Well, I can't say for sure 'cause I wasn't at those hearings, but we could certainly research that and get that information for Council, if that would be helpful.
Because I couldn't imagine it being buried in the fine print, but 170 2/5/01 FISCAL STABILITY - RES. 010024 that would be something that would be interesting to know.
No, but I believe that it was required that the leases be done at the same time that the commitment was made for the financing package through PAID at the time.
I'm sorry. I just wanted to indicate one other thing, that the Wall Street Journal recently recognized Philadelphia International Airport as one of the, I believe, top four airports of the major airports in the country.
The airport looks absolutely beautiful. It really does.
Mr. Isdell, when did you say the new international terminals will be completed? Do you have to also construct 171 2/5/01 FISCAL STABILITY - RES. 010024 new runways?
Well, we opened our fourth runway, a brand-new runway, in December of 1999. And the new international terminal is scheduled to open in June of next year, 2002. We will be opening the 38-gate commuter terminal in June of this year.
You indicated, I guess, one night last week at a meeting that the airport has approximately 20,000 employees?
How many more employees will you be hiring in June 2002, with the new terminal?
Well, our estimate is that the total employment will probably go up by at least a thousand, but I really can't give you a definitive answer at this point. Some of that naturally will be hiring by US Airways. 172 2/5/01 FISCAL STABILITY - RES. 010024 And in terms of the 20,000, that includes all of the City employees, airline employees, all of our tenants, United Parcel. So within that context, I just would say the City staff is about 600, and we anticipate, with the opening of the two new terminals over the next 8 months, that we will increase by roughly 100 to 9 150 employees, most of them being maintenance. 10
Thank you. 11 The Chair recognizes Councilwoman 12 Blackwell. 13
I suppose, 14 Madam President, he just answered -- we had 15 questions about expansion plans for the airport 16 certainly into southwest or Delaware County, if 17 there were further plans for expansion. And if 18 so, will you let the President know and certainly the rest of us?
Absolutely. And our general sense is we do have one of the smallest acreage airports of the top 50 in the United States. We have about 2400 acres. We are extremely constrained. When opportunities do present 173 2/5/01 FISCAL STABILITY - RES. 010024 themselves on the perimeter, they're usually relatively small parcels. But we do -- you know, as soon as that becomes something we want to move on, we work through the Mayor's Office and the Council to go through the proper vetting process so that the community and Council are comfortable with any purchase we wish to make.
Are there any other questions of Mr. Isdell? The Chair recognizes Councilman Kenney.
Thank you, Madam Chair. Mr. Isdell, with the opening of the overseas terminal, how many -- well, let me go back a second. How many international flights are in and out of Philadelphia a day?
We have 13 nonstops per day right now to 8 destination cities.
And can you just rattle off the eight, where they're coming from and going to? I imagine Paris. 174 2/5/01 FISCAL STABILITY - RES. 010024
We have two daily nonstops to London Heathrow on British Airways and two daily nonstops to London, Gatwick, on US Airways. We have a daily nonstop to Paris on US Airways and a daily nonstop to Paris on Air France. Daily to Frankfort on US Airways and a daily to Frankfort on Luftansa. And then in addition, US Airways flies each day to Rome, Madrid, Munich, and Manchester, England. And they will be adding Brussels and Amsterdam this spring.
How many additional destinations will be available with the opening of the overseas terminal?
US Airways has indicated a continuing interest to serve at least two more European destinations. Milan is one and Zurich is another possibility. None of those are confirmed at this point. Air France has indicated a desire to start a second daily nonstop to Paris. We believe that we will have at least one additional international foreign flag carrier occupy one or two of the gates in the new terminal when it opens. And we're doing some marking and 175 2/5/01 FISCAL STABILITY - RES. 010024 promotion of that right now. But a lot of times, the airlines don't like to play hand too much in advance publicly because of their competitive natures, and we may not know until late this year or early next year exactly how many new destinations we'll have.
Do we have the potential of expanding our reach into South America, for example, or into the Pacific Rim? It seems that most of what we serve here at the airport and what serves us are traditional western European destinations either for business and/or tourism, vacations. Is there any opportunities for us, with the new terminal, to do anything from the Pacific Rim, anything from South America or other areas of the world?
