DiGiacinto - "God's Gift to Us For 61 Years"

Bethlehem City Controller David DiGiacinto, the fiscal watchdog who died unexpectedly on January 26, was laid to rest on Saturday. Funeral services were conducted by Father Abraham Ha at St. Anne's Roman Catholic Church at a mass attended by over 300 people.

A reading from Ecclesiastes told mourners there is a time for everything, "a time to be born, and a time to die." In his sermon, Father Ha praised DiGiacinto, not as a City official, but as a "husband, a father, a son and a friend. God's child." Recalling DiGiacionto's extensive collection of hats and T-shirts, Father Ha joked that DiGiacinto could "wear one a day and never do laundry." On a more somber note, the priest called him a "wonderful gift that God shared with us for 61 years."

Bethlehem's former City Council President, J. Michael Schweder, delivered a brief eulogy. "He refused to go along just to get along," Schweder observed. "He didn't follow the course, but he stayed the course," he concluded.

DiGiacinto, a graduate of both Liberty High School and the U.S. Military Academy at West Point, served with distinction as an Air Force pilot for six years. After resigning his commission in 1981, he spent 18 years at Pfizer, where he held various positions in sales and management. At the time of his death he was Chairman and CEO of Axiom Power.

RIP, Bethlehem City Controller Dave DiGiacinto

Bethlehem City Controller Dave DiGiacinto died unexpectedly this morning, according to The Morning Call. He had been a member of City Council since 2009, but the job he really wanted was Controller. He lost his first try for that office, but finally won the job in the 2013 elections.

As a Council member, Dave was often a thorn in the side of the John Callahan administration, but his constructive criticism probably made Callahan a better mayor.

He made the Christmas City a better place.

He was a person who could be relied upon to tell you what is going on. His friends will miss him very much. The City of Bethlehem will miss him even more. Here's what some are saying.

Bethlehem Mayor Bob Donchez: "Today the City of Bethlehem lost a true gentleman in the unexpected passing of City Controller Dave DiGiacinto. Dave was a friend who served the city with distinction and integrity. He will be remembered for his love of Bethlehem but his love for his family was truly amazing. Our sympathies go out to his mother Mrs. DiGiacinto, Kelly, and Luke. Bethlehem is a better place because of Dave DiGiacinto."

Beth. DCED Director Alicia Karner: "Let aeroplanes circle moaning overhead Scribbling on the sky the message He Is Dead, Put crepe bows round the white necks of the public doves, Let the traffic policemen wear black cotton gloves." quoting W.H. Auden

Bethlehem activist Lucy Lennon: "A gentleman and a good friend. The city of Bethlehem lost someone special today."

I know Dave spent part of the day on Saturday, shoveling his driveway. Folks, if you lack servants like me, and have to shovel snow yourself, please be careful. Take plenty of breaks. Do not overdo it.

Callahan Critic Named Bethlehem Council VP

Before last night's Bethlehem City Council meeting, I saw Solicitor Chris Spadoni. He told me I was an embarrassment as a guest on WFMZ-TV 69's Business Matters the other day. I retorted that he's an embarrassment as a lawyer. The genteel crowd who usually attends these meetings gasped at this frank exchange. One tough-looking dude, Eddie Rodriquez, was ready to burst into tears until I explained that's pretty much the way Chris and I roll. That's how we say Hi to each other. Eddie cried anyway.

I forgot that meetings in Bethlehem and Northampton County are completely different. What would certainly be regarded as nothing more than polite disagreement in Northampton County and most other places, is considered "disgraceful" behavior in Bethlehem.

My own behavior is totally irresponsible, but the Bethlehem crowd still smiles at me and shakes my hand. It's that damn Moravian influence, I think. And sugarcake.

But Karen Dolan, a six-year veteran of Council, is another story. She was loudly condemned last night, at least by the standards of Bethlehemites, for the way she handled an election for the open position of Vice President.

Gordie Mowrer, who is having problems lasting more than an hour during City Council meetings, resigned as Vice President on March 21. I knew that was coming. At a recent meeting, after stepping out briefly, he came back and sat in his chair. Unfortunately, it rolled right into Old Glory, knocking her over. Willie Reynolds made a spectacular diving catch before the flag hit the ground.

