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City Council Meeting Minutes

April 6, 2010

CALL TO ORDER: City Council convened in a General Committee meeting on April 6, 2010 at 6:30 p.m. in Council Chambers, 1 Marketway West, 3rd Floor, York, PA, to receive general public comment, with the following Council members present: Renee S. Nelson, Henry Hay Nixon, Toni Smith, Carol Hill-Evans, Vice President, and Genevieve H. Ray, President, with President Ray presiding. Mayor Kim Bracey was also present.

GENERAL PUBLIC COMMENT

Paul Kicklighter, 431 Linden Ave., York, PA, commented on graffiti problems in the City of York and said he has seen graffiti in Farquhar Park and that the police department didn't know how to react when they saw it. Next, he questioned the communications – or lack thereof – between the city and its employees because employees don't seem to understand the codes they are paid to enforce, especially the police.

Franklin Williams, 528 W. Market St., York, PA, suggested that the bags placed over meters restricting parking due to maintenance/construction projects should have a start and end time so as to not tie up parking spaces all day and night. Next, Mr. Williams shared his ideas on marketing York as the “friendly city.” He said with all the development happening, it would be nice to back this up with friendly people.

Veronica Whaley-Chavez, 1032 Edison St., York, PA, spoke in support of Bill No. 12 repealing the employee residency requirement. She feels that repealing the residency requirement will broaden the prospective applicant pool allowing a wider variety of people to choose from when filling vacant positions within the City of York.

Todd Clay, 137 S. Newberry St., York, PA, stated that if the city wants to keep York on the map, officials need to pursue the rail trail initiative. He then spoke about other issues such as an easement agreement that created confusion, request for a report on a traffic study, and confusion on what portions of the street were to be stoned or paved related to the Dublin St. roadwork project.

There being no further public comment, President Ray adjourned the General Committee meeting and reconvened in Legislative Session at 7:00 p.m., in Council Chambers, 1 Marketway West, 3rd Floor, York, PA, with the following members present: Renee S. Nelson, Henry Hay Nixon, Toni Smith, Carol Hill-Evans, Vice President, and Genevieve H. Ray, President, with President Ray presiding. Mayor Kim Bracey was also present.

Members of the Administration in attendance included: Jim Gross, Director of Public Works, Kevin Schreiber, Director of Economic Development & Acting Director of Community Development, and Police Chief Wes Kahley, Interim Police Chief. Also present was Assistant Solicitor Shaleeta Washington. John Senft, Fire Chief, and Michael O’Rourke, Business Administrator, were absent.

Members of York City Council staff in attendance included: Dianna L. Thompson, City Clerk.

Pledge of Allegiance: The Pledge of Allegiance was recited.

Approval of Minutes: Council dispensed with the reading of the Minutes of March 16, 2010 and unanimously approved them as written.

Correspondence and Announcements: President Ray read correspondence and announcements.

PRESENTATIONS

Proclamation: President Ray read a proclamation proclaiming the National Wildlife Federation-designated portion of Memorial Park as “The Wildlife Habitat in Memorial Park” and presented the proclamation and National Wildlife Federation certificate to Mr. Richard Bentzel on behalf of his willingness and dedication in protecting this area and for being a strong voice for wildlife conservation values and principles. (Proclamation)(Certificate)

Mr. Bentzel accepted the proclamation and certificate and thanked Council, Director Jim Gross and City Clerk Dianna Thompson for their help in securing this designation. He asked for the community's support in protecting and preserving this area for future generations.

