A TIF Tutorial

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Dana Grubb is a lifelong resident of the City of Bethlehem who worked 27 years for the City of Bethlehem in the department of community and economic development, as sealer of weights and measures, housing rehabilitation finance specialist, grants administrator, acting director of community and economic development, and deputy director of community development.

“And the additional real estate taxes the new construction will generate will immediately help the city’s bottom line. In past years, county, city and school district tax revenue generated from improvements there went into a special taxing fund — the Tax Increment Financing — to pay for infrastructure improvements at the former Bethlehem Steel land. The TIF expires next year.”
                                                            Morning Call, December 4

Gadfly,

Along with then City Solicitor Joseph ‘Jay’ Leeson and Bethlehem Redevelopment Authority Executive Director John Rohal, I was the 3rd member of the City’s negotiating team to deal with Bethlehem Steel representatives to bring about Tax Increment Financing (TIF) at the site that comprised what was then known as Beth Works. It roughly encompassed the area from the Fahy Bridge to the property that is now Lehigh Heavy Forge just east of the casino. It was looked at to be a financing mechanism for providing public funding to support the construction of public infrastructure for new development on a portion of what at that time was the largest brownfield site in the United States.

What is TIF? It is the set aside of real estate taxes collected on new development within a defined area. The taxes being collected on the unimproved property continue to be paid to the taxing entities, in this case the Bethlehem Area School District, City of Bethlehem, and County of Northampton. Once development takes place the property is reassessed to include those improvements. So, if an acre building site is assessed before any improvements at $500,000 and reassessed after improvements at $2.5 million, the real estate taxes on the $2 million increase would be diverted into a TIF account and not be paid to the taxing entities.

Public meetings were held, and all three taxing entities bought into the idea of diverting tax proceeds into a fund reserved for making public improvements to support new for-profit development.

As those funds accumulate they can then be used to pay off bonds that are floated to fund public improvements such as streets, public utilities, parking lots/garages, etc. The TIF in Bethlehem was structured for a 20-year term, which if my memory serves me was the term limit in 1999 when we negotiated this deal with Bethlehem Steel. The aforementioned public improvements were the kinds of public improvements envisioned back then to be built and funded with TIF. Of course, Bethlehem Steel went bankrupt and development concepts evolved, so different kinds of “public improvements” were made.

The singular project that made TIF viable was the casino development and the roughly $4 million in annual real estate tax increases that were then going into the TIF account. This allowed the Redevelopment Authority to float bonds for a variety of initiatives that include the Hoover Mason Trestle, Stock House, parking lots, public areas of SteelStacks, and the South Bethlehem Greenway. TIF money also went into other questionable uses as well, such as the private 510 Flats project ($800,000) across from the NCC Fowler Center and funding the South Side Ambassadors Program, and reimbursing ArtsQuest for staff time to unlock/lock the Hoover Mason Trestle access gates.

As with many government initiatives good intentions can often lead to unintended consequences, and TIF ended up being used in ways that some would question, including me as an original negotiator. Politics and the desire to feed at the public trough tended to trump intentions.

Although I’ve been informed that it is possible to extend the TIF term so that additional improvements could be made, I do not believe that the political will exists with any of the three taxing entities to do that. Increasing needs in individual budgets do not make it attractive to forgo tax revenue beyond the original 20-year term.

I hope this makes it more understandable.

Dana

So Professor Dana or others: let me see if I understand. Let’s see if I can put this in my own words.

Under the TIF, the property owner (the Sands) paid taxes as usual on their now developed and more valuable property, but the amount of the tax increase solely attributed to development went not to the taxing agencies but into a fund solely directed at improving their property. The taxing agencies’ revenues from the property stayed the same (in that sense, they didn’t “lose” money), but they agreed to take a hit on increased taxes from the increased value of the redeveloped property, and, in effect, the property owner saved some money on improvements. The taxes on the increased value of the property flowed back in to the property owner enabling it to do more improvement.

So is it true to say that the end of the TIF is a loss to Wind Creek? That they are the ones to lose the benefit? So is it true to say that the end of the TIF is a gain for the City (and the other taxing agencies)? If so, that sounds ok to me. But it sounds to me that you see “us” losing a benefit when the TIF ends and that you would like to see the TIF continue — can you explain that further? Does Wind Creek need the “help” of the TIF? Are there things on that property that won’t get done without the TIF? I think I’m still missing something here.

Gadfly still needs your help.

Councilman Callahan: “Mr. Reynolds, I know your games.”

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Councilman Callahan, of course, defends himself. Gadfly wonders how effective you will think that defense is. Frankly, Gadfly sometimes has trouble following BGC’s train of thought. Now it must be said that BGC may have been caught by surprise. Councilman Reynolds seemed to be working from a prepared or roughly prepared text. No doubt he had the advantage of prior organization of his thoughts. BGC, on the other hand, had to answer in defense spontaneously. It is telling, however, that BGC’s first response to JWR’s motion to relieve him as liaison to the BPA is to see himself as a kind of victim of an “orchestrated” conspiracy, and his last response, similarly, is to see himself the object of game playing. That’s frustrating to Gadfly. That’s a tease. That’s innuendo much like what BGC aimed at AMK. What exactly are you talking about, Councilman Callahan? Tell me, tell us the public, what game is Councilman Reynolds playing? Out here in the cheap seats, we don’t know what you are talking about. What exactly do you mean so that we can judge your truth? That kind of framing by BGC seems to Gadfly a deflection from the charge of the “unequivocally inappropriate” behavior of advocating for his brother’s company and knowing more inside information than he should have if he were simply acting as liaison. In addition, Gadfly could not connect the relevance in BGC’s references to the Transfer Tax, to the Mayor’s role in building the Polk Street Garage, to the departure of Mr. Livingston. And to establish the “bias,” the “slant” of the proposal backed by the City but not accepted by the BPA would need concrete examples and deeper analysis.

(Pardon some perhaps peripheral Gadfly venting. Certainly, it’s a free country. People can do what they want. Certainly family relationships in business and politics need not automatically be looked on with suspicion, need not be thought of as or necessarily be nefarious. Because you are somebody’s relative shouldn’t mark you as some visible sinner like the Hawthorne character in the classic Scarlet Letter novel. (Pardon the professorial reference, but after the Gadfly follower brought up “Kabuki theater” yesterday, the metaphorical roof is off!) But what was Hunter Biden thinking when accepting that Ukraine appointment? Could the Mayor’s son not have a good job somewhere besides with the parent company of a business that does City business — enormous City business?  Why doesn’t BGC stay totally away from situations that involve his brother? It just seems to Gadfly that ethical quicksand is readily visible, but, sadly, people walk into it anyway.)

  • I’ll step down if you feel that way Mr. Reynolds, I mean obviously this has been orchestrated.
  • But know this, nobody, nobody on this Council has been harder on Peron Development [the company that BGC’s brother John works for and the company whose proposal was accepted by the Parking Authority] or BethWorks in what happened with that Transfer Tax.
  • You can mention my brother all you want, my brother’s in the private sector right now.
  • I had no vote for the Parking Authority on that . . . never had any conversations about it.
  • All I knew is that report if you look at it line item by line item by line item, it would be very tough for anybody, rational, and not go, hmmm, there’s a slant to that.
  • I didn’t speak to my brother for two weeks about it . . . he was upset.
  • So to suggest that I don’t take a middle ground on everything to me is pushing it.
  • You know what, I’ll step down from the Parking Authority [the Council liaison role].
  • My issue with it is the fact that the Mayor runs the Parking Authority.
  • Mr. Livingston [executive director of the Parking Authority] is leaving . . . because that garage is being built because the Mayor wants it built.
  • If the Mayor didn’t want that garage built, it’s not getting built.
  • [The Mayor] raised the fine increase to build it.
  • Instead of throwing the Parking director out there to take all the heat, [the Mayor] should have stepped up.
  • To suggest that I’m not fair and I’m not trying to play both ways is disingenuous.
  • You know what, Mr. Reynolds, I know your games.
  • I will step down as the Parking Authority liaison.

to be continued . . .

“Dark Waters”: a movie to think by

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Many Gadfly followers are environmentally focused.

