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Minutes

Committee Hearing, November 28, 2007

Philadelphia City Council Committee HearingsNov 28, 2007

COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, November 28, 2007 3:35 p.m. - - - PRESENT: COUNCILMAN DARRELL L. CLARKE, CHAIR COUNCILMAN WILLIAM GREENLEE COUNCILMAN JAMES F. KENNEY COUNCILWOMAN DONNA REED MILLER COUNCILMAN JUAN RAMOS BILLS 060111, 070931, 070932, 070933, 070938 and 071001 - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2

Councilman Clarke

Good afternoon. This is the Committee on Public Property and Public Works. We'll now come to order. We have established a quorum: Councilman Kenney, Councilman Greenlee, Councilwoman Miller, Councilman Ramos. The Bill No. 060111 is being held to the call of the Chair. Bill No. 11 070938 is being asked to be held by the sponsor of the bill.

The Clerk

Bill No. 070931, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into an agreement with the United States of America for the grant of a right-of-way for railroad purposes by the City through property, located on the north side of the Army Corps of Engineers Fort Mifflin Center from Fort Mifflin Road to the 60th Street Branch of the former Philadelphia, Baltimore and Washington Railroad, CSX Transportation, Incorporated, under 3 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. certain terms and conditions.

Councilwoman Miller

Thank you. I see we have two witnesses for this bill. COMMISSIONER SCHLOTTERBECK: Yes. Should I proceed or wait for the Chair?

Councilwoman Miller

Yes, please proceed. COMMISSIONER SCHLOTTERBECK: Good afternoon, Councilmembers and Chairman Clarke. My name is Joan Schlotterbeck. I'm the Commissioner of Public Property. I'm here today to testify in support of Bill No. 070873 (sic) authorizing me as Commissioner, on behalf of the City, to enter into an agreement with the United States of America for the grant of a right-of-way for railroad purposes by the City --

Councilwoman Miller

Excuse me. What bill number did you say? COMMISSIONER SCHLOTTERBECK: 4 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. I'm sorry. You know what, I have a typo on my testimony. Forgive me. 070931.

Councilwoman Miller

Okay. Thank you. COMMISSIONER SCHLOTTERBECK: Forgive me. -- (continued) purposes by the City through property, located on the north side of the Army Corps of Engineers Fort Mifflin Center from Fort Mifflin Road to 60th Street Branch of the former Philadelphia, Baltimore and Washington Railroad, CSX Transportation, Inc., under certain terms and conditions. This ordinance authorizes me as Commissioner to grant a railroad easement to the Army Corps of Engineers over the City-owned property adjacent to the property of the Army Corps of Engineers. The Army Corps of Engineers property is used for the Delaware River dredging project. The railroad easement ensures that the rail transport of the dredge soils will not be interrupted. 5 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. The Department supports this measure and, accordingly, I respectfully ask that Council support and approve Bill 5 No. 070931. I respectfully request that the Committee vote 070931 out of Committee with a favorable recommendation and that the rules be suspended to permit the first reading at the next Council session. Thank you. We're available to answer any questions you may have. But this is a companion bill to two others, which may clear up any questions at that point.

Councilwoman Miller

This is a companion bill to the two other bills listed for today? COMMISSIONER SCHLOTTERBECK: Yes.

Councilwoman Miller

Okay. Does any Committee members have any questions of this witness? (No response.) 6 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC.

Councilwoman Miller

Seeing none. Mr. Herzins, are you going to testify?

Councilwoman Miller

Are there any other witnesses for this bill? (No response.)

Councilwoman Miller

Seeing none, thank you. Will the Clerk please read the title of the next bill.