Part of that depends on the outcome of the United/US Airways merger discussion. If United does in fact purchase US Airways, we will benefit by having one-stop service through either Los Angeles or San Francisco to the Pacific Rim, most likely Japan. In addition to that, United would offer 176 2/5/01 FISCAL STABILITY - RES. 010024 us more opportunities to connect through their hub in Chicago to cities all over their network, which is more of a worldwide network than US Airways is. In the meantime, we do have a lot of service currently in the Caribbean that's served by US Airways and American. And American is the major hub that you would fly one stop through Miami right now to most of the South American destinations. We are also keeping an eye on developments to push eventually for nonstop service across the Pacific, but that would be a tougher sell because the way the hub and spoke systems work is they would prefer to push passengers through another hub on the West Coast. If that answers your question.
Well, I guess the question is, those coming to the eastern part of the United States from the Pacific Rim or from South America, do they have choices that would in some way push them through Philadelphia? Or is it soley a Chicago-New York issue, Washington-New York? I mean, the question is, are all of these international flights flying over us from other 177 2/5/01 FISCAL STABILITY - RES. 010024 areas? And do we -- and a separate part of the question is, do we do any type of advertising or informational efforts in US Consulates throughout the world where we can match an outgrowing flight to Philadelphia?
Well, we actually engage a consultant to, you know, look at those possibilities with us and give us realistic recommendations as to which airlines we should make pitches and presentations to about new service, international as well as domestic. But I think, especially in light of the way some of the airlines -- for example, Northwest Airlines serves the Pacific Rim extensively, and the way their system is structured, you would fly either from the Orient to Detroit, for instance, and then to Philadelphia or back in the other direction. They force you to go through their hubs either in Detroit or in Minneapolis. Delta also services the Pacific Rim extensively. And, again, from Philadelphia, you would be kind of forced to fly Philly to Atlanta and then onward and then beyond. 178 2/5/01 FISCAL STABILITY - RES. 010024 But I think the way the way the industry is going right now, by the end of this year, it's possible you'll have United/U.S. Airways versus American/TWA versus -- the latest rumor is Delta/Continental. The whole landscape will change, and our job is to be agile and prepare for any one of those combinations to try to get the best we can get for Philadelphia from them.
Does Philadelphia or Philadelphia International Airport have any type of presence in any US consulates throughout the world? My understanding of the process is that an individual who wants to come to the United States, they go to apply for a visa at the US Consulate in the city or country where they're at. And as a result of information we've received from a prior hearing, cities like New York, Chicago, Los Angeles, Boston, Houston, Miami have some type of advertising presence in the consulate themselves. Now, whether it's posters or brochures or other type of information that make people think about Philadelphia as a destination to come and live. 179 2/5/01 FISCAL STABILITY - RES. 010024 I mean, obviously, prior immigration patterns came on by sea and wound up coming to various ports as a result of who the steam ship lines were and where the train patterns were.
It seems that Philadelphia today is kind of like nowhere in that realm of possible cities, and that really people are unaware that Philadelphia exists, unaware of how close it is to New York or Washington, don't even have that information in their head to think about wanting to use Philadelphia as a destination. And what can the airport do to kind of get a presence? As we know, Philadelphia is the "Cradle of Liberty." People who are coming from other places to find liberty would find Philadelphia a natural attraction, along with New York because of the commerce in New York. But I'm wondering if the airport can play a role in attempting to get Philadelphia more of a presence in some of these US Consulates that are processing applications for travel to the United States. 180 2/5/01 FISCAL STABILITY - RES. 010024
I think it's a very good idea, and to be honest with you, I don't think that we do that at the present time -- at least the Airport doesn't, and I don't know if the City does. We are embarking on a promotional campaign, and this, I would think, is a good topic to put on the next agenda for our meetings with our advertising agency. And in addition, I guess at the moment, we probably benefit more than anything else from whatever marketing would be done by US Airways in the European capitals. But that doesn't touch the other continents, as you said.