COMMITTEE MEETINGS SCHEDULED: None

STATUS OF COMMITTEE REFERRALS:

Public Works Committee, Councilwoman Toni Smith, Chair: Councilwoman Smith reported that a meeting was held on Tuesday, March 30, 2010 at 6:30 p.m. in Council Chambers to discuss the York City Sewer Authority's plan to borrow an additional $20 million dollars to finish its plant improvements projects. Authority members provided project details and the impact the project will have on the city. Council will introduce legislation this evening authorizing a York City Sewer Authority Guaranteed Sewer Revenue Bond, Series 2010, to fund this project. (See Bill No. 15)


SUBDIVISION / LAND DEVELOPMENT / HARB

Resolution No. 47, Session 2010, (View) A Resolution approving the final reverse subdivision plan submitted by St. Matthew's Evangelical Lutheran Church to consolidate 13 lots into two at 839 W. Market St., was introduced by Hill-Evans, read at length, and on motion of Hill-Evans, seconded by Nelson, Resolution No. 47 passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

Resolution No. 48, Session 2010, (View) A Resolution approving the final land development plan submitted by St. Matthew's Evangelical Lutheran Church to make multiple improvements to the facility located at 839 W. Market St. including a covered drop-off site, widen and improve the eastern-most driveway to W. Market St., and make improvements to the storm water management on site, was introduced by Hill-Evans, read at length, and on motion of Hill-Evans, seconded by Smith, Resolution No. 48 passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

Resolution No. 49, Session 2010, (View) A Resolution accepting the recommendations of HARB in issuing a certificate of appropriateness for work to be covered in the application submitted by Dick Bono for work to be done at 43, 45 & 47 N. Newberry St., was introduced by Nelson, read at length, and on motion of Nelson, seconded by Nixon, Resolution No. 49 passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

FINAL PASSAGE OF BILLS / RESOLUTIONS: None

NEW BUSINESS
Introduction of Bill No. 12, Session 2010, (View) A Bill repealing Section 165.07 “Residency Requirements” of the Codified Ordinances, was introduced by Nelson, read by short title, and referred to the Rules and Administrative Code Committee for further discussion.

Referred to committee. Council President Ray scheduled a Rules and Administrative Code Committee meeting for 6:30 p.m. on Wednesday, April 21, 2010 at 1 Marketway West, 4th Floor, York, PA, to discuss Bill No. 12 at length. Time permitting, Council will also discuss the Rules & Procedures of Council. (Note: Said meeting will be advertised in accordance with the law. Additionally, the meeting will be held on the 4th floor instead of Council Chambers due to a previously scheduled meeting in Council Chambers on the same night.)

Mayor Bracey announced that she will be presenting a Resolution to Council at the April 20, 2010 meeting appointing Captain Wes Kahley as the Chief of Police. She asked for Council's support in waiving the residency requirement and approving this appointment.

Introduction of Bill No. 13, Session 2010, (View) A Bill amending Article 513 “Vehicle Operation & Parking” of the Codified Ordinances to update language and upgrade various penalties thereto, was introduced by Nixon, read by short title, and deferred until the April 20, 2010 meeting of Council.

Introduction of Bill No. 14, Session 2010, (View) A Bill amending Section 1113.10 “Sidewalk Cafe Guidelines & Requirements” of the Codified Ordinances to streamline the application process and establish conformity to public health and safety requirements, was introduced by Hill-Evans, read by short title, and deferred until the April 20, 2010 meeting of Council.

Introduction of Bill No. 15, Session 2010, (View) A Bill authorizing a Fifth Supplemental Lease to be dated on or about May 25, 2010, amending a Lease of September 15, 1987, as supplemented by a lease dated December 20, 1990, a lease dated December 1, 1992, a lease dated April 10, 2007, and a lease dated July 2, 2008, under which the Sewer System owned by the York City Sewer Authority is leased to this City for operation and use; approving a Guaranty Agreement guaranteeing payment of said Authority's Guaranteed Sewer Revenue Bonds, Series A of 2010 and Guaranteed Sewer Revenue Bonds, Series AA of 2010; directing execution, acknowledgment and delivery of said Fifth Supplemental Lease and Guaranty Agreement on behalf of this City and consenting to Assignment of the said Fifth Supplemental Lease by said Authority; approving the preparation of certain engineering reports and authorizing certain applications to the Pennsylvania Department of Community and Economic Development and directing other necessary and proper action to effectuate the purposes hereof, was introduced by Smith, read by short title, and deferred until the April 20, 2010 meeting of Council.