The Clerk

Bill No. 070932, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to lease to the Philadelphia Authority for Industrial Development, for nominal consideration, and with an option to purchase, a certain parcel of land with the buildings and improvements thereon located between Hog Island Rod, not legally opened, and Fort Mifflin Road, not legally opened, to the north of I-95, for further sublease, with 7 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. an option or requirement to purchase at fair market value, all under certain terms and conditions. COMMISSIONER SCHLOTTERBECK: Good morning, members of the Public Property and Public Works Committee -- I mean good afternoon. I'm just screwing everything up today. My name is Joan Schlotterbeck. I'm the Commissioner of Public Property. I'm here today to testify in support of Bill No. 070932 authorizing me as the Commissioner, on behalf of the City, to lease to the Philadelphia Authority for Industrial Development, for nominal consideration, and with an option to purchase a certain parcel of land with the buildings and improvements thereon located between Hog Island Road, not legally opened, Fort Mifflin Road, not legally opened, to the north of I-95, for further sublease, with an option or requirement to purchase at fair market value, all under certain terms and conditions. 8 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. This ordinance will lease the 12.9 acre parcel to PAID for further sublease -- for future sublease of the property with an option to purchase at fair market value. This parcel will be used by FMRA, Inc. as part of its contract with the Army Corps of Engineers to assist with the Delaware River Channel deepening project. The Department supports this measure and, accordingly, I respectfully ask that Council approve Bill No. 070932. I respectfully request that the Committee vote Bill No. 070932 out of Committee with a favorable recommendation and that the rules be suspended to permit first reading at the next Council session. Thank you.

Councilwoman Miller

Now, who will the City be leasing this to? Who will PAID be leasing this to? COMMISSIONER SCHLOTTERBECK: FMRA, which is Fort Mifflin Reclamation 9 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. Authority -- Association. Sorry.

Councilwoman Miller

And that's the group that's actually going to do the -- responsible for the dredging? COMMISSIONER SCHLOTTERBECK: Yes.

Councilwoman Miller

And the dredging will help us do? COMMISSIONER SCHLOTTERBECK: Deepen the --

Councilwoman Miller

Deepen the river so we can use the port or we can get more activity going on at the port? COMMISSIONER SCHLOTTERBECK: Exactly. The owner is here today if you'd like him to come up and testify.

Councilwoman Miller

Yes. That would be good.

Mr. Rinaldi

Good afternoon. My name is William Rinaldi. I'm the President of FMRA, Inc. We are currently working on the Army Corps disposal, so as now we're 10 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. moving dredge material, which we have a long-term lease with the Army Corps. We are looking for this property next door, which is adjacent to the rail, to actually make the deepening project more effective and cost effective for both the state and the city. This river deepening probably will create over 10,000 jobs within the City of Philadelphia.

Councilwoman Miller

What types of jobs? That's a lot of jobs.

Councilwoman Miller

What types of jobs is that?

Mr. Rinaldi

Well, here I have the President of the Longshoremen, Mr. Boise Butler. He could really give you an exact number of about how many jobs just by his local will be created. There'll be also jobs with the deepening itself, there'll be a lot of jobs.

Councilwoman Miller

Okay. That's what I was going to ask. I'm sure that they're in phases. 11 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC.

Councilwoman Miller

Like the deepening and then more permanent type jobs.

Mr. Rinaldi

Correct.

Councilwoman Miller

Yes. It would be nice if the President would come up and give us some information. Hi. Please state your name for the record and pull the mike up.

Mr. Butler

Boise Butler, President of International Longshoremen Association, Local 1291. This deepening project is essential to our survival on the river, period. With the ships that's being born today needing so much more water than what they did years ago, without this dredging project, we're done. The river is done as far as moving commercial traffic up and down the river. Okay? It would be a travesty to lose these type of jobs, family-sustaining jobs, that this river now it has and the new jobs that it 12 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. will create. Family-sustaining jobs, which we all know we so desperately need. So it is very important. I do expect with this dredging of the river, there's going to be port expansion already planned. Okay? I would expect for us to grow from -- we currently do right now approximately half a million containers a year. With this port expansion -- again, and that's based on the dredging, because if the dredging doesn't happen, the port expansion doesn't happen -- we can go from anywhere from a half a million containers to two and a half to three million containers a year. That turns into a lot of direct and indirect jobs and, again, family-sustaining jobs.

Councilwoman Miller

And would all those people belong to the union?

Mr. Butler

The direct jobs? Yes.

Councilwoman Miller

Yes.

Mr. Butler

Yes. 13 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC.

Councilwoman Miller

What's the hourly wage?

Mr. Butler

$29 an hour currently.

Councilwoman Miller

Plus benefits?

Mr. Butler

Oh, absolutely. Wouldn't have it any other way.

Councilwoman Miller

That's great. That's really great. So how long does the dredging take? I mean, we're excited. We want to get this started.