The movie “Dark Waters” opens nationally tomorrow and will no doubt play soon locally. Unfortunately, though it is listed on the web site of my go-to place the Banko Ale House Cinema as “coming soon,” they tell me today it will not be playing there. But look for it elsewhere.

Below are selections from a review of “Dark Waters” published in the Call Tuesday.

Looks good. Looks meaningful.

Gadfly loves these kinds of films. “Reel American History” was his long-standing project with Lehigh students as part of his larger History on Trial suite of web projects. And RAH contained several projects on films similar in nature with “Dark Waters”:  Blowing the whistle on “Big Tobacco” [The Insider (1999)]; Radiation kills Karen Silkwood [Silkwood (1983)].

Gadfly has several times recommended the Radical Moderate blog of sustainability warrior and Bethlehem native Alison Steele.

Alison has just published the third in a series of posts framing “Dark Waters” with the documentary — available online here — “The Devil We Know.”

The first 5 minutes of the documentary will scare the hell out of you.

Gadfly recommends that you view the documentary in concert with Alison’s posts and then see the movie.

This is “Reel American History”!

And Gadfly would very much invite posts reacting to the film, the documentary, Alison’s framing of them — all of the above.

Serious business.

(What do we know of the environmental impact of Bethlehem Steel? Studies?)

David Michaels, “Commentary: What ‘Dark Waters’ reveals about corporate science.” {Bloomberg Opinion] Morning Call, December 3, 2019.

A new movie, “Dark Waters,” shines a bright light on a group of dangerous chemicals that are likely in your bloodstream right now. It tells the true story of a polluter that manipulated research and kept evidence hidden from the public — and shows just how crucial it is that scientific evidence be produced by researchers free of conflicts of interest.

The chemicals that drive the film’s drama, known as PFAS, are remarkably effective at repelling water and oil. They’re used to make familiar products such as Teflon, Scotchgard and Gore-Tex, and are found in the coating of pizza boxes and microwave-popcorn bags.

Unfortunately, in recent years, they’ve also gained attention for their links to cancer, liver and thyroid disease, increased cholesterol, and depressed fertility. They’ve been found in the blood of almost every American ever tested, and they contaminate the water in communities across the U.S.

“Dark Waters” focuses on how the chemical company DuPont manufactured Teflon in a West Virginia town, and in the process fouled the local drinking water with a PFAS compound. Over the course of the drama, viewers learn that DuPont hid much of what it knew about its effects. In 1981, for example, DuPont was informed by 3M (from which DuPont purchased much of its C8) that the chemical caused birth defects in rats; DuPont then learned of two apparent birth defects among children of its Teflon division employees.

When the first public concerns abound the compound emerged, DuPont did what too many corporations do: They took a page from Big Tobacco’s playbook and hired a firm to sow doubt about the scientific evidence.

The film captures how a courageous attorney working virtually on his own was able to document DuPont’s coverup. Armed with those documents, the Environmental Protection Agency eventually issued its then largest-ever fine, and required DuPont to clean up the local water supply.

We badly need a new model for production of the evidence necessary to protect the public. When government agencies consider potentially harmful exposures and activities, from vaping to opioids to glyphosate to payday loans, they should insist the regulated industries provide data produced by unconflicted scientists.

It’s Thursday, December 5, do you know where your local Climate Action Plan is?

Resident chatter around Gadfly’s water-cooler about Councilman Callahan and the ethics issue

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What followers are saying to Gadfly:

  • There is no pay to play inferred here, which is exactly what brought down elected officials in Reading and Allentown. That connection between Bethlehem and those cities does not correlate.
  • I hope the ethics ordinance is re-introduced and passed. Councilman Reynolds was going to introduce something on campaign finance.
  • I absolutely agree with Council’s action to remove [BGC] as liaison to BPA.  His obstinance on this issue feels like a dentist’s drill at work.
  • The Mayor does not control the hiring of the Parking Authority director, who [BGC]  announced is resigning effective sometime this month. His brother [John, former Mayor] was very good at jumping the gun on announcements others wanted to control by releasing at their discretion, not at a Callahan’s discretion.
  • He’s [BGC] passive-aggressive. One minute he’s attacking, the next minute conciliatory.
  • This issue is not attributable to the Mayor as he [BGC] keeps stating. He just won’t let any of this go.
  • What we are witnessing at Council and in City Hall is “Kabuki Theater.” [There is no chopped liver among Gadfly followers]

What’s in your wallet, er, thinking?

to be continued . . .

Councilman Callahan explains more about the ethics issue to Councilman Reynolds (us)

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Let’s see, can you follow this ethics controversy without a program?

Hey, you guys in the back of the room — you got this?

We better back up a moment. Councilman Callahan has made two claims of possible unethical behavior against AMK, what Gadfly has called the permit issue and the Parking Authority issue.

(Remember, if you need refreshing, click “Ethics” on the righthand sidebar to get past posts.)

The permit issue is still up in the air. BGC wants the Mayor to call in AMK’s staff and quiz them. There’s been no forward motion to settle this issue. BGC focused just on this issue in his November 25 press conference.

The Parking Authority issue is the one about BGC calling out AMK at the November 6 City Council meeting for unethical behavior relating to the the Polk Street Garage decision.

Got it? With me?

The Mayor wrote BGC a 4-page memo on this Parking Authority issue that seemed to clarify the situation and absolve AMK of bad doing. It is this memo that Councilman Reynolds referred to in his statesman-like statement covered in our previous post.

So in this next step at Tuesday’s City Council meeting, BGC takes JWR up on elaborating more on his unethical behavior suggestion in regard to the Parking Authority issue. He doesn’t take the apology-to-AMK option.

BGC says he already knew the nuance on which the Mayor focused in his absolution of AMK. He says the problem was not that AMK made a phone call to one of the parties bidding on the Polk Street project but that she suggested with BPA Board members (was it one phone call or more?) renegotiation with only one of the bidders — which happened to be her preference bidder — and not both bidders.

In addition, BGC claims that the decision of the Mayor’s ad hoc committee (did AMK chair it?) assessing the bidders and favoring AMK’s preferred bidder in an evaluation report provided to the BPA was not unanimous (thus, he claims possession of inside knowledge), and, moreover, that the report itself is obviously biased. No evidence given on that last claim.

Thus, the Mayor’s explanation did not address BGC’s specific concern, and BGC indeed complies with JWR’s request by providing more information about his position.

BGC sees a phone call to Board members on the day of the vote suggesting renegotiation with one — her choice — but not both bidders as unethical.

BGC keeps the issue from closure by moving the goal posts, as it were, in his explanation.

Think on this.

And where do you think the conversation will go next?

  • I think that in the aftermath of Allentown and Reading, there was a little bit of spotlight . . .
  • I know it wasn’t a bid process.
  • You [the Mayor] appointed an ad hoc committee [on the Parking Authority design] to look in to it.
  • I think if you sat down and you looked at each individual item, it’s probably one of the most biased reports I’ve ever read if you really look at it.
  • It’s clear that that category of grading was very slanted.
  • I also know that it was not a unanimous decision on that ad hoc committee.
  • Is that correct, Ms. Karner? (pause, silence) That answers the question.
  • After the ad hoc committee was formed they wrote up their summary . . . but the thing that’s upsetting and disturbing, especially in the aftermath of Allentown and Reading, is that Ms. Karner, and I know this is factual because it was told to me firsthand, called two people on the Parking Authority Board to try to convince them . . . to renegotiate . . .  not with both entities, that’s the problem.
  • In my opinion, that’s extremely unethical.
  • That phone call was made the day they were voting on it.
  • Why the additional phone call?
  • I didn’t vote on it, I didn’t even talk at the meeting.
  • They [the BPA] were done with it in seconds.
  • In the aftermath of Allentown and Reading, for a department head, after she released her report already, . . . for her to make that phone call on the day of the vote . . . I find that in my opinion unethical.
  • I don’t think the phone call should have been made.

to be continued . . .

Councilman Reynolds to Councilman Callahan on the ethics issue: explain more or apologize

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Gadfly is breaking down the section of the December 3 City Council meeting concentrating on the ethics issue raised by Councilman Callahan into small parts so that you can focus on how each Councilman responds to it.

