshua Siegel

Enactment No: 15851

Yes:

No:

Attorney Charles Smith stated that there is an opportunity just like on the

prior one once the number got amended an opportunity for a further motion

amend should any Councilperson want to make that. Right now, Bill 46 is

at zero.

Enactment No: 15851

Mr. Daryl Hendricks stated that both of these endeavors are important to

the city of Allentown. He stated that he will make a motion to treat them

equally.

Ms. Cynthia Mota stated that it is time to discuss this Bill. She asked if

there were any questions from the dais or the public.

A motion was made by Daryl Hendricks, seconded by Joshua Siegel, that this Bill

be amended to change from zero to $1 million.

3 - Cynthia Mota, Daryl Hendricks, and Joshua Siegel

Yes:

No:

4 - Candida Affa, Ed Zucal, Ce-Ce Gerlach, and Natalie Santos

Enactment No: 15851

Ms. Cynthia Mota asked if there were any comments from the public.

Enactment No: 15851

A motion was made by Cynthia Mota that this Bill be approved as amended.

4 - Candida Affa, Ed Zucal, Ce-Ce Gerlach, and Natalie Santos

3 - Cynthia Mota, Daryl Hendricks, and Joshua Siegel

Enactment No: 15851

Yes:

No:

ORDINANCES FOR INTRODUCTION (To be referred to Committee with public comment

prior to referral)

The following bills will be taken up during City Council's budget review process.

15-5399

Bill 77

An Ordinance of the City of Allentown, County of Lehigh, and

Commonwealth of Pennsylvania, adopting the Liquid Fuels Fund Budget

for 2023.

Administration

Sponsors:

Attachments: Bill 77 2023 LIQUID FUELS

Ordinance #15857

Ms. Cynthia Mota asked if there were any questions from the dais or the

public.

Mr. Ed Zucal stated that these are all part of Public Works Budget at some

point later down the road.

Ms. Cynthia asked if there were questions from the public.

Mr. Michael Hanlon stated that all these Bills will be referred to their

respective Budget Committee Meetings.

Enactment No: 15857

15-5400

Bill 78

An Ordinance of the City of Allentown, County of Lehigh and

Commonwealth of Pennsylvania, adopting the Trexler Fund Budget for

2023.

Attachments: Bill 78 2023 TREXLER FUND

Ordinance #15858

Ms. Cynthia Mota asked if there were any questions from the dais or the

public.

Mr. Michael Hanlon stated that all these Bills will be referred to their

respective Budget Committee Meetings.

Enactment No: 15858

15-5401

Bill 79

An Ordinance of the City of Allentown, County of Lehigh and

Commonwealth of Pennsylvania, establishing and adopting the Solid

Waste Enterprise Fund Budget for 2023 and amending Article 1131,

Municipal Waste Storage, Collection and Disposal by maintaining the

Solid Waste Fee at Three Hundred and Seventy-Five ($375) Dollars.

Administration

Sponsors:

Attachments: Bill 79 2023 SOLID WASTE FUND AND FEE

Ordinance #15859

Ms. Cynthia Mota asked if there were any questions from the dais or the

public.

Mr. Michael Hanlon stated that all these Bills will be referred to their

respective Budget Committee Meetings.

Enactment No: 15859

15-5402

Bill 80

An Ordinance of the City of Allentown, County of Lehigh and

Commonwealth of Pennsylvania, establishing and adopting the Stormwater

Fund Budget for 2023 and amending Article 393.15 – Stormwater Utility

Fee by maintaining the Stormwater Utility Fee at Twenty ($20) Dollars per

Five Hundred (500) square feet of impervious surface.

Administration

Sponsors:

Attachments: Bill 80 2023 STORMWATER FUND AND FEE

Ordinance #15860

Ms. Cynthia Mota asked if there were any questions from the dais or the

public.

Mr. Michael Hanlon stated that all these Bills will be referred to their

respective Budget Committee Meetings.

Enactment No: 15860

15-5403

Bill 81

An Ordinance of the City of Allentown, County of Lehigh, and

Commonwealth of Pennsylvania, establishing and adopting the Rental Unit

Licensing Fund Budget for 2023 and amending Article 1759 – Landlord

and Rental Fee by maintaining the Residential Rental Fees.

Administration

Sponsors:

Attachments: Bill 81 2023 RENTAL UNIT FUND

Ordinance #15861

Ms. Cynthia Mota asked if there were any questions from the dais or the

public.

Mr. Michael Hanlon stated that all these Bills will be referred to their

respective Budget Committee Meetings.

Enactment No: 15861

15-5404

Bill 82

An Ordinance of the City of Allentown, County of Lehigh, and

Commonwealth of Pennsylvania, adopting the American Rescue Plan Fund

Budget for 2023.