Supplemental Agenda

A motion was made by Hill-Evans, seconded by Smith, to waive the provisions of Resolution No. 215 of Session 1969 to permit consideration of a Supplemental Agenda containing one Bill. The motion passed unanimously. Therefore, Bill No. 16 was introduced as follows:

Introduction of Bill No. 16, Session 2010 (Supplemental Agenda Item), (View) A Bill amending Article 337 “Yard, Garage or Similar Sales” of the Codified Ordinances to update language and amend fee structure, was introduced by Hill-Evans, read by short title, and deferred until the April 20, 2010 meeting of Council.

Resolution No. 50, Session 2010, (View) A Resolution authorizing a salary adjustment for the Acting Director of Community Development, was introduced by Ray, read at length, and on motion of Ray, seconded by Smith, Resolution No. 50 came up for discussion.

Mayor Bracey applauded Economic Development Director Kevin Schreiber for doing such a great job as acting Community Development Director. She said that as Council is aware, the position of Community Development Director is vacant and Mr. Schreiber is fulfilling those duties until a Director is appointed. As such, she said she felt it reasonable to compensate him for his efforts. Mayor Bracey explained that this adjustment is temporary and will cease upon appointment of a qualified Director of Community Development.

There being no further discussion, Resolution No. 50 passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

Resolution No. 51, Session 2010, (View) A Resolution reappointing Richard Merck as a member of the Construction Board of Adjustment and Appeals to serve until March 1, 2013, was introduced by Nixon, read at length, and on motion of Nixon, seconded by Hill-Evans, Resolution No. 51 passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

Resolution No. 52, Session 2010, (View) A Resolution authorizing the purchase of a 2010 Ford Escape for use by the Sewer Maintenance Department, which said purchase shall be made through PA State Contract #26 at a total cost of $19,609.00 with the vendor for this purchase being Apple Automotive, 1200 Loucks Rd., York, PA, and financed through Fulton Bank through a 5-year municipal lease program, was introduced by Smith, read at length, and on motion of Smith, seconded by Hill-Evans, Resolution No. 52 passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

Resolution No. 53, Session 2010, (View) A Resolution authorizing the purchase of a 2011 International 7400 dump truck with plow for use by the Highway Bureau, which said purchase shall be made through PA State Contract #25 at a total cost of $120,958.00 with the vendor for this purchase being Five Stare International, LLC, 1810 S. 19th St., Harrisburg, PA, and financed through Fulton Bank through a 5-year municipal lease program, was introduced by Smith, read at length, and on motion of Smith, seconded by Hill-Evans, Resolution No. 53 passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

Resolution No. 54, Session 2010, (View) A Resolution authorizing an agreement with the Community Progress Council to coordinate the York's Homebuyer Assistance Program beginning June 1, 2010, was introduced by Hill-Evans, read at length, and on motion of Hill-Evans, seconded by Smith, Resolution No. 54 came up for discussion.

Acting Community Development Director Kevin Schreiber explained that the city and county enter into an annual agreement with a selected provider to organize and coordinate homebuyer workshop and assistance programs to York County residents. The program is designed to provide down payment and closing cost assistance to moderate/low income households in York, PA. The assistance is in the form of a 5-year forgivable loan to the buyer, secured by a second mortgage against the property. Full and accurate documentation is required with a strong emphasis on the borrower(s) income eligibility. Director Schreiber stated that a formal procurement process was initiated and the Community Progress Council was identified as the qualified organization to undertake this responsibility.

Jay Andrzejczyk, Housing Alliance Board Member, asked Council to amend the Resolution to remove the language stating that CPC was the most qualified organization to provide this service. He said the Housing Alliance is the only organization qualified to provide this service and that CPC was merely selected.