And, finally, there's been some publicity recently about the majority leader of the House of Representatives, John Perzel, an investigation of potential privatization areas of the airport. Are you aware of this ongoing process? Have you been contacted? And can you think of any areas that they would be studying, in addition to parking, that could be ripe for privatization examination? 181 2/5/01 FISCAL STABILITY - RES. 010024
We did submit testimony to the House Select Committee last fall, and our position -- or at least my position or my feeling -- is that Philadelphia International is not really a good candidate for privatization. Two quick reasons. One is that under current federal law, you cannot take the proceeds of such a transaction and use them for other municipal services. The proceeds have to be kept on the airport. The only exception to that rule, as was pointed out in the committee hearings, is a five-airport pilot program, which was really established to help struggling, small, financially-troubled airports. And if you look at the five airports that did apply, the largest is Stewart International in New York State, which last year handled about 600,000 total passengers and whose passenger counts in fact have been decreasing in recent years. If you compare that to a million passenger airport that is really 22 thriving at this point, my inclination would be to 23 say, you know, don't trouble. 24 We do like to point out that airports, 25 most US airports in fact, are heavily privatized 182 2/5/01 FISCAL STABILITY - RES. 010024 already. As I said, of the 20,000 people who work at our airport, only about 600 are City employees. There are probably another 100 or so federal employees. But most of the people who work at the airport work for the concessions, the airlines, the ground handling companies, the cargo companies. The privatization issue really would have to be with selling or long-term leasing of what I think is probably, if not the best, one of the City's best assets, which I think you would think twice about doing if it was your home or something like that.
Would you apply that same standard of opinion to the parking opportunities at the airport? I agree with you that the airport is in tremendous condition. Compared to what it used to be, it is a pleasure to go there, but I think one of the continuing glaring complaints about the airport is parking price, availability, and just the general issue of parking overall has been, I guess, one of the negative complaints or things we hear about the airport as opposed to some of the 183 2/5/01 FISCAL STABILITY - RES. 010024 other good things with retail opportunities and brighter and better surroundings and on-time performance and things like that. I mean, we don't hear complaints about that as much as we do about long-term and short-term parking issues.
Well, it's like a marriage that we have with the Parking Authority, and we've --
We've made a lot of progress, I think, in the last six months or so. I mean, I would prefer to maybe defer specific questions about the Parking Authority to the Parking Authority.
Yes. And, you know, complaints about parking, like complaints about 184 2/5/01 FISCAL STABILITY - RES. 010024 security check point workers, people don't differentiate that those people don't work for the airport. So we get all of the complaints basically, whether or not we have complete control over the function.
The security check point people, that's a private function, is it not?
Yeah. Those people actually work for the airlines. But we frequently do get complaints regarding them if they're rude or if, you know, they don't follow proper procedures. And I think it's sort of meaningless to get into the argument about, Well, they don't work for me so it's not my responsibility. So, yes, we do work with the Parking Authority, particularly in the months since the Mayor appointed Jim Cuorato, the Commerce Director. He has particularly tried to get us -- we meet regularly about once a month and we exchange information. We've got some joint programs. They are constructing two new garages, which will give us over 5,000 new spaces on top of 185 2/5/01 FISCAL STABILITY - RES. 010024 the 12,000 we have right now. I think that will be a big improvement. And we have some other joint projects we're doing to try to get a better image for both entities.
I know the snow's coming down and I want to get you out of here. Just one more question on ground transportation. There have been ongoing complaints from people who have the desire to use kind of communal ground transportation opportunities like those van services that you order when you leave your location, going to your destination, and you usually get to the airport on one of these van shuttles, and then the super-shuttle is one of the biggest, obviously. And then when you get to Philadelphia, you're looking for that same opportunity to get to your hotel. And, apparently, it seems as if the taxicabs have gotten or have the upper hand when it comes to visual contact with the arriving passenger, that when you come to the ground transportation area, you usually see a cab before you have an opportunity to either call for or find your van service that, you know, you're looking 186 2/5/01 FISCAL STABILITY - RES. 010024 for. And people, sometimes out of frustration, simply get into a cab because they have no 4 information or ability to find out where they're supposed to go. Have you looked at this at all, and do you think that there's a problem there?
Well, it's a highly competitive area. And if you spent a little bit of time in a baggage-claim building and just watched the fierce competition, it's a good lesson in capitalism, I guess. But to answer your question directly, I was not aware specifically that the vans felt that the cabs had the upper hand. We do have a monthly ground transportation committee, which includes representatives from the taxicab industry and the van and the limo companies. And if you went to those meetings, you would get the opposite impression. The cab drivers are generally complaining that we favor the limo and van operators. It's the context that I learned the meaning of "level playing field," and we try to be a kind of a referee. We do have essentially a 187 2/5/01 FISCAL STABILITY - RES. 010024 private roadway system that we're responsible for managing. There are limitations in the curb space and the zones that we can create for them to get access to the passengers. We do enforce our anti-solicitation rules very vigorously through the Philadelphia Police Department. And we are building a new system at the entrance to that arrival road currently that should be open this summer. It's called an "AVI system." I think it's automated vehicle identification system. It will operate to some extent like the E-ZPass system, where the various vans and cab drivers will have to sign up for an account in advance, get a transponder for their vehicle that will be affixed to the windshield, and it will enable us to control access to those very small baggage claim roadways better than we can right now. I think that may alleviate a lot of these problems.