As this retired Moravian pastor explains in his letter of resignation, "I just have problems that cannot be helped, and I would not be able to do the job I would like to do." He also revealed he suffers from Parkinson's disease.

Dolan is under the impression that it's her turn. But other Council members prefer the financial prowess of newcomer Dave DiGiacinto, especially with City finances in the tank.

Clearly unhappy that she is being passed over, she got entangled in a twenty-minute disagreement with Chris Spadoni over an interpretation of Robert's Rules of Order concerning the election. "Point of order" was the phrase she used most frequently. While insisting she had no desire to be "persnickety" or a "pain," that's exactly what she was.

What really bothers her, and she has a fair point, is that these offices are "always decided ahead of time." But her remedy for that is the Sunshine Act, not Robert's Rules of Order. And Spadoni was unwilling to bend to her will.

Willie Reynolds nominated Dolan, while Jean Belinski nominated DiGiacinto. Reynolds argued that Council members should appoint Dolan because of her experience and because she is a woman. His final argument is that a VP is pretty much window dressing, so it might as well be Dolan. To drive that point home, Reynolds said of Mowrer, "I thank him for his service, whatever that may have been."

Not the smartest thing to say about a Council member who served as Mayor in the '70s and again in '87.

Eric Evans explained that he'd be supporting Dave DiGiacinto. "The number one reason is finance," he said. "Our number one priority, our number one focus, our number one concern, our number one stress, right now, is finances, getting the City up to where we want it to be."

Although DiGiacinto remained silent, Dolan decided to make a pitch for herself, stressing her experience, the fact that she is a woman, and her attendance record.

Gortie Mowrer was so put out by the squabbling over his position that he announced he would not be supporting either candidate.

When Dolan's nomination was put forward, the only Council member willing to vote for her was Willie Reynolds. Defeated, Karen then did vote for DiGiacinto. But not Willie.

At the end of the meeting, Council regular Mary Pongracz called Dolan's performance "disgraceful," especially because she had disagreed with Spadoni. And activist Steve Antalics suggested that Spadoni be awarded a Purple Heart or Distinguished Service medal.

I'd give Spadoni the finger.

Gimme a break. Sure, Dolan was persnickety and a pain, as she herself would put it. Yes, she did question her lawyer. But geez, she never called anyone "gutless" or used any of the colorful language that is par for the course in the People's Republic of Northampton County. Just a few short months ago, the Northampton County Elections Commission thumbed its nose at the very same Solicitor being fawned over last night. And two years ago, Lamont McClure unilaterally tried to fire a Solicitor, with absolutely no authority.

Everybody was condemning Karen, while she was explaining herself to reporters. I had to ask, "Are you people nuts?"

What's really interesting is to see Willie Reynolds, a known Callahan acolyte, supporting Dolan. It's even more interesting to see him vote against DiGiacinto after his candidate had already lost. DiGiacinto is Mayor John Callahan's biggest critic on Council, and their selection of him as their VP is an indication that they mean business.

And Karen should never argue for election to some position because she is a woman. It's important to have diversity, but diversity for diversity's sake leads to incompetence.

Mayor Callahan was absent from last night's meeting. He's apparently in Israel, soliciting campaign contributions for his next Congressional run.

Blogger's Note: In the picture above, Karen Dolan catches Steve Barron wearing one of her dresses.

DiGiacinto Demonstrates Wisdom of Bethlehem Voters' Controller Pick

When the dust had settled, Republican Meg Holland was elected controller by Bethlehem's heavily Democratic voters over Dave DiGiacinto, even though he outspent her about three to one. But from Bethlehem PA Politics, our latest local poliblog, we learn that her vanquished foe does not go gentle into that good night. A victim of sour grapes, he rages, rages against the dying of the light.

He's hoppin' mad that Meg Holland did not run as Margaret Mary Holland, and wants DA John Morganelli to arrest her or something. Good luck with that one, Dave! By the way, Dave, Bethlehem is in Lehigh County, too. So if you want her executed, the person to ask is the state AG. I'm sure Corbett will hop right on it. Bonusgate can wait.

So what's Meg, 'er Margaret May, doing? At a news conference yesterday afternoon, Bethlehem Controller Holland announced an ambitious and detailed first year agenda in a four-page news release. Instead of summarizing it, you should read it yourself. It reveals a consummate professional who takes her job seriously. Voters got this one right.