Director Schreiber explained that a committee of county and city representatives selected CPC through a formal procurement process and that this language identifies the processes involved in the selection of an organization that met the qualifications to administer the program. Council President Ray asked if it was correct to say that CPC was “most qualified” when judged by the criteria set up by the committee for the procurement process, and Director Schreiber confirmed that this was the case.

Council, satisfied with Director Schreiber's explanation, chose not to amend the Resolution.

There being no further discussion, Resolution No. 54 passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

Resolution No. 55, Session 2010, (View) (Original Agreement) A Resolution authorizing a loan extension agreement with Shady Oak Apartments for the property located at 252 W. College Ave., was introduced by Hill-Evans, read at length, and on motion of Hill-Evans, seconded by Nixon, Resolution No. 55 came up for discussion.

“Director Schreiber explained that Shady Oak, LP is a for profit entity, a partnership company and part equity owner of Shady Oak is PFG Capital, a York based company. We are recommending Council authorize the loan extension based on substantial due diligence and review showing that Shady Oak, LP is entirely not in the position of repaying the $600,000 debt to the City of York. Having reviewed Shady Oak’s financial information with their Controller, Scott Foyer, he said he can attest to this. This leaves two alternatives, the City purchase the property or the City extends the loan period for an additional 15 years. Director Schreiber said he can further attest that Shady Oak has been a very responsible property owner and landlord and has exceptionally passed previous compliance visits and inspections.

Shady Oak, LP is currently encumbered by a first position mortgage held by Fulton Bank and a second position held by the City. Both loans total nearly $900,000 in debt. Recently Shady Oak negotiated a principal payment suspension with Fulton Bank in order to accumulate a reserve to make property improvements. At the end of March 2010, Shady Oak had $38,000 in cash reserve in the bank, this will go specifically to weatherization and replacement of the boiler system. The suspension of principal payment bears with it suspension of management fee by PFG Capital, therefore it should be noted during this period PFG is not incurring any property management revenue.

Although an appraisal was not secured, it is a safe speculation that the appraised value would not clear the$900,000 the property currently owes in dept. Refinance is not an option, not only due to the debt to value ratio, but as a result of the first position loan being currently suspended by Fulton Bank. The asset could potentially be transferred to the City, or any other related entity that would be capable of managing the property, but it was noted that the property is also indentured for 30 years to retain low-moderate income apartments, because low income tax credits were used to finance construction. Those tax credits have been used and therefore if the property were to change ownership, the new owner may be obligated to return a portion of the LI tax credits - an additional financial debt obligation.

Director Schreiber stated that he is sharing this information not to represent any misfeasance or poor cash management on the part of the property owner - - to the contrary in fact - - these projects and sources of funds used at the time were intended to serve the community in perpetuity. The strings attached essentially bind and protect the community from unscrupulous owners or developers doing "fly by night" projects.


Shady Oak Apartments is comprised of 35 units. The average rent is $565 per month flat - - this includes all utilities. The property runs 98% occupancy and generates 3 FTE’s. If the City were to call the $600,000 loan repayment, Shady Oak, LP would likely suspend operations and enter bankruptcy proceedings. The extension of the note allows the project to continue to serve the community’s needs and sees that the intent of the funding sources were achieved.” (Source: Email from Kevin Schreiber to Council dated 4/6/10)

A question arose as to whether Shady Oak Apartments pays taxes. Director Schreiber said he would research and get back to Council with an answer. (Note: In an email dated 4/8/10, Director Schreiber reported to Council that Shady Oak does pay taxes as they are a for-profit entity and that they are current on all real estate taxes and sewer and refuse fees.)

There being no further discussion, Resolution No. 55 passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

Resolution No. 56, Session 2010, (View) A Resolution approving a sidewalk cafe agreement with Colosseo for a sidewalk cafe to be situated at 108 N. George St., was introduced by Hill-Evans, read at length, and on motion of Hill-Evans, seconded by Nixon, Resolution No. 56 came up for discussion.

Vice President Hill-Evans asked if Council should consider tabling this Resolution until action is taken on Bill No. 14 (View) as it amends the sidewalk cafe ordinance in its entirety.

