Committee Hearing, May 7, 2003

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEES ON FINANCE and TRANSPORTATION - - - Room 696, City Hall Philadelphia, Pennsylvania Wednesday, May 7, 2003 10:15 a.m. - - - RESOLUTION 020607 - Resolution authorizing the City Council Committees on Finance and Transportaion to hold hearings to examine SEPTA's Market Street Elevated Reconstruction Project in West Philadelphia, its fiscal impact on local businesses, and its overall effect on the community and the city at large. - - - PRESENT: COUNCILWOMAN JANNIE BLACKWELL, Chair COUNCILMAN ANGEL ORTIZ COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN MICHAEL NUTTER - - - V A R A L L O, INCORPORATED LITIGATION SUPPORT SERVICES 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 I N D E X RESOLUTION 020607 PAGE CECIL BOND, JR., SEPTA ..................... LILLIE CLAITT, SEPTA ....................... 23 FRANCES JONES, SEPTA ....................... 37 SHIRLEY GREGORY, District Director for Congressman Robert Brady .............. 84 MJENZI TRAYLOR, First Duputy Commerce Director 88 CHUCK O'CONNOR .............................. 99 DOM SABATINI (ph) ........................... 101 DENISE GARRIS, 60th Street Merchants Assoc... 108 JACK TEPPER, SEPTA .......................... 115 CLIFF ENGLISH, West Market Village Assoc. .. 117 REVEREND JOSEPH BARNES ...................... 123 DEBORAH MCGREGOR ............................ 145 MR. THURMAN, East Parkside Residents Assoc .. 151 ANTHONY FULLARD, African American Chamber of Commerce ............................ 153 GREGORY MCKINLEY, Angora Station Riders ..... 166 PAT EVANS ................................... 171 JOSEPH LEE .................................. 178 DAVE PAK .................................... 180 DAVID KOH, 52nd Street Korean Business Assoc. 181 RUTH BAZEMORE ............................... 185 SHERRI TATE ................................. 191 CHARLES GIBBS ............................... 196 3 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Thank you all for attending this hearing. This is a joint hearing with Committee on Finance and the Committee on Transportation to deal with SEPTA and the project on Market Street that goes from 46th and 60th, how it affects the businesses, as well as the residential communities, and what impact in general it's having on our City. Before we begin we would like to note that Steve Brookins passed. His funeral is this morning at 10:00. The viewing was at 9:00 at Mount Airy Church of God in Christ at 6401 Ogontz Avenue. And so we tried to attend the viewing since we needed to be here with all of you this morning. So we might ask before we begin that we have a moment of silence for Steve Brookins, who passed away. (Moment of silence.)

Thank you. Many of you know we have a lot of battles with -- we remember a lot of battles, from the subway to the hotels when SEPTA Transport Workers Union, that is, was going through their negotiations. But we have a long history with Mr. Brookins, and he certainly deserves all the respect 4 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 that he's getting this morning. People are lined up in the streets to view and to pay their respects to his family. We send them our condolences and hope that this rash of people passing away will stop, so many good people, and that their legacies will be forever remembered. What we'll ask now is that the Clerk will please read the title of the Bill. Before that, let me note that the Chair of the Transportation and Public Utilities Committee is here; to my left, the Honorable W. Wilson Goode; and to my right, the Honorable Angel Ortiz. He is on the Committee on Transportation and Public Utilities, and we are very glad that they are here this morning. Before we hear any testimony, we would like to ask the Clerk to read the title of this Resolution.

Resolution 020607, a Resolution authorizing the City Council Committees on Finance and Transportation to hold hearings to examine SEPTA's Market Street Elevated reconstruction project in West Philadelphia, its fiscal impact on local business and its overall 5 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 affect on the community and the city at large.

Thank you very much. And we thank all of you again who have come from your communities to testify. We'd like to give just a little bit by way of background, and then we'd like to ask Mr. Cecil Bond if he would come forward. He will be testifying. We note that Frances Jones is here. Then we'll take public testimony. Let me note that we did ask Faye Moore to be here this morning, but she has chosen not to come. We believe that she should have respected the request of this Committee to come forward. We have many questions that we have continued -- and we appreciate the Assistant General Manager, Business Services Division, to be here, and we ask him to take the witness stand. We appreciate, certainly, Reverend Jim Baker for being here and Frances Jones. I note Frances Jones is Community Relations -- Vice President of Community Relations?

Assistant General Manager of Government Affairs.

Assistant 6 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 General Manager of Government Affairs. I said that all wrong. We appreciate their input and certainly we work with SEPTA -- we work with Frances Jones all the time, so our issue is certainly not with her. But we do have a serious problem with Faye Moore not respecting this Committee and the residents and business owners who are suffering by not coming forward herself to testify. She could have done that. We believe -- and we take it as an affront, as an insult to the efforts to try to help businesses on the Market Street corridor and businesses affected, as well as residents. And we believe that everybody can come when you have only positive things to say. If you have a serious agenda, nothing to hide, if your agenda is positive, that you can come certainly and face questions. We want to say from the onset that we do believe that, again, it is an insult for her to not come forward. Certainly, we have a $58 million subsidy that the City is involved with for SEPTA. We have the freedom to introduce an amendment to hold up or even remove that subsidy. Those are 7 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 always options we have when we have people who don't respect us. Then we have to decide what it is we think that our response should be. A few issues that concern us are, one, an action plan for the community. Residents and business owners have felt that they have been left out of the process. I said this during our SEPTA hearings that we had a block captain in the 5500 block of Market Street, for example, who came to us when those doing the work, contractors, were urinating in front of their homes. They didn't have a porto-toilet, and they were disrespecting people by urinating on the street. And disrespecting the community -- the workers on this project -- by not having a dumpster to even clean up at the end of the day. We've been complaining since the beginning of this project about the cleanliness, about the respect to the community. We want this project. When government overall is spending almost a billion dollars, to expect cleanliness, to expect people to clean up at the end of the day, to expect just some human decency is what a community has the right to expect. We're also concerned about -- and we 8 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 would like certainly for you to respond today -- about decisions for closing Angora Terrace. We have advertisements in my office I will have brought up that talk about advertising. There were advertising glitches. The train said one notice in terms of closing Angora Terrace, and then the El said another. So there was misinformation given on that and we're hoping and requesting that that closing be delayed because we didn't even have consistent information given out on the closing. Angora Terrace, that station, is in the middle of a mall, a neighborhood business mall. It's a block from a school, within a block of a school and a public library. It will make a big difference to that neighborhood. Albeit, we have a trolley that can take you downtown, closing that station and making that a wasteland really goes against the whole nature and plan for neighborhood transformation and certainly will adversely, greatly affect that neighborhood. So Angora Terrace was number two. Number three was route consolidation. People are complaining that it seemed to be random, even though I know you have plans. They are 9 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 absolutely complaining about the whole issue of route consolidation. Number four are contracts. We have contractors who are here. Anthony Fullard, for one, will speak for them. At the last meeting, many contractors came out to say, albeit, you give numbers like 34 percent during one aspect of the project, they don't see that and are complaining against neighborhood and minority inclusion.

All of us know that this is the time where minorities, women, and disabled have to be included on projects or they just won't go. So that's the fourth issue. And the last issue that we want to mention is a time line. We would like you to respond to what's going to happen and when in terms of this project. And finally, we have been trying to talk to everybody we can find to get business owners help. Nobody can survive six years without a full pay; not six weeks. None of us can do that. So we are really concerned about -- we need a plan to subsidize our businesses, and we have been -- I got a call as recently as yesterday with some consultants who want to work with us in the business 10 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 community and commerce to see what we can do. We've got to find a way to subsidize businesses because in five to six years we won't have businesses left if we don't find a way to give them some help around this project. There's also a meeting today with SEPTA's marketing department, along with -- it's called Clear Channel, a SEPTA proposal that will deal with Power 99 and WDAS Unity Day, where there is a plan to try to focus on maybe a trip to Disney World for people who shop on the strip and try to come up with a plan to focus interest on this commercial corridor. So we've been working with that, and we thank them for coming up with the idea and letting us know about it. So we will be reporting back to you about a meeting that is called the Clear Channel SEPTA Proposal. And Clear Channel is really trying to work with us to try to focus attention on this neighborhood corridor and to see what we can do to spur those interested to participate. Having said those things, I would like to ask my colleagues if they would like to make an opening statement. 11 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 The Chair notes that Councilman Michael Nutter is likewise here, and we thank him for his attendance as well. Mr. Bond, would you identify yourself then for the record and begin your testimony.

Good morning, Councilwoman Blackwell and Members of the City Council. , Assistant General Manger of Business Services at SEPTA. Today I'm representing the General Manager, Faye Moore, and SEPTA. Ms. Moore offers her regrets, as she is attending meetings having to do with the recent announcement of our budget crisis. In addition, I'm here to provide testimony on Resolution No. 020607, concerning the Market Street Elevated Reconstruction Project in West Philadelphia. Accompanying me is Frances Jones, Assistant General Manager for Government Affairs, and members of SEPTA's project team for the Market Street Elevated Project. We are undertaking the reconstruction of the Market Street Elevated Line in West Philadelphia and Delaware County as a part of a major capital investment project to improve the Market-Frankford 12 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Subway Elevated Line between 46th Street and Millbourne Street in eastern Delaware County. Opened in 1907, the El in West Philadelphia has been in active service for 96 years. The intent of the Market Street Elevated Construction Project is to ensure the operational reliability and safety of this portion of our busiest line which transports more than 100,000 daily riders. The current scope of work for this project includes replacement and reconstruction of six existing stations; 46th Street, 52nd Street, 56th Street, 60th Street and 63rd Street in Philadelphia, and the Millbourne Station in Delaware County; replacement of 11,000 feet of guideway structure between Millbourne Station and 46th Street with a new single column bent structure; the construction of two new automatic train control buildings and other related safety improvements. The project is designed to open the area surrounding the El in West Philadelphia to more natural daylight and to ease the flow of traffic along Market Street. The new Americans with Disabilities Act compliant stations will be equipped 13 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 with new elevators and escalators, improved lighting, and new in-station communication systems. With a budget of $567 million, the project is scheduled to be substantially complete in the year 2007. In addition to four professional service contracts, the project is divided into five major construction contracts: The ATC Buildings at 52nd Street and 63rd Street; the Foundations, including ductbanks and utilities; the Cobbs Creek Project at Millbourne and 63rd Streets and the portion of the guideway between these stations; the guideway for the remaining sections of track between stations; and finally, the fifth package is the stations package, 46th, 52nd, 56th and 60th Streets, and a portion of guideway at each station. Construction is substantially complete on the two ATC buildings. The contracts for the Foundations package was awarded and is 40 percent complete, with a scheduled completion date of 2004. The Cobbs Creek contract is currently 19 percent complete, and work is scheduled to be completed in the year 2005. The guideway package was recently awarded at SEPTA's April 2003 board meeting. And 14 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 the station package bids will be open on May 9th, that's this Friday, the year 2003. As defined by the regulation of the US Department of Transportation 49 CFR Part 26, our Small and Disadvantaged Business Utilization Department, through its Affirmative Action program, ensures equal opportunities for minorities, women and construction area residents to participate in the construction contracts and employment opportunities associated with the program to reconstruct the El in West Philadelphia. The contract goals for disadvantaged business participation are established on a contract-by-contract basis. 8 percent. 9 percent for female. We added a voluntary construction area residents EEO goal of 10 percent.

We continue to meet with the contractors, encouraging achievement 15 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 of the expanded EEO goals established for the project. 14 percent. 24 percent. 37 percent. Forty individuals employed on the project are construction area residents. Since the beginning of the project, we have embarked on an aggressive outreach program for minority and women-owned businesses that includes technical assistance and advice concerning the DBE certification process. We've held six contract information outreach sessions, providing an opportunity for potential prime bidders and DBE subcontractors to network and discuss forging business relationships. We have also engaged in an intensive community outreach component with community residents and stakeholders. These tasks are presently being accomplished with the combined resources of SEPTA and its project consultants. To 16 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 this end, we have assumed direct responsibility for the staffing and management of a Community Information Center, located at 5344 Chestnut Street. By providing a daily presence, we are working to enhance communications, the flow of information, and improve coordination on matters demanding immediate attention. In addition, we continue to hold community meetings to provide project activity updates and to inform the community about pertinent project-related activities through comprehensive communication efforts. By the very nature of the construction work, individuals who live and work adjacent to the El structure are experiencing changes in their lifestyles. While every effort is being made to minimize these hardships, we recognize that the business community in and around Market Street have specific issues and concerns that must be addressed throughout the life of this project. We have identified in excess of 750 businesses within the larger project area, and approximately 163 businesses located along Market Street. Working through our consultants, we have developed a comprehensive business outreach program 17 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 designed to provide assistance to local businesses. A business resource guide with information about starting a business, developing a business plan, business marketing, agencies and organizations that can provide assistance and technical advice was prepared and distributed to area businesses. I think you have a copy of some of this literature in your package. Our consultants have also developed special promotional programs, including "It's Cool to Shop Around the El," and "Holiday Lights" to encourage community residents and SEPTA riders to support businesses within the project area. As an extension of our business outreach efforts, one member of the team has been assigned to daily monitor project activity, which includes walking the construction area, meeting with the business owners and providing assistance in resolving construction-related issues that might impede the normal flow of day-to-day business activities. In response to concerns expressed by businesses at 52nd and 56th Street and Market Streets concerning impediments to vehicular traffic, 18 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 we constructed two customer parking lots. In addition, we've met with Councilwoman Blackwell to discuss other possible locations for customer parking lots to support businesses within the project area. Even with the best intentions, it is difficult to complete a project of this magnitude and complexity without disruption to customers, community residents, and area businesses. However, every effort is being made to resolve issues that arise within the specific areas of construction. In response to concerns about lighting, we have replaced missing lights along the 5500 block of Market Street that are on the existing structure.