Will we be able to insist on any type of contract with those people who are approved for the transponder access program when it comes to the quality of vehicle, the quality of individuals driving the vehicle, 188 2/5/01 FISCAL STABILITY - RES. 010024 dress code of some kind? I mean, are there certain, I guess, social contract elements we can throw into this prior to our approval that someone get access to the facility?
Yes. That's a very good point. We have an agreement that was drafted by our legal department, and it includes a lot of those types of requirements. We have also been working closely with the PUC, which has the legal authority over not only the cabs but all of those common carriers. And they -- you know, they have -- we've had made sure that we're not usurping any of their authority, but because the operators will have so sign an agreement in effect to operate in the airport's AVI system, we are going to impose some of those quality-of-life type of requirements through the agreement.
Thank you. The Chair recognizes Councilman Rizzo.
Thank you, Madam Chair. 189 2/5/01 FISCAL STABILITY - RES. 010024 I thank Councilman Kenney for reminding me that many months ago, I offered a resolution, and I'm presently waiting for a date, which I haven't received, Madam President, on both the issue of airport parking, because Philadelphia, as we all know, is the only -- and correct me if I'm wrong, Mr. Isdell. We're one of the few, if not the only airport in the United States of America that is -- that the airport doesn't operate their parking, that this arrangement that we have with the Parking Authority is quite unusual.
Also, the issue of Airport privatization, as you know, has been studied, and there are some, I believe, airports here in the United States and in Europe that have been privatized, and I know that Councilman Kenney mentioned that there was hearings in reference to this. So I'm patiently waiting, Madam President, for that hearing date so that we can discuss this issue. And I'm not suggesting that you've held that up, that's not the case. It's been referred to the Committee of Commerce and 190 2/5/01 FISCAL STABILITY - RES. 010024 Economic Development.
Then I think you should request a public hearing.
Well, I've been waiting patiently for that hearing and have not been given a date, and I know that there's a process for --
Have you requested the bill be scheduled for a public hearing.
You're welcome. 191 2/5/01 FISCAL STABILITY - RES. 010024 Mr. Isdell, it's really coming down. I suggest you get back to work so we don't lose any flights out.
It's kind of a personal nature but because I'm a Councilman, I get to ask the question. I recently came in on a flight from the airport. It was one of those evenings where it was like 15 degrees outside. And if you can recall the pickup area, it's like two, three lanes away from the actual concourse, the area where the passengers pick up their baggage.
And I guess I'm trying to get a sense of what the policies associated with the police officers moving the 192 2/5/01 FISCAL STABILITY - RES. 010024 people along are. I stood there -- it was cold, I'm standing inside, right? And I had the Pacifico -- I hate to give them a commercial, but Pacifico was bringing my vehicle. And the guy attempted to slow down so he could pick me up. I ran out and the cop said, You got to go, right? So he sent him around, right? So I said, Well, I don't know how long this is going to take, right? So I'll go back in and wait, right? So he comes around again and says, You got to go. What is the policy with your pickup? You want to accommodate passengers and you provide this nice terminal and a baggage pickup area, but yet the police officers say, You have to stand outside because your vehicle is not going to be allowed to stay for five seconds. I mean, the police officer said, Let's go. You know, and the people said, My wife is right there, can I just -- and he just says, No, you got to go. Who governs that policy? Is it the police or is the airport?
Well, the -- I believe the signs at the location you're talking about, they 193 2/5/01 FISCAL STABILITY - RES. 010024 say, Active loading only, no stopping or standing, or something like that.
In general, the idea is, you're really not supposed to park on that roadway at all. The police will generally allow people to park as long as there's a passenger with a bag actively getting in or out of the vehicle. If you're not doing that, especially if it -- was it late at night or was it during a peak hour, if you recall?
I mean, generally, if it's not busy, they're more accommodating. But during peak hours, they really have to keep the traffic moving 'cause it only takes one or two cars to decide to stop, and then if one double-parks, you've only got three lanes there.