Gadfly will always remind you that a core part of his project mission is to have you know your elected officials as well as you can so that you can be an informed voter.

This section of the meeting was dominated by interchanges between Councilman Callahan and Councilman Reynolds, veteran antagonists.

And just from information available recently in the course of this controversy, we can look forward to the possibility — if we didn’t know this before! — that both Councilman Callahan and Councilman Reynolds may run for mayor.

Which means paying attention to them is particularly important, especially at time of stress, especially at times when leadership is called for.

Councilman Reynolds, though still a young man, has been on Council about 12 years. President Waldron once referred to him as having the wisdom of an elder statesman.

JWR was certainly statesman-like here (O Gadfly, that sounds so pretentious, but we get the idea). He was calm. He hoped there would be a path to settling the permit issue. So he focused on the Parking Authority issue, the one in which BGC accused AMK of unethical behavior at a City Council meeting. He said the most serious charge that could be leveled at a public official was leveled at AMK, a bad thing for everybody and the City. He concluded, reasonably, that BGC should back up his charge or apologize.

Listen–

  • Calling somebody unethical is the most serious charge that public officials can face.
  • There’s an inherent trust that comes with the responsibility of being an elected official.
  • Calling somebody unethical is not something that should be spoken of lightly.
  • It’s not brought forward without strong evidence of wrongdoing.
  • It’s not a verbal tool to be used in a disagreement.
  • The public has not heard any more evidence or explanation.
  • He has not elaborated on his accusation.
  • I don’t believe that it does this body any good or it does the City of Bethlehem to have those accusations sit out there.
  • The administration sent a 4-page memo that went through this whole process [the Parking Authority issue]
  • Give Councilman Callahan the opportunity here to at least add information or explain his position or, absent that, I do think it would be paramount for him to apologize to [AMK] for the accusation of being unethical and the Allentown comment [that some people went to jail for that kind of activity].

How will Councilman Callahan respond?

to be continued . . .

Rothman reports for the Environmental Advisory Council

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Note well: City Council is taking applications to fill a vacant position on the EAC.

To apply, email a letter of interest along with a resume to Adam Waldron, Council President (awaldron@bethlehem-pa.gov).

At the end of the letter cc:  Members of Council.  When sending, copy the email to Clerks@bethlehem-pa.gov enabling the City Clerk to distribute the application to Members of Council. Application may also be mailed to City Hall, 10 East Church Street, Bethlehem PA 18018.

———-

Bethlehem’s volunteer Environmental Advisory Council was well represented in presentations at City Council last night.

Here is chair Lynn Rothman presenting this very active committee’s annual report.

 

EAC 2019 Yr End Report

Your non-tax dollars valuably at work!

Gadfly strongly encourages his environmentally focused followers to attend the EAC meetings (7PM, first Thursday of the month, in the beautiful Illick’s Mill) and to apply for membership on the Council.

This group gets things done!

It’s Wednesday, December 4, do you know where your local Climate Action Plan is?

Councilman Callahan hasn’t made up his mind yet about running for Mayor

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Gadfly had wanted to get back to another post on Councilman Callahan’s role in this ethics controversy before tonight’s meeting.

Gadfly has been a dedicated Council watcher for 15 months now.

He has always said that one important aspect of the Gadfly project is to help you know your elected officials better so that you will be the most informed voter you can be come election time.

He has always said that it is likely that current Council members will run for re-election and that some at some time are likely to run for mayor.

And that’s why we should pay attention.

Twice in the last few weeks Councilman Callahan has remarked in passing at Council meetings that Mayor Donchez has 1 1/2 years left as Mayor and he [Callahan] doesn’t know who will be the next Mayor.

Odd things to say, thought Gadfly to hisself.

Was Gadfly the only one who noticed?

The Mayor is only in the 6th or 7th inning, not time to write him off yet.

But those seemingly-in-passing remarks might be a clue that Councilman Callahan has running for mayor on his mind.

In fact, he clearly said as much at the very beginning of the Q ‘n A after his November 25 press conference, in the context of his knowledge of a deal Councilman Reynolds made for the Mayor’s endorsement of the Reynolds’ candidacy come next election.

“I am thinking about it, especially with all the things going on right now. I haven’t made up my mind yet.”

So we should be paying attention.

We can learn a lot about leadership qualities from a controversy like this — not only about Councilman Callahan but other members of Council and the Administration as well.

This is a great opportunity to see what people are made of.

And who might make a great next Mayor.

to be continued . . .

The recent attacks upon AMK’s ethics are way off base

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Steve Melnick is a retired economic development executive and a 25-year resident of Bethlehem.

Gadfly:

In the past I have not been a big fan of the way AMK runs her department. Speaking from personal experience when I was purchasing another townhouse, her staff seems to be less than professional. However, the recent attacks upon her ethics are way off base. During the review of the Parking Authority RFP, I wondered to some people why an award was made to a developer who not only came in with a higher cost but also asked for tax relief through the KIZ. Was the other developer unaware of the KIZ benefits? It seems to me that AMK was using sound logic in trying to recommend the equally qualified developer who submitted a lower bid. Why would you arbitrarily agree to pay more for something than you have to? Of course, the lowest bidder did not employ any relatives on city council. That is what makes this whole incident so baffling. The relative WON the bidding. What more does BGC want?

Steve

Where is Ms. Karner in all of this?

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On November 6 Gadfly was in his usual 3 o’clock position in the cheap seats at City Council when in the course of a routine discussion about funding a proposal to study the Southside, Councilman Callahan turned to Department of Community and Economic Development head Alicia Miller Karner, who was sitting in the 11 o’clock position of sparsely filled Town Hall, and unexpectedly said:

“Miss Karner, did you or did you not call the Board and put pressure on them [members of the Bethlehem Parking Authority Board], did you not ask two people the day of the vote to renegotiate a lower bidded contract?”

Gadfly gasped audibly.

Gadfly is an old dawg (and a mixed metaphorist).

He was watching the Army-McCarthy hearings on tv in 1954 at the moment at which lawyer Joseph Welch famously nailed the infamous Senator Joe McCarthy with

“Have you no sense of decency, sir? At long last, have you left no sense of decency?”

Gadfly gasped, his mind spontaneously went to the Welch moment, and he may even have mouthed Welch’s words.

It was that striking a moment for Gadfly, who is basically still experiencing his first rodeo in Town Hall.

Relive the moment with him.

City Council meeting, November 6, 2019, begin min. 1:26:40

Councilman Callahan: “Who will be making up the committee? . . . I’d like to be on that committee . . . I’m worried that there are some influences being put there that have been in the past month with some pressure being put on other entities during voting on RFPs . . . I have a big concern where this is going with Ms. Karner at the helm of this . . . She had reached out to people on the Parking Authority Board the day of a vote which I thought was highly unethical to put pressure on them to accept a lower bid. There are people in Allentown who went to jail for doing that . . . Miss Karner, did you or did you not call the Board and put pressure on them, did you not ask two people the day of the vote to renegotiate a lower bidded contract?”

Gadfly has been asking you “what if” questions. What if you were the city employee? What if you were Councilman Callahan? What if you were the Mayor?

What if you were Alicia Miller Karner in Town Hall the night of November 6 at approximately 8:26PM?

These pictures kind of tell the story. AMK is the woman in the audience on the left side of these pictures.

AMK before Callahan addressed her:

Callahan Karner 1

AMK as BGC started to direct his comments to her:

Callahan Karner 2

A relaxed AMK coiled into lineman stance ready to do battle.

But a time-out was called before she could engage.

And she is the quiet one in this “contentious spectacle” — to quote the previous post by follower Barbara Diamond.

Or should Gadfly say, the “quieted one.”

She has no forum, no soapbox, no microphone.

The Mayor defended her; she has not been able to defend herself.

Yet, “guilty” or not, AMK’s professional career could be seriously damaged or ended.

The Councilman and the Mayor will survive whatever happens.

Guilty or not, AMK was done wrong here.

to be continued . . .

Mr. Callahan has now plunged us into a contentious spectacle that will tarnish reputations and erode public trust

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Barbara Diamond enjoys retirement as Lehigh University Director of Foundation Relations by engaging in various activities and organizations hopefully for the betterment of the community. Her particular interests at the moment are preventing gun violence, local government ethics reform, and Bethlehem Democratic Committee work.