Mr. Butler

Well, we want to get it done, but I think if everything is -- and I'm approximating. If everything is signed off on in a timely manner, I think it will actually take about approximately four years to complete the dredging, but as they're doing the dredging, we'll start building the new port facility. They're going to go hand in hand. They'll go hand in hand. They'll start the dredging. We'll 14 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. start using that material to do what we need to expand the port. So hopefully within the next five to six years, we are up and running, with tens of thousands of new jobs down there on the river. I can tell you that someone right now with maybe eight to ten years of experience -- seniority, not experience, seniority with us, if they're not making currently $80,000 to $100,000 a year, they're not trying to work. That's the kind of jobs we need.

Councilwoman Miller

You got that right. Now, are those types of jobs available to ex-offenders?

Mr. Butler

I beg your pardon, ma'am?

Councilwoman Miller

Are those types of jobs available to ex-offenders?

Mr. Butler

Always have been. We currently have and always have had an open-door policy, but I must say, now things are changing now. Under the 15 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. federal guidelines -- and TWICs is coming. I don't want to mislead anyone, because everyone coming down applying for jobs on the river, even truckers, no 6 matter who you are, if you're going to enter into the port facility, you're going to have to pass this TWICs program, this port security program.

Councilwoman Miller

What's it called?

Councilwoman Miller

What's that?

Mr. Butler

Transportation Workers Credentials, you know. There's going to be a bimetric --

Councilwoman Miller

Screening.

Mr. Butler

Yes, screening. So, again, I don't want to mislead anyone. This is something new that's coming and it's starting, I'll be honest with you, the 13th of December, registration. So I have concerns even 16 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. about some of the people that's already there. But we always had an open-door policy.

Councilwoman Miller

So that program will actually eliminate people or it could potentially do that?

Mr. Butler

It potentially could. It potentially could, but we don't really foresee that. I don't think the program is designed to do away with people that may have misdemeanors or something in their record that happened years ago. Yes, if you've been caught 15 and pleaded guilty with espionage or 16 something of that nature, absolutely 17 you're done. 18

Councilwoman Miller

Of 19 course. 20

Mr. Butler

You're done. But that's it.

Councilwoman Miller

Okay. All right. Thank you.

Mr. Butler

Thank you so much.

Councilwoman Miller

Any other 17 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. Committee members have questions?

Councilman Greenlee

Yes. Thank you, Madam Chair. Sir, maybe you could answer this. Just so I'm clear for the record -- and I agree, this sounds like a great project. What's on this land now? And I guess the second question is, where you're going to be building where the permanent jobs are going to be is going to be on this land?

Mr. Butler

Not at that exact site.

Councilman Greenlee

Pardon me?

Mr. Butler

Not at that site.

Councilman Greenlee

Okay. I got you. So what's going on -- well, what's there now?

Mr. Butler

Well, again, you start really from --

Mr. Rinaldi

I could answer that.

Councilman Greenlee

Just so 18 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. I'm clear.

Mr. Rinaldi

Right now it's a vacant 12.9 acre parcel. There's some old structures on it currently. We were going to be building a building to process dredge material with other beneficial-use materials on this site. The reason why this site is so key is because of its proximity to the Army Corps' 300 acres. So in order to move the material and process and do beneficial-use projects, which will be using material -- one of the objectives right now we're working on is Valley Forge. They need to cap for a museum, I think it's, 15 acres and they need about 300,000 cubic yards of material. Naturally, the material coming out of the river or in Fort Mifflin right now is too wet. We'll have to process it with other materials, make it another component and then deliver it. So the closer we are to where this is is --

Councilman Greenlee

Better 19 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. facilitation.

Mr. Rinaldi

Better facilitation, and it ends up costing the state a lot less money. And the other thing too is, besides just the -- once the dredging happens, we also have to remember we're going to have ten to 9 years of maintenance, because once that 10 earth is disturbed, you're still going to 11 have maintenance every year. 12

Councilman Greenlee

Okay. 13 Good luck. Thank you. 14 Thank you, Madam Chair. 15

Councilwoman Miller

Who is paying for the dredging?

Mr. Butler

Well, it's a combination. The bulk of the money will be coming through federal channels and so much of the state and that's it. But the bulk of the money, I think maybe -- don't quote me, but maybe 80 percent of it is federally funded.