1. Hire a Deputy Controller - In December 2007 I instructed Jean Zweifel, Director the Human Resources, to put an advertisement for the Deputy Controller position in the newspaper and on Career Builder. I also informed Daryl Yothers (the former Deputy Controller) that I would consider him for the position if he submitted an updated resume to Human Resources. I received approximately 40 resumes from interested applicants for the position. The majority of the applicants were extremely qualified for the position. I narrowed down the 40 applicants to 10 and interviewed them with Ms. Zweifel. Several applicants were willing to take dramatic decreases in salary from their present employment. I hired Eugene Auman on Sunday, January 13, 2008 for the position. Mr. Auman was Vice President of Finance and Administration of Valley Youth House, has an undergraduate degree in Business Administration from Perm State University and is also certified in human resources. Mr. Auman brings with him over 20 years of financial, managerial and administrative experience with non-profits and governmental entities, particularly in budget preparation, fiscal reporting and contract monitoring.

2. Attend monthly pension board meetings and review reports - As required, I will personally attend the monthly pension board meetings. I attended my first meeting in November 2007 and reviewed all financial reports, actuarial reports, and investment and performance reports with respect to the city's pension funds. I will summarize my review of the aforementioned documents in the coming weeks.

3. Establish fraud deterrence and prevention practices - I will enact several fraud deterrence and prevention practices, including: an anonymous telephone"integrity and humility" tip line, personnel manuals, cash handling procedures, computer access and Internet controls, telephone controls, etc. I will also introduce IDEA software to enhance the current accounting systems and establish routine queries of the city's databases to detect any potential fraud for further investigation.

4. Establish purchase order procedures and authorization controls - My department will perform audits and procedures which will work towards resolving the management comment noted by Maher Dussell CPAs (the CPA firm hired to perform the city's financial audit). This management comment has appeared on the audited financial statements for over ten years. My department will instruct the Accounting Department to record purchase encumbrances, immediately. In addition, my department will institute purchase order reviews, as well as, perform an audit of blanket purchase orders for last twelve months. My department will work with the Continual Improvement (CI) team to review purchase order processing and approval in order to eliminate duplication (i.e. six copies of purchase orders are routed after approval process). Any other management comments noted in the auditors['] report will be resolved and procedures will be instituted to prevent future comments regarding internal control weaknesses.

5. Enact record retention policy for the Accounting and Controller's Department - The legal department recently completed a record retention policy(part of their CI projects) for their department and for city contracts, while researching with respect to governmental record retention. My department, particularly the part-time employee, will work with the CI team and the law department to inventory, categorize and shred unnecessary documents that are currently stored on the fifth floor of city hall. For example, through housecleaning of my department we found telephone books from the 1970s, tax books from the 1980s, four scrap books dating back 40 years with newspaper clippings about former Controller, Wally DeCrosta, and the city administration, a painting from Gloucester Massachusetts from 1966 and various other prints and pictures.

6. Enhance the existing database of municipal contracts with the law department - Until now, the details regarding all city contracts were kept manually on contract cards by the Controller's office, while the law department kept contract detail in a database. My department will enhance the contract database with various contract details to enable more efficient sorting to facilitate audits and reviews of the contacts (i.e. vendor information, dollar amounts, department, purpose, length of time, etc.)

7. Review and monitor the budget process - My department will complete a detailed review of the budget process, budget calculations and overhead allocation (by the Accounting Department) and budget monitoring procedures with a comparison of budgeted amounts to actual amounts by category. I will require an explanation of variances by the applicable department and city administration,which may result in adjustments and changes to future budget calculations. My department will obtain comparative municipalities to the City of Bethlehem from Maher Dussell and will perform ratio analysis to determine areas where the city outperforms its comparatives and areas for improvement and further investigation/review. The Deputy Controller will begin reviewing the actual to budgeted financials for year ended December 31, 2007, immediately.

- For 2006, the accrual basis financial statements indicated an approximate profit of $300,000 and the cash basis budgeted financial statements indicated an approximate loss of ($1,600,000).
- After my review of individual line items, I determined that there was $2,000,000 in interdepartmental revenue recorded on the accrual basis financial statements, which was not recorded on the cash basis financial statements because the revenue was not collected as of December 31, 2006. The difference was primarily due to the following interdepartmental revenue items:
- Ambulance fees (outstanding receivables are overdue and the city has a part-time employee/retiree at St. Luke's Hospital collecting the ambulance fees due to the insurance processing)
- Police roster fees
- 911 fees

8. Meet with all departments as to policies and procedures - I or the Deputy Controller will personally meet with all departments to review procedures, policies, any existing manuals, cash handling detail, etc., which will facilitate future audit plans.