Assistant Solicitor Shaleeta Washington said that Council could table this Resolution or amend the Resolution to have Colosseo confirm to the requirements of Bill No. 14, if approved.

Motion to amend. After a brief discussion, Council chose to amend the Resolution. Therefore, a motion was made by Hill-Evans, seconded by Smith, to amend Resolution No. 56 to add the following language: “Be It Further Resolved, that approval of said agreement is conditional upon approval of Bill No. 14, at which time applicant shall comply with the requirements of Bill No. 14.” The motion to amend passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

There being no further discussion, Resolution No. 56, as amended, passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

Resolution No. 57, Session 2010, (View) A Resolution authorizing the filing of a proposal for funds with the Department of Community and Economic Development in the amount of $500,000.00 for the CODO 28 project, was introduced by Ray, read at length, and on motion of Ray, seconded by Hill-Evans, Resolution No. 57 came up for discussion.

Director Schreiber outlined that the CODO 28 project (28 North George Street) is a 25,000 square foot (including basement), 3-story vacant building that covers 90 percent of its lot at a key location one-half block from Continental Square in downtown York. It sits directly adjacent to Central Market, a current focus of revitalization interest for the City. It is in the heart of the “Market District” – the area recommended by consultant Roger Brooks to be reinvigorated as the hospitality, retail, cultural and entertainment district in downtown York. CODO 28 will transform the building and lot into 11 residential apartments and a street-front retail space in the existing building with an addition to be constructed on the front.

The total estimated cost for this project is $4,688,749.00 to be funded through various sources including a $500,000 low interest, interest-only, ten-year loan from the Redevelopment Authority of the City of York.

There being no further discussion, Resolution No. 57 passed by the following vote: Yeas – Nelson, Hill-Evans, Nixon, Smith, Ray – 5; Nays – 0.

REQUESTS FOR FUTURE MEETINGS

Rules & Administrative Code Committee, Genevieve H. Ray, Chair: A meeting has been scheduled for 6:30 p.m. on Wednesday, April 21, 2010 at 1 Marketway West, 4th Floor, York, PA, to discuss Bill No. 12 at length. Time permitting, Council will also discuss the Rules & Procedures of Council. (Note: Said meeting will be advertised in accordance with the law. Additionally, the meeting will be held on the 4th floor instead of Council Chambers due to a previously scheduled meeting in Council Chambers on the same night.)

COUNCIL COMMENT: None

ADMINISTRATION COMMENT

Mayor Bracey announced that a town hall meeting will be held on Tuesday, April 27th in the William Penn Senior High School cafeteria, 101 West College Avenue. The meeting will start at 7 pm and continue until 9 pm. All York City residents are invited to attend the meeting and share their concerns, ideas and suggestions.

Also, Mayor Bracey encouraged residents to complete and return the 2010 census forms. She said these forms are extremely important to our community as an accurate count of residents will determine how more than $400 billion dollars of federal funds are spent on making our community better.

Interim Police Chief Wes Kahley invited residents to attend the Building Stronger Families Conference on Saturday, April 10, 2010 from 9:00 a.m. to 3:00 p.m. at the Horticulture Hall at the York Expo Center. The conference will focus on how to encourage responsible decision making in your children, talking to your kids about sex and drugs, getting your children engaged in positive after school and summer activities, and how to keep our kids safe. To register or for more information, please call (717) 771-3811 or visit the United Way of York online at www.unitedway-york.org. The deadline for registration is Wednesday, April 7, 2010. The conference is free. Lunch will be provided.

NEXT MEETING: The next regular meeting of City Council is scheduled for Tuesday, April 20, 2010 at 7:00 p.m. (Public Comment commences at 6:30 p.m.) in City Council Chambers, 1 Marketway West, 3rd Floor, York, PA.

ADJOURNMENT: There being no further business, the April 6, 2010 meeting of Council adjourned at 8:05 p.m.