Administration

Sponsors:

Attachments: Bill 82 2023 ARPA FUND

Ordinance #15862

Ms. Cynthia Mota asked if there were any questions from the dais or the

public.

Mr. Michael Hanlon stated that all these Bills will be referred to their

respective Budget Committee Meetings.

Enactment No: 15862

15-5405

Bill 83

An Ordinance of the City of Allentown, County of Lehigh, and

Commonwealth of Pennsylvania, establishing the General Fund,

Administrative Order Fund, Risk Management Fund, Debt Service Fund,

Equipment Fund, Golf Fund and Hamilton Street Dam Maintenance Fund

Budgets for 2023.

Administration

Sponsors:

Attachments: Bill 83 2023 BUDGET AND TAX RATE

Ms. Cynthia Mota asked if there were any questions from the dais or the

public.

Mr. Michael Hanlon stated that all these Bills will be referred to their

respective Budget Committee Meetings.

Enactment No: 15863

Budget Discussion:

Budget Message: Mayor Tuerk

Finance Department: Finance Director Seth O'Neill

Inclusive Topics: Five Year Plan, Revenue and Expenditure Estimates, Department

Bureaus, Risk, Capital Overview, Debt

Ms. Cynthia Mota stated that she would like to thank the Mayor and his staff

for the work they have done in putting the budget together and creating a

more detailed narrative for ourselves and the public.

Mayor Matt Tuerk stated Council President Mota, members of Council,

Controller Glazier and member of the public thank you for the opportunity to

present his team budget proposal for 2023 calendar year. He talked about

his deep love for budgeting. He stated and he and Seth talked about zero

based budgeting that will be as transparent as possible. The team did an

amazing job and worked through July and August making those

adjustments. In October they finalized it and last Monday put a big stack on

Council's desk. It is a 307 - page Budget Narrative. He stated that he has

done lots of Budgets over his career. He stated that he is nerv-excited

(nervous and excited). He pointed out the Budget Highlights: they are in

the business of providing government services. He talked about making

investments in people. They are invested in public safety with the

investment of five additional police officers, with four new paramedics,

investment in premium pay to achieve a 29 staffing level, asking for new

positions, five percent cost of living increase, a double investment in

training and development, the city has critical need in fixed assets

(equipment and vehicles), and personnel with appropriate levels of staffing.

The administration is asking Council to consider spending $18 million on

revenue replacement. The city already commitment $8 million over 2021

and 2022. He asked Council to commit an additional $5 million this year

and another $5 million in 2024. He talked about investment policies to

allow them to be much more agile and better manage the cash position.

This budget does not anticipate any new debt issuance in 2023. The

administration will not ask Council to raise taxes on Allentown city

taxpayers. It is something that they may have to consider in the future. He

stated that he believes in adjusting revenue to meet adjusting expenses.

The Capital Plan is under separate cover. He thanked Seth O'Neill and

Bina Patel who stepped up to lead this budget process and did an

absolutely phenomenal job with the team Audrey, Cassie, and Jennifer.

The administration is proposing to purchase a certain number of gallons of

fuel and they expect those gallons of fuel cost of $4.25 a gallon which was a

best guess estimate.

Ms. Cynthia Mota stated that the meeting is being run by Mr. Siegel.

Mr. Matt Tuerk stated that there is an increase in personnel expense has an

increase of $6.1 million. The total personnel expense in the 2023 budget

over the 2022 A&E budget. (contract services, repairs and

maintenance, and training and professional development)

Mr. Joshua Siegel asked if Mayor Tuerk wanted to take questions of the

Budget Narrative or the Finance Department Overview.

Mr. Seth O'Neill echoed some of the things that the Mayor landed on. He

talked about the wealth of documentation and stated that Council can

contact him anytime. He stated that he won't belabor the Finance Budget.

He stated that he will speak on what is relevant in 2023. He talked about

the personnel request and reclassification. He talked about the elimination

of the general and civic programs. He talked about Line 88 - Interfund

Transfers. On Page 24, General, Finance Budget Administration.

Electronic Reporting Capability for the NIZ return to certify the taxes. Right

now it is a manual process. It is a good investment. Refunds, the 90

Account with an increase in the refunds that revenue and audit will have to

process. The city needs more in the account for refund claims. He talked

about the Risk Fund and the work that John and Brendon have been doing

to have absolutely top notch Worker's Comp and Auto Claim resolutions.

The city is at the Gold Standards. They are cleaning up the Retiree Health

Plans (OPEB). There is a five percent structural deficit built into the Risk

Fund. At the end of the day, the city is going to see a balance fund in the

Risk Fund at the end of 2023. The 37 Account that pays for healthcare

premium i.e., prescriptions, medical claims are at $23.5 million which is a

five percent increase from the 2022. They want the Risk Fund to sustain $5

million cash balance. They have to make sure they are funding it. There

are two personnel requests. Full-time for the Benefits Coordinator and a

reclassification of Risk Claims Coordinator to a Risk Claim Examiner.