And it can turn into a nightmare. 194 2/5/01 FISCAL STABILITY - RES. 010024
I will talk to our police captain. Perhaps they were overzealous. (Unintelligible, parties talking over each other.)
I guess what I'm trying to find out, is it at the discretion of the officer or is it a policy? You know, sometimes they have stands, loading zones, ten minutes only, or five minutes only. I understand the issue with respect to security, but it's kind of difficult to get into a moving car sometimes.
Yeah, I agree. You should not be stopped from -- if you're on the curb and your car pulls over for you to get in --
Well, I wasn't quite on the curb. That was the issue. I saw the car coming and I was running to the curb, but they said, "You got to go" so -- (Laughter.)
Well, that may have been the issue. I'm not -- you know, not having been there, but I would also say the police have also been very much trained, if you will, by the fact 195 2/5/01 FISCAL STABILITY - RES. 010024 that the FAA sends field agents to the airport on a regular basis to test them. Now, that in particular is to -- you're not allowed to leave an under attended vehicle on the curb.
But because, you know, they are frequently tested, they do tend to be somewhat disbelieving if somebody tries to give them a sob story or if they can't see the transaction, you know, of a person getting into a car in front of them, they feel like they may be being watched and will end up being written up by the FAA because of the security level, three requirements that we're under right now, along with all of the other big airports. But I think sometimes we do need to go back and remind the officers that they serve a dual function: they're enforcement officers but also they serve a public relations function at the airport. 196 2/5/01 FISCAL STABILITY - RES. 010024 For the most part, they do a tremendous job. Their number-one priority is our safety and to respond to threats of terrorism, et cetera. But we do periodic customer service training and things like that, 'cause they also are ambassadors for the City, so I apologize if you had a negative experience.
Thank you. Are there any other questions of Mr. Isdell? (No further questions.)
Thank you very much, sir. Miss Wilkerson, what is the status of the resolution of the personal property tax claims?
Miss Kammerdeiner, the Revenue Commissioner, will address the question. (Witness comes forward.) COMMISSIONER KAMMERDEINER: Good 197 2/5/01 FISCAL STABILITY - RES. 010024 afternoon.
I'm Nancy Kammerdeiner. Could you restate the question for me, please?
Yes. I asked what's the status of the resolution of the personal property tax claims is.
There are actually a couple of different things that are happening. One, when you refer to a claim, you may be referring to the lawsuit that was filed. And there was an injunction request that was denied in court last week; and, therefore, we can move ahead at this point in implementing the City's plan regarding the personal property tax. That lawsuit will continue its way through the courts, but we're not enjoined from our activity. The press has covered the personal property tax situation, and I don't know how much detail I need to go into here in terms of what we 198 2/5/01 FISCAL STABILITY - RES. 010024 have been doing in the last couple of months since we briefed City Council on the proposal to collect the tax for 1996 and to refund for the years '93, '94 and '95 for those who had filed protective refund claim. Since the time of our briefing, we have sent out letters. They went out in November to approximately 29,000 people who had been on the mailing list for the personal property tax. We have received responses with new returns from between 10 and 11,000 taxpayers, and we are in the process of reassessing all of those taxpayers for whom we have information. We sent out one round of bills at the end of December and are preparing for another round of bills that will go out next week.
Thank you. Thank you very much. The Chair recognizes Councilman Kenney.
Thank you, Madam Chair. I just want to raise the issue for the moment of the Workman's Compensation claims relative to hepatitis C in the Fire Department. I'm sorry, I thought we were -- did you 199 2/5/01 FISCAL STABILITY - RES. 010024 want me to ask questions of Miss Kammerdeiner or anyone?
Could we get a more expansive explanation as to why we continue to oppose the claims of firefighters who claim that they have received or contracted hepatitis C as a result of their work duties. And also, if you could talk a little bit about some of the obstacles or hurdles that are inherent in the City-sponsored Hepatitis C Fund. Can we get a little more -- I want to talk about the financial impact of it as much as anything else. I mean, if we can get a clearer picture as to what the economic problems are relative to it. And, as you know, the State legislature is now considering legislation to allow firefighters to the presumption of -- the presumption of their contracting of hepatitis C as work-related. I know it's caused a lot of concern within the Department. Obviously, a lot of anger during the course of the negotiations -- or not 200 2/5/01 FISCAL STABILITY - RES. 010024 even of the negotiations but during the course of the appeal of the arbitration ruling. And I'm wondering if we can just try to get a little more light on what exactly the City's concerns are as it relates to their continued opposition of these claims?