Councilwoman Miller

All right. Thank you. 20 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. Any other questions? (No response.)

Councilwoman Miller

All right. Thank you. Thank you for your testimony. Are there any other witnesses for this bill? (No response.)

Councilwoman Miller

Seeing none, let's move on to the next bill. Clerk, please read the title.

The Clerk

Bill No. 070933, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to lease or convey to the Philadelphia Authority for Industrial Development, for nominal consideration, all or part of a certain parcel of land with the buildings and improvements thereon situate in an area generally bounded by Penrose Avenue to the north, the southerly section of Penrose Ferry Road to the south, River Bank Road to the east, and a certain railroad right-of-way 21 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. to the west, under certain terms and conditions. COMMISSIONER SCHLOTTERBECK: Good afternoon, members of the Public Property and Public Works Committee. My name is Joan Schlotterbeck. I'm the Commissioner of Public Property. I'm here today to testify in support of Bill 10 No. 070933 authorizing me as Commissioner, on behalf of the City, to lease or convey to the Philadelphia Authority for Industrial Development, for nominal consideration, all or part of a certain parcel of land with the buildings and improvements thereon situated in an area generally bounded by Penrose Avenue to the north, the southerly section of Penrose Ferry Road to the south, River Bank Road to the east and a certain railroad right-of-way to the west, under certain terms and conditions. This ordinance will authorize the City to lease or convey the parcel to Philadelphia Authority for Industrial 22 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. Development, for further conveyance or subleasing at fair market value. This rail siding parcel is adjacent to the Victory Gardens/Emerson landfill sites and may be of value to the purchaser of those sites. The City may reserve from such conveyance any land that may be necessary or desirable for road purposes, and to reserve, create and grant such easements for access and utilities and such other easements as may be necessary or desirable. The Department of Public Property supports this measure and, accordingly, I respectfully ask that Council approve Bill No. 070933. I also respectfully request that the Committee vote this bill, 070933, out of Committee with a favorable recommendation and that the rules be suspended to permit the first reading at the next Council session. Thank you.

Councilwoman Miller

Thank 23 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. you. Any questions from the Committee members?

Councilman Greenlee

Yes.

Councilwoman Miller

Councilman Greenlee.

Councilman Greenlee

Thank you, Madam Chair. Commissioner, I know you had said earlier that these were all companion bills. So just so I get my geography right, this is connected in some way with the others? COMMISSIONER SCHLOTTERBECK: This is actually different from the FMRA deal, but it's in the Emerson landfill. It's all down in the same area of ownership for the City, and at some future point, this particular parcel may be of benefit for the overall disposition of those other two parcels.

Councilman Greenlee

So as we speak, there's no direct plans for this. It's sort of being held in reserve; is 24 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. that the right phrase?

Mr. Herzins

My name is John Herzins. Actually, this would provide an improved access to the site to the purchaser of the Victory Gardens and Emerson landfill.

Councilman Greenlee

But they're not actually going to own it. You're not leasing to them?

Mr. Herzins

There was an ordinance recently passed. We are in the process of selling the property to the Regional Port Authority.

Councilman Greenlee

I got you.

Mr. Herzins

So this will be part of that parcel. COMMISSIONER SCHLOTTERBECK: And for clarity, the original ordinance, we frankly overlooked this piece, and it will be of benefit to the overall disposition down there for the future purchaser. 25 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC.

Councilman Greenlee

We trust you. COMMISSIONER SCHLOTTERBECK: Okay.

Councilman Greenlee

Thank you.

Councilwoman Miller

Any other questions from Committee members? (No response.)

Councilwoman Miller

Any other witnesses for this bill? (No response.)

Councilwoman Miller

Okay. Well, this Committee is going to take about a five-minute recess. This ends -- but before we do that -- COMMISSIONER SCHLOTTERBECK: I think there's one more bill.

Councilwoman Miller

Oh, there's one more bill? I thought this was the one that was being held. Someone said this was being held. We have one more bill, the 01. Is that the one you have? This is the 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. amendment. COMMISSIONER SCHLOTTERBECK: It's the amendment to --

Councilwoman Miller

To 01. COMMISSIONER SCHLOTTERBECK: Yes.

Councilwoman Miller

All right.