Dear Gadfly:

The escalating situation between Councilman Callahan and the mayor provides the opportunity to revisit the effort two years ago to pass an ethics ordinance, which aimed to strengthen the ethics environment in Bethlehem with high standards now in practice by many municipalities. The effort was launched by Councilwoman Olga Negron and included Councilman Michael Colon and a number of community members. It had the endorsement of the Northampton County League of Women Voters and was considered a model for other communities by the state LWV.

Unfortunately other members of the council at that time (Councilmen Callahan, Reynolds, Martel, and Evans) opposed the effort, and it was defeated. Instead, they passed a mandatory training ordinance and a gifts ordinance, both of which were window dressing — they looked good to the public but didn’t accomplish much (I can explain why on a later post) as demonstrated by the current situation.

In opposing the ethics ordinance, Mr. Callahan and the others cited the existing process of reporting accusations of improper conduct to the State Ethics Commission for investigation as the proper way to handle these issues and that there was no need for the city to enact anything more robust. In his [November 25] press conference, Mr. Callahan admitted that he didn’t follow this procedure. It would be useful to know why he didn’t pursue this avenue; he was certainly aware of it. I hope he will explain why.

So instead of filing a complaint with the state, Mr. Callahan asked the mayor to launch an investigation into a senior member of his own administration. Needless to say, it is not a sound practice for an administration to investigate itself. No matter the outcome, the results are bound to be unsatisfactory because the independence of the investigation can and likely will be questioned, as happened here. Mr. Callahan has now publicly made serious but unfounded accusations of unethical conduct by the mayor, a member of his administration, and a fellow councilman. With no confirmation or exoneration, the public is left to wonder about wrongdoing.

So in the absence of the well-defined, independent, confidential, and fair process in which to investigate and adjudicate his complaint that we could have had with the ethics ordinance, Mr. Callahan has now plunged us into a contentious spectacle that will tarnish reputations, including possibly his own, and erode public trust in their local government.

I hope this incident will serve as an impetus for city council to dust off the ethics ordinance, update it, and finally pass legislation that will provide the kinds of safeguards municipalities need to both aid public officials in serving the public interest and ensure confidence in our local government.

Barbara

Time to remember the 2017 ethics ordinance debate

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The suggestion of possible unethical behavior at City Hall raised by Councilman Callahan should remind us that Council debated an ethics ordinance in 2017.

And Councilwoman Van Wirt talked leading up to her successful primary victory earlier this year about re-introducing similar legislation.

Gadfly remembers that there was some controversy over the ethics of Councilman Callahan’s campaign lending or giving money to an unsuccessful candidate for City Council at the time of the May primary earlier this year.

See “Passing the Campaign Finance Money Around,” which I think was the first post in a series right up to election day and beyond — an issue in which ol’ Gadfly was accused of “spewing fake news,” yes, yes, he was

There was a link to “City Council Member Ethics Training Certificates of Completion” on the old City web site. But Gadfly can’t find that on the new one.  And has reported the MIA link to headquarters and has heard back that it’s on the way to reappearing.

Check out this Gadfly follower Morning Call letter to the editor from the 2017 archive to find out reasons for and the nature of a strong ethics ordinance.

Barbara Diamond, “It’s time to pass a strong ethics ordinance for Bethlehem.” Morning Call, February 23, 2017.

Gadfly’s trying to find time to go back and refresh hisself on the components of that 2017 debate.

Chatter around Gadfly’s water-cooler about: Councilman Callahan’s role in the ethics controversy

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Follower comments that have been aimed at Gadfly’s attention:

  • I don’t think [Callahan] trying to communicate to the mayor via a comments section of an article is the best way to go about trying to establish dialogue or conduct public outing/shaming.
  • As a woman said during [Callahan’s] press conference, report it to the state!
  • I don’t understand why Callahan won’t follow through on Donchez’s request for any pertinent info. If you have it, provide it.
  • It’s like we don’t know why Callahan is conducting himself in this twisted way. What is his final desired outcome? To embarrass folks? Raise legitimate concern? Out people and get them fired? Actually report wrongdoing?
  • Hard to believe much when you [Callahan] are only making public statements, but then say you don’t want to get anyone in trouble and you actually make your case more difficult!
  • I’m not understanding what [Callahan’s] goal is.
  • It seems [Callahan] is acting as a whistleblower of sorts, but at this point he should refer it up the flagpole, and if he feels so strongly, provide info to authorities so it can be properly investigated.
  • If true, it is concerning, but by going public, he is risking any future investigation and potentially slandering folks who in the end might be innocent of wrongdoing, and opening the city up for legal action against it.
  • The whole thing is slightly odd.
  • The public is not sure who to believe.
  • It’s another instance IMO of Callahan not thinking this process through completely. Now he has to go to an independent party because he believes internally, it’s not being addressed. Yet, he says he doesn’t want to report it to the state?

Gadfly wants to come back to Councilman Callahan’s role in this controversy, but not sure he can do it before tonight’s meeting and possible further developments there. He wants to consider AMK’s position first and is trying to get to that today.

Thinking about the Mayor’s role in how we got “here”

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“Here,” of course, is the unpleasant situation of a City Councilman marking a City administrator with possible career-damaging wrongdoing and, in effect, charging the Mayor with dereliction of duty.

Ugh.

Not a place we want to be in.

Gadfly has asked you to think about what you would do if you were a City employee concerned about a superior whom you thought was encouraging unethical behavior.

He has asked you to think about what you would do if you were Councilman Callahan to whom a City employee communicated that concern.

We will want to come back to these two topics, especially that of Councilman Callahan. Gadfly is not finished with him! He’s kind of fascinating.

But let’s go on to think about the two other main figures in this controversy, Mayor Donchez and Alicia Miller Karner.

First, Mayor Donchez.

Mayor 2

What do we know and what don’t we know about his involvement in this controversy?

  • Mid-September: the Mayor received a call from Councilman Callahan informing him of the possibility of unethical behavior by the DCED department head in encouraging a slow down in permit approval
  • We don’t know if the Mayor did anything in response
  • October 17/21: the Mayor receives an email from BGC asking for an investigation of that possible unethical behavior relating to permits
  • We don’t know if the Mayor did anything in response
  • Somewhere in this time frame the question of going into executive session may have come up, and, if so, the Mayor is against it
  • November 6: the Mayor is in attendance at the City Council meeting in which BGC unexpectedly addresses a direct provocative question to AMK about her actions involving the Bethlehem Parking Authority in a context in which BGC is clearly questioning her leadership
  • November 13: the Mayor is present at a Budget Hearing in which BGC engages in a contentious interchange with another City official in a matter unrelated to the permit or Parking Authority issues
  • November 18: in a letter to BGC delivered just before a City Council meeting, the Mayor indicates that he has not done the requested investigation of the permit issue but that he might do so if BGC presents his evidence
  • November 19: in a public statement delivered at the City Council meeting, the Mayor implicitly calls out BGC for the attack on his department head and for BGC’s general disruptive behavior — the exoneration of AMK would seem to imply that at least some investigation had been done
  • November 20: after BGC calls a press conference, the Mayor tries unsuccessfully to arrange a meeting
  • November 25: before BGC’s press conference, the Mayor writes a letter to Council President Waldron arguing the false basis of BGC’s Parking Authority issue with AMK but not the permit issue

So with this background information, let’s think about the Mayor’s actions here.

Can we agree that the Mayor has responsibility to investigate suggestions of wrongdoing in the course of city work on the part of his employees? Probably no disagreement.

Might we further agree that because of their special relationship as elected officials at the head of our City government that the Mayor should be especially responsive to such suggestions of wrongdoing coming from a Councilman? Ha! or do I stretch your willingness to agree here? Is this but an airy notion from an ivory-towered academic’s image of the ideal city government and ignoring on-the-ground realities and relationships?

Councilman Callahan made two claims of possible wrongdoing by AMK — what for shorthand purposes we can call the permit (stalling) issue and the Parking Authority issue. Let’s look at them one at a time.