I'm Bill Graub, the Director of Labor Relations. The hepatitis C claims, as they come in, as I understand, are handled by Risk Management, and they are handled exactly in the way that we handle all of our claims for Worker's Compensation.
Part of that is a -- is a mandated timetable. We have, I think, -- it's 19 either 20 or 30 days in which we kind of oppose 20 it. It may be less. There's a timetable. It's not enough time to get all of the information together, so there's a standard letter that we send out and then we start gathering the information and then make our decisions from that.
Have there been any 201 2/5/01 FISCAL STABILITY - RES. 010024 that have been agreed to that were in fact work-related? First of all, how many claims have been submitted?
Is someone here from Risk Management? (No response.)
Well, 62 people have notified the Fire Commissioner and 6 claims have been made on it.
They've been contested and we're gathering information on those six.
What are the factors involved in determining whether or not -- I just -- I think part of the problem is that there may be some misinformation or lack of information on everyone's part as to just exactly 202 2/5/01 FISCAL STABILITY - RES. 010024 what is entailed in this process. What is required, what is the standard amount of information that's required? And do other -- are other departments treated differently than the Fire Department as it relates to a worker from Fleet Management, for example, claims that he or she injured their back or their neck as part of their duties? Are these Worker's Comp. claims handled the same way?
We've asked someone from Risk Management to come over who can address how we process these claims specifically.
Can we then jump a little bit to the Hepatitis C Fund. It's been reported in the paper and in the media and to me personally that some of the information that's being asked for, I mean, specifically with Lieutenant Kohler, who did her sit-in outside the Mayor's office, that they were asking for medical records back to her 15 years of age.
That would be for the Worker's Comp. That has nothing to do with the fund. The fund is reimbursable to firefighters for their cost in addition to -- 203 2/5/01 FISCAL STABILITY - RES. 010024
Do you know how much has been expended from the Hep C Fund to the Local to date? 5
To the firefighters. There 10 has been individual amounts given out since then 11 also. 12
That amount is under 15 $10,000, but that's what we have in claims, 16 basically. 17
Then where does the 18 problem lie in your opinion as to, on one hand, 19 the employee workforce contends that there are 20 obstacles that have been put in place in regards 21 to this fund that make it difficult, if not 22 impossible, to collect from, and the Administration's position now is that, you know, we're not getting the information.
I think part of it was what 204 2/5/01 FISCAL STABILITY - RES. 010024 was going on with the negotiations and with the appeal.
The negotiations following the appeal, the negotiations following the appeal, the combination of all of that. I think that slowed down the process of the fund. I think the fund is going to work faster and better now on both sides.
At the end of the negotiation, post the appeal of the arbitration award, what is distinctly different in the City's view from what was originally awarded by the neutral arbitrator and what the City ultimately agreed to in the negotiated settlement of the appeal process? Can you give me one or two or three areas that are --
I think the financials on the payment of the health and welfare benefits were significantly changed.
They have been frozen at a lower level. 205 2/5/01 FISCAL STABILITY - RES. 010024
The payment was accelerated, but there's been a change in the task forces and --
Basically, there are three types of task forces. There's the permanent tax force, the schedule task force, and then what I would call "a daily task force," one that's, because of staffing requirements, comes up on a daily basis. The permanent and the scheduled are basically eliminated, but the dailies can still occur.
But the other two areas of the task force have been eliminated.
Okay. And the original arbitration awarded all of them (inaudible). 206 2/5/01 FISCAL STABILITY - RES. 010024
And now, is this particular situation today, as we have it, more of a give-and-take, or is it -- who makes the decision on whether or not the task force -- in addition to the Commissioner and his higher staff, who makes the decisions on the daily task forces?
That would be flexibility with the Commissioner and his staff.
There are discussions, but we are going to continue to looking into the task force situation.
Any other areas that are different from the original arbitrated award?
I think that the language -- or the whole PICA issue was addressed. It was of significance to the City that the way the arbitrator dealt with the whole PICA issue, and that was, I believe, confirmed by the court. All of that was vacated. That was a major issue 207 2/5/01 FISCAL STABILITY - RES. 010024 for the City. I want to have Janice Davis talk a little bit about a little bit about the whole health and welfare benefit payment because I think that was critical as well.