Our MSE project team has been actively coordinating with the 16th, 18th, and 19th Police Districts concerning street closures, construction activity locations and emergency vehicle access. The Market Street Elevated Reconstruction Project represents a major investment for the City of Philadelphia and the future of the citizens who live and work in West Philadelphia. As a quasi-public agency, please be assured that we are committed to addressing the 19 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 concerns of this Council and your constituents. We are prepared to collaborate with stakeholders and other government agencies to mitigate present and future issues. Thank you for your indulgence and continued support. That concludes my testimony.

Thank you very much. You mentioned that contract goals for minority participation are established on a contract-by-contract basis. Do you not have overall goals, and then deal with it on a contract-by-contract basis?

We're required by the FTA to submit an annual overall goal. I'm not sure exactly what that number is, but I think it's about 15 percent this year. Every year the goal varies based on available capital projects that are going to take place during the ensuing year. But when we review the contracts, there's some contracts that do not offer subcontracting opportunities for anyone. And so in those case we would not set goals. There are some contracts and most of the contracts on MSE project 20 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 provide opportunities for subcontracting to minority and other subcontractors. And so in those cases we do set goals.

Would you give us detailed information about that, the overall goals and the goals for each contract? That is going to be very important to the minority contractors, some of whom are here.

We have that information. I think we submitted it in the past, but we'll get it for you again. That's not a problem.

Thank you. Councilman Nutter, do you have a question on this area? Part of the El, as many of you know, above 60th Street to Millbourne is Councilman Nutter's, who's a Member of the Finance Committee, is his area.

Thank you, Madam Chair. Madam Chair, I didn't understand the response.

Mr. Bond, would you repeat or clarify for us? 21 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Your question was, I thought, does SEPTA have an annual DBE goal. We do have an annual DBE goal. It's sent off to the FTA every year.

I thought the question was, do you have individual goals on the contracts related to this project. I thought that was the question.

I didn't understand that to be the question. If I misunderstood --

I thought your question was, are there goals for the project?

Absolutely. On , third paragraph of his testimony, he states, and I quote, "The contract goals for disadvantaged business enterprise participation are established on a contract-by-contract basis." And we needed clarification.

Right. And I thought your question was about that. And the next thing I heard about was an annual goal.

I misunderstood the question. I apologize. 22 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Yes, there are contract goals set on each of the contracts for the Market Street Elevated Project. And we have the information on each contract by goal -- well, the goal of each particular project, on the MSE project.

And what are they?

But we also did question the overall goal, as well as the contract-by-contract, that we wanted that information.

Exactly. I just thought that the response was not responsive to the question that was asked, and I didn't understand it.

I apologize. I misunderstood the question. We have four professional services contracts. The DBE goal for the four professional services contracts were MSE Architecture and Engineering Services for Inspection design and construction-related Services, that was a percent 22 goal. 23 On the MSE, Affirmative Action Consulting Services was awarded in 1998. It was a 50 percent DBE goal. 23 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 On the MSE Communications and Community Relations Services, there was a 50 percent goal. On the MSE Program Management Services, there was a percent goal. That's on the 6 professional services contracts. 7 On the construction contracts -- 8

Madam Chair, if I 9 may? 10

Yes. 11 Councilman Ortiz. 12

As you state the 13 goals, and you say these are professional services, 14 could you also state what minority companies were 15 hired and their addresses and so on? 16

We have that information. 17 Just hold on a second.

We can provide you with that information also.

And why are the goals so low? They're really low. In a City in which we're close to 60 percent of the population, the goals are very low.

I'll try the first question you asked first. 24 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 On the first professional services contract where the goal was percent -- 4

Define what we mean 5 by goals and what was achieved out of that with each 6 category that Councilwoman Blackwell and Councilman 7 Nutter asked for. 8

Good morning. I'm Lillie 9 Claitt with SEPTA. I work with the Small and 10 Disadvantaged Business Utilization Department. I 11 will do my best to answer the questions concerning 12 the DBE participation for the Market Street Elevated 13 project. 14 If I may please have the specific 15 question for right now, please, sir. 16

You have to identify 17 yourself for the record. 18

My name is Lillie Claitt. 19 I am with the Small and Disadvantaged Business 20 Utilization Department at SEPTA, and I work with the 21 goals for minority employment for Market Street 22 Elevated Project. I will do my best to answer the 23 questions regarding the minority firms or DBEs that are participating on the contracts that we've just informed you about. 25 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Could I please have the specific question that you would like answered at this point in time, please?

I asked for, one, the identification of those firms that were hired; and also for the definition, and were the goals realized, and then why are they so low. If you reach this very low barrier, if you reach this very low barrier, are we then just, "Oh, well, we reached percent, so let's forget 12 it, let's go on and do that"? If we reach that low 13 barrier, then why don't we have a greater 14 participation? 15 It is a very low barrier that we have in terms of standards.

In terms of establishing the goal on a contract-by-contract basis, it's based on not just the elements of the work that is available for participation by minorities or any other contractor, but it's based also on the number or percentage of minority or DBE firms that we have certified in our database in terms of setting the goal. The achievement for each of the 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 contracts, if that's what you would like to know at this time, I have available for each contract, each contractor. On the professional services contracts, our achievement is 22.03 percent -- if I may correct that, please. On the architectural and engineering professional services contract, we have an achievement of, again, 22.03 percent. And that's based on the monitoring percentage of payment by the prime contractor to each of the subcontractors.

Could you define that, monitoring percentage of payment.

Monitoring is the review of monthly documents submitted by each contractor that demonstrates to SEPTA that they are paying the DBE subcontractors to achieve their goal. We monitor it on a monthly basis to determine if there's any deviation or if there's any problem or discrepancy based on the percentage of the contract that's complete and the percentage that has been paid to each of the DBEs. At that time, if a contractor is falling short of their DBE goal, we are in a position to 27 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 work with them to ensure that they do meet that goal. So that's a monthly utilization report that is submitted to us, together with canceled checks, evidencing the payment to those DBEs. Does that answer your question, sir?

Excuse me. Can I have a microphone, please?

Councilman Nutter.

Thank you, Madam Chair. I'm sorry, ma'am. I was distracted. I didn't catch your name.

My name is Lillie Claitt, and I'm with SEPTA's Small and Disadvantaged Utilization Department.

Okay. Ms. Claitt, you were telling us about professional services contracts; is that correct?

Yes, sir.

Okay. Are there any minority or female firms that are functioning as a prime in the professional services area?

Yes, there are. We have 28 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 two.

What are they?

On the communications and public relations, that's Portfolio Associates. That is a certified women-owned business located in Philadelphia. And on the Affirmative Action contract, we have Contract Compliance, Inc., which is owned by an African American male, with a home base in Bethesda, Maryland.

I'm sorry?

Contract Compliance, Inc., an African-American-owned consulting firm.

Based in Maryland?

Yes, sir. They have a project office in West Philadelphia.

Which was set up to do this project. They're not based here; they set up an office because doing work here?

Yes, sir.

Okay. We'll get back to that. I guess what I was really asking on the professional services side in terms of prime contractors was related to the actual work of the 29 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 project, like architects or designers or something that's a little more directly related. I'm glad that we have a communications component. I'm not exactly thrilled about the Contract Compliance. I'm glad we have it. I'm sure we could have found someone who might have been interested in that work who is based here in Philadelphia, but we don't have to have that argument at the moment. What I'm trying to understand is, directly related to the single bent column system running down Market Street, is there any minority, black, Latino, Croatian, or any other minority that might be available, or a female firm, that is prime contractor for professional services?

No, there is not.

Why?

I can't answer that question, sir.

All these projects with SEPTA are professional services contracts.

Right. Which have the maximum flexibility of any contract; is that correct? 30 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Which has the flexibility of individual companies --

You can pretty much pick who you want.

-- responding to the RFP. You cannot pick anyone you want. They have to be responsive to the RFP. There is a technical package that is submitted and there is a cost package that is submitted.

Do any firms that we've described here, whether minority, African American, female, or any other classification, respond to any of these RFPs?

I don't have that information at hand, but I can get the information on the number of firms who did, the type of firms and the number of firms.

Well, if none had, given your length of experience and the expertise that I know you've developed over the years, Mr. Bond, if none had responded, you'd probably know that, right? I mean, that would probably seem a little strange to you?

Yes, I probably would have 31 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 known if they had not responded. But what we do is, on all of our contracts, when they've submitted proposals, we have a list of the breakdown of all the firms who submitted responses, and we would also have a list of their ethnicity. And I have that information. I just don't have it at my fingertips. There may have been minority firms who responded as prime proposals on professional services contracts, on the architectural and engineering designs. And we did have African American firms performing as subs on those architectural and engineering design projects.

Well, you know, I'm always pleased to hear that. I mean, but the question is, are you working in the field, or do you own the farm? I mean, that's how you really start to make your way. When do people make the progression -- because everybody's got to start somewhere, and I understand that. When do you make the progression over the years from this sub status to the prime status? How does that happen? And if it doesn't happen in professional services, it's much more likely that's not going to happen anywhere 32 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 else because you have the greatest amount of discretion and leeway on the professional services side.

Well, I would tend to agree with you. What I'm saying is, I don't have it at my fingertips. I can get the information on the numbers --

Is it possible to get it in the course of this hearing? Does somebody else have it back at the shop?

Yes. We can get that information on the number of minority firms that bidded on all of the professional services contracts.

And how is it that -- increasingly what we seem to hear -- and this came up during budget hearings and some of the questioning by other colleagues -- it seems that when SEPTA sets a goal, however it may be established, the goal appears to be the ceiling, as opposed the floor, and you are always -- for any of the hearings that I've participated in, it sounds like you have always been within less than one percentage point of the goal. So at budget time, we 33 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 heard you have an overall goal of percent, and I think the actual was, like, 18.2. We hear on professional services the goal was 23 and your at 22.03. I mean, how does that happen?

The exact numerical goal that 7 you have on one contract is not the same on every 8 contract. 9

I understand that. 10 But how does it always end up that you are always 11 just right there? 12

I don't know that that's the 13 case. We can go through the numbers. But the goals 14 are set individually on each individual contract, 15 whether it's a Request For Proposal or a competitive 16 bid. Some of those goals are higher than others. 17 And on the professional services contracts, the 18 goals were higher obviously because, as you said, more minorities are certified in those particular areas. But I can't answer the question saying that they're that close. We could have an annual goal of 18 percent, and we can have some contracts with goals that go out that have percent. 24

I understand that. 25 But when you add it all up, it's right there at 18. 34 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Well, I can only add up the numbers as they are.

The numbers are what they are. I understand that. It just seems that somehow -- we are starting to veer into mathematical improbability, that every time a goal is set, you are right there within less than a percentage point of that goal on either side of it.

Well, I can say as an agency -- and I've been involved in working in and around this area for the last years -- we have 13 encouraged all of our contractors to increase the 14 goals. Some of them do. Some of them don't. I 15 would say the majority of them accept the goal for 16 what it is. Be it not for the federal guidelines 17 that allow us to be able to set goals, I'm not too 18 sure there would be minority contractors on many of 19 our contracts. It is the goal that drives the 20 engine here. And what we try to do is, we have guidelines and regulations we have to follow. We follow the regulations on how we set goals on projects. It is not a special science that you sit down and say on all those projects, because it's in a special locale, we're going to set a 75 percent 35 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 goal. The other issue is, is that -- and I'm sure you've heard this before. It doesn't make matters any better. Is that the goal is made up of minorities, and based on the federal government standards, minorities include other than African Americans, including white females, which also hampers our ability to increase the goal from what it is to the African American community.

That was a point of information. I'll come back for regular questioning. Thank you, Madam Chair.

Thank you very much. We certainly would like a response to these issues, other issues that I mentioned in my opening testimony about routes and Angora Terrace, et cetera. What we would like for you to do is to -- we want to permit some community residents who are here, who have taken off, to have the opportunity to testify, but we'll ask you if you will come back to respond to their issues, if that 36 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 is okay with the Committee. Councilman Ortiz.

On , you have, in addition to the total number of workers employed for all trades utilized was 558, of which 136 are African American, 24.37. Forty individuals employed on the project are construction area residents. Could you tell me if any of the 136 African Americans are in the trades or are laborers? How many of them are in the so-called skilled trades, and whether any of them are?

They're all in the trades.

They're all in the skilled trades?

Right.

Can you give me a listing of those trades, and identify the 136?

We have that information.

Do you have that?

Yes. We'll get that information for you.

They're members of the electricians, the carpenters, the steel workers and so on? 37 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

That's correct.

Thank you, Councilman. And we ask that you get all information to the Chair as well. We'll make sure Committee Members get it. Councilman Goode and then Councilman Nutter.

Thank you, Madam Chair. Good morning, Mr. Bond and Mrs. Jones. To set the tone for the testimony from the businesses and residents, I want to talk a little bit or ask you about the Frankford experience. Tell me about businesses lost, about business retention plans you may have had there, about any economic recovery that may or may not have taken place.

The Frankford Project was a bit different than the project we're doing on Market Street. The Frankford Project was the rebuilding of the existing structure and the stations. Market Street, we're doing a total --

Before there's any comparison, I actually just want to know the 38 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Frankford experience; how it went, how it impacted businesses, how many businesses were lost; was there a retention plan, was there any economic recovery from whatever businesses were lost there?

The specific data on the businesses lost, I don't have that; but we can get that information back to you. To be very honest with you, there was no reimbursement for lost revenues for the businesses in Frankford around the project.

My question is, how bad was the problem? How much of an impact did it have? Was there any retention plan and how much recovery was there economically?

We can get that information back to you. It was quite devastating for businesses in Frankford.

Based upon that analysis of what happened in Frankford, was there any inventory of businesses around this project?

The Market Street Project, absolutely, which is why we have such an ambitious -- sorry.

How far did you 39 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 inventory around the project? What businesses did you consider to be impacted by the project?

We determined the project area to be a four-block radius, two blocks each side of the project, from 46th Street to 63rd Street, and including Millbourne Station in eastern Delaware County, as well as two blocks going north and south. So we consider that to be the project area. We also inventoried and considered the spoke streets, the numbered streets, 52nd Street, 60th Street, and 63rd Street, as well as all the businesses on Market Street.

How many businesses are contained within that inventory?

About 700. We determined it to be about 700 businesses in the project area.

How many were expected to be lost?

You're asking how many did we anticipate losing?

How many did you project to be lost?

I don't have that data in front of me. Thus far, there have been closures of 40 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 four businesses.

Was there a projection of how many businesses were going to be lost among those 700 inventory?

No. 7

There's no projection at all?

We did not have a projection.

But you did have a Frankford experience, although there is a different project, you did know there was going to be some businesses lost, so you did an inventory for what purpose?

We did an inventory to determine who the businesses were, what type of businesses they were to determine essentially what their needs would be around technical assistance, and to deal with their issues, and where they were, the status of their individual businesses.

Because you were worried about the economic impact on those businesses?

Yes. 41 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

But you did no 3 projection of what was going to be lost?

At this point, we did not. We will take that into consideration, Councilman.

Did you hold separate meetings for businesses, separate from residents?

Yes. And we're doing that on an on-going basis. We've been doing that since 1998.

How many businesses participated among those 700 inventoried?

Generally at the business meetings we get anywhere from to to 50 15 businesses. I think we've topped out at about 50 16 businesses at the round table meetings, or the 17 technical assistance meetings. 18

So, what outreach do 19 you do to those businesses beyond those meetings? 20

We have a consultant, number 21 one, who is out there on a daily basis. We have two 22 staff people that walk the project area. They go in 23 and out of businesses to determine what their needs 24 are. If there's special needs around deliveries or 25 special needs around access to the business in the 42 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 construction area, we're there to try to mitigate those kind of issues. And we have a specific person who's on board to provide technical assistance around marketing, advertising, internal controls, accounting procedures, those types of issues.

So how many of those 700 have been individually contacted?

All 700.

Have been individually contacted?

Yes. I'm sorry, it's 750.

How have they been individually contacted?

Personally. There's a person that has gone door to door. When we first brought the consultant on board, we wanted an inventory to see who was there, how many vacant properties were there, the businesses. On an ongoing basis, we go back around promotions, if we're doing special activities, we go back door to door to each individual business. It's an arduous and tedious process, but we go individually door to door to every business in the corridor.

So what do you know 43 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 about the 700 businesses?

We know what type of businesses they are. We know what categories fall into. We know what their needs are.

I mean, beyond the initial inventory, in terms of the follow-up and the outreach to those 750 business, what do you know about those businesses now, if there's continuous outreach?

We know as much as they will provide us with, as far as information is concerned. Do we know what their -- in some instances, we know what revenues are, but in some instances, some of them think that that's very private business. So we know as much as they will tell us about their individual business, other than the information that we're able to get from them from site visits, the condition of their property. But the information that we're able to glean from them is the information that they give us voluntarily.

Thank you, Madam Chair.

Thank you very much. 44 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Councilman Nutter.

Let me refer to the testimony first, and then I have some other questions. On you say that the work hour goals were set at 17.3 percent minority. How do you arrive at such a number?

The 17.3 percent minority -- the 6.9 percent number is a federal standard that is set for all public agencies with regards of those agencies that are receiving federal grants.

Is that a minimum or a maximum?

That's the minimum that firms are required to hire. And it's work-hour goals only.

And after you meet the minimum, the max is the sky is the limit, right?

That's correct.

And you ended up at 21.14?

January 2003, achievement has been 21.14.

Councilman Ortiz 45 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 mentioned how is it that you end up at that kind of number, given the general population in Philadelphia, and specifically out in West Philadelphia, how do you end up with percent? 6 MS CLAITT: For the Market Street 7 Elevated Project, based on the demographics of the 8 workers in the trades, we established a 26.4 percent 9 goal for minority participation. And as a result, 10 that's what we're working towards. 11

I thought it was 12 17.3? 13

That's the standard goal, 14 sir. 17.3 is the standard federal goal. 15

Right. Where did 16 the 26 number come from? 17

The 26.4 is the goal 18 established as a result of the demographics within 19 the construction area. 20

What's the minority 21 population in the construction area?

I don't have that in front of me at this moment, sir.

Have you ever been to the construction area? 46 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Yes, I have.

What's your sense of what the demographic is of the construction area?

Majority African American.

Probably, like, about 98 percent?

I would say yes.

So how do you end up at 26?

It's based upon the trades that will be required for construction of the El.

So our problem is not that there are so many African Americans in West Philly; the problem is that not enough of them are in the trades. Is that the issue?

Yes, sir.

So what are we doing about that?

We've established a training program identifying those individuals within the community that are interested in trades. We performed outreach since 1998 with lists that totalled up to over 1,000 names. We've since purged that list based on different interests of the 47 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 people. We now have approximately 618 that have expressed interest in this project. Of those, 193 are current union card holders. The balance, we're working with to establish training programs.

193 are already in unions?

Yes, sir.

Are they working on a project?

No, sir. Not all of them.

Why not?

I don't have that answer at the moment.

Well, I mean, that would be the next natural question, right?

Yes, sir.

What are we doing to find out what those folks are up to?

The workers that we have -- the 193 union card holders, the majority of them are laborers. Each contractor as they come on board provide us with a list of the labor force that they will require at different phases of the work. We provide them with the list of the workers that we 48 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 have. From there, they go to the union halls to request or to get workers in the trades that they require. But they do have the list of our applicants.

So do they pick any of the folks from the list that you provided?

There has been a few of the names from our list that have been selected, yes.

Well, what's SEPTA's ability to insist on the utilization of people that you've identified?

To extent that the applicants are selected or are provided to the contractors through the union halls.

Well, you're doing that, right?

No, sir.

You provided them the names. You have 193 people that you've identified as card-carrying union members, right?

Yes, sir.

My question was, what is SEPTA's ability to insist or request or require that those people work on this particular 49 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 project?

To the extent possible, we encourage the contractors when they got to the unions halls to request those that are listed.

Let's hold on for a second. Whose project is this?

This is SEPTA's contract.

It's SEPTA's contract, right?

Yes, sir.

It's not the contractor's project, right?

No, it is not.

They're working for you, right?

Yes, they do.

So when you pay for something, you demand a certain level of service, right?

Yes, sir.

Like, if I put my $1.60 or $2.00, or whatever it's going to be, in the box, if I'm trying to go east, I expect the train is going to take me east, right? That's what I'm 50 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 paying for.

That's correct.

So it's SEPTA's project, and you're paying people to perform a service to get the El Project done as quickly as possible, and you have some other goals, right?

Yes.

So you've now gone through the time and effort to identity certain people as neighborhood people who are card-carrying union members. And you're telling me that the extent of your involvement here is provide the list and ask them to please think about the possibility of considering maybe picking up some of these folks if you feel like it? Is that where we're at? Is that where we're left here? (Applause.)

No, sir. I wouldn't say that is accurate.

So take me to the next step then.

Unfortunately, SEPTA has no 24 control over the union and the workers that they provide to the contractors. 51 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Let me go back. How much is this project?

$567 million.

$567?

Yes, sir.

And it's your project?

Yes, it is.

And you have contracts with people to provide a service. They're card-carrying union members who you have identified through your own efforts who will help you attain a certain goal, if it is in fact a goal of the project not to completely destroy and disrupt the neighborhood, and provide some economic opportunity for people out there. And you're telling me that you cannot say to the contractors, "You have to hire the X number of people to do the job. We want you to hire this particular group of people because they live in the project area, because they are union card-carrying members, and that we want this group of people, all things being equal, all skills being the same, to work on our project in West Philadelphia;" you're telling me that you don't 52 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 have the ability to tell people that's what you want? (Applause.)

My response to this is that, you're certainly right. We have the right to do that, and we do that. The issue is, what is the penalty for not doing it. And my experience in dealing with minority work-hour goals on all federal and public work projects, is that it is the responsibility of the Office of Federal Contract Compliance to monitor work-hour goals and to ensure that contractors who are performing on government projects are adhering to these goals. The issue is --

I agree with you. But, unfortunately, I have to cut across you. Because if meeting the goal was the only point, they're probably doing their job. The standard was 17 point something. You're at something, you're 21 trying to get to 26 something. If that's all of the facts and the information that's available, everybody's done their thing. Everybody's covered their little behinds, and everything is great. The problem here is, I think we have some other goals 53 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 that we're trying to attain, which have nothing to do with the Feds or the contractors or anyone else. It should be a SEPTA goal and a public policy goal to make sure that people who have been historically locked out of these opportunities -- you're running the thing right through their neighborhood, disrupting their lives and their businesses -- (Applause.)

They should have a right to expect a higher level of persistence and insistence by the agency to say, "We're glad with about the 17; is wonderful; is very nice. 14 Now, we've got a 193 people who live in the 15 neighborhood who are card-carrying union members. 16 Put them to work because you need people to work." 17 And that's why they should be working on this 18 particular project, because you know as well as I 19 know, that if you don't insist on it, no one else 20 will. The contractors are certainly not going to 21 insist on it because they've already identified who 22 they would like to work because they got their own 23 list of people, and most of those folks in West 24 Philly, their name ain't on it. So the only way 25 it's going to happen is if SEPTA insists on it and 54 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 says, "You need 20 bodies to work today. We want you to hire these 20 bodies. They've got union cards. They passed the test. They're qualified to do the work. Put them to work. And if you don't put them to work on our project, you won't get paid." Now, that seems to attract people's attention, when you're talking about their money. Because then they've got to decide what's more important to them, these guys who can go and work 12 on some other job somewhere else, or this group of 13 20. Because if I don't put this group of 20 to 14 work, I'm not getting paid. I think that's a real 15 simple decision for them. 16

Councilman, thank you. 17 We're going to do what we can to increase our goal. 18

Let her give an 19 answer. 20 I'm sorry. Finish your answer, please.

Councilman, thank you for your comments. And they are very well taken. We've heard your comments of this nature before.

Right. This is not a new conversation, and I appreciate you coming up 55 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 to the table. But we have had this discussion in the past. I mean, the question is whether the agency is prepared to have that level of conversation and relationship with its contractors. I'm not trying to cause somebody else heartache and dismay. All I understand is, the 193 people have virtually no shot working on somebody else's project. They're just not going to get the call. You know that. I know that. They'll be sitting around waiting for telephone call until Verizon turns the phone off. The only way a call will come now is if SEPTA says to the contractor, "we have some other goals that we'd like to attain and we appreciate you adhering to your contract and doing all you're doing, but we have these people out here not working. It's a problem for us. Because you'll work on this job and you will go away. We have a lifelong relationship with these folks out in West Philadelphia. We'd like them to continue riding that El when the El and buses are doing their thing. So we have an additional goal, which is these 193 people. We'd like you to do something."

I don't want you or your constituents to believe that we have not had 56 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 conversations with the contractors. Well, I've had this conservation with the contractors. And I know we've had conversation. The question is -- and I think this is what we have to explore -- is what teeth do you have, other than non-payment, to get them to hire the employees that should be hired. I hear what you're saying.

That's a fairly high motivator for many people. And you probably have other legal recourse.

Well, I think that's what we have to look at, and we promise that we will do that. Because there are other things that go in when you stop paying. The job stops. Everything else stops. The project gets delayed, and there are additional costs. I hear what you're saying --

Councilman, we will go back and have that internal conversation.

This is not a project at any cost because the cost benefit on this is in the negative already. What's another couple weeks delay if you're already jammed up? If you're on your way out of business, it really don't make much difference. If you don't have work, you're 57 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 ain't too worried about somebody else who ain't working. So the real issue here is, what's the agency prepared to do and how much are you prepared to take to accomplish these other goals on behalf of your ridership and the people who are here. There are a whole lot of folks working on that project out there who will never sit their behind on one of them trains. It'll never happen. They ain't thinking about being on the train. They wouldn't know where to get on, and they wouldn't know where to get off.

I hear you. (Applause.)

Let me ask a statistical issue. The testimony indicates -- you say that 40 individuals employed on the project are construction area residents. Is that 40 out of the 558?

That's correct.

Yes.

Well, my little calculator told me that 40 out of 558 was 7.2 percent, but your document indicates -- you say you have a resident goal achievement of 10.24 percent? (Applause.) 58 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Sir, if I may just explain real quickly. The goal is based on the work hours that's performed by the workers. We have been counting the heads for the purpose of being able to say whatever number of workers have participated together with those hours. So our goals are based on the work hours alone.

Why do you do that?

That is by law.

What's by law?

That we count goals -- or we monitor goals based on the work hours, hours worked by the trades.

What's the purpose of that? I mean, why would that be the measurement as opposed to actual bodies? Tell me how you end up with 40 out of the 558, which is 7.2 percent of the actual workforce, but you end up with 10.24 hours. Does that represent overtime?

No, sir. The heads are the numbers of workers that have participated in the different trades. You asked earlier, sir, that we 59 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 provide you for the break out of how many African Americans worked within the different trades, what specific trade they worked in.

I understand that. I didn't ask that question. Councilman Ortiz asked that question. My question has to do with area residents. Your testimony says you have a residents goal achievement of 10.24 percent. Your testimony goes on to say, "the total number of workers employed for all trades utilized was 558." I take that to be the total universe. You then say that 40 individuals employed on the project are construction area residents. 40 out of 558 is 7.2 percent.

People. Yes, sir.

Heads.

Heads. Yes, sir.

I'm trying to understand the distinction between the heads and the hours.

Technically, we would not be calculating the goal achievement by the heads. That is for the purpose, as I said earlier --

Point of information.

Point of 60 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 information.

You're working fewer people more hours to meet the goal? You're working fewer residents more hours just to meet the 6 percent goal, rather than hire more residents? 7

Right. You have to. 8

No. 9

That's the only way 10 to explain the discrepancy. That's the only way you can explain the discrepancy. Otherwise, they would be the same.

No, sir. Our work hours are based on the total hours worked by the contractor and those hours by the minority, female, or the residents.

And the minorities and residents you're hiring, you're actually working them more hours in order to reach the goals, rather than hiring more residents and hiring more minorities.

No, sir. The goal is based on work hours only.

I understand that. Are you listening to me? 61 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Yes, sir.

Okay. You say you are meeting your goals, and you're almost -- as Councilman Nutter pointed out before -- just meeting your goals. But when you count the bodies, there are less bodies. And I know you're doing it by work force hours. So you're actually working fewer minorities and fewer residents more hours in order to reach your goals, rather than hiring more minorities and hiring more residents.

I'm not sure -- I don't understand.

Obviously, you don't understand.

How do you explain the difference? Why are the numbers different? The Councilman's point is the absolute point. You have to work the workers more hours to meet the goals if you're short on the bodies. You've got 7.2 percent of the workforce doing 10.24 percent of the hours. The only explanation is they're working more hours. It's not a trick question. We're not trying to do anything to you. We're just trying to understand what's going on. It's the only logical explanation. 62 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

We'll have to get back to you, sir, with an explanation.

Okay. Madam Chair, I just have a couple last questions. Councilman Goode asked an excellent question. It was one of the questions I had on my list, which was about the number of businesses you expect to go out of business, and I know you did your inventory of how many businesses there are. It is a little surprising -- we don't have to go back through it -- that there wasn't some estimate on total loss. But the Councilman covered that area. The testimony indicated that there was this benefit from the project for people in West Philadelphia, and I'd actually like to better understand, from SEPTA's perspective, what is the benefit to the businesses and the residents of the SEPTA El Project, from your perspective?

Our goal is always to provide the best transportation that we possibly can. As we said in the testimony, the El structure itself has been existence since 1906. And so because we're concerned about the best 63 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 transportation possible and because our interest is state-of-the-art transportation, as far as our cars are concerned and our structure, how we provide the information relative to transportation, we wanted to make sure that the El provided the best service possible in West Philadelphia. And so the design of the project, as well as the transportation --

I understand that. Ms. Jones, I'm sorry to cut across you.

Sure.

I understand that those are SEPTA's long-term interests. It will take us, I believe, to '08 --

'07.

-- '07 or '08 to achieve that particular goal. In the meantime, the residents and the businesses are seeking to survive. I took down -- not verbatim -- that there was a benefit to the businesses and residents of West Philadelphia from this project. So I'm not talking about how we will all benefit from a beautiful transportation system and a single bent column down the middle of the street and lighting and landscape and all that. That's on the other side. 64 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 I'm trying to understand, while we're living and breathing today, from SEPTA's perspective, what is the benefit of current the construction project -- which at the moment has nothing to do with transportation -- it is a construction project. What, from your perspective, is the benefit to West Philadelphia residents and businesses from this particular project, which is going on through '07-'08? How will they benefit directly? Before they get to ride on the new system, how do they benefit directly from this project?

To be perfectly honest, at this point it is a construction project. And as we see it on the surface, it's an inconvenience which is directly interpreted as no benefit at this point.

No. An inconvenience would be if I stubbed my toe. If my foot were taken off, that would be a tragedy. Similarly, it's a inconvenience if the Water Department has to do infrastructure work for a couple days; that's a inconvenience. Having streets closed for extended periods of time is tragic, if not potentially fatal. There's nothing inconvenient 65 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 about this. Some people will go out of business. That's not inconvenient. (Applause.)

So I think we have to be very careful in how we have our conversations with the public about what's going on here. The issue is, how do people survive for the next four-and-a-half to five years so that there will be someone left to appreciate the beauty and the wonder of this system? That is the fundamental issue here, from how many lanes are open, to what services are provided, to the financial losses -- you know, when we do what we do, if we destroy your sidewalk in the course of doing work, if one of our pieces of equipment falls on your building, people make claims against us. They were sitting there minding their business, and the next thing you know, a piece of lumbar comes flying through the window. They've been damaged. I don't know that anyone out there asked for this. And this is one of those tricky situation where everybody wants to go to heaven, but nobody wants to die. So the El system is a complete mess. We understand that. Everybody wants it to look nice. Everybody wants it to work 66 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 well. Everyone would like to have a new thing. But the getting there -- I think that used to be one of your slogans, "We're getting there." The getting there could put a whole bunch of people out of business. What's going to be left on Market Street when this brand spanking new project cranks up in '07, '08? Quite honestly, I think it's something that SEPTA needs to be concerned about. Because if there's nothing on Market Street, if there's nothing on 56th Street or 60th Street or 63rd Street, who's going to ride it?

Councilman, we're very much concerned. We're very much concerned. And there's an ongoing effort at SEPTA working with different public quasi and public agencies to identify resources where we can provide businesses with relief. We will continue to do that. We're looking at and working with and calling -- we've talked with and will continue to meet with our Congressmen to try to identify federal resources, and on a state level. I mean, we will not give up until we identify resources to help the businesses. That's our goal.

I understand that. 67 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 We've heard a lot here about goals. Let's talk about concrete stuff. You need a business relief plan with the necessary funding behind it.

We're working on doing that, Councilman.

The folks out here don't need anymore goals. They appreciate the best efforts and all that. Identify a pot of money that can be utilized for these folks. (Applause.)

We welcome the assistance from the Council and from the other elected officials to help us to do that.

I appreciate that and will be glad to look after that. But we're not the only game in town. Now, you know, I won't even get into comparisons between our situation here and the little activity going on halfway around the world where folks are lined up knocking themselves out to get all the contracts in the world to rebuild a place that we just blew up. But we have no money for people who are minding their business here in the United States of America subject to a project that it didn't necessarily ask for. Everyone 68 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 understands the goal and the long-term benefit that will come from it, but somehow now, we have no money for them. That's one.

We need your help.

Two, we need a lane open on Market Street to allow the residents, notwithstanding all the other promotions and everything else, because most days I'm not sure what's open, what's not open, and if anybody is functioning halfway like me, which I don't encourage. What you do is just say, "I don't want to be bothered with that because I don't know what I'm going to get into once I get down there. I could be on this street. I can't be on that street. I've got to swerve around this. I've got to get around that. So let me just find somewhere else to be." You need a lane open so that the customers and motorists understand how to get around and what they need to do.

Can I respond to that?

Go ahead.

When it is at all possible and it is not a safety hazard, we have opened up the 69 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 streets. Where there is ongoing construction and where we have heavy equipment, it is virtually impossible for us to open the street, and it provides the safety hazard. We're concerned -- it may seem like we're not, but we're absolutely concerned about the businesses on Market Street and the impact that the construction is having. So when it is at all possible, we have opened up a lane to traffic, to thru traffic, as long as it's not a safety hazard.

Ms. Jones, I think the problem here is that -- and I'm sure you believe in your heart and in your soul that the agency is trying to do all that it can, that the agency is committed to people. At the end of the day, it's action that really makes the difference and the demonstration of what those efforts are. And so from the small to the large, from the simple to the virtually impossible, the public needs to see what those actions are. Again, the best efforts, not the best of intentions. And so whether we're talking about lights on Market Street -- now, I asked that question at a budget hearing. The response was -- and we did the tour out there -- all the lights are 70 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 working on the superstructure. They're all in the outer area of the El. There are none down the center. We know that it is dark there. And the response that came back was -- the written response -- "We did a survey, all the lights are on. It's light enough out there." Next question. Now --

We have additional information because we have been -- our program manager and the City have been meeting on an ongoing basis to determine how lighting can be installed on the undercarriage of the El. So that is moving along. There have been continued meetings on that.

Well, all I have is the response I received a couple of weeks ago. I'm not aware of that discussion. And it seems to me that lights can be put directly under the El. And it cannot be overly complicated. You already have energy coming right onto superstructure with the lights that are on the outside. Run a string of lights down the center, similar to what they do on many construction sites when they need temporary lighting.

That's what we're doing. 71 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Again, these kinds of things need to be done on a quick-as-possible basis, which also helps to demonstrate some legitimate sincerity about getting things done. We had a discussion about the escalator at 60th Street. Now, the response was", Well, one, it's old. We don't have any parts" -- although there are escalators working at other places. Two, "Why should we fix the escalator, since two years from now we're going to tear this station down?" Because for two years people can't get up the steps. That's why you would fix the escalator, and demonstrate again to the public that you care about them in ways that you're willing to take some extraordinary steps. These kinds of things. No one is expecting miracles out there. But where there are things that can be done, they should be done. And all we get is, "No. Can't. Forget about it." That's not helpful to this relationship here. And people are not going to stand for it, and I'm certainly not going to stand for it, because I'm not going to listen to this noise for the next five, six years on things that 72 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 don't make any sense. (Applause.)

No one asked you to take the entire superstructure and piece by piece lift it out of there on a helicopter and do all kinds of wild and impossible things. We're talking about, give us some light. Open a lane. Fix the escalator. The public didn't put the escalator there; you put the escalator there. And now it's not available for your riders. So, I mean, you're sending, at best, mixed messages; and at worst, an air of, "We don't really care. We'll just let all that stuff sit out there. We'll get to it when we get to it. And when it falls apart, we're not thinking about fixing it because we're going to change the whole thing anyway. And if you can't get up the steps, tough." It's not helpful. Mr. Bond, do you want to say something?

I would say that on the escalators -- in fact, I was through the area yesterday. We have people working on the escalators that are broken. There's at least one escalator that I know of that we cannot get the parts for. They don't make the parts anymore. 73 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Is that the one on the southeast corner?

It's 60th Street.

It's on 60th Street. They don't make the parts for it. So you either put in a new escalator now, or you put it in in a year or two when the new station is built. The question is, maybe what we ought to look at is maybe trying to explore, how do you make accommodations for those people who use the escalator at that particular location. The escalators that are in the other locations --

What else are you going to do with them? The platform is 30, 40 feet up in the air. What are you going to get, a cherry picker? Are you going to get, a crane?

No, I'm just saying there are other ways of transporting the individuals. If we can't fix it because we can't get the parts, I have no other solution other than to offer some other form of transportation for these individuals.

Put another escalator in. Did they stop making escalators or something? 74 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

No. If you put a new escalator in, then you take that out in a year or two, to put a new escalator into the station that you're building, you're going to build new stations with new escalators and new elevators. That's the issue. It is an issue of money.

You know, you guys can make the relatively simple just incredibly difficult. I mean, I am trying to be cooperative here. I had a meeting with some of your folks I shared with the Chair at nine o'clock this morning. I'm still pissed about that meeting, which you really don't want to hear about. And then I've got to come up here and listen to this mess. I've asked a bunch of questions. I've got half answers, "Get back to you. No." Now, what do you want from me, and what do you expect that I'm going to do? Do you think that I'm just going to accept it? Do you think that I should just be pleased? Do you think that I'll just leave at some point in time today and say, "Well, that's the way it goes, and I'll move on to the rest of my day"? Do you really believe that 75 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 about me? Do you really think that this is acceptable? (Applause.)

Do you think this is the end of this?

No, I do not. I don't think anyone has ever questioned your persistence. We will get responses to the questions that you raised that we did not have at our fingertips this morning.

When should we anticipate receiving this information? I'd really like for it to happen during the course of this hearing.

Within the next five business days.

There are some issues that you should be able to address in the course of this hearing. Mr. Bond said that some of the information was back at the shop. You're going to be here for a while.

We understand we'll get as much as we can for this hearing. And what we can't get, we will provide within the next five business days. 76 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Thank you, Madam Chair.

You're welcome. Since cleaning up the surrounding area should be a priority, we're asking you if you can use our West Philadelphia Mercy Health Special Services to assist in that regard. We're asking you to hire that service, since we have that service through the partnership CDC. So we're asking you to help us and use Community CDC to help clean up the area. Would you respond to that, as well?

Councilwoman, the contractor is required, as a part of his contract, on a daily basis to make sure that the area, the construction area, is clean. And we are enforcing that on a daily basis. In addition, once a week it is hosed down. (Audience responds.)

As you hear, it's just not done. Anytime people would urinate in front of other people's homes, obviously they're not respecting our community. That's a major, major issue. That's why we asked for the clean-up.

We've also enforced that the 77 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 contractor have port-a-toilets or toilet facilities at each construction site also. And they're there. At each construction site, there are facilities for the contractor and the workers.

Were the neighbors -- some neighbors in the immediate area of the hearings we had on the 24th about Angora Terrace were notified, but they complained of so many people from the suburban areas being contacted, as well. They said that their meeting -- I got there late. I did talk to a gentleman who showed me the posters. I have them. Two listing different sets of information about the notification. Did we do outreach primarily in the area? I know I did. But in terms of SEPTA -- because they're complaining they had more suburbanites than people in the area at the meeting.

Yes. We did outreach. We had City Year (ph) helped make a flyer for us. As well as I was in contact with a community resident, Greg McKinley, who's here today and provided information. And we worked through one of your other community contacts, Pat Evans, through the Turner School. 78 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

And Pat Evans is here and will be testifying. The Federal Office of Small Business Advocacy has recommended to the Commerce Director for review by the President, that the federal government procurement process reverse the trend of bundling large contracts together and make them smaller to encourage greater participation by small local businesses. We are really interested in this process and want to know how SEPTA will integrate this trend reversal into their bidding?

I haven't seen that information, but if can get a copy of it, we'll certainly explore the possibility of doing that.

In fact, it's even been on the news and it's been out there for, I don't know, maybe a month that that's a trend. So that's pretty much public knowledge. How does SEPTA generally coordinate their services with other City departments and agencies?

Wherever possible, if it's a project that we're doing or they're doing, we generally coordinate, particularly around service, 79 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 through the Managing Director's Office, the Special Events Office, around service. If they're are construction issues and it's our project and it impacts service or it impacts any of the operating departments of the City, for example, gas or water or whatever, we work through those individual departments, through Public Property or the Streets Department.

What provisions are being made for people with respiratory problems who want to access the business community, given all that's going on?

I'm not understanding your question, Councilwoman.

We have people who are complaining that they have respiratory problems or are in wheelchairs and are having problems getting around this construction. Are there any provisions being made for that group of people?

Let me speak about the disabled, those that are disabled or physically challenged. Where we find that the project area is inaccessible, the person that we have out there on a 80 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 daily basis makes provisions to make sure that that is taken care of on a daily basis. So when we're notified of it -- and we monitor it daily to make sure that the area is accessible to the physically challenged. We've interacted with -- in fact, at the meeting that Councilman Nutter had, there was someone there from the Health Department. And our contractors -- there's a monitoring component to make sure that we are within the environmental guidelines around the construction area. So we have a person on the project management team that monitors the air quality control.

We have been particularly contacted about people with asthma and respiratory problems who are having problems with the construction, and who are in that area, who can't breathe are being affected by the construction.

If you'll provide us with that information, just call my office and provide us with that information, and we'll take care of it.

And with regard to the other, it's the Federal Office of Small 81 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Business Advocacy that you can contact with regard to that federal provision.

We'll get that information, Councilwoman. And wherever we can do whatever we can to encourage minority participation, we'll do it.

Would you describe your business outreach plan as referred to in the testimony?

Our business outreach plan is extensive. We have a consultant on board that works with us closely and we meet on a bi-weekly basis to make sure that we're on top of everything. Now, that includes, again, providing technical assistance to individual businesses. And by technical assistance, we mean helping them to put together a business plan, to establish a business strategy, to assist them with whatever areas they are weak in their business, to also provide alternative measures to getting customers or to increase their business, their individual business, as well as provide technical assistance to the business associations on the corridors, i.e., 60th Street and 63rd Street, in getting better organized 82 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 or if they're interested in getting a 501(c)(3) we're providing that technical assistance also. We've also been available to go to the business association meetings to address the concerns of the business association as an organization, as well as to address the individual business concerns of the businesses within the organization. So we have a very extensive and aggressive outreach plan for the businesses in the project area.

We've been working closely with the Commerce Department and the City to -- and certainly they have agreed to come up with a 50 percent facade treatment for businesses, but obviously that won't help while we're going through this process. In addition, for the business owners we have been dealing with SEPTA to ask for the permanent acquisition of lots where they do temporary parking, so that after this is over, we have that. That's something for later. Of course, it doesn't get us through these hard times, which is the reason for our hearings day. Now, we would like, before people have to -- I know businesses, 83 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 they're already struggling. We really would like to get the community members on, and ask that you remain.

Sure.

Thank you. Shirley Gregory. She's one of our fine Ward leaders, the 49th Ward. She's representing Congressman Robert A. Brady today. Shirley, would you come forward? We thank you very much for your time and your patience. We want to get our community on. We don't want to lose you because you don't get a chance to testify. That always worries me. And we appreciate you taking time out of your schedules today. Busy, but not busy enough. But we appreciate you being here. Thank you, Ms. Gregory. Would you identify yourself for the record. Thank you.

Thank you. The pleasure is mine, of course. I need to begin by thanking you, Chairwoman Blackwell, Chairman Goode. I congratulate you and the Members of these Committees who have been in and out of the room for holding this hearing on a problem many people have referred 84 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 to as "the nightmare on Market Street." My name is Shirley Gregory, and I am Congressman Robert Brady's District Director. I am here representing him today. Congress is in Session today, so that Congressman Brady is not able to attend this hearing. This week, the House will be debating the proposed Republican tax cut and much needed benefits for America's brave troops. His major committee, the Armed Services Committee, will be holding hearings similar to this to consider defense-related spending for next year. Because there are several job-related measures in that spending Bill, he could not miss those hearings. I am sure you understand, however, Congressman Brady believes that this is a very important hearing about a project that is very important to his constituents. He asked me to thank you for seeking his testimony and to deliver a statement on his behalf. I have provided that statement, or it is being provided -- especially to the press -- to committee staff, and ask that it entered into the record. Thank you. 85 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Thank you very much. Can we have the Sergeant-At-Arms pick up copies of her statement? We thank you very much, Ms. Gregory.

I'd be happy to read the statement from Congressman Brady.

Thank you. Thank you for all your service to our citizens.

It's my pleasure.

Maybe we better get that in.

"Statement of Congressman Robert A. Brady submitted to the Committee on Finance and Transportation of the Council of the City of Philadelphia, Wednesday, May 7th, 2003. "I thank Chairwoman Blackwell and Chairman Goode and the Members of the Committee on the Finance and Transportation for your help and deep concern about the welfare of our constituents and the future of job-creating businesses in our City. As a former Ranking Democrat on the Congressional Small Business Committee Regulatory Reform and Oversight Subcommittee, a former board member of the Redevelopment Authority and as a 86 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 lifelong resident of West Philadelphia, I am well aware of the importance of Market Street corridor businesses to the growth of the entire City. I also know how crucial the Market-Frankford Elevated train is to our constituents. The El is how our children get to school, our neighbors get to work, and how people from other parts of the City reach our community to shop. "There is no doubt that this nearly 100-year-old line needed to be improved. Our neighbors deserve the most modern transportation. I am pleased that SEPTA is doing this work. However, I am deeply concerned about how SEPTA has proceeded with this job. Since January of this year, when sections of West Philadelphia became part of my district, I have participated in numerous meetings with local residents, business people and with SEPTA. I have expressed my determination to see SEPTA do a better job of coordination of this work eliminating unnecessary inconveniences to residents and businesses, and expand its hiring and contracting programs for minority and local citizens. Members of this Council have participated in those meetings, and your hard work is much 87 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 appreciated. "I look forward to continuing to work with you on this and other vital projects. I would appreciate a copy of your findings and recommendations so that I can do my best to bring this situation to a successful conclusion. Thank you for accepting this testimony."

Thank you. I think the Congressman lists the problems very well and very succinctly. Certainly, we will be in touch. We really need help with subsidy for businesses. We met with Congressman Fattah last spring and asked him for such. But we really need him to look into the congressional coffers and work with us with a plan to do some subsidies for businesses that are suffering.

Thank you. And I shall take that message to him.

Thank you very much. First Deputy Commerce Director, Mjenzi Traylor. After that -- is Mr. Connor here? Okay. You're next. 88 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Thank you, Mjenzi. Please identify yourself for the record and begin our testimony. Thank you.

My name is Mjenzi Traylor. I'm First Deputy Director of the City Commerce Department. Good morning, Chairwoman Blackwell and Councilman Goode. I will present testimony on behalf of the Administration. We appreciate this opportunity to submit testimony on Public Hearing 020607, a Resolution authorizing the Committees on Finance and Transportation to hold hearings on the impact of the SEPTA Elevated Reconstruction Project on businesses in West Philadelphia. First, let me comment on the enormity of the reconstruction project. This $580 million project is both complex and, inevitably, lengthy in duration. The Commerce Department wants to acknowledge the hard work of Frances Jones and the many SEPTA employees who have worked with the community to facilitate project implementation, building a framework that will respond to community needs and concerns. I would also like to acknowledge that we would have had with us today Robert Fulton who, as 89 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 most of the business people and residents know, is the representative from the Mayor's Business Action Team that our department has had present at meetings and trying to respond to community concerns. He is hospitalized, doing well, and will be back with us soon. While careful thought has been given to this outreach process, it is time to acknowledge that there have been serious shortfalls in its implementation. One does not need to read the newspaper to recognize this project's destructive impact on West Philadelphia. One needs only to attempt to drive or walk to the normally bustling commercial corridors of 52nd Street or 60th Street. For more than a year, the Commerce Department has worked to mitigate the impact of the reconstruction process by serving as an intermediary between the community and SEPTA, looking to solve problems as they arise and seeking out ways to assist the community in dealing with the impact of the project. For example, representatives of the Commerce Department have attended a majority of the community meetings held on the project in order to stay abreast of and keep in touch with community 90 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 opinion. When interruptions or disruptions within the community have occurred, such as blocked streets, driveways, sidewalks, the Commerce Department has worked with local businesses affected to reach a quick and as effective solution as possible to the issue. Commerce has also conducted a comprehensive survey of the affected communities and constituencies in order to determine the scope and extent of potential issues raised by the project, so that constructive recommendations could be developed and made to SEPTA regarding those issues. I will detail these recommendations later in my testimony. Additionally, Commerce has worked with Congressman Chaka Fattah's office to seek out federal funds that may be available to assist the small business owners affected by the project. Together, we have sought out emergency funds from the Federal Transportation Administration, including, but not necessarily limited to, seeking out approximately $500,000 from the MTCAP Program in order to make loans and/or grants in the range of $5,000 to $10,000 available to business owners. It is estimated that with these funds, approximately 85 91 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 businesses can be immediately assisted. Now, the advantage of dealing with this, is that these are funds that are already on deposit here in the City. And so it's simply a matter of getting clearance from FTA to use the funds for these emergency purposes. Notwithstanding the Administration's efforts, there remains serious challenges. Recognizing these shortfalls, the Commerce Department urges urgent attention to three areas: Reduced business interruptions, improved communications, and additional financial assistance.

Business interruptions currently range from the closure of entire blocks of Market Street, including numbered through-streets, to a lack of construction clean-up that impedes City trash collection and is causing respiratory illnesses in the community. We propose consideration of the following remedies to these issues: Open one lane of Market Street. Shoppers are currently obstructed along Market from 44th to 63rd, and face detours that re-route them as far as Walnut and Race Streets. SEPTA should seek as quickly as possible to accommodate some level of 92 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 automobile traffic, currently a major source of corridor shoppers. We recognize that there are safety issues, but we would like to see some additional attention being given to this possibility of opening a lane down Market Street. Provide weekend and other flexible responsive street openings when construction is not underway. For example, 52nd Street was unnecessarily closed the weekend of May 3rd, impeding blocks of commercial traffic, despite having no construction equipment on the roadway. Next, fortify the SEPTA Community Information Center. While the center seeks to provide outreach and response to local complaints, there is no substitute for having an accountable SEPTA staff member with real decision-making power staffing the satellite office. In addition, this office should be accountable to the City, for example, by disclosing business complaints by number and type and tracking closures resulting from business interruption. Next, clean the corridor utilizing the resources of the Mercy Special Service District, which Councilwoman Blackwell has already recommended 93 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 today. With oversight by Partnership CDC, the district is committed to clean 300 block faces weekly, removing graffiti, stickers and trash from public spaces, particularly along West Philly's major commercial corridors. This group can be leveraged to assist SEPTA in providing more regular clean-up in exchange for the purchase of the appropriate cleaning equipment. Now, we, of course, heard the response earlier from SEPTA, that the primary cleaning responsibilities rest with the contractors. However, we suspect that there is a level of cleaning that may be considered more cosmetic than is usually associated with construction, but which could serve the business, as well. Next, communications between SEPTA and businesses have been poor, ranging from failure to provide notice prior to obstruction of ingress or egress, to publication of a coupon booklet, including business participants without their consent. We propose consideration of the following remedies to these issues: Provide regular monthly business outreach. Current business outreach is too broadly 94 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 based and cannot respond to the specific issues faced on the diverse commercial corridors. SEPTA should provide a forum for each corridor to meet and prepare for each phase of construction implementation. Give businesses one week notice. Businesses should have at least one-week notice prior to impeding, building ingress or egress, as well as commercial street closings to automobile traffic. This should be accomplished by written communication that can updated at monthly corridor meetings that were mentioned above. Next, is convene a monthly roundtable for City agencies. SEPTA outreach should incorporate a monthly meeting with representatives from City agencies, specifically Streets, the Managing Director's Office, Council Offices, Commerce, and other agencies as necessary to expedite issue resolution with SEPTA decision makers. Next, communicate current community outreach and bench marks. Two excellent consulting firms have been providing community outreach and business re-positioning services. SEPTA should work 95 05/07/03 - FINANCE AND TRANSPORTATION - RES.

020607 with the City to provide regular reporting for these services, setting bench marks and evaluating results. This coordination will enable the Commerce Department to more appropriately respond to the service gaps and assist SEPTA in filling these gaps. For example, by providing access to business financing. And there are programs in place to do that. Last, there appears to have been little consideration for the inevitability of total business dislocation and closure, an issue that was raised earlier by Councilman Goode, particularly along Market Street. While the Department recognizes that SEPTA is facing a budget shortfall and even financial constraints on the West Philadelphia component of the Elevated reconstruction project, current outreach funding may not be sufficient, particularly if we continue to pursue the same strategy. We propose that consideration be given to the following measures: First, audit community outreach activities. SEPTA and the City should assess whether current programs are being utilized to maximize business survival. 96 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Next, set up a business relocation fund for businesses that are permanently displaced by construction, enable access to a funding source for those that would continue to operate in one of the neighborhood retail corridors. The City is committed to coordinating its economic development programs with SEPTA initiatives. Next, fund a post-construction plan. Given the reality of numerous documented business failures, and those that will inevitably result from the next four or more years of construction, we must plan for the future. This will include funding a market analysis and street scape improvement program for project completion to revitalize a severely impacted business corridor. SEPTA should provide leadership and funding for this initiative. Of course, it's at this point that our normal facade and security programs could also kick in and be of help in doing this. If we do not address the concerns I have outlined here, we will have spent seven years and $580 million on an Elevated reconstruction project that wipes out the commercial activity and negatively impacts residential users of this 97 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 critical transportation. As sole proprietorship, once they are bankrupt, many of these small entrepreneurial endeavors, and the jobs they provided, will not be returning. It is our responsibility to provide the reduced business interruptions, improved communications and additional financial assistance that will enable them to weather the next several years. For the reasons I have outlined, the Commerce Department supports the Resolution that is before us, and I would pleased to respond to any questions that you have. )

Mr. Traylor, we thank you for this excellent report. We're going to ask Members of the Committee to recommend this, in addition to any other suggestions that come out of this hearing, from members of the business community and interested persons. This is an excellent report and it certainly takes us where we need to go. Thank you very much.

Thank you, Madam Chair.

Councilman Goode. 98 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

Thank you for your testimony. City Council has already prepared a budget amendment that would transfer SEPTA subsidy to City Council until we're satisfied with this issue and a number of other issues. Is the Administration willing to support withholding the subsidy until the Commerce Department's recommendations are implemented?

I would assume from agreements that have already been made at the administrative level, that there would be no problem with that, and we will certainly be prepared to take that back for the immediate approval.

Thank you.

Thank you very much. (Applause.)

Mr. Chuck O'Connor, owner of Bargain House on the corner of 52nd and Market Streets. Also, while he is coming, the Chair also notes that we have Vivian Miller, who is here. She's Clerk of Quarter Sessions Court and also Ward 99 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Leader of the 51st Ward, so she's part of that community and understands the problems. We thank you for coming, and thank you for your support. Mr. O'Connor, thank you for coming. Please identify yourself and begin your statement.

I'm Chuck O'Connor. I own the Bargain House on the northwest corner of 52nd and Market Street. I've been involved in the 52nd and Market Street business corridor since 1969. Over the course of time, we've had SEPTA strikes, which have affected our business by 50 percent. Since the inception of this program, our business has been off. And now that it seems to be concentrating on the 52 and Market Street area, we're off by about 50 percent. Over the years, we've never laid anyone off. Over the last few months, we've been forced to lay off two employees, full-time and one part-time. You have fixed expenses that you really can't do anything about. The landlords want their rent. The City utilities want their payments. Insurance companies want their payments. And when you can't generate sales, there's no money being generated in order to pay these agencies. 100 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 I'm right on the corner of 52nd and Market. This project began March 17. There has been no work done at the intersection, yet this detour has been up since March 17th. We have no 6 buses running past our business, either on Market Street or on 52nd Street. We're faced with construction equipment all over the area, mounds of gravel, mounds of dirt. It's certainly not conducive to people shopping. And unless something is done real soon, we're going to be forced out of the community. I came here today just to express what's going on so that everyone can understand what we're facing. I'm certainly hopeful that there can be some kind of subsidies in order to keep not only my business, but many of my fellow businessmen still able to keep their businesses going. Thank you. (Applause.)

Mr. O'Connor, thank you coming. We know we've communicated with you many times in the past and we know of your involvement. And it's a bus stop. It's a vital place certainly for SEPTA, and certainly we would 101 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 ask someone from SEPTA to respond. Mr. O'Connor says they closed off the area on March 17th, but he's seen nothing happen that would justify him losing 50 percent of his business and employees, two full-time and a part-time employee. We're asking someone from SEPTA to respond. And Mr. O'Connor explains exactly what the problems are. All you business folks know. It's just unfair. You can't help by hurting in the process. We want a new El, but we don't want to kill everybody in the process. So we're asking for a response to that. Thank you. Please come forward. Thank you so much, Mr. O'Connor. We're here to support you. MR. SABATINI (ph): I'm Dom Sabatini, and I'm Director of the Construction Program for SEPTA. First of all, we certainly are understanding of the problems that the construction creates to the local business areas. In terms of 52nd Street, the construction there is some major underground utility work. Also, there's been some problems with wash-out on the underground surface 102 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 there, and it's been plated over. The concern is that bus traffic in that plated-over area can withstand the loading of the busing.

Say that again.

The area is plated over. However, the loading cannot sustain buses because of the problem, the underground problems with wash-out in that area.

Councilwoman, the buses are on detour. And the buses are on detour because we anticipated construction in that area. During the holiday season, we opened up the street to vehicular traffic because we wanted to assist with the holiday with the businesses. However, the street cannot take the weight of the buses, and so we have kept the buses on detour because of the utilities work that's going on on 52nd Street. We are very much afraid of the safety issue, and the weight of the bus would be too heavy for the street because it's just plated. And because of the utility work going on underneath, the street cannot handle the weight of the buses.

I see some people complaining. 103 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Mr. O'Connor, please come forward.

There are no plates at the intersection of 52nd and Market. That area hasn't been touched. They opened the streets up for Easter for vehicular traffic, but yet they continue the detour of the buses. That's our lifeline. The buses are our lifeline. I mean, for them to take the barricades down and to open the intersection for vehicular traffic, it really doesn't mean anything to us. We don't get that kind of traffic. Most of our traffic is generated by SEPTA.

So you hear the response, that SEPTA has done nothing, so the street is no more weakened than it was before, since SEPTA has not done any work on his side of the street. You know, he's on the north side. So what is SEPTA's response to that? You've done nothing, so it's strong as it always was. Can you give us a response?

I think the issue is, in that street intersection, there's, I believe, major water lines that have to be relocated. Also, in that area there's been an undermining of the subsurface from wash-outs in that area. So the 104 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 reason that the construction is taking longer than anticipated is because, first of all, the resolution 4 of those wash-outs. And, secondly, those utilities do have to be re-located in that intersection.

Where do buses stop? Can't they stop a half a block or so many feet away from his business? So maybe you can't stop right in the middle of the intersection, but can't you give him a few feet away so that people are near his business? I mean, if it's one-quarter of the way away from his business -- or either way, so that he just has a matter of footage, so that people maybe don't stop in the intersection, but can't the buses stop right near there, so the businesses don't loss everything? Since you're not working there, since nobody is digging there, there's nothing that's happened, can't you determine exactly where -- if there's a danger, for the water pipes or other construction where it is not undermined, where that danger ends and give our businesses a break?

Well, I think that the operation of the buses, in terms of their turning radius, is in that area, and the detour is probably 105 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 the issue. I'm not absolutely positive of that, but I think that could be the issue. We certainly could take a second look at that to see if we could accommodate that.

We're absolutely asking before the end of the day, and certainly before -- as one of our major issues -- that we try to restore bus service to the north side of Market Street so that he doesn't lose everything. We can't afford to lose him on that corner. He's been struggling for years to stay there, and we need that business. We can't afford to lose the businesses we have. So we're going to ask you to get back to us before the hearing is over as to the ability of SEPTA to restore bus service to that area.

Okay.

Thank you. Thank you, Mr. O'Connor. (Applause.)

We have Denise Garris President of the 60th Street Merchants' Association, and we have Mr. Pak, who's President of the Korean Merchants' Association on 60th Street. 106 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 We thank you both. We saw Mr. Pak at an affair on Saturday -- I can't remember.

Friday.

Friday night. Every day you have affairs. On Friday night, where he certainly helped with awards at Walnut Park Plaza, to give young people sports awards. He contributed, as he always does, to the community, and we thank you very much, Mr. Pak.

And we also have Mr. English.

Mr. English, would you please come forward. Then we'll get Reverend Barnes, you and the others with you. They have Deborah McGregor, Appleheart CDC, and Denise Oh with you. You're next. Is that okay, Reverend Barnes? Mr. English, we thank you as well. We know that you have been in the office. You have given us petitions, letters. You have tried to work with the association, and you've done everything you can to try to support having business 107 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 open and viable on 60th Street. We thank you for your commitment, and taking time. I know you come down all the time, and I know it's sacrifice of your time and energy, as well. So we ask you two to identify yourselves for the record. And then, Ms. Garris, you can make your testimony.

My name is Cliff English. I'm the President of the West Market Village Association, and I own A&R Beer Distributor and Village Dollar Store.

Identify yourself again.

My name is Cliff English. I'm the President of West Market Village Association. I own A&R Beer Distributer at 61st and Market, and also Village Dollar Store in the 6100 block of Market Street.

Thank you. So we have three presidents here; the 60th Street Merchants; Mr. Pak, the 60th Street Korean Merchants; and Mr. English, the West Market Village Association. So we thank you all. 108 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Ms. Garris.

Good morning, Congresswoman Blackwell.

Ms. Garris, would you hold -- oh, I'll take the promotion. Thank you. Can you hold on? Our stenographer has to break for a moment. Thank you very much. (Brief recess.)

Thank you very much. We will now resume our hearing. Ms. Garris, again, would you begin your testimony? Thank you all for your patience.

Good morning, Councilwoman Blackwell, Councilman Wilson Goode, Members of the City Council, and fellow residents and taxpayers of Philadelphia. My name is Denise Garris. I am President of the 60th Street Merchants' Association, and second generation business owner of Garris Fabrics and Fashions. I'm located at 44 South 60th Street. I want to first thank everyone for giving us this opportunity to speak on this very 109 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 important matter. I have been involved with trying to get information and giving feedback to SEPTA representatives since the beginning of this project. I want to review some of the things that have been taking place in relation to this project. Before construction began, I along with other community representatives and with elected officials, and Ms. Frances Jones of SEPTA met about the upcoming project. And during that meeting, Ms. Jones let me know that we didn't have to worry about parking. We didn't have to worry about staging. We didn't worry about anything. Those are the same things we have to worry about today. Later, there was a meeting with the contractors to go over the construction schedule and our proposal for change to the proposal, and how it might impact the area businesses. I left the meeting not knowing what would happen to our proposal, with parking staging and signages. And with the proposal -- I have the proposal right here -- they did many mark-outs of our proposal, not understanding what's going on. We also encompass using the Misericordia Special Services District to help with the clean up. 110 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Subsequently, I attended numerous SEPTA-sponsored community meetings about the project. We focused on employment opportunities and the scope of the project and other issues. I also met with Jim Baker and Company, who are consultants to this project, providing technical assistance to the businesses. And I must commend Mr. Baker and Company because they helped the 60th Street Merchants' Association with our 501(c)(3) and other technical services. Any time that we needed special services, Mr. Baker was there to help us. But nobody else was. I also asked to be on the board or a part of the advertisement committee. And I think they're formulating that now, but in the beginning they had advertisements. And they were doing a promotion last year on Mothers' Day that was unsuccessful because $500 was given to a first prize winner, an American Express money order, where they can spend anywhere in the world. And I said, how does this benefit our area? I then asked them to change it. Not only am I going to ask them why do they do this, but I'm going to give suggestions on how they can change it. And so they did. 111 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 I am also proposing that we be a part, as members and community leaders of West Philadelphia, we be a part of all advertisements and any promotional situation and any construction that goes on in this area. Because we are adversely affected. There were walk-throughs in the area around 60th Street by elected officials in June of 2002. We discussed the safety problems and the problems of customers accessing businesses, and other problems concerned. It seemed to be productive. Ms. Blackwell and Senator Williams and State Representative Ronald Waters and other elected officials in our area, we did that first walk-through in June. And we found a lot of things that were very appalling, through non-accessibility for handicapped people, along with just people in general walking over trapped doors which were just covered by wooden planks that were very degradable due to rain and weather conditions. That was helpful. Some things alleviated and then some things were left alone. With all the meetings and walk-throughs, residents and business owners are not very happy 112 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 with some of the outcomes.

There are still places where people cannot get through to merchants properly. We were promised one lane of drive-through traffic for deliveries. And when I speak on deliveries, I have a merchant on Market Street, Debonair Cleaners, Mr. David Taylor, he received numerous parking tickets just because he was actually taking garments in and out his car to be dry cleaned because he owns the cleaners. In the near future, the buildings next to him will be demolished. And who is going to actually go to him and have clothes cleaned with all this dirt and construction going on? He has been in our community for about 30 or 40 years, and this will be devastating to him, as well as other business owners. The bottom line for us is, what can be done to assist us in making sure we do not lose more businesses and to attract more businesses to our area. Because if we're not careful, this will end up being a ghost town. I also want to know, what will you do about the vendors in the area who are setting up and selling the same goods and services of those who pay 113 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 taxes to the City? Because there are a lot more vendors who are coming out there. We are devastated already. We cannot go on letting other people sell the same services without paying property tax or business tax or licenses the way we do. Is there any enforcement of licenses requirements by the City related to the vendors? And if so, we would like to understand how we can enforce that. Again, thank you for holding this hearing and giving us the opportunity to share our views.

Thank you very much. Before we -- if Mr. Pak or Mr. English would like to speak, I can respond to the vendor issue. We don't have a vendor Bill there. We're one of the last holdouts in the City. We have tried to let the vendors regulate conduct and do their own enforcements. Obviously, that has not happened. What we need is, across the strip -- 60th Street isn't as inundated with vendors as is 52nd Street. But what we want to do is, when we get the 114 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 lots from SEPTA at the end of the project, then we can make the lots available. We're looking into also making one side of 52nd and Ludlow available. And once we have parking, then we can use the meters that are already there, or see if that works best to allow people to shop on 52nd Street to allow the businesses to -- to allow people to shop, to allow people to park, to open up the street. Then you can have vending. Parking has been the issue. And now that it looks like we'll get some lots, we can regulate and organize vending. We have told the vendors many, many times we would do this. You will remember a few years ago, we closed it down, got rid of the graffiti and reopened it. We've asked the vendors to make sure that they clean up at the end of the day. It doesn't always happen. And so we are going to end up with vendor regulation, but I don't think we can do it until this project is completed. Once the project is completed and we have the parking lots, then we can introduce vendor legislation that will clear up the area with the vendors and obviously with the business community.

I also want to inject that 115 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 I'm concerned about the buildings on Market Street with the structural foundation, with the magnitude of construction that's going on, they have dug down up to 50 feet and it does have some type of effect on the structural buildings. I don't know what SEPTA will do or has done to alleviate this problem or fix this problem after the construction is over.

We want SEPTA to respond to that, in terms of the foundations of the existing businesses. Thank you. MR. TEPPER (ph): My name is Jack Tepper. I work with SEPTA. I'm the Deputy Director of the Blue Line Structures Project. I'm happy to hear that we question. It's a very valid question. The foundations that we are installing on Market Street do go down as far as 45 feet. What we've done is, we've taken a video survey before work started of all the properties along Market Street to try to get a pre-construction status or a record of what's out on Market Street. We will also be requesting individuals to allow us to enter their property, if they so wish, so that we would take pictures and also do a 116 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 physical survey of their properties. In that way, if there are any damages or any issues that arise from the foundation installation, we would be able to address them, either through insurance or through our contractors.

So we've learned if we can adopt the report made by Mr. Traylor we will have a regular system for this. But we hear today -- to all the business folks here, that we can have our businesses inspected so that if anybody's foundation has been undermined, then SEPTA has to be responsible for that and all that that implies. That is a legitimate question. We really, really worry. We hope that you will keep in touch with me. Once we have this system in place that Mr. Traylor outlined and the regular reporting back to the businesses, it will be easier. Until that's done -- and we're going to ask again that SEPTA respond before the day is over to this, as well as to Mr. O'Connor's issues. Please get in touch with me, or this is Lisa Snead in my office, my Special Projects Director. Make sure we have your address and your number. Until we have a system in place, 117 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 we will monitor it. Thank you. Thank you, Ms. Garris. Mr. Pak, identify yourself again --

Same history.

Thank you, Mr. Pak. He says his record in history is the same, and he understands the problems. Mr. English.

Good morning, Councilwoman Blackwell, Councilman Nutter and the rest of City Council. My name is Cliff English. I'm retired from Verizon. I have businesses on Market Street. I'm also the founder of the West Market Village Association. I have a few points to make this morning. First, before I took my retirement income and invested it into the second business, which is Village Dollar Store, I asked SEPTA about the impact of construction in the area. They assured me that one lane each way would be kept open for traffic, so I didn't that would be too big a risk to go and invest my money into the business. 118 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 When I then asked -- when they finally closed all of Market Street down and business dropped in half, I went to them and asked them why would do they do this? Why would they intentionally mislead someone? They said it wasn't intentional. They said they got permission from the City to close the whole street down. For their safety reasons, it's a lot more convenient for them to work with no lanes at all. And that's totally killing us. I don't know how they expect any business to survive five, six, seven years without any drive-by traffic. It's just too much for any business to have to bear. I'm so grateful and thankful for Councilwoman Blackwell and Nutter for all the help that they're doing to come to businesses' aid, because it was looking pretty dismal to us. I don't know what they expect. And the attitude I've been getting from SEPTA has just been appalling too. It's just like they don't care about things. The only thing decent I've seen them do so far is with the Baker Administration. They put them to assist us and they try to do all they can with the limited money that they seem to have. They don't seem to have enough money to do what we consider even basic 119 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 things for us. When we asked for flyers for everybody, they had to consolidate that and do something different. We need billboards and posters. We need everything you can get when you close a street down. We need everything that can possibly be done for us because the only customers you get now are the neighbors that have already been to the store. They like your business and they want to go out of their way and tread through this mess to get to you. That's no way to have to run a business, just counting on the neighbors. That's why we put up the big signs, for all the traffic that goes on Market Street. Before, you put a sign up and they look and say, "Oh, there's a dollar store, let me stop and get this. Or there's a beer distributer, let me stop. " I mean, we have all the services there on Market Street and nothing is being able to be realized because they totally cut the traffic off. And they say that we can't do it. We can't do the one lane thing. I've taken pictures of it where they had to leave a lane open, like for Andy's shop, which is in the middle of the block, 120 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 like mine is. They have skilled technicians. They're not hiring no dummies and retards there. I watched them work around their vehicles. They put their vehicles inside this safety area and they work the big equipment around and they drill all their holes. But when it comes to our vehicles there, it's a safety problem. It's this. It's that. I say, they can do it. And I say we need them to open one lane. Don't just kill us for some beautiful project that we won't be there to see. I mean, who is this supposed to be benefiting? Just keep the businesses you have there. Let's work together. We understand sometimes there may be a position where you have to close one side or the other. But that's not the case all the time. Any time the street can be opened, we need it open. I don't think that's too much to be asking. The other thing that really bothers me, and it doesn't directly affect me, it affects my customers and the community at large.

When they ask them about the escalators at 60th Street, they said, no, point blank, "We're not going to repair them. " 121 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 And I'm saying, "Well, how about seniors now that can't get up the steps? " "Well, it costs too much. " I don't care what it costs. You got 500-and-something million dollars. Fix the escalators. Let the seniors be able to ride like everybody else. They pay taxes here. They've supported your system for all this time, and you're just going to stick it to them with that kind of stuff. It really gets me upset even dealing with it, especially the way they talk to people. How do you tell somebody you're just not going to do something when you're taking out money? We're the ones that are paying them. Again, I thank all Councilpeople for letting them know what we think about it, and I just wanted to add that. Thank you. )

Thank you very much. 122 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 Not only do we pay, but we pay more than anybody else in country. We pay. And let me say that we're back to Mr. O'Connor and the issue of the escalator. So it seems to me that SEPTA needs to either repair the escalators or provide buses. You can't have it two ways. And we need the buses anyway. That might be one way you can accommodate both interests at one time. So again, we're going to ask SEPTA to respond to those issues before the end of the day. Let me say to all who are here that we introduced this Resolution on October 3rd. We have tried to allow SEPTA time to try to reconcile some of these problems. Obviously, it didn't happen, and so we're having this public hearing to put them on notice and to formalize all of this. All of the times we've all walked through the community, we've met at corners, we've talked with everyone, and here we still are and we've got to do something to improve what's happening out there on that project. We thank you all. All of you presidents, we thank you for all you do, all you give, and we're going to try to get something done. Thank you very much. 123 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 (Applause.)

Reverend Barnes, will you come forward? We thank you very much. We know that you have been through a lot. Your church is right there. You've worked so hard to try to do so many outreach activities with the youth, try to have food projects, try to have programs. You close off the street every year, clean the street, everything to try to accommodate the community and try to assist SEPTA. But obviously, we're still having these concerns. We thank you very much. Thank you for all that you do. Please identify yourself for the record and begin. Thank you.

Good morning, Councilwoman Blackwell, and all other City Council representatives who are here. My name is Joseph Dewitt Barnes. I'm the Pastor of the Christian Faith Baptist Church. We're located at 6014 Market Street. I've been the pastor of the church for the past 10 years. I'm a charter member of the West Market Village Association. I am also a supporter of the 60th Street Merchants' Association. In fact, we work with all of the business associations in the 124 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 area. I have three points to make. Number one, for the past years at 4 that location, we have not had any break-ins or 5 burglaries in our church. In fact, we have enjoyed 6 a very good relationship with the surrounding 7 neighbors and neighborhood community groups. 8 Two months ago, in March of 2003, our 9 front door was smashed in, in an attempt to enter 10 the sanctuary. One day later, the second attempt was successful when the burglars had to come in the church by way of the bolted sidewalk trap door. They had time to wheel heavy bolt cutters without witnesses because construction fences obstructed the view to residences and nighttime foot and vehicular traffic, meaning that these young men or persons had plenty of time to do what they needed to do to get inside the church. Our computers, printer, fax machines, scanners were lost, and the sanctity of our house of worship was violated. We believe that, as probably mentioned earlier, that some type of strong halogen lighting on the construction site at night and less construction sprawl will improve the security for the neighbors, businesses and the construction 125 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 materials. We want SEPTA police or community-based monitors to provide a presence that would deter potential security breaches. Now to a few more important matters. When the construction is going on in the area, my parishioners cannot get to church. Our current and future work with those in drug and alcohol recovery is severely compromised. Not only drug and alcohol programs, but youth ministries, single ministries, food ministries. All of the ministries of the church are compromised because members of the church, visitors or those who are affiliated with the church have been used to driving up right in front of the church along Market Street, parking their cars and walking inside the church. Seniors are dramatically affected by the construction. We've had seniors who have tried to do every type of -- made every type of alternative move to get to the church. Folks have been dropping them off at the corner, walking them to the church two blocks. But after a few weeks or months of that, cousins, nieces and nephews get a little tired of walking grandmom, grandpop two and three blocks to get to church. The church works to save people's lives 126 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 more than any institution in the community. We do not exist to save SEPTA money. We cannot sacrifice our mission today or in the future for the sake of a new train, because a new train does not save anybody's life. That's the church's response. We support everything that everyone on the block is trying to do, business owners and community groups. We support everyone. But the church is different than the businesses. And at some level the church has to be handled in a separate way. My hope is that we can talk about how that can occur. There was a response that came from one of the SEPTA representatives saying that federal dollars for assistance may not be available for religious organizations. So I asked them to go back and find out how we can get around that. Because the church is the church. In the future when the train is finished and work has taken its toll on businesses and the community, we'll find that the church's work has been delayed.

What value is it for me to put together a five-year growth and development plan for the church for the increased membership? In fact, what value is it to put together any type of plan for the future in any of 127 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 the ministries of the church, if we can't guarantee that folks have access to get there? In fact, who wants to drive to a church anyway that's bombarded with dirt and noise and litter, loss of security and decreasing membership? Yes, we have evangelism efforts. We have outreach events. The church does a lot to reach out to the community. But with construction going on, the outreach efforts to increase membership or to sustain the work becomes in vain. We can do all of the evangelism. We can stand on the streets and minister to people on the corners all day and all night. But who's going to come? If I'm outside of the neighborhood, and they find out that there's no parking available. They're not going to come to Christian Faith Baptist Church, let alone come to any of the businesses on that strip. We're not the only church in that area. I don't know how much of a survey was done by SEPTA. I've heard everything today talking about how they surveyed the businesses. And most of the responses meet the needs of businesses, and it makes sense. But a lot of what they responded to today, in terms of how they're going to fix the problem, don't meet the religious community's needs. 128 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 You have to deal with that differently. It must be a different plan. Now, I'm supposed to put on hold a five-year plan until the construction is completed four to six years from now. Someone said 2007. Somebody else said 2008. Someone said that it might be delayed even more than that. You never know what they're going to find as they continue to build and to dig in the ground. And a new train is not going to solve all of the problems. The only thing that grows a church is strong, clear visions, a plan and evangelism outreach efforts. Those efforts are minimized without technical assistance from hired consultants. The church has affiliates, organizations that they associate with in the religious community. But these issues of construction need technical assistance from people who have the expertise to deal with religious organizations. We can increase membership. We can do those things with technical assistance that's been given some real thought. In closing, if you take a vote today among business owners, I believe you'll find that the efforts of the consultants have been good. 129 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 They've been good, but the results have been dismal. If the goal for businesses on Market Street is to maintain a strong customer base, we expect to work along with those business owners, community leaders, politicians, the Commerce Department, to make that happen. Councilwoman Blackwell had mentioned earlier that every year for the last four years, from 1999 until now, the church has done an outdoor evangelism festival. When we do that outdoor event -- Councilman Nutter is familiar with that. You talk about putting people on the street. We organize that event each year with church leaders, preachers and pastors, community leaders. All the businesses on the strip donate to the event. Block captains, ward leaders all come together every year at the end of September, and we do this festival. The first year was very successful. The second year was very successful. Last year, less successful. It was successful, but less because of construction. The first two years we put a general estimate of 10 to 15,000 people came through that day for those events. We start early in the morning and we go until the sun goes down. 130 05/07/03 - FINANCE AND TRANSPORTATION - RES.

020607 If you're looking to put people on the street, I'm going to ask that City Council, SEPTA and all three business associations become permanent sponsors of the event, both now and in the future, as a way of keeping people coming to Market Street, not once a year, but maybe twice a year in the fall and in the spring. It will take less dollars than what you might be spending now on all of the consultant fees. You talk about people on the street keeping them coming to Market Street. There are other concerns. I like what I've heard today from Council. I like what I've heard today from the Commerce Department in terms of solutions. The only thing we are interested in today is solutions. The problems have been there for some time. I'm asking that Council and all who are involved will take serious considerations to some of the solutions. Thank you for that time. )

Thank you very much, Pastor Barnes. That was an excellent presentation. Certainly we're happy to join with you in this bi-yearly festival. We're always happy 131 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 to be with you during that day. It's always a great, great day. Last year, yes, in spite of all of that, you all still cleaned the whole area and everybody had a great time in spite of all the construction. But certainly we will ask SEPTA. I'm sure that they will join in partnership in sponsoring this affair. And they say yes.

Councilwoman Blackwell, I want to thank you for that. Because we had to move down the street, if you remember last year.

I do.

So if there's an area -- and I'll be talking with the business associations, because where there's an area where there's not construction going on, we found that it was easy to move down the street or up the street on Market Street. The City Streets Department has been very flexible with us in allowing us to get the permits necessary to go either up or down. If the construction was right in front of our building, in the 6000 block, they allowed us to go to the 5900 Block. I think Brother Wadell from Councilman Nutter's organization had suggested a couple years ago that we do the festival at another level where 132 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 we take some of the cross streets also. Denise Garris does parades on 60th Street. We've worked along with her on 60th Street. And if we have something on Market Street, we've talked about coming together and doing one larger type of event, which would take in 60th and Market, and that way you have more of an Odunde day type of celebration going on. But I just want to thank you.

I'd just like to add, if in fact -- whenever there are events going on in the community of whatever scale -- because generally they're going on on weekends, Saturdays or Sundays. And when we're notified in advance, we can arrangements to make areas accessible, particularly for Reverend Barne's event. So we are amenable to working along with community-based organizations or whomever is having an event in the community to make sure that the area is accessible.

We're also asking for Reverend Barnes -- he mentioned the faith-based community having special needs, and we're asking SEPTA to provide, as you said you did for the community, the technical assistance they may need, number one. 133 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607

In fact, let me just say that Jim Baker will take of his MBA hat and put on his Reverend hat to be able to provide technical assistance to Reverend Barnes, because he is a pastor and has been trained and is able to provide that technical assistance also. We've been working with Reverend Barnes on an ongoing basis with -- and have participated in his events, his yearly events at some level. We are not in a position to do a monetary sponsorship or donation, but we provided in-kind services and have worked along with his organization and will continue to do so.

Speaking of monetary assistance, we're asking -- he admitted that never before have they had break-ins or burglaries. Now, doesn't SEPTA have insurance or -- it seems to me that he's owed something, that the church is having these problems due to this project. Doesn't SEPTA have something in their contract that makes him whole after the church having to endure all of this?

We will have Jim Baker talk with Reverend Barnes after the hearing to get his 134 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 information.

And we're certainly making that one of the issues that we would like a response to before the end of the day, because it seems to me that, if the church experienced these burglaries that have never before happened because, obviously, we need lighting and policing, that certainly Christian Faith and that entire community is due something. And we're asking that probably you can have your attorneys or whomever respond to that so we have a legal response as to what Reverend Barnes -- whether or not he can be made whole. Because it's obvious that he should be made whole because it's just too hard. People are suffering. It's not their fault. It's just too hard, and they deserve at least some kind of renumeration for the suffering they've endured and to help them with the church building.

The last two community meetings, prior to that, we heard from the businesses on Market Street, that because it was so dark and desolate, and that the lighting on the structure was inadequate. And we determined that a lot of light prior to the construction did come from 135 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 the cars. So we put together -- and in fact, Councilman Nutter at the meeting that he had contacted the Police Commissioner and the captains of all the district and had representatives at that meeting so that we could hear the complaints and the issues and the problems that were occurring in the community. In addition, the team meetings that we've had, we've had the community relations people from all of those districts in the property area attend also, and they had presence also at your meetings. So we're trying to coordinate with the local districts to make sure that the captains are aware of the problems that we're experiencing on Market Street, as well as coordination with the Transit Police.

Well, we don't believe that's adequate. We have Mercy Health West Philadelphia Special Service District. They're community people you can hire who are able to be there. Certainly SEPTA can make sure that it is lit up enough so that people don't feel that they're in danger. That affects shopping on the strip, as well. But we have a special services district right 136 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 there in the community. We don't understand why you can't hire people to do that. Hire people to make sure -- we all know that if it's lit and people are there, crime doesn't happen. But if it's dark and there's no accessibility, people have problems. So again, we don't believe -- the police respond to emergencies. They're always there for us. We have an excellent relationship with them. But nobody wants to pick up the phone and call 911 or call a police district because they're in the process of being burglarized. We have to have a preventive arm because nobody here, none of the businesses asked for all of these problems due to trying to have a new El project. So we need a preventive program in advance, which means we have to have people who are there. And we already have a CDC that has a special services district. We have a vehicle through which we can hire people who live in the community to try to protect it. So that is one of the other issues that we will ask SEPTA to respond to before we end. Councilman Nutter.

Thank you, Madam Chair and Mr. Chair. Councilman Goode is chairing 137 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 the Transportation Committee. On that particular issue I just had one thing I wanted to ask, if it was okay. The SEPTA representative, it's in concert with the point that you raised. First, whether it's with regard to the CDC or even West Market Village Association, we did have a conversation out at 63rd and Walnut and talked about this whole issue of, kind of a different version of community policing, where there should be discussion and then implementation of an opportunity to hire people in the neighborhood to monitor what's going on down at the site, daytime and nighttime. Provide additional level of service. Again, a lot of ideas, a lot of conversation and no implementation leads to frustration and a disbelief that anything is going to happen. That meeting was two or three weeks ago.

Two or three weeks.

Do you have results?

No, we don't.

You talked about community advisories and flyers and some kind of newsletter to convey information, all of those kinds of things. Councilwoman raised the issue about 138 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 lighting. Well, we know that it's dark out there and we you know that you check the lights and everything that's out there is working. Unfortunately, because of lack of traffic, it is inadequate. The response I received two weeks ago was, "We checked the lights. They all worked. Be happy about it." Now, you did put on the record earlier today that there are continuing conversations. The question is, again, when? I mean, this is not -- there's no incredible design element to running a string of lights down the center of Market Street and attaching them to the superstructure.

And that's what we're working with the Streets Department to do.

I understand that. What we need is for these kinds of issues -- and I think the only thing that's going to lead to any repair, possibly, of a relationship is concrete deadlines for when certain things are going to be done. So we know that you're working on the lighting issues, somebody needs to say, "By May, whatever, they're going to be up and working." Then people can -- they'll judge you based on that. And 139 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 if you meet the deadline, they'll say, "Hey, they said they were going to do it, and they did it." And you can just keep going down the line with that stuff. With regard to -- the Reverend made mention of the whole issue of the Church and whether the Church can get money. You know, at least on the national level, we certainly know that when the federal government wants to give churches money, they go through incredible gymnastics and jump every hurdle and hoop to figure out how to support faith-based initiatives when it's in their interest. Now all of a sudden we can't do anything with churches. So I think we need to re-examine that whole issue. But beyond that, have you determined any estimates to -- we talked about financial relief for the businesses in the community. Has SEPTA looked at this issue from a "if we had the dollars available, it would take X amount of money to try to provide some amount of relief to the businesses out there." Have you done any of that kind of work?

Yes, we have. We started on that probably about four or five months. We 140 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 understood the issue with the businesses and we've been having ongoing discussions with Congressman Fattah's office to identify -- and it is a line item in the appropriation, some dollars to provide.

What's your estimate on what a pool of distress relief dollars would be? How much?

Somewhere around $4.5 million.

And what are the efforts to get to that money?

We're continuing dialog and conversations with the Congressman's office to have it included in the budget so that we can have dollars available to provide relief to businesses. But it's an ongoing process. And we've had meetings and conversation with him in that regard.

Well, I understand that. And I'm certainly no expert on the federal budget process, but I think they're in October September 30th cycle, so at best you'd be looking something in the post-October time period --

Yes.

-- I'm assuming, 141 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 unless there's some other special dissertation.

Yes. Or as soon as we get the information.

What contact or conversation has there been with our City Commerce Department or PIDC or any of our other various agencies? I mean, this is an economic development issue. We're talking about the potential termination of a variety of businesses. Now, when we have businesses that we think are going to move, we'll jump out of a second-story window to try to put every possible package we can in front of them to assist them in retaining those businesses. And it seems to me that, at least from a City side, if not from a State side, and given the fact that SEPTA is actually a State authority, some combination of City and State response to a business retention problem. It's not that they're trying to move to New Jersey. It's that they may just literally go out of business. No one's playing a game here. We've actually had people act like they were thinking about moving. We give them what they want, and they had never even contacted a moving company. These folks won't need to contact a moving company. They 142 05/07/03 - FINANCE AND TRANSPORTATION - RES. 020607 just won't come back one day, and that's going to be the end of the conversation. So I'm asking you, what avenues have you explored? In a similar situation, if we have distressed businesses, we start putting dollars on the table -- I know the City does. I know that this is a capital project. What was that total again, $567?

$567 million.