The permit issue

The Mayor waited two months before responding to BGC on the permit issue and responded to say only that he had not done the requested investigation in that two months but might do so under certain conditions. Why did it take the Mayor so long — two months — to respond to BGC if, in fact, nothing was done in that two months to warrant a delay in responding? Seems like a reasonable question. Why couldn’t such an answer be given, say, almost immediately? Didn’t that two month delay help escalate BGC’s blood pressure to the boiling point and help instigate this public flap? Wouldn’t it have done the same to your blood pressure?

And how reasonable was the condition the Mayor laid down for a possible investigation after that two month delay? That is, the condition that BGC reveal his sources, do his own investigation? To do so would probably have required BGC to violate confidentiality. If the “informants” didn’t feel comfortable going directly to the Mayor or other superiors in City Hall, why would they want BGC to name them? How could BGC in good conscience name them? Seems impossible for BGC to comply to that condition. Moreover, the most important evidence in this case might well be collection of data on a number of permit applications over time, interviewing inspectors as well as applicants, and comparing processing time from start to finish, looking for changes. How would BGC get that information? Another seemingly impossible condition.

The Parking Authority issue

The Mayor handled this issue quite differently. It apparently came to public light for the first time at the November 6 City Council meeting when BGC was questioning AMK’s leadership in the context of a proposed study of the Southside. Contrary to the way he handled the permit issue, the Mayor responded quickly and publicly to this suggestion of impropriety by AMK in regard to the Parking Authority. He confronted it dramatically and directly but superficially in his statement at the November 19 City Council meeting. As part of his response at that meeting to that statement by the Mayor, Councilman Reynolds called for full transparency, and, indeed, on November 25, specifically acknowledging the request of said Councilman Reynolds, and now faced with the imminent potentially damaging effects of BGC’s press conference, the Mayor provided a 3-page memo, “in the spirit of full transparency,” that looks like it positively and effectively resolved BGC’s specific question about unethical behavior in this issue. What took about two months to reach an unsatisfactory resolution on the permit issue, now took only about two weeks to come to a satisfactory conclusion in the Parking Authority issue. Why the difference? Curiously, the Mayor responded here quickly to a request by one Councilman, slowly in the other case to a request by another Councilman. Why the difference? And the Mayor responded only when he was forced to by public disclosure. Or that’s what it looks like.

Comparing the two issues

The permit issue has yet to have its transparency. It has been called a personnel matter, mandating secrecy. Gadfly is not attuned to the fine legal points here. What makes the permit issue a personnel matter and not the Parking Authority issue? Gadfly needs to be schooled here. On the surface they look the same to him — both about unethical behavior by a City employee. But there might be significant difference here that explains why the Mayor felt comfortable providing public transparency to one and not the other. But that still doesn’t explain why apparently the Mayor resisted acceding to the call for executive session, for, as Gadfly understands it, personnel matters can be discussed there under the expectation of confidentiality — and in this way BGC’s request might have been satisfied completely and much sooner.

But something is glaringly discrepant when one looks at the language of the BGC’s request for an investigation and the Mayor’s November 18 letter denying it. BGC is informal, the Mayor legal. In his October 17 email, BGC describes “hav[ing] heard of a number of concerns,” which, “if true,” would be “most disappointing.” The tone is soft; there is nothing accusatory here. However, the Mayor’s long-awaited reply characterizes BGC as making “allegations.” Huh! Where did that come from? In fact, the Mayor’s letter is full of such legalese: “sufficient cause,” “indicia of corroboration” (O, puleeze!), “good cause.”

It’s obvious the Mayor has lawyered up. Why?

Gadfly is an outsider. He can only see what he can see. But what he sees from a comparison of these two documents is that the Mayor (and his team) for some reason have totally mischaracterized BGC here.

It’s perfectly possible, of course, that BGC’s personal conversations were different than his email and his approach in the press conference.

But from what Gadfly can see, the Mayor may not have handled this situation in the best possible way to avoid the public display of dirty laundry that the City is now experiencing.

What do you think?

Gadfly awaits the slap upside the head.

Ha! Should he lawyer up!

to be continued . . .

Councilman Callahan: “I would prefer not to be here”

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Callahan

                                                photo April Gamiz/The Morning Call

If you are going to stand in front of the Bethlehem world as Councilman Callahan did a week ago and mark a City administrator for possible career-damaging wrongdoing and, in effect, charge the Mayor with dereliction of duty, you’d better have a good story.

Agreed?

Read through the extensive timeline on the previous post with Gadfly.

Then put it aside.

Reflect and reconstruct from memory the story from Councilman Callahan’s position.

Boil it down.

See it through his eyes.

Here’s what Gadfly gets.

  • I was told about potentially unethical behavior by the head of DCED
  • I heard that from employees past and present
  • I heard the same thing from outsiders
  • I didn’t know if the stories were true
  • But as a Councilman I felt a responsibility to do something
  • At first I wasn’t sure what to do
  • I talked with a few fellow Councilmen
  • But I basically sat on the information for a couple months
  • Finally, I talked with the Mayor, assuming he would handle it
  • I simply wanted the truth, if there was nothing to the stories, so be it
  • But I heard nothing for a period of time
  • I tried to get the Mayor and Council in executive session to air the matter
  • The Mayor refused, as did Council, following the lead of one member
  • Who has a deal for the Mayor’s endorsement in the next mayoral election
  • I felt that I was being stonewalled
  • Finally, I wrote the Mayor asking for an investigation by “his guys”
  • My purpose was to let the Mayor handle it
  • I simply wanted the truth by their calling members of the dept in and asking them
  • I wasn’t trying to get anybody fired
  • If wrongdoing, the penalty might be a letter in the file or furlough, etc.
  • I wanted accountability
  • Again, I heard nothing for a period of time
  • All the while the matter was private, confidential
  • But, again, I felt I was getting stonewalled
  • I was angry, and I did legitimately directly question the DCED head in public
  • Finally, the Mayor wrote me that he had not investigated
  • And would not do so unless I provided my proof/evidence
  • Simultaneously, the Mayor attacked me in a public statement
  • What was I to do?
  • I went public with my information
  • I didn’t want to do that, but the Mayor left me no choice
  • I was a wrestler, I have a gym teacher’s voice, I am intense
  • My attitude toward life changed dramatically with the tragic death of my wife
  • That’s my personality, and I can’t change
  • That explains my “tone” that seems to offend some people
  • After the Mayor attacked me, I had no choice but to do a press conference
  • When I announced a press conference, the Mayor wanted to meet: I said no
  • I would have preferred not to do a press conference
  • What I want is for the Mayor to do his job, to do an investigation
  • Let the chips from that investigation fall where they may
  • I may run for Mayor
  • I hope to spend the next ten years working for the good of the City

Is Gadfly’s rendition fair?

Has Councilman Callahan made his case?

to be continued . . .

Chatter around Gadfly’s water-cooler about: a pedestrian bridge

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Makes you think about priorities here in the budget season!

So $100,000 for a bridge that is not needed and connects nothing to nothing?

  • Drugs – not enough police

 

  • Sidewalks – residential problem

 

  • Walkability –  you have to drive to the bridge because you cannot walk there

 

  • No money for home improvements

 

  • No money for trees

But we might have a bridge!

Gadfly thought you ethicists might need a change of pace!

Councilman Callahan’s response to the whistleblowers’ whistlin’

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Yes, Gadfly is a slow thinker.

To wit: he should have framed the point of his previous post as what would you do if you were a city employee with a serious ethical or criminal concern that you couldn’t discuss inside City Hall?

Actually, the employees did a pretty good thing in regard to the stalling issue. Contacting Lehigh Valley Ramblings got them a public audience, and they hoped Councilman Callahan would get them a political one.

Public and political. Inside and outside. Covering the bases. Good strategy.

Following that cue, I would ask you here in this post to think about what you would do if you were Councilman Callahan and were told things that City employees and you found ethically troubling.

What did Councilman Callahan do?

Here’s the timeline Gadfly has pieced together from the documents, the press conference, and from BGC’s comments at the Q ‘n A after his press conference.

Note that the first two bullet points refer to the firing of Zoning Officer Borzak referenced in Gadfly’s previous post.

