COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE Room 400, City Hall Philadelphia, Pennsylvania Tuesday, April 10, 2012 10:16 a.m. PRESENT: COUNCIL PRESIDENT DARRELL L. CLARKE COUNCILMAN CURTIS JONES, JR. COUNCILWOMAN BLONDELL REYNOLDS-BROWN COUNCILMAN BILL GREEN COUNCILWOMAN CINDY BASS COUNCILMAN KENYATTA JOHNSON COUNCILMAN DENNIS O'BRIEN COUNCILMAN BOBBY HENON COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN MARK SQUILLA COUNCILWOMAN MARIA D. QUINONES-SANCHEZ COUNCILMAN DAVID OH COUNCILMAN JAMES KENNEY COUNCILMAN WILLIAM K. GREENLEE 2 NO. 120164- An Ordinance to adopt a Capital Program for the six Fiscal Years 2013-2018 inclusive. NO. 120165- An Ordinance to adopt a Fiscal 2013 Capital Budget. NO. 120166- An Ordinance adopting the Operating Budget for Fiscal Year 2013. NO. 120167- Resolution providing for the approval by the Council of the City of Philadelphia of a Revised Five Year Financial Plan for the City of Philadelphia covering Fiscal Years 2013 through 2017, and incorporating proposed changes with respect to Fiscal Year 2012, which is to be submitted by the Mayor to the Pennsylvania Intergovernmental Cooperation Authority (the "Authority") pursuant to the Intergovernmental Cooperation Agreement, authorized by an ordinance of this Council approved by the Mayor on January 3, 1992 (Bill No. 1563-A), by and between the City and the Authority. 3
Good morning. This is a continuation of the Public Hearings on the Committee of the Whole regarding bills No. 120164, 12165, 12166, and resolution No. 5 12167. Good morning, and the first Department to -- I would like to ask Ms. Lewis to please read the titles of the bills and resolutions.
Bill No. 120164, an Ordinance to adopt a Capital Program for the six Fiscal Years, 2013 to 2018 inclusive. Bill No. 120165, an Ordinance to adopt a Fiscal 2013 Capital Budget. Bill No. 120166, an Ordinance adopting the Operating Budget for Fiscal Year 2013. Bill No. 120167, Resolution providing for the approval by the Council of the City of Philadelphia of a Revised Five-Year Financial Plan for the City of Philadelphia covering Fiscal Years 2013 through 2017, and incorporating proposed changes with respect to Fiscal Years 2012, which is to be submitted by the Mayor to the Pennsylvania Intergovernmental Cooperation Authority, (the 4 "Authority"), pursuant to the Intergovernmental Cooperation agreement, authorized by an ordinance of this Council approved by the Mayor on January 3, 1992. (Bill No. 1563-A), by and between the City and the Authority.
Thank you, Ms. Lewis. The first department today will be the City Representatives Office. Will they please approach the desks and we can begin our ambitious agenda for today. Good morning.
Please state your full name for the record and begin your testimony.
Good morning Councilman Jones and Ms. Lewis. My name is Melanie Johnson and I'm the City representative for the City of Philadelphia. With me is Deputy City Representative Margaret Hughes. I am here today to present testimony on behalf of the office of the City Representatives FY13 5 Operating Budget. Request of $889,611, which provides no changes over our FY11 (sic) estimated obligations. The OCRs of Marketing Public Relations and branding arm for the City events are developed and promoted to attract customers, visitors, and new residents to Philadelphia, and enhance the quality of life. We work with a number of different organizations in the City, including PCVB, GPTMC, CCD, IVC and HPI to promote Philadelphia. Over the last Fiscal Year, we have had a number of great events that have really promoted the City, including Wawa Welcome America, which attracted -- Well, according to the Temple University study, Industry Research Center, the economic impact of Welcome America for FY12 was $65 million dollars with about 3,000 hotel room nights and about expenditures of $347 per person. The Philadelphia Marathon weekend, which takes place every year, its 18th year have economic impact of more than $20 million dollars. 5,000 hotel room nights, and the 6 new one that is coming up this year, the weekend of the 16th through the 18th of November, we also had our second year of the Philadelphia Collection, and it was extremely successful. We received a lot of national attention on that event. The OCR Budget Appropriations request of $889,611 represents zero increase over FY12. The breakdown is $338,000 Class 100. $506,000 plus Class 200. $45,000 in Class 300/400. The OCR is committed to supporting the administration goal of percent minority 13 woman, and disabled-owned businesses, 14 participation in City contracting. It has 15 exceeded the 25 percent goal with a 16 participation rate of 65 percent. A 28 17 percent increase over FY11. 43 percent of 18 that total is with the woman owned 19 businesses. 20 The OCR serves as a managing conduit 21 for a number of stakeholder entities that 22 engage in cultural City-related marketing and 23 development activities, including the Greater 24 Philadelphia Film Office, and Historic 7 Philadelphia. The stakeholders and the OCRs produced Wawa Welcome America!, as I said earlier, Philadelphia Marathon, and we participate in the M/W/DSBE goal through budgets that are not reflected in the General Fund. Thank you for the opportunity to testify. If you have any questions, I will be happy to answer them.