Mr. Joshua Siegel asked if there are any comments from his colleagues.

Mr. Ed Zucal stated that in the Budget Book, Page 55 - current acting HR

Director is in the salary structure and the same one is in the HR Budget.

Who is going to pay her. He stated that the other stuff he will deal with

through a Budget Amendment.

Mr. Seth O'Neill stated that the salary is for the vacant position. It is the

same amount of people.

Ms. Natalie Santos asked Mr. O'Neill if he could briefly describe what a

structural deficit is.

Mr. Seth O'Neill stated that is when you have in a purposefully built in

expenditures that are greater than revenues. Sometimes it is done out of

necessity. When he said structural deficits in the Risks Fund, he meant that

revenues are currently projected lower than expenditures. In this 2023

Public Works Budget, there is a line item of a Capital Needs Assessment.

He hopes Council agrees to fund the study in 2023 so they can properly

prepare a long-term Capital Improvement Plan.

Mayor Matt Tuerk stated that this is learning to walk before they can run and

making sure they have the appropriate staff in place. They don't have a

good quality assessment of the buildings. He suggested a Capital Needs

Assessment.

Mr. Joshua Siegel asked what is the timeline for the RFP and contracting,

forming a study and getting a holistic analysis.

Mr. Seth O'Neill stated that they usually say from RFP to Contract.

Mr. Joshua Siegel asked if it is a facility by facility inspection and

assessment of capital needs.

Mr. Seth O'Neill stated that the Fire Department knows that they have

capital needs. They know how to quantify them. It is not just the fire

department and no just police as the mayor indicated. It is all city facilities

and they just don't know what the needs are.

Mayor Matt Tuerk stated that the administration would like to see a

facility-by-facility assessment. Council deserves to see a facility-by-facility

assessment to sense where our capital needs are.

Mr. Seth O'Neill talked about the Five Year Plan. He would not necessarily

call it a plan. It is a forecast at the moment. A lot would absolutely change

year to year, let alone in five years. The revenue estimates, he does not

think anyone would have predicted coming off of Covid the city would have

two absolutely record years of EIT collection. This year, the city is looking

at 14 percent over budget in EIT. The biggest expenditure is personnel.

Mr. Joshua Siegel stated that the city is quite resilient and flexible. The

Covid epidemic started a structural deficit and through the ingenuity of our

finance department they are able to work that down to extraordinary

workable budget. He stated he understands it best as projections and

estimates. There will be responsible decisions made on the way that will

adjust the court and trajectory of the city to avoid those outcomes. They

see the sticker shock of the $12 million.

Mr. Seth O'Neill stated that maybe it is good to see something like that. He

stated that he won't spend a lot of time on the debt because the mayor beat

him to the Budget Narrative. The debt portion is amply explained. No new

borrowing or debt services anticipated in 2023.

Mayor Matt Tuerk stated that he discussed with Ms. Mota and Mr.

Hendricks and strongly encouraged them to reach out to his team. This is

the only thing they are focused on to help Council understands the budget.

Mr. Jeffrey Glazier commented the administration for a well thought out

budget. He read the narrative. If Council has not done it, they should take

the time because it truly explains how the departments intent to use the

money. He typically puts questions together for the departments and will do

that again this year.

Ms. Cynthia Mota stated that there are a lot of events happening this

weekend. She asked the mayor to talk about the events.

Mayor Matt Tuerk stated that he can't begin to talk about all of them. He is

excited about Halloween night and trick or treat on Friday. The next day is

the Halloween Day Parade starting on 9th and Hamilton. He talked about

Movies in the Art Park. The Chamber of Commerce holding a Booze

Crawl. Symphony Hall is hosting the Mask of Zorro. The Phantoms have a

game.

Ms. Candida Affa thanked Mayor Tuerk for the Budget Book. She stated

that once you start reading it, it will take a while. It is so informative.

Mayor Matt Tuerk stated that when Council gets the final version of it, it will

be tabbed. This is written by the team. The Budget is just a plan for 2023.

He suggested as Council reads it, reach out to department heads.

ADJOURNED: 757 PM

15-5389 Budget Information

Attachments: Budget Schedule

Building Standards and Safety - Rental

APD proposed Budget 2023

2023 EMS BP V2

2022 Police PP 1

2010 NIST Study

Cedar Crest College - Police Summary of Services Report

Human Resources Department Current Organizational Structure

Human Resources Department Proposed Organization Chart

COA Active Litigation Nov 2022

Legal fees for the 2019 through 2022