Callahan and Nemes have been butting heads over numerous issues that essentially boil down to control. Callahan thinks he should be calling the shots. For example, Callahan wants to double meter rates, but Nemes has resisted.
Callahan was able to persuade board members to go along with what might be a sweetheart deal. Chairman Joe Hoffmeier is a Callahan acolyte who contributed $1,000 to the Mayor's congressional quest. Vice Chair Dino P. Cantelmi just happens to be the Mayor's brother-in-law, and is the very person who crashed into a Bethlehem police cruiser nearly four years ago. He sent an officer to the hospital with negligible legal consequences and no publicity. Board member Michael D. Recchiuti is running for City Council and is reputedly a member of the "better than you" crowd after Council meetings.
Pennoni employees contributed $7,500 to Callahan in his failed Congressional bid.