  • April 16: at the City Council meeting BGC asks Council to go into executive session with the Mayor to discuss the Borzak firing, but there was no second to his motion
  • May 7: at the next City Council meeting BGC asks Council again to go into executive session with the Mayor to discuss Borzak; this time he gets a second, but the motion is voted down 6-1
  • May 22: BGC is prepared to continue his mission to get Council to deal with the Borzak firing but defers, declining to darken the happy mood of the retirement celebration for Mrs. Kelchner
  • June: BGC receives contacts from the 3 City employees (Borzak one of them) about the stalling instruction from AMK
    • here begins a period of uncertainty for BGC about what to do, he “sat on it for a couple months”
    • during this period of uncertainty BGC had conversation about this stalling issue with 2 councilpersons in the garage under the City Center after a Council meeting (date uncertain)
    • BGC also speaks of having two conversations about the stalling issue with a couple councilpersons during this period (dates uncertain)
    • the upshot seems to be that other people knew and knew that it was on his mind
  • August 28: Bethlehem Parking Authority votes on Polk Street Garage, which will become the occasion of BGC’s second issue with AMK
  • Approx mid-September: BGC has a phone conversation which seemingly is the first time he tells the Mayor about the stalling issue, thinking naturally that the Mayor would look in to it, but time went by and BGC heard nothing (the Polk Street Garage issue doesn’t seem to have been part of this conversation)
    • chronology gets murky here –it is not clear whether that which follows about executive sessions occurs before the mid-September phone call or between it and the October letter, which is the next bullet
    • during the press conference BGC talks of a phone call in which he asks the Mayor to go into executive session with Council, but the Mayor refuses, after which he talks with Council solicitor Spirk about how to make that executive session happen
    • Spirk says he needs to make a motion to that effect
    • Which BGC says he does over a period of maybe 4 meetings — but Council refuses each time
    • either BGC is mistaken or Gadfly’s research is faulty, for he can find no evidence of executive session discussion at Council meetings during the June-October period.
    • Gadfly thinks BGC may be confusing this executive session activity with his activity on the Borzak issue detailed in the first three bullets above
  • Oct 17/Oct 21 (referred to by different dates): BGC emails the Mayor asking for an internal investigation by the City solicitor and business administrator of the stalling issue
  • November 6: During a contentious discussion at City Council of a proposed Southside study, contention he initiated, BGC expresses lack of confidence in leadership by AMK and discloses the issue with the Polk Street Garage for the first time, referring only obliquely to the stalling issue
  • November 13: BGC initiates another contentious discussion with a City official over driving range fees at Budget Hearing #2 (no mention of either AMK issue here)
  • November 18: the Mayor responds by letter negatively to BGC’s October request for an investigation on the stalling issue unless he provides his proof/evidence while expecting BGC to keep this personnel matter confidential
  • November 19: the Mayor calls out BGC, though not by name, at the City Council meeting for “provocative comments and personal attacks,” attacks that were “unwarranted,” attacks that were “unprovoked, out of order, without cause, completely out of line” (not specifically citing either issue) (text version)
  • November 19: BGC responds at the meeting by offering to disclose his information about both issues of unethical behavior that he has with AMK, but the matter is declared a personnel issue — BGC shares info with the media after the meeting
  • November 20: the Mayor seeks a meeting with BGC through a phone call by Business Administrator Eric Evans, but BGC, upset at the Mayor calling him out, declines a meeting: “that ship has sailed”
  • November 20: the Mayor follows up the Evans phone call with a letter inviting BGC to a meeting with the solicitor, the business administrator, and the Human Resources director — same response by BGC
  • November 21: in an email BGC tells the Mayor it is his job to find out what happened with the stalling issue (no mention of the Polk Street Issue), indicates Council’s unwillingness to go into executive session as the result of a Councilman  “currying favor for a Mayoral endorsement from you” (Councilman Reynolds), and connects the “tone” of his behavior to the death of his wife 13 years ago
  • November 22: BGC announces a press conference
  • November 25: several hours before BGS’s  press conference, the Mayor sends a letter to Council president Waldron (quickly available to all) in which he addresses just the Polk Street Garage issue, indicating that Councilman Callahan was confusing a “bid” and an “RFP” (Request for Proposal) and thus that his “attack” on AMK on this point was based on a false premise (no mention of the stalling issue)
  • November 25: BGC holds the press conference at Town Hall, focusing just on the stalling issue, explicitly stating that he is not dealing with the Polk Street issue at this time (text version)
  • November 26: BGC comments on an online media story about his press conference, blaming the Mayor for the situation they are in now, and repeating that it is the Mayor’s job to clear up the stalling issue: “Stop hiding behind your lawyers and advisors and ……. Do your job” (again no mention of Polk Street)

Ok, so here, as best Gadfly can put them together, are the facts so far of what Councilman Callahan did after receiving information from 3 City employees whom we might as well call “whistleblowers.”

This timeline took longer than Gadfly thought to put together. Plenty enough for us to digest on an icy Cyber-Monday morning. We’ll come back next time and think about these facts.

How are you feeling about Councilman Callahan’s actions?

to be continued . . .

If Councilman Callahan had been much more supportive of the comprehensive ethics ordinance . . .

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Gadfly,

Perhaps if Mr. Callahan would have been much more supportive of the comprehensive ethics ordinance advanced by Councilwoman Negron, and worked on by a number of residents, a process would have been put in place to address an issue such as this.

No retribution, confidentiality, a review board, all these features would have existed thereby providing a mechanism for dealing with this kind of matter.

Dana

Dana speaks of a proposal debated in 2017. More on it later.

It begins: City employees contact Councilman Callahan

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What do we know about where this controversy began?

In his November 25 press conference statement, Councilman Callahan states that for him this issue of possible unethical behavior by Alicia Miller Karner “came to [his] attention” in June of this year, June 2019 (he verbally corrected “June of last year” in oral delivery at the press conference) when 3 Department of Community and Economic Development employees — “2 current and 1 prior employee” — told him of AMK’s encouragement to “slow, delay, and stall all permits” to bolster her case for more staff.

(Gadfly thinks BGC might have said he was hearing complaints from developers too, so maybe there might be outside corroborative evidence as well.)

These people came to BGC in June 2019. He did not solicit them. It is not clear whether the contact was individual or group. It is not clear whether the contact was personal contact, phone, or email. It is not clear whether BGC had extended conversation with any of them in which he could determine how strong their claims were or that he was simply put on notice. It is not clear whether the contact was concerted, whether there was association among the employees, or whether the contacts were unrelated individual acts.

BGC apparently did not do any investigation of his own.

It is not clear what it is about the particular timing — June 2019 — that precipitated the simultaneity, the clustering of the contacts.

It is clear, however, that something was in the air in June 2019, for the Lehigh Valley Ramblings blog called attention to a “spike” in Zoning Hearing Board appeals because AMK was instructing staff to delay so she could request more staff. The blogger says, “When you hear it from three different people, it does not [strain credulity].”

So the same 3 employees seemed to contact the same 2 people at the same exact time to air their same complaint.

What would make the employees make such a complaint? Why is it such a big deal that it triggered what might seem a moral response? Perhaps their sense of general fair play, their conscience, their sense of professionalism. Perhaps, on the other hand, animus for some reason against AMK.

Why would the employees go “outside” City Hall to make their complaint (all indications so far are that they did not do so inside City Hall) to a blogger and a Councilman? Perhaps fear for their jobs. Perhaps fear of retribution. Perhaps because there is no system or procedure within City Hall for a person to bring forward such issues in a protected way.

Why would the employees go specifically to these two people — for instance, why not one of the other Councilpersons? Perhaps because the blogger has the reputation for dealing in inside information, has published this kind of whistleblowing, and has outed some situations successfully. Perhaps because BGC has a reputation for siding with the common person/underdog, for being a voice for them.

Who are these employees? We know one of them — Suzanne Borzak, former Zoning Officer — the person not a current employee, who was fired for officially vague reasons (personnel matters would, of course, be confidential) by AMK in January 2019, 6 months before the employee contacts about the stalling tactics with Lehigh Valley Ramblings and BCG.

“Bethlehem/s Popular Zoning Officer Forced to Resign, Lehigh Valley Ramblings, January 11, 2019.