We were able to freeze the contribution by the City to $600 per person as opposed to $645, which was anticipated, which would have basically set the floor going forward in any other negotiations. In exchange, we made a prepayment of 5.2 million, holding 800,000 in escrow, depending on the utilization by the firefighters. Additionally, it was holding the task force situation to a level that the City felt it could deal with as well as the fact that the Hep C Fund was preserved for its original intent, and instead, a sick-leave bank was established, where the City's contributing to assist those firefighters who, like Mary Kohler, ran out of sick days.
And one of the other issues that the City had raised was the arbitrators deferring certainly issues for 208 2/5/01 FISCAL STABILITY - RES. 010024 resolution in subsequent arbitration. That issue was addressed -- those issues were dealt with specifically by the parties as opposed to leaving them hanging out there for decision subsequently by a third party.
On the financial aspect of the difference between the 600 and 640 times the number of employees in a unit, what is -- how much is that -- understanding the setting of the floor is an important issue for the City moving forward with the Police Department, how much is the $40 difference compared to the $5.2 million upfront payment?
That's basically a wash, and we were more determined to hold to the 600 because of what it did in future bargaining.
Does the $5.2 million payment, even though it's a wash, create other concerns in the next go-around with our other uniformed departments? I mean, it's not like -- I think the floor is the same, but the 5.2 is still there, it's not like they're going to ignore it.
Well, it was a one-time 209 2/5/01 FISCAL STABILITY - RES. 010024 payment. Part of it was in satisfaction because the firefighters did not get a bonus as other workers had. So that was a part of our rationale.
And do you have someone from Risk Management on the Worker's Comp issue?
Yes. We have someone on the way. And I might add that the same presumption that applies in Hep C that it is not work-related is the presumption that applies to any Worker's Comp claim. So it's not a different standard that we use with regard Hep C.
There has to be a preponderance of the evidence that it is ours. In fact, in instances with Hep C, we are more lenient in our presumptions than we are with, say, a back injury.
So -- but despite that leniency, none of the six have been agreed to and approved.
We have approved one, yeah. 210 2/5/01 FISCAL STABILITY - RES. 010024
What impact do you think the proposed State Workman's Compensation law change will have on the Administration's position vis-a-vis these Workman's Compensation claims?
If the presumption -- if what I'm understanding in the legislation is that it would be presumed to be work-related, then we would then be the ones who are defending against that presumption. So I don't think our position would necessarily change, but we have to abide by the law.
Thank you. Are there any other questions? 211 2/5/01 FISCAL STABILITY - RES. 010024
Actually, Madam President, I can wait until Risk Management's time to testify during the normal budget for the sake of time.
Okay. Fine. I just have another question or two. The Five-Year Plan continues the $15-million-a-year grant to the School District but provides no other funding; is that correct?
Does that mean that the Administration believes that the School District's financial crisis should be solved by greater efficiencies at the District and additional State funding only?
The Administration believes those are two components of the solution. We are currently involved in discussions around this whole issue of how it is that we fill the gap in the School District's -- the School District's financing. Whether or not, you know, we'll subsequently be coming back to City Council, recommending, you know, a different role for the City is too early to say at this 212 2/5/01 FISCAL STABILITY - RES. 010024 point.
Okay. Would you explain what the Affirmative Litigation Unit in the Law Department is? And why would it be engaged in School District litigation? I believe that's on . Costing somewhere in the vicinity of $560,000 for that unit.
The unit was created to undertake cases in which the City -- that can generate revenues for the City. For example, when we were talking about PURTA before, that's the unit that they would have to try to recoup some PURTA revenues for us. And I --
No. It's being established in the second half of this fiscal year. And so, for example, if they were successful in generating PURTA revenues, a portion of that revenue would go to the School District.
Okay. Well, I have a number of questions yet, but I guess we'll just have to wait until the neighborhood transition initiative comes up, because most of my 213 2/5/01 FISCAL STABILITY - RES. 010024 questions are about that. And I guess that can wait for another day. Miss Wilkerson, I think you heard what my concerns are about two issues, and I assume you're going to get back to me?
Are there any other questions from members of the committee? (No further questions.)
This committee will stand in recess until Tuesday, February 13th, at 9 o'clock. Thank you all very much. (Adjourned 1:44 p.m.) - - - 214 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Monday, February 5, 2001, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE ON FISCAL OVERSIGHT AND INTERGOVERNMENTAL COOPERATION BILL NO. 010024 __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter