Each time the Airport issues General Airport Revenue Bonds, the City and an obligated party has to sign an agreement. It's called a Continuing Disclosure Agreement, and that agreement requires the City to prepare financial statements and provide them to certain repositories at some period after the end of the fiscal year. An obligated party is, for instance, a party who at Philadelphia International Airport has a majority of the traffic, and under that circumstance, the obligated party would have to provide financial information on an annual basis.
Under that Continuing Disclosure Agreement, which we have to sign for every bond issue, an obligated party in this case for 97 5/8/07 - WHOLE - BILL 070220, ETC. Philadelphia International, U.S. Airways, would have to provide continuing financial information or make that financial information available to the City. So that language is in the Use and Lease Agreement to make sure that U.S. Airways is cognizant of the fact that, number one, it is an obligated party and, number two, it has to abide by this Continuing Disclosure Agreement.
Thank you. On (G), Passenger Facility Charges, "City should have the right to use such PFCs collected in any lawful manner." Does this mean that the collected fees can be used for purposes not associated with the airport?
The PFCs can be used for eligible projects, and what projects are eligible are really determined by the PFC regulation that the FAA has put forth. Each use of Passenger Facility Charge has to be approved by the 98 5/8/07 - WHOLE - BILL 070220, ETC. FAA, and the eligible projects are only projects which are on the airport.
Thank you. The Chair recognizes -- oh, he's on the phone. Councilman O'Neill has a question or two.
Councilman Kelly has requested that I make it short, and I promise to. Councilwoman Krajewski is not here, so Councilman Kelly is sitting in for her on the brevity orders. And since I just got off the phone with Councilwoman Krajewski, it's only fitting. Wireless Philadelphia, we are internationally known for this make-or-break project that's going to attract young people and make us hip. And I'm looking at Councilwoman Blondell Reynolds Brown, who is very much involved with this. We don't know how successful it's going to be, but we know it's cutting edge and we're trying to keep a 99 5/8/07 - WHOLE - BILL 070220, ETC. lot of these students here and attract the younger workforce from all around the world and companies that might be attracted to that. And when these people get tied up for three and four hours in the airport or when they get stuck because their planes are late or they go on them with their laptops, they find out that we're not so wireless friendly. Of all the WiFi hot spots in the City, we're not one of them. We've talked about this privately, Charlie, I know, and I just think there should be, even if it's just the Food Court area or something -- and now you're going to have two major food courts with your D and E -- there should be a place where people don't, as young people would say, get ripped off, because they feel if they're paying to use a computer in that circumstance, that particularly in a hip "next great city" atmosphere like Philadelphia, that they get WiFi. 100 5/8/07 - WHOLE - BILL 070220, ETC. Is there anything you can really do about this and do it in a way that is not going to bankrupt the airport? But other airports seem to be able to do it and it seems to me it's just a matter of will.
Well, we'd like to point out that we were one of the first airports in the country to have wireless Internet availability. That actually started back in 2004. The way we were able to get ahead of the power curve, though, was without getting airline approval. We would have had to have the airlines approve a capital project to install the antenna infrastructure, and at that time, U.S. Airways in particular, struggling through bankruptcy, did not see it as an essential need. So to get it done, what we did was essentially have the provider install the system at their own expense, and the result is that they are recapturing their investment through the user fees that are charged. We think 101 5/8/07 - WHOLE - BILL 070220, ETC. the user fees are reasonable, but certainly compared to zero or free, it's not -- it never sounds good.
Charlie, there's a difference between something on an expense account that thinks anything is reasonable that they can submit and somebody who is a student or a traveler who is always online. And this comes up and it's just -- it's a very unfriendly gesture. And I think most airports -- I mean, the City is doing it. We're doing it in our public places. What could be a more public place than the airport in terms of friendliness. So we have no plans to do it at this point?
Well, we have -- and based on your stimulus, we've been looking into this. What we tried in the second half of last year, we actually made the entire Food Court and concession area free for a period of three or four months, and the way we did that was that 102 5/8/07 - WHOLE - BILL 070220, ETC. we paid the bill. We paid the user fees, which are six ninety-five a day. Or how much a month? I think there's a monthly option. But it was prohibitively expensive for us to continue doing that.
Well, that's prohibitively expensive, but how about --
Because what happened was by making it free, we had mobs of people with laptops sitting on the floor, and we thought we would offset the expense by the fact that they would buy hamburgers and ice cream, and that is not really what happened. So it was a noble experiment, but it didn't work.
Well, Charlie, you were being hosed, as they say on the street, the same way the users are being hosed right now by your contractor. Now, each District Councilmember was asked to pick a WiFi hot spot, at least one in their 103 5/8/07 - WHOLE - BILL 070220, ETC. districts. If you would just give the Council President a second one, she could have it as the airport, and it's free whenever we get our Wireless Philadelphia infrastructure in. Could I suggest that would be a nice, friendly gesture to the Council President to have the airport be a WiFi hot spot that doesn't cost her another one at a rec center or somewhere or a park that she may be choosing?
If there's a way that we can do it that passes legal muster, because we also looked at buying out the existing agreement, and, again, I think we would have needed airline approval to get the money we need to buy out early.
But I would certainly consider that. We would love to make Philly free. I did recently research this, and at least the most recent article that I could find, 104 5/8/07 - WHOLE - BILL 070220, ETC. Councilman, says that of the top 40 airports, only six of them are offering WiFi for free. Most of the others are charging something. It's a pretty developing area. We are happy about the fact that we had it early, but we're paying the price relative to the free service that you're talking about.
Just remember, Charlie, we're "Wireless Philadelphia." There's no Wireless Atlanta or Wireless Detroit. It's us. We're the ones in National Geographic. We're the ones that are trying to get on the front page of the New York Times and all that. I just ask you to be more aggressive on it. And the last question, parking lots, short term, any plans to build any more?
Then I apologize. I'll get the answer from 105 5/8/07 - WHOLE - BILL 070220, ETC. Jack.
We're working with the Parking Authority both to expand economy and garage parking.
Thank you. Are there any other questions from members of the Committee? (No response.)
Do we have anyone else that would like to testify on the bills before us? (No response.)
Seeing no one, this will conclude our public hearing. We will now go into our public meeting, and the Chair recognizes Councilwoman Blackwell regarding Bill No. 22 070220.
Thank you, Madam President. I make a motion for the adoption of the amendment to said 106 5/8/07 - WHOLE - BILL 070220, ETC. bill. (Duly seconded.)
It has been moved and seconded that the amendment be adopted. All in favor will say aye. (Aye.)
The ayes have it and the amendment is adopted. The Chair again recognizes Councilwoman Blackwell.
Thank you, Madam President. I move that Bill 19 No. 070220 be reported out of Committee as amended with a favorable recommendation. (Duly seconded.)
It has been moved and seconded that Bill No. 25 070220 be reported out of Committee with 107 5/8/07 - WHOLE - BILL 070220, ETC. a favorable recommendation as amended. All in favor will indicate by saying aye. (Aye.)
The ayes have it and the motion carries. Again, the Chair recognizes Councilwoman Blackwell for the purpose of making a motion on Bill No. 070221.
Thank you, Madam President. I move that Bill 16 No. 070221 be reported out of Committee with a favorable recommendation. (Duly seconded.)
It has been moved and seconded that Bill No. 21 070221 be reported out of Committee with a favorable recommendation. All in favor will say aye. (Aye.)
Those 108 5/8/07 - WHOLE - BILL 070220, ETC. opposed? (No response.)
The ayes have it and the motion carries. Thank you all very much. Thank you. (Committee of the Whole adjourned at 12:30 p.m.) - - - 109 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on May 8, 2007, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)