9. Review of medical insurance and catastrophic insurance processing - My department will review the medical insurance claims processing procedures and reimbursement of catastrophic medical reimbursements. I have a meeting scheduled for February 11, 2008 with Mike Caruso and Joe Leonard to discuss my questions/concerns.
- The city is currently responsible for catastrophic medical expenses up to $100,000 and up-front expenses over $100,000 and is reimbursed for expenses incurred over the S100,000 threshold. The reimbursements in the past have not been made on a timely basis.

10. Operation and performance audits of departments and other entities (including the entities that are part of the Bethlehem Authority) - My department will perform announced and unannounced operational and performance audits of various departments and entities as determined through my analysis of financial information.

- i.e. the Municipal Golf Course did not make a profit, therefore, my department will review/audit the golf course to make it more efficient (cash collection procedures, increase revenue generation in other ways, etc.)

11. Review purchase policies and procedures as they relate to pricing negotiations - My department will review the purchase policies and procedures related to price negotiations for quantity discounts. This relates to office supplies, equipment, energy and utility usage, insurance, etc. For example, two departments will purchase photocopiers/printers at the same time and not consider grouping the purchase for additional discounts.

12. Meet with Sands-Beth Works representatives to review the host fee contract,revenue generation and computations - I will personally meet with the Sands-BethWorks representatives to review the host fee contract, revenue generation and computations.

- Determine the applicable reporting, collection, gaming requirements and remittance of revenue to the city.
- Determine city collection, reporting, budgeting, projection and spending of revenue with controls.

13. Meet with various other local government controllers to coordinate any efforts with respect to related areas -I will meet personally with other local government controllers (Allentown, Lehigh County, Northampton County, etc.) to coordinate any efforts (i.e. the casino host fees and revenue collection/calculation).

An Express Times account of Holland's busy agenda, including Mayor Callahan's reaction, is located here.
Update: The Morning Call's story is here.

Bethlehem Controller Candidate David T. DiGiacinto

BethlehemDem has an interesting and well-researched portrait of Bethlehem City Controller candidate David T. DiGiacinto. DiGiacinto is a protege of city council prez J. Michael Schweder. Meg Holland may be getting some quiet support from Mayor John Callahan.

Bethlehem Controller Race: A Pitch for Meg Holland From Her Daughter

This November, Bethlehem voters will choose either Meg Holland (CPA/ABV, CVA, CIA) or the less qualified David DiGiacinto as their next controller. Although Meg is clearly the better candidate, she's missing three very important letters from the litany of initials that follow her name - DEM. In the Christmas city, that's going to hurt her.

Yesterday, one of Meg's twin daughters, Maureen Holland Schaeffer, made a pitch for her mom. It's pretty good, and I want it with the rest of you.

It will be a shame if someone with Meg Holland's qualifications and experience does not get elected in the City of Bethlehem even though she is a republican... she is in the city's best interest.

Note Meg Holland's Website (www.hollandforcontroller.com):- You’re a registered Republican, how do you expect to get elected in the Democrat dominated City of Bethlehem?

It is my understanding that the ratio today is more than 2 to 1 Democrats to Republicans. People can look at me as a Republican-Democrat. I was a registered Democrat for over 25 years and my parents (Bob and Marie Holland) were active Democrats. My father was very involved in Congressman Fred B. Rooney’s campaign and President John F. Kennedy’s campaign. I remember wearing the JFK campaign hat during the late night election results with my brothers and sisters in 1960. I changed parties six years ago to support my brother-in-law, David Donio, who is Republican. He was running for State Representative and I was his Campaign Finance Chair.

Since I always vote for the candidate who is most qualified for the position, I did not see a need for a particular party alliance. As I said before, the Controller position should be non-partisan, a “watchdog” of the finances for the taxpayers. Actually, with a Democratic Mayor and a majority Democratic Council a Republican Controller would be a more appropriate watchdog.