Why in June of 2019, 6 months after dismissal, would Borzak be involved? Perhaps still hurting from being terminated. Perhaps from a sense of doing no wrong. Perhaps because the issue of stalling was a reason for her termination. Perhaps because of her professionalism. Perhaps, on the other hand, animus against AMK for firing her.

So what are you thinking about in regard to this initial phase of the issue? What do you think of the Gadfly’s “perhaps’s”?

Gadfly — ever the problem solver — goes first to the need for employees to go “outside” City Hall with a complaint. Is there no trustworthy “inside” mechanism or system to handle such matters? No suggestion box? No ombudsman? No “whistleblower” procedure? If not, does this issue indicate the need for one in which there is the possibility that some satisfaction, some mediation, or some reconciliation occurs before the issue blows up in public?

to be continued . . .

Let’s start to think seriously about the possibility of unethical behavior by a member of City administration

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Early Sunday morning as Gadfly writes.

Followers may still be in holiday haze. And the Eagles play a crucial game (aren’t they all?) today.

Not a good day to get serious perhaps.

Gadfly apologizes for the interruption.

But City Council meets Tuesday. When another shoe might drop. So Gadfly would like to try to get his head and wings around the suggestion by Councilman Callahan of possible ethics violations by the head of the Department of Community and  Economic Development before then.

To refresh yourself on this issue click Ethics on the Gadfly righthand sidebar.

Remember that Councilman Callahan has suggested that the Director of Community and Economic Development Alicia Miller Karner may have engaged in unethical behavior(s) that Mayor Donchez has been unwilling to investigate.

(Gadfly is being careful here. Councilman Callahan is asking for an investigation. He has not said he has definitive proof. He has asked the Mayor to investigate and take action if it is warranted.)

This is a serious issue.

Gadfly has said in an earlier post that the reputations of Councilman Callahan, Mayor Donchez, and Director of Community and Economic Development Karner are out on a limb.

Gadfly thinks especially of AMK. Even the barest suggestion of unethical behavior, much less a formal charge or confirmation of such, could be potentially personally and professionally devastating. It might, for instance, mean the end of a career.

But he should have added that the reputation of Bethlehem itself is out on a limb.

That’s the main reason we should be paying attention.

And he’s not trying to be sensationalistic or to overstate the case.

When in a time in which we have seen officials go to jail in ugly corruption cases in nearby Allentown and Reading a City Council member takes the microphone and goes before the cameras (Gadfly’s!) to suggest local corruption, we’d better straighten up and take notice.

Gadfly has also said in an earlier post that there seem to be three issues here. Let’s separate them out.

  • possible unethical behavior by AMK regarding a Bethlehem Parking Authority decision on the Polk Street Garage
  • possible unethical behavior by AMK stalling permit approvals in order to justify staff additions in her department
  • breaches of decorum by BGC at City Council meetings

Gadfly spent last Tuesday laying a foundation for thought about this controversy with a series of posts, and a few of you have posted reactions, while others have emailed briefer comments (more on those later).

Gadfly is a slow thinker. Some of you have complained about that in the past. He has what he has self-described as a conveyor belt kind of mind (he grew up in the factory era, his grandkids are in the warehouse era!). He like to order things, process them, and then take a position.

So he’s going to start the conveyor belt now and share thoughts with you over a series of posts between now and Tuesday as he organizes events in chronological order and starts to form his views.

As usual, Gadfly invites you to think along with him — modifying, correcting, expanding his thinking as he goes.

Councilman Callahan to Mayor Donchez: “Stop hiding . . . Do your job”

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Tip o’ the hat to a follower who pointed out that Councilman Callahan added a comment addressed to the Mayor to this online news story.

“Bethlehem mayor responds to councilman’s call for probe into city department,” 69 News, November 26, 2019.

Mayor Donchez,

I discussed this issue with you verbally and made you aware of the situation and what I had heard several months ago. There was NO response back. Nothing.
Note: At this point it was confidential and strictly between us.

I then asked you to go into Executive Session in the Summer, so that the matter could be dealt with in private with the full Council and both Solicitors present. You Denied it!
Note: It was still confidential and I was trying to address it so that it remained Confidential in Executive Session. You Denied it, not I !

I then sent you a letter on October 17th explaining what I had told you verbally in the Summer. I explained in the letter all of the facts that I know other than the names of the individuals. It is not my job to “out” them. It is your department and your employees. I suggested that your BA Mr. Evans and your Solicitor Mr. Leeson just simply interview the employees in the Dept. to find out the truth.

Your reply back to me in your letter clearly indicated that you were not looking into the issue. You stated to me, ” Your memo of October 21 does not provide sufficient cause to conduct the investigation requested” .

You asked me to produce documents, names, particulars, …….and indicia of corroboration.

Mayor, you know that I, or anyone else on Council has the authority to investigate or interview your department employees or Dept. Head!
Note: At this point it was still Confidential other than President Waldron, Solicitor Spirk on Councils side and Solicitor Leeson, Business Administrator Evans and yourself on the Administration side.

Only after your comments to Council on Nov. 19th that I had somehow “attacked” Ms. Karner, from my council seat, by simply asking a pointed but fair question, it was only then that this issue became public.

Your comments tried to insinuate that my questioning of Ms. Karner was totally meritless, unfounded, unwarranted and out of the blue…..while you knew better!

On November 20, You then sent me a memo asking for me to now come in for a interview with Mr. Leeson and Mr. Evans only because I explained to Mr. Evans that after your comments to Council on Nov. 19th , that I shared all the information that I had with the press. It was then and only then that you wanted to now discuss the issues that I had raised and that I had tried to keep confidential for many months.

I offered you 3 different opportunities to look into the seriousness of the issues that I made you aware of. We would not be in the situation that we are currently in had you simply looked into the allegations months ago when you were first notified. You denied any action all 3 times.

Stop hiding behind your lawyers and advisors and …….Do your job ……..and simply ask the employees in the questioned dept. if there is any truth to the issues that were brought to not only my attention but were also reported by Lehigh Valley Ramblings Blogger Bernie Ohare back in June.

The residents of Bethlehem deserve to know the truth and you are the only one who can guarantee their protection form retribution for telling the truth.

Councilman Bryan Callahan

The Mayor said that he would have a further statement after reviewing Councilman Callahan’s press conference, at which he had a stenographer making an exact transcription. Somebody tell the Mayor that we have a full video of the press conference here on Gadfly.

Some talking points about the issues raised by Councilman Callahan

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Dana Grubb is a lifelong resident of the City of Bethlehem who worked 27 years for the City of Bethlehem in the department of community and economic development, as sealer of weights and measures, housing rehabilitation finance specialist, grants administrator, acting director of community and economic development, and deputy director of community development.

Gadfly,

Some quick observations:

1. Bethlehem does need a comprehensive ethics ordinance. (Mr. Callahan opposed that)

2. I’ve heard the same accusations about the DCED director.

3. I’ve heard a number of complaints throughout the community about getting permits.

4. The DCED director should never have lobbied the parking authority board about the RFP choice, at least not privately.

5. The councilman is sure going about this the wrong way.

6. The councilman has been extremely disruptive and confrontational at meetings and blaming the ousting of the zoning officer for his actions/words is very disingenuous. [This City official was fired during the summer, and BC felt the action was wrong and tried to have open discussion about it.]

7. The ousted zoning officer WAS very highly respected throughout the city.

8. There are at least two appearances of conflicts in that RFP process and eventual award. (Mr. Callahan’s brother was involved in that process)

9. I do not believe that the Mayor tried to intimidate the councilman. I’ve known the Mayor since high school, and it is not his personality.

Dana

The text of Councilman Callahan’s press conference statement: let the good conversation begin

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Guess where Gadfly spent his lunch hour.

Ok, NOW Gadfly thinks you have all of the info on which to start forming ideas and opinions about Councilman Callahan’s suggestions of possible unethical behavior by the Director of Community Development and his approach to handling this matter.

Here for quicker reference is the text of Councilman Callahan’s press conference statement that we have on video a couple of posts back.

Callahan press conference statement

Please don’t neglect the video, however — a lot of relevant “information” can be picked up from tone and delivery.

And remember that there was a long “Q ‘n A” on video in that post as well, so be sure not to neglect that important portion of the press conference either.

So, indeed, let the good conversation begin.

Important issues here.