The Clerk

Bill No. 071001, an ordinance amending Chapter 6-300 of The Philadelphia Code, entitled "Public Property Maintenance and Supervision," by creating a new Section 16-305, under certain terms and conditions.

Councilwoman Miller

Okay. You're going to testify on this bill, Public Property? COMMISSIONER SCHLOTTERBECK: Actually, I do not have any testimony for this bill.

Councilwoman Miller

Is there anyone here to testify on Bill No. 24 071001?

Councilman Clarke

Didn't you 27 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. offer the amendment?

Councilwoman Miller

We didn't offer the amendment yet. COMMISSIONER SCHLOTTERBECK: We did work through the language on the amendment with staff persons from Councilwoman Campbell's office. So we did -- there was an ordinance, then there was an amendment, and then we worked on changing the language so that it will be workable for all parties. Do we need to read the amendment into the record?

Councilwoman Miller

The amendment has been circulated. We all have the amendment. We'll make sure the stenographer receives a copy. COMMISSIONER SCHLOTTERBECK: All right.

Councilwoman Miller

Is there anyone here to testify, anyone here want to give remarks on the amendment? I mean, if you want to do that, please feel free. 28 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. COMMISSIONER SCHLOTTERBECK: No. 4

Councilwoman Miller

No? Okay. Well, are there any other witnesses for this bill? (No response.)

Councilwoman Miller

Does any Committee member have any questions regarding this bill, or comments? (No response.)

Councilwoman Miller

Okay. Thank you. Seeing that there are no other witnesses to testify on these bills, this will be the close of the public hearing, and we will now move into the public meeting.

Councilman Clarke

Thank you, Madam Chair. Councilman Ramos, can you please make a motion on Bill No. 070931.

Councilman Ramos

I move that Bill No. 070931 be reported out of 29 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. Committee with a favorable recommendation and further move that the rules of Council be suspended to permit first reading of this bill at our next Council meeting. (Duly seconded.)

Councilman Clarke

All in favor? (Aye.)

Councilman Clarke

Those opposed? (No response.)

Councilman Clarke

The ayes have it. Bill 070931 is reported out of Committee with a favorable recommendation with rules suspension as to allow reading at the next session of Council. Councilman Greenlee, can we get a motion on Bill No. 070932.

Councilman Greenlee

Thank you, Mr. Chairman. I move that Bill No. 23 070932 be reported out of this Committee with a favorable recommendation and, further, that the rules of Council be 30 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. suspended to allow for first reading at our next session of Council. (Duly seconded.)

Councilman Clarke

It's been moved and second. Those in favor? (Aye.)

Councilman Clarke

Those opposed? (No response.)

Councilman Clarke

The ayes have it. Bill 070932 is reported out of Committee with a favorable recommendation with rules suspension as to allow reading at the next session of Council. Councilwoman Miller, can I get a motion on Bill 070933.

Councilwoman Miller

I move that Bill No. 070933 be reported out of this Committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) 31 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC.

Councilman Clarke

Being moved and seconded, those in favor? (Aye.)

Councilman Clarke

Those opposed? (No response.)

Councilman Clarke

The ayes have it. Bill 070933 is reported out of Committee with a favorable recommendation. Councilman Ramos, can you get a motion on the amendment to Bill No. 14 071001.

Councilman Ramos

I move that the amendment as previously described regarding Bill No. 071001 be adopted. (Duly seconded.)

Councilman Clarke

Those in favor? (Aye.)

Councilman Clarke

The ayes have it. The amendment to Bill 071001 is approved. Councilman Ramos. 32 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC.

Councilman Ramos

I move that Bill No. 071001 as amended be reported out of Committee with a favorable recommendation and further more that the rules of Council be suspended to permit first reading of this bill at our next Council meeting. (Duly seconded.)

Councilman Clarke

Moved and seconded. Those approved? (Aye.)

Councilman Clarke

Those opposed? (No response.)

Councilman Clarke

The ayes have it. Bill 071001 as amended is reported out of this Committee with a favorable recommendation with rules suspension as to allow reading at the next session of Council. Thank you all very much. This concludes the Committee on Public Property and Public Works. 33 11/28/07 - PUBLIC PROPERTY - BILL 070931, ETC. (Committee on Public Property and Public Works adjourned at 4:00 p.m.) - - - 34 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 November 28, 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.)