-- through this written testimony, which happens to be like seven, eight pages. It wasn't seven, eight pages worth of testimony, but we appreciate that in light of our agenda. Couple of questions before I open up to my colleagues. These various events; Wawa Welcome America!, and some of the newer ones that you have established. I know you have 8 done a great job working in my particular district dealing with the bike race and others. Have we quantified what these events are worth? Not in the sense of what is spent, but, how do you then negotiate with sponsors that may want to participate, or is that your responsibility?
For the events that I do for the City, yes. We try and work with an organization. In this instance it was Temple University. Last year was the first year since we have been here that we were able to do a research study on Welcome America! We are doing a partnership with Temple to do that again. We have done it for the last four years for the marathon. When it's an event that the City supports, but does not produce, we talk with the organizers and producers to see whether or not they will do a partnership or pay for that study. But it's a very expensive study, depending on how the event is. So, some of these organizations haven't had one in quite a few years. 9
On the Parkway, what was the largest event by way of population that we have had?
So, is there a quantifiable marketing piece that says this is what one million consumers are worth?
What -- So, if I am BK Tires and I say, look, I want to participate. How do you price point what kinds of sponsorship levels? There is no 18 right or wrong answer at this point. I just want to see where we are with that kind of analysis and see where we are gonna go with it.
Well, we look at the overall event and what we are selling. For that particular event, we have a huge 10 footprint. So, we can talk to individual sponsors and say to them, depending on what we are offering. For Welcome America!, its televised. So, we work with our partner, our TV partner, to say, we need a certain number of ads for our sponsors. Our big sponsor is Wawa. So, with Wawa, they get the benefit of having a huge promotional piece attached to their name. We also look for the demographics. What is their marketing goal for that year, so that we can say to them, okay, this is what we can offer you. This is our demographics. We have a family of four who makes $80,000 plus. Educated --
Yes. Our demographics give them that. So, we try and make sure that our goals -- but, some of them just want to get into a crowd, depending on what the sponsor is, and who it is. For Wawa Welcome America! because we have such a large footprint, not only at the Parkway, but at 11 Penns Landing. We can offer the space and the people come. We get about 200,000 throughout three days for Taste of Philadelphia. So, we have a large number. We have the people that the sponsors want to come and present their products to or do samples.
So, my question is, what is the price? If an event costs -- We kind of are beginning to put our arms around the costs of an event, meaning the logistics of the police, the disruption of traffic maybe, and you know, I always hear from the museums as to what it costs to shut down the Parkway. So, at some point, we'll say the costs are X and, therefore, the sponsorship has to be Y. Have we done that yet? Have we said, here's what we are paying, here is what we need from you in order to do this?
Yes, if you are talking about events that are not produced by the City, because that would be the City service costs. 12
So then, there is a equal. We are not trying to make money, but there is an equal amount charged to the vendor and, therefore, any sponsors that participate know, all right, so this is what your price point is. Example, if we close down the Parkway and we do those big Jumbo Trons and in between the X that we have. Then, if I am BK Tires and I get a little banner -- I am not opening up a tire company. But, if I am BK Tires, I should be able to spend $500 a ten second blip. It would be helpful if we broke it down to that kind of price point because there are people that would pay that to the City for -- to be exposed to one million people.
It is really the impressions on the Jumbo Trons. When we are selling space on the Parkway during Wawa Welcome America or even during the marathon, it is different. It really depends on the event. With Wawa, we have Jumbo Trons. So, 13 we can say to someone who is giving us $15,000, in your price point that will give you two impressions on the Jumbo Tron that you can promote your product, and that is a million impressions because we have a million people who come throughout that day. So, does that answer your question? Each event is really individual and while the City service costs, if we are not producing that event, the only thing that the producer is charged for are City services, but they have to find the money to put their event on themself.
So, you don't get involved in the detail of that particular BK Tires?
It really depends on the event. But, no, only if we are producing that. We have offered assistance in the past, marketing assistance.
All right, I will shift gears and then -- I see one of the lights is lit up, but how do you encourage the prosperity of an event on the Parkway to 14 be shared with the ten districts in the City of Philadelphia? So, if we are having an event in Center City, how do we encourage tourists to come out to the various venues in the neighborhoods?
Well, again, it depends on the event. With Wawa Welcome America, we do a lot of different activities. Go Forth And Learn, Philly at the Movies, in the neighborhood surrounding Philadelphia. So that we have partnerships, and then of course everyone is invited to come to -- everyone is invited to come to the 4th of July celebration or any celebration that we have, which is centered right here in Center City. We also do partnerships with a number of different organizations. Last year for Wawa Welcome America, we worked with the Uptown Theater for an event that they were doing. So, we try and reach out to the different organizations to allow them to be apart of what we are doing, whether it is a venue or they're a partner and they bring their stuff to the Parkway for the 4th of 15 July.
So, if you could provide to The Chair, and I will distribute to the various members of Council, what I would like to see is, if we have having something in Center City, what can the connectivity be to, for example, the 8th District, Chestnut Hill area, restaurateur. In my case, we have a philosophy that if you are in town and you are a doctor and you are at the Marriott Hotel, if you come out outside and you go left, you have adult entertainment. You have things that are casinos and other more mature activities. But, if you turn right and start heading up the Parkway, you can go to the museums. You can further go to the Zoo. You can then go to Please Touch, you can go to the Mann Music Center, and one of the ways that you promote that is the Flash bus, and I understand they are negotiating -- they had some financial challenges. How are we working that negotiations out?
I believe the City is 16 working to find the hole in the budget in order for Flash to continue for another fiscal year.
Whether it is in the 3rd District or the Zoo or in the 4th District of Please Touch, that is how family visitors get to go out there. We have the Japanese House Horticultures. All of that row depends on that Flash, and I'd like to see a list of ways that we hit Germantown Avenue, hit Passyunk Avenue in South Philly, to try to encourage people to go beyond Center City to enjoy the taste and sounds and sites of Philadelphia. So, if you can provide us a list of how you intend to specifically do that, I would appreciate it. The Chair now recognizes Councilman Kenny.
Mr. Chairman, I know we have been through the history of this 17 administration. We have been going around and around with all these events and their costs and their value and all that stuff. Have we looked at other cities and what price Chicago does. For example, is everyone charged if they are doing an event? The other issue is, is there a way to analyze or at least attempt to analyze the additional benefits of an event for the City's revenues? So, as opposed to analyzing it simply on the cost of police overtime, recreation, sanitation, is there a way to figure out what the return on the investment is if it fills hotel rooms, if it fills restaurants, if it does various things. Because, I think a lot of times, and rightfully so, I am not being critical at all, I think we have to look at the costs of our City services and what -- Do we ever do a return on investment kind of analysis to see if in fact there is a return or to debunk what some groups say is a return? I mean, would some analysis -- we have GPTMC, PCVB and all those organizations 18 those two organizations that are wonderful in figuring out the benefits of an art exhibit or parade or something? St. Patrick's Day, for example. People don't come in and probably stay overnight unless they're out-of-towners who are performing in the parade. I doubt, it is a more regional approach, but when you look at, you can't get into a restaurant or a bar in Center City on that day of that parade. What is our liquor by the drink return investment? What is our wage tax return on investment? All that seems not to be part of the analysis, or is it?
Yes, to all of your questions, except for St. Patrick's Day. Yes, we have looked at other cities and in the economy that we have had for the last four years, almost every City, including Chicago, New York, Los Angeles, are charging for events. In terms of, is there any analysis for some of the events? We recently did one for Wawa Welcome America and we hope to do one 19 again and those are the things that you mentioned that we do ask for analysis of, for instance, the economic impact, which I think you are talking about for Wawa Welcome America is a little more than $65 million dollars with a ten-day period. For Philadelphia Marathon, it's a little over $20 million. 5,000 hotel room nights, ec cetra. For events that the City does not produce, we do not have that information.
Do you think it would be worthwhile from the City's perspective, making an argument that people should pay or from the City's perspective that we didn't realize it had this economic impact for us that we could find a way to either defray costs or defer costs. Mummers parade for example. We always have this ongoing argument every year. People come in, they stay in a hotel. Do they? I don't know.
They did at one point. I don't think they have had analysis for the last four years.
No, I'm saying an 20 independent analysis or not or done by the City or GPT, I would trust GPTMC to do that.
There has been discussion about trying to do that for some of the larger events. It has not been done as of yet.
Same thing for St. Patrick's Day. You can't move in town when that parade is on and anytime you get great weather, it is even bigger. So, I just think -- I also think sometimes that people who are native Philadelphians or regional natives, they're offended by being asked to pay because they feel like it's the one thing a year that they get or they've had that is now being a bill being given to them. Again, I am not -- I understand your side of it. I am not being critical. I am just saying it is hard to translate that to folks who, you know, get that one day a year on the Parkway and then get a bill. So, I really would like to drill down deeper into trying to determine what the economic return is and hopefully we can do that going 21 forward.
I will certainly speak to the Mayor about it during the analysis.
Thank you, Councilman. The Chair now recognizes Councilman Henon.
Thank you for being here. You know I certainly recognize, you know, the good work that the department and how they especially handle the high profile events and recognition for the City --
-- in promoting, in some cases receiving national exposure. I think Councilman Kenney is absolutely correct. You know, having an analysis, impact study on the amount of revenue that you can actually, you know, tie into a 22 specific event or at least percentage wise for like events or smaller events is extremely important as we, you know, try to manage our cost analysis to what the City spends, you know, on resources and services that is supporting the events. You know, in your testimony, you had on , you had mentioned one of the paragraphs here, supporting program development and strengthening strategic marketing plans. What types of programs would you be developing? On , third paragraph from the bottom.
Well, we do partnerships with a number of different organization. Without the partnership of the Center City district, we would have never been able to do the Philadelphia Collection. Without the partnership of GPTMC, PCVB, and a number of others organizations, including the Philadelphia Museum of Art. The With Art Philadelphia program, which is being launched, will not happen. So, those kinds of partnerships allow 23 us to take an event to really target Philadelphia for either art or for athletes to show our running past throughout Philadelphia, which the Philadelphia marathon does. Partnering with Parks and Recreation. Any number of organizations. Without the partnerships of the hospitality and tourism industry, a lot of the things we do could not happen. So, that's really what I am talking about when I say strengthening.
At the same time, you mention increase and impact of the various City's departmental initiatives. Is that sort of collaboration similar?
What are some of the examples on departmental initiatives?
The Mayor's office is sustainability. We worked with them last year to make our Philadelphia marathon more sustainable. We did composting for the first time and will do so again. We actually created this organization with the office of the Mayor's Civic Engagement Office, what we 24 call Waste Busters.
Waste Watchers? Well, either one is okay, but they, basically, sorted through the trash. They were volunteers so that we could take that trash and turn it into compost. We also have done partnerships with the Mayor's office of Education on their graduation; caps and gowns on the steps of the Art Museum where the college students tossed their caps, which is the name of the event, we are working with them on something else that will happen this year for high school students. Parks and Rec are also one of our big partners that we work with.
So, in addition, we have, and I think everybody should be exited about the Barnes Museum. Is there an aggressive campaign, you know, that we can -- that we are gonna publicly address and promote for the most prestigious art collection in one location in the world?
Absolutely. That is the With Art Philadelphia program that we are working with GPTMC, PCVB. I can go through all these alphabets. But, basically, it's all the art organizations. Not just the ones on the Parkway where we are launching a million dollar campaign with money that was raised from all the organizations to position Philadelphia as a place with art. So that we highlight every kind of art with the Penn Museum, Philadelphia Museum of Art, the African-American Museum. Everybody gets a chance to be apart of this big launch because Barnes is opening on the Parkway and we are taking advantage of that and the fact that Traveling Leisure made Philadelphia, No. 1, in culture and arts to really push our position.
-- money received from, you know, subsidies that the City --
The City is part -- The money is from the different organizations that are participating in this event. Well, not the event, but this piece.
The rate of return on dollars, I think, goes to, you know, Councilman Kenney's suggestion on the rate of return back to the City for his resources when you are taking a look at something like that, some sort of impact study financially on our rate of return for dollars spent, dollar received. Again, I think it will go a long way in promoting the City as a world destination.
Yes, and the With Art Philadelphia program, I think we will be able to figure out people coming in for that year. But it's a two-year program. So, yes, and, you know, your point about the analysis for the different events is well heard.
Thank you, Councilman Henon. Chair recognizes Councilman Oh.
Thank you very much, 27 Chairman. Could you explain how your office is setup in relation to other governmental entities? Is this a stand-alone independent office or is it part of another department?
In terms of its strategic goals, how do you set out to arrive at your strategic goals, and what are they for the next two or three years?
To contain and promote the City of Philadelphia through partnerships, events, marketing, branding for the City.
Any particular demographics that you are trying to reach or to attract?
Well, we work with a number of different organizations for the tourism industry. So, the Mayor recently started the Hospitality Advisory Board to talk about some of things, not just in the City, like homeless, but how to attract more 28 people. So, a large number of the organizations that I talked about earlier are part of that Advisory Board.
Okay. Would you then describe your office as an entity that supports the efforts of other private and nonprofit sector initiatives, or as an organization that fills in or leads in creating events where some may be lacking?
We actually do both, Councilman. We create a number of different events. We have created the Philadelphia Collection. We work with a number of different organizations to support what they are doing and they also support us. We are creating -- we also try and make sure that we are within the guidelines for the Mayor's initiatives. His fight against obesity. We are going a Mayor's 5k run/walk this year. We are looking to promote Philadelphia's industry in terms of good health, nutrition with Philadelphia Home Grown program that we are trying to work with 29 GPTMC to launch this year as well. So, we create a number of different events and have for the past four years and plan on continuing to do that. But, we also offer support, not only internally, but externally.
Do you believe that the efforts that you make are returning to Philadelphia far greater dollars than are spent?
Well, I can use the Philadelphia Marathon to show the example of that. When we first came here in 2008, there were 14,000 runners in the Philadelphia Marathon. As of last year, 2011, there were 27,000 runners and we are one of the few marathons that is still growing for the full and not just the half. Throughout the country, almost every marathon has dropped in numbers, but the half has increased. Not the Philadelphia Marathon. We are still getting at least 1,000 people per year for that marathon and it is about 20,000 -- $20 million dollars economic impact and we have an agreement with almost every hotel during 30 that time and we use about 5,000 rooms nights. So, I will say that, yes, the effort that we put out is very good on the return.
You know, I am struggling how to answer that question because I think we are doing more. We are adding two new events this year and we have a very small staff. So, we are already kind of overwhelmed, but we keep pushing because the Mayor inspires us to do what we need to do to make sure that we are offering something to the citizens of Philadelphia and also attracting tourism.
I could always use a bigger staff. I think every department in the City could say that.
Is your office kind of the central point of all these different entities; hospitality, arts, in terms of promotion, gaining international tourists, 31 things like that?
Yes, I would say that. I sit on most of the boards of the hospitality organizations in the City or work with them in partnership one way or the other, and we, IVC, International Visitors Center, that is run by Nancy Gilboy, we have worked with her on the sister City's program and an ambassador program that we started two years ago that's really given us more than what we ever put out, and also Commerce is working with us on that as well.
How do you interface with Commerce? Does the Commerce Department have its own promotion and whatnot? Is there duplication or is there something that is unique to what you are doing?
It depends on what the event is or what we are doing. For the Ambassador Program, we work on -- I don't think there is duplication. They work with us on the Philadelphia Collection and the Philadelphia Fash Incubator at Macy's. So, there are a number of things we work with on 32 them. The office of the City Representative was a part of commerce for so long we are still, in the past four years, since it became independent. We are still figuring out how to work together, but because that history is there, it is good.
Okay. Thank you very much. Thank you Mr. Chairman. Sure. Thanks. The Chair now recognizes Councilman Johnson.
I want to start off by commending you on the work that you have been doing.
Just a couple statements or a couple things to take into consideration as you move forward. 33 Obviously, your particular position is a very important position as it relates to the City of Philadelphia as we stick out our claim along the east coast. Particularly Philadelphia being in between DC and New York, it is quite obvious that we have to promote aggressively our City as a destination City. So, I do commend you on your past efforts and just wanted to point out a couple things from a supportive standpoint on how some things, I think, could enhance your particular department. I think as we struggle with the issue of revenue for our City, you are in a key position because travel and tourism are one of the main ways we can always bring in additional revenue. People come for the various events that you organize, they stay, they spend their money, they stay in the hotels, they eat at our restaurants, and our establishments. One thing I would like for the City Representatives Office to pay attention to is also a plan regarding the recruitment of 34 young professionals who attend our major universities as well as some of our local two-year college universities whether it be Pierce or whether it be Community College, but more importantly on another level, individuals who attend University of Pennsylvania, La Salle, Temple, who decides to not stay in Philadelphia when they graduate, when they receive their degrees. So, if you can just take into consideration as y'all plan, as y'all move forward, not only throughout this administration, but a long term plan beyond this administration to recruit and also maintain some of the young professionals who received professional and graduate degrees from our local universities. If you are already working on some of those issues, can you elaborate?
Certainly, Councilman. We actually have a really robust internship program where we work with our large number of universities. We get a lot of Temple students and actually last year we hired one 35 of those Temple students who had been an intern since 2008 for Wawa Welcome America, and she was a volunteer in my office for almost the entire four years. So, she's turned out very well. We also just talked with someone from Fox Business School, they want some of their graduate students to work with us and they worked very closely with us during Wawa Welcome America to provide us with students and internships. We have had students from LaSalle, from Villanova, and from University of Penn throughout the time that I have been there and we couldn't do what we do without the help of these students. So, they come through during different times and we have them working on public relations and the different events.
We also work very closely with Campus Philly. They are actually bringing back their -- what do they call it? It is their fair that is on the Parkway and 36 their, as you know, goal is to retain those students here in the City. That is another thing we work with Commerce on.
That is good. Also, just want to commend you on the partnerships with the other various City agencies that you work in conjunction with, whether it's the Department of Commerce or the various other agencies, such as Greater Philadelphia Tourism and Marketing Corporation, Philadelphia Convention of Visitors Bureau, Philadelphia International Visitors Council as well. I think, because as a lot of times you see City agencies working independent. So, there is no communication or no synergy amongst the various agencies that all have the same goal and mission. So, again, I just wanted to commend you, but I am a real advocate for making sure that when individuals receive those graduate degrees, I think if we have a concrete as Mr. Majority leader has shown me thus far on coming in as a member of Council. 37 Is there an actual plan? Like, what is our plan to retain college graduates in the City of Philadelphia and so something like that can be explored, my office is more than willing to be supportive of that process. So, we can do away with the reputation of sometimes being viewed as having a brain drain --
-- in the City of Philadelphia, recruiting our best talent and keeping our best talent. So, from a supportive standpoint, if I can be supportive of that type initiative, I offer myself. More importantly, I do believe as we move forward as a City, we need to have a plan to keep our best and brightest in the City of Philadelphia, but Melanie, keep up the good work.
Thank you, Councilman. The Chair now recognizes Councilwoman Brown. 38
I will start with this, what I call a big picture question. Revenue aside, if you have to look into a crystal ball and wanted to create a new initiative of the office, what would it be?
The Philadelphia Home Grown, because it takes into consideration not only promoting the produce, but -- let me start from the beginning. GPTMC kicked off Philadelphia Home Grown -- Is walt here? Two years ago. It's a campaign that has promotion with it, but one of the things that she and I have talked about is actually bringing it into the City so it is actually into Love Park and renting booth space to not just produce, to show off what Philadelphia and its region has to offer, but also Philadelphia clothes that are made here.
Textiles. Any kind of thing that Philadelphia makes or the region, 39 so that we can take that and grow it. Because one of the things that is very important is to show that we are a sustainable City and that we do have manufacturing here. We do have farms here. We have things that we can sell. So, that is something that we have been looking at for the past year, and talking about it, and we hope that we will be able to launch that this year in September.
Terrific. How are new ideas vetted in the Commerce Department; new ideas?
I can wait. I can wait. Let's move to talk about the Christmas Village. Last year questions were raised regarding whether or not it looks like Philadelphia, and it is no secret that we are asking this of every single department. 40 So, for the Christmas Village, two years I asked about the processes in place to certify that companies participating in the Christmas Village abide by City standards after the initial award of the contract. What steps has your office taken to ensure that these companies represent themselves accurately when they apply for City contracts?
Are you talking about minority? It is in the contract that they have, I believe. When we talked last year, we checked. They do. If you go to any of the booths during that time when they are selling, they actually recruit here in Philadelphia. Some they bring from Germany and other places, but a lot of the booths are from Philadelphia.
That is one important check off. What about cultural 41 diversity?
Well, we have talked about some of the stuff that they do. They have brought in entertainment. Last year they had that, and I would say that the entertainment that they provided was definitely --
Absolutely. They had everything from African-Americans to some Asian dancers, I believe, or the dragon that they have. So, it was very, very diverse last year.
Can you submit to The Chair the listing of those contracts and stipulate whether or not they were local MBEs or WBEs?
I don't have those because those are individually done by the 42 contractor, because we don't produce that event. It's an individual contractor who does, but I do have the contract between them and the City of Philadelphia.
You have access to that contractor, who then ultimately -- I hired those folks?
We would like to think that this is an expectation that they provide a listing of who they are doing business with, because only hard factual data shows the true story. So, the ask is that you will get that information and submit it to The Chair so that we can see it for ourselves. The Christmas Village moved to Love Park this year during preparation for the construction at Dilworth Plaza, the outcomes at the Village changed as a result of the move in terms of revenue.
I believe so. They were very busy, much more so being in Love Park than they were in Dilworth Plaza. It was 43 really an eye opener. It worked very well in Love Park. They had a lot of people coming in and out. Probably because Love Park, people walk through it, but they did very well this year -- last year.
So, you have information that shows an uptick in attendance, as well as revenue generated?
Please, and if that can be a part of the testimony next year so that we can actually see what the yield and outcomes are with those kinds of decisions. I will stop, Mr. Chairman, and I will be back. Thank you.
Thank you, Councilwoman. We are gonna recognize Ms. Bass and then we will be on our second round of questioning, which will have a three-minute limit as opposed to a five-minute limit. Councilwoman Bass.
Good. I just have a couple of really quick questions. One was already touched upon by Councilman Johnson in reference to attracting people to Philadelphia because, you know, I'm a firm believer that the only way we kind of get out of the financial situation that we are in is we have to grow our City. We have to grow our economy and part of that is getting people to come here, see how great it is, and then connecting them with the idea of living here and calling Philadelphia home. So, and again, I know that there was some discussion already had. But, I guess I just wanted to ask a little bit further. Is there any sort of comprehensive effort to get people to come to our events and activities and then stay here? 45 Is there any organized, strategic effort beyond the college graduate, you know, which is great, you know, because we need to to do something about the brain drain, obviously. But also for other groups. For other families, young families, individuals. Is there any sort of comprehensive effort that your office works with, you know, another department to, you know, attract and recruit folks to come in to Philadelphia to stay?
It's something that's been discussed, but there is not a promotional piece attached to that as of yet. It is something that we have been talking about for the last few years and trying to find funding for, but it hasn't moved. So we do a number of different things through events and promotion for tourism, but not a specific program to attract people to come to Philadelphia to live. No. 24
Okay. All right. 46 But, it is something that is not off the table. Something that you have discussed, but just sort of getting your hands around it right now, it may take a moment to get there; you think?
I think that it was shelved for a number of reasons, but it is not something that is dead. There just hasn't been any funding or agreement as to how it could be resurrected, so-to-speak. But, it is certainly not completely off the table, no. 13
Okay. The other question, can you speak to specific marketing techniques or projects that you all may do, particularly towards certain nitch communities, specific communities whether it is the African-American community or LGBT or the Hispanic community, which is growing throughout our City and our region. You know, Philadelphia experienced population growth, and that was one of the communities that really had a significant growth. So, how do we market to them with the 47 events that we have? You know, I notice some of the events that you have mentioned here, but nothing that was specifically, you know, geared towards specific communities; like I said, the African-American, LGBT communities, and groups that want to come in and spend money and see Philadelphia?
Well, when we do, for instance, something for the Philadelphia Marathon, our promotion has to be very broad. But in working with GPTMC, they market specifically to those communities; LGBT, as well as 360. We work with 360 for every event that we do, as well as GPTMC. They really work closely with us to do promotions on all of our events. From the Philadelphia Collection to Wawa Welcome America to the Philadelphia Marathon and now for Philly Home Grown. So, they have segments where, I am trying to think of a for instance for you with 360, something that we did. I am drawing a blank. Can you think of something? 48 We work with them because their job is to promote Philadelphia specifically through funding that they get. So, they have been great partners for us. We work with the Multi-cultural Affairs Congress. When the National Association of Black Journalists were here, we worked with them and hosted a reception for them to show them the things that we do. We did, during Welcome America, a block party in Chinatown and marketed that. So, we try and hit every demographic that we can through a lot of different ways. We went to New York with GPTMC for With Art to promote that to the African-American Journalist. We have done that in the past. We have done media tours and things along those lines. So, we try ran hit every one we can, but we, in my office specifically, we kind of keep it broad when we are trying to do a marketing program because of the funding involved.
Thank you, 49 Councilwoman. We are going to begin the second round. I have a few brief questions. First of all, let me compliment you and take a page from one of the Serious 6, Councilman Johnson, and complement you. But also one of the veterans, Councilman Green, and say we are trying to learn how as a body to say, "yes, and", as opposed to "no, but". So, we're trying to -- there's a kinder, gentler spirit in chambers these days.
To compliment you. You have grown as an administrator. Your presentation is concise. You have been telling us what we need to hear. We are trying to tell you what we'd like to see. That connection to the neighborhood, we're a City of neighborhoods, and Councilman Squilla's district. I know about the Italian Market and things that are part of our fabric. In Chestnut Hill, Germantown, there are things to see, and in my district. We'd like to look at the groups, figure a connect, and get 50 them to come out to these neighborhoods where we have commercial shopping strips, we have restaurants and places that are unique. Every City has a gap, but every City doesn't have Denise's Bakery. So, we want you to come out to parts of the district and get people to really, you know -- Pat's and Geno's is nice, but there are other cheesesteak places that I would argue are better, Councilman Kenney. So.
Can I tell you about our Philadelphia Marathon fan pass, Councilman?
We created that four years ago. The first year was specifically the course where we approached a number of different retailers to highlight what they were doing during the Philadelphia Marathon. That year we had about 40,000 people who, basically, they're a captive audience. 27,000 of them are because they have to come and pick up their bags from the Expo. But, they bring their families, which is why the Philadelphia Marathon is the gift that keeps 51 on giving. The year after that, we expanded the Philadelphia Fan Pass. The Philadelphia Marathon Fan Pass to make it City wide. So, that we had over a hundred retailers and hotels that signed up to give discounts so that we could promote them during the Philadelphia Marathon Expo. We also use Temple University students to promote the City and the different organizations. There is a booth at the Expo that talks about not just what is going on during the marathon, but what happens in the City. There are some events or something at the Please Touch Museum, because again, no 16 runner comes alone. They always bring a support team.
So, those support teams are not going to be at the Expo all the time, so we found a way to try to really give them something they can do. So, that is one of the things we do.
When you do an event 52 like the marathon or the Delgado, we benefit on City Avenue in our hotels. So, we book out there. So we understand the connectivity to that. Couple of the events; one, the bike race. I want to thank you for your involvement with that. It comes through the neighborhoods and everybody isn't always happy to see it, but you have made it a little more palatable. One of the things that we would like you to -- that was an innovation last year was the court. We opened up the bike court. It is not a night court, but a bike court, and a lot of the enthusiastic members to watch the bike race, you know, tends to throw them back a little hard. We had to let them know that that kind of behavior was going to be put in check because the neighbors who live there didn't necessarily appreciate it. You worked with that group, we would like that bike court again. So, we would like you to follow up with that and do that. The other thing is, when one of the Council persons talked about, I think it was 53 Councilwoman Brown talked about new events. Ike Johnstone who runs the Belmont stables in my district is having a roundup and he's invited close to 500 equestrians to come and stay for three days in the City of Philadelphia, and they are going to do a horseback tour all the way up to Valley Forge and back, and during those three days, I don't know if you are working with him yet, but we --
We would like you to contact him and reach out to Mr. Johnstone, and that is 300 families that are gonna here, camp out, and we want them to have a pleasant experience, because as mentioned, our Fairmount Park trails, you would be surprised, you know, if you go in some of those back trails that aren't always traversed, it is like being in some place in the mid-west. It is really beautiful. So, we would like to you take a look at that.
Absolutely. In fact, one of my staff will give you the number before you leave chambers. Second round. Chair now recognizes Councilman Kenney.
Thank you. I know you interact with various departments in the City during events, whether it's Rec or Streets, police obviously. Do you have much interaction with L&I relative to events? The reason I raise it is the issue of a Doom Day, which is again one of those neighborhood events that started and now it is this huge event for the City and it is great for the City on many levels. They used to be able, the vendors used to be able to purchase a couple day business privilege license or vending license on site when they showed up, and now L&I is saying they have to do it weeks in advance. When you have these small entrepreneurs, they choose at the last minute where they may go to vend. Is there something you could do to see 55 if we can't get that reinstated? It makes planning that much easier for them because they can encourage people to come the day of and get the license they need? That would be a big help.
Secondly, a Stark Philadelphia, Incorporate, with the exception of individual events. Whether it's an art exhibit, whether it's Vango, or any of those, it is probably, the stark area is probably the single biggest 12 month a year draw. Always folks coming, no matter what month it is and they're coming and they're staying in hotels and doing the weekend. They have really gotten smashed, as many entities have, by the State. You see those folks walking around doing the tours in period costume and the Betsy Ross House and the bell, Franklin Square, it really does bring lots and lots of families and individuals, foreign tourists, national tourists to the City. Is there any possible, a small bump for them would be -- right now because of the 56 State cut, they are probably out of August. August is gonna be shut down for their programing. I just think it is one of those things we sometimes take for granted because we own all those entities and it just always went on and the State took care of them. Now the State has no interest, for the most part, west of Harrisburg. Could you please look at something? Maybe we can give them a little bit of a bump to save August?
I will certainly look in to it. They have just asked me to join their Board.
They are stakeholders under my budget. I worked very closely with Amy Needle and we are looking at different things to see what we can possibly do.
Chair thanks Councilman. The Chair now recognizing Councilman Henon.
Thank you, Mr. Chairman. A couple of my colleagues had mentioned some of their more local events that they have. Does your office continue to help support? So, I have, for instance two concerts, two big concerts a year up in the district in conjunction with Penny Pack Park. You know, Parks and Recs. So, if I were in need of some sort of promotional support or some kind of assistance in some way or another, would I call your office?
Okay. That is great. Now, I have a few quick questions on the marathons. It has become so big, you know, in the City. So, you have, you know, you have the Philadelphia Marathon, you have the Broad Street Run, you have many other runs, you know, that goes on. 58 Have you considered expanding it more of a, you know, national to match like the Philly Marathon, more of a national level because it seems like more people are becoming more health conscious these days. If we are generating that kind of money and there is a rate of return on the, I guess, registration fees. I think the registration fees have to be, you know, a substantial amount?
Actually, they are only $85. We have managed to keep it that way by changing the length of time we offer before we go to a bump for the next one. But the Philadelphia Marathon is national. We attract runners from all 50 states and 40 countries. Canada and Mexico are our largest. It's grown by about 2,000 runners for the last four years, give or take a few hundred here or there. There are four races. The Rothman 8k they are going to sign up for another three years and are very happy with it. We are looking at ways to expand that because of the 59 course that we currently use will be tapped out in a few years if we don't make some changes. So we are looking to possibly move the half marathon to a Saturday and do Sunday so we can grow both races.
They had 30,000 participants in five hours or something like that. Somebody in my office made it in by the wire, you know. I have an avid runner. I am going to give Chris a shout out, and he wanted to know, do you cap -- how do you determine the number of capping in the amount of runners in all these marathons?
Well, the Broad Street Run is run by Parks and Rec and they capped out at 30,000 because I don't think Broad Street can handle a larger number. We cap our number, we will cap out probably 20, 29,000, if we keep both the half and the full on the same day. Which is why we are looking 60 at seeing if we can move the half marathon so that we can grow both races. Otherwise, we will probably reach 29,000, maybe this year. So, we have to be careful because the course, while the Parkway is huge, the streets that that they go through, some in Center City, right around the historic district are not so big. So, we have to be very careful.
But, you are considering maybe attracting some more national, like, more beneficiaries for a large marathon or running event here?
Well, not another Philadelphia Marathon, but of the like. You know, attracting more -- just continuing on. Welcome to the City, this is what we have to offer. Look what we do, Philadelphia Marathon, look at the Broad Street Run, et cetera, et cetera.
I am actually not looking to do another large race like that at the 61 moment. What we are are trying to do is figure out a way to promote Philadelphia's pathways. Philadelphia is a great running City, so we have talked to the Broad Street Run and when the Philadelphia Distance Run before it was owned by an outside company, we talked about trying to do a promotional piece that showed all these three races that we can, basically, train at one in order to reach the last one, which was the Philadelphia Marathon. We are still talking about that. The Broad Street Run is going to do a promotion with the Philadelphia Marathon this year, whereas if you run the Broad Street Run and you run any one of the three races -- or two races, the half or the full, you get a special metal or something. We talked about a certificate. So, that is one of the ways that we are cross-promoting. But, at this point, putting another race on of that size just is not doable with the staff that we currently have. There have been other people, there is a half marathon 62 that is produced outside called the Odyssey. Odyssey a half marathon. But, to do another race of the Philadelphia Marathon size or the Broad Street Run, I just don't think we have the resources to handle that at this time.
Is that it, Council? Your time is up. Respecting the clock. I don't feel like the substitute teacher today. Thank you. Councilwoman Brown.
Thank you, Mr. Chairman. I just want to underscore the importance of our interest in whoever the contractor is for the Christmas Village.
That they know what we are looking for in terms of numbers.
So, you want the list of the people they do business with and --
-- of the outcome. I visit the Christmas Village every year because I like international arts and crafts, but I also visit to see if they look like Philadelphia.
My assessment summary is different from yours. So, we need to see the hard data.
I have been looking here at the table of organization of the City, and Councilman Good tried to help me find the Office of Arts and Culture. Where is the Office of Arts and Culture in the midst of the Commerce Department?