And the reputations of Councilman Callahan, Mayor Donchez, and Director of Community Development Karner are out on a limb.

Supplements to Councilman Callahan’s press conference statement

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Gadfly hopes you are watching the videos of Councilman Callahan’s press conference yesterday provided in the previous post.

Gadfly does not have a digital copy of Councilman Callahan’s statement but is trying to obtain one.

Here are three additional documents that for now complete the information you need to have a full picture of this controversy.

Gadfly has laid the groundwork. Let the good conversation begin.

1) Email from Councilman Callahan to Mayor Donchez October 17, 2019

Mayor,

As I discussed with you a few weeks ago, I have heard of a number of concerns over the last year or so about the pace at which building permits are reviewed and approved in the Department of Community and Economic Development. Specifically, employees, both current and prior, indicated there is deliberate inaction encouraged in the Department by Director Karner to “slow,  delay and stall all permits with the end goal being the hiring of more permanent staff with benefits. I’ve been told that the issue was also reported by Bernie Ohare in the local blog “Lehigh Valley Ramblings”a few months ago. If true, this is most disappointing . I trust the individuals copied on this memo to keep this issue between us until the matter is looked into and resolved. I am asking that Mr. Lesson and Mr. Evans interview the current members of the department along with former employee Suzanne Borzak to determine if truly Ms. Karner did instruct her department to slow, delay and stall the permitting process for the stated reasons. I trust Mr. Leeson and Mr. Evans ability and judgement to do a fair investigation for the residents of the City of Bethlehem on this issue.

However, I think some issues may result in hiring people without the needed certifications.

Please confirm in writing any certifications we require to be a code inspector here in Bethlehem. Also , provide in writing the certifications of all the current building inspectors, including the chief building inspector in the department. Can you provide the written advertisement for all inspector positions used by the City , including for the Chief building inspector?

Does the chief building inspector meet the requirements required by City Ordinance 1701.02?  If the needed certifications are not in place , please provide a written explanation why such certifications were deemed unnecessary.

Can you please provide the names of all City Code inspectors that can sign off on a building plan?

Can you please provide the names and certifications of all code inspectors hired from 2014 until present?

Also, can you provide whether there are any openings in Code Inspections. If so, when is the anticipated hiring date? Does the positions have a specialty, ie., plumbing, electrical?

I’d appreciate the time this will take and simply ask for a response back within 30 days.

Thanks for your cooperation and in keeping Bethlehem moving forward.

Bryan Callahan

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2) “Bethlehem Zoning Appeals Have Spiked,” Lehigh Valley Ramblings, June 14, 2019.

Councilman Callahan included reference to this blog post in the media packet at the press conference.

Last year, Bethlehem’s Zoning Hearing Board entertained 34 appeals. This year, through June 12, the number is already 21. Why? Some of you may think there’s more development, but there’s another reason for this sudden increase. Last year, the City of Bethlehem had a zoning officer who actually worked with people and tried to come up with ways to make an appeal unnecessary. Not only did this make people more happy with the City, but property owners would be spared the $500 cost for an appeal.

Etc.

Councilman Callahan also included the 26 comments on this blog post, so be sure to look at them.

————

3) Email from Councilman Callahan to Mayor Donchez November 21, 2019

(City Business Administrator Eric Evans called Councilman Callahan November 20 to set up a meeting with City officials, but Councilman Callahan declined that meeting.)

Mayor,

It was very obvious and clear to me after reading your first sentence that you had no intention of interviewing the participants,   “Your memo of October 21 does not provide sufficient cause to conduct the investigation requested”, you had no interest in even looking into the subject!!

You then stated that, based on their advice (not your own sense of right and wrong) that if I provided documents, names, particulars……and indicia of corroboration that you might reconsider.

The ironic thing is that just as I finished reading your letter, you then started reading a prepared statement to all of Council, and while my name was not mentioned, the comments were clearly directed at me. In your comments you questioned my tone of voice and that my questioning of the Dept. Head Ms. Karner, “was unprovoked, out of order, without cause and completely out of line”. You then stated that you would no longer require your department heads to attend council meetings if questioned or in your words “attacked”.

Mayor, I nor anyone else on Council has the right to conduct interviews of your cabinet members/Department Heads or the employees under your charge and direction.

I also can’t provide or guarantee, to the two current employees, protection if they speak the truth about what they were directed to do by Ms. Karner or from retribution from Ms. Karner, as like what happened to Ms. Borzak.

I simply told Mr. Evans in yesterday’s phone call that it’s your job to get to the bottom of what happened. Last night after I told Mr. Evans that I had shared the memos with the press, it was only then that you asked for me to come in to discuss what I knew. As I told Mr. Evans, after your comments and remarks directed at me at Council on Tuesday night……that ship has sailed. It’s your responsibility to interview those employees…..not mine.

That is what the 76,000 residents and taxpayers would expect?

For the stated reasons above, other than Ms. Karner, I have a great working relationship with every one of your Department Heads. In fact I often socialize outside of City business with several of them.

For the first six years that I have been on Council, we as a whole have worked together professionally and collegially. My current issues with some members of Council began early last Summer when Ms. Karner fired a great long term city employee (1 of the 3 employees who Ms. Karner directed to “delay, slow down and stall all permits”). She was regarded as one of the City of Bethlehem’s best employees who worked extremely hard, competently and professionally under  other Mayors and Dept Heads with absolutely no issues.

At that time I asked you to bring Council into executive session so we could, in private, discuss the matter. You denied my request. I then asked Council as a whole to move to executive session. Taking the lead from a Council member who is currying favor for a Mayoral endorsement from you in a year and a half , they did not agree to go into executive session.

From that point on I have become more vocal at Council and, I will admit, I have had a “tone”  that something isn’t right here.

I know and I do realize that I have a strong personality but you have to understand that since the loss of my wife 13 years ago to cancer I have become more passionate and intense……and yes I even speak with more energy, emotion and tone.

Time and life is short and I intend to spend, I hope, the next 20 years helping to fix and solve the problems and issues in our great city.

As Ted Kennedy said of his brother Robert during his eulogy many years ago, “he saw a wrong and tried to right it”.  Well , on a very much smaller scale in our little city…..that’s what I am going to do. That is exactly why I also spoke up so strongly about how wrong it is to charge children the same price as charging an adult at the golf driving range.

In every single recreational fee that the City charges (Tennis, Swimming Pools, Ice Rink, and 18 hole and seasonal rates) the driving range is the only recreational facility that does not have a youth rate vs. an adult rate.

Shouldn’t we be encouraging children to get outside and off of all the video games? Isn’t that what the recreational department is for?

I hope you will take this letter and do what is right for not only the employees in the Community Economic Department who want to work hard but also for the parents who wondered where the permit was for the pool that they wanted to put in for their kids at the beginning of last Summer, but couldn’t because they didn’t have the necessary permit, the Senior Citizen who waited for a permit for his deck or patio, the neighbor who waited for a permit for their addition and the contractor waiting for a permit so that he could start working on a job that he needs to pay his bills.

This is real life…..not a game!

We all love Bethlehem…….We are all on the same team!

Sincerely,

Councilman Bryan Callahan

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Yes, Gadfly has laid the groundwork. Let the good conversation begin.

Councilman Callahan’s November 25 press conference

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Callahan

photo April Gamiz/The Morning Call

Use the detailed news stories at the end of this post by our beat reporters for good full context, but you know that Gadfly always urges you to go to the primary sources and form your own opinions and ideas, so he has provided here full video of the approximately hour-long press conference.

City Councilman Bryan Callahan, press conference, Town Hall,
Nov, 25, 2019, 4PM

Councilman Callahan’s prepared statement:

part 1 (9 mins.)
part 2 (3 mins.)
part 3 (3 mins.)

Q ‘n A with the media:

part 4 (10 mins.)
part 5 (10 mins.)
part 6 (11 mins.)
part 7 (10 mins.)
part 8 (2 mins.)

Sara Satullo, “Bethlehem councilman says mayor tried to intimidate him after call for ethics probe.” lehighvalleylive.com, November 25, 2019.

Nicole Radzievich, “Bethlehem Mayor Robert Donchez delivers defense of aide targeted by councilman.” Morning Call, November 25, 2019.