That's not11 way above $10.88. But that's the end of12 my questions.13 Thank you, Mr. Chairman.14
Thank you15 very much.16 Please identify yourself for17 the record.18
My name is Jane19 Lipton. I'm the Executive Director of20 the Manayunk Development Corporation.21 Chairman Kenney and members of Council,22 thank you for giving me the opportunity23 to speak to you today about the impact of24 the parking tax on my district. I'm here25 246 3/23/11 - RULES - BILL 100610, ETC.1 to put a little bit different of a face2 on some of the impact of parking tax.3 The Manayunk Development4 Corporation operates three parking lots,5 but our primary mission is to support6 economic development in the Manayunk7 Business District. Providing parking for8 visitors who come to enjoy our unique9 shops and restaurants is a service that10 helps us attract customers. Manayunk is11 in a unique position. We are the12 northwest section of the City of13 Philadelphia that borders Montgomery14 County's beautiful Main Line. As part of15 the City, we abide by all rules and16 regulations for City parking lots. Our17 dilemma is that we serve a suburban18 clientele who, while they may love our19 historic semi-urban suburban feel, are20 not willing to pay the City parking rate.21 We must charge for parking to22 keep our district vibrant, our lots open,23 cared for and insured. This is24 especially vital now that Manayunk is25 247 3/23/11 - RULES - BILL 100610, ETC.1 beginning to re-emerge as a shopping and2 dining and tourist destination. We must3 continue to push forward with the4 Manayunk brand, and part of that branding5 is ease, availability and affordability6 of parking.7 Although we operate parking8 lots, we are a non-profit organization.9 The financial proceeds from our lots go10 straight back into business and economic11 development. Parking proceeds help pay12 for things like arts festivals, Halloween13 parades, ice festivals or go towards14 district-wide cleaning and streetscape15 beautification projects that make16 Manayunk more attractive.17 Just lowering the tax by one18 percent, as proposed for the first year,19 would give us $6,500 to work with and20 give us two great options. The first21 would be to put the additional revenue22 back into making our neighborhood a23 Philadelphia destination to rival Center24 City.25 248 3/23/11 - RULES - BILL 100610, ETC.1 Second could be lower our2 parking rates, which would also bring3 more customers and shoppers to our shops4 and restaurants. Either way, we would5 bring more suburban customers into the6 City of Philadelphia to spend their7 dollars, which is good for everyone.8 A parking tax of 20 percent is9 an onerous burden that our closest10 shopping competition in the suburbs does11 not have to bear. We are not asking to12 remove the tax altogether. We want to13 support the City and we are happy to pay14 our fair share. We just want the playing15 field to be level.16 I hope you will consider that a17 lower tax may benefit everyone.18 Thank you.19
Thank you20 very much for your testimony.21 We're waiting for the Council22 President to reenter the room. We're23 going to do a little bit of a tactical24 issue and quickly recess our public25 249 3/23/11 - RULES - BILL 100610, ETC.1 hearing, go into our public meeting, do2 our business we need to do in the public3 meeting and then come back to the public4 hearing to finish up. So as soon as she5 steps into the room or if there's another6 Council -- I apologize. These bills7 should not have been scheduled all at8 once today.9 Who else is to testify?10
Please13 identify yourself and proceed. We're14 back in the public hearing. And if you15 can hit areas of testimony that have not16 been talked about already, that will be17 helpful. So please identify yourself for18 the record.19
I'm pretty sure20 most of what I say hasn't been talked21 about yet.22
1 President of the Parking Network. The2 Parking Network is a parking audit3 company that audits parking facilities4 nationwide for landowners and building5 owners. In the process, about ten years6 ago of being one of the largest parking7 lotted company in the country, the City8 of Miami imposed a parking tax in9 September of 1999. 1 Miami. In the first nine months, we2 increased on an annualized basis the3 amount of parking tax collected by the4 city by over 20 percent. 9 It's a very difficult business. There10 are a lot of parking facilities out11 there. 16 So we took the experience in17 Miami -- in Miami we ended up an18 administrator of the program, which was19 not really what my company is designed to20 do, but we did that over nine years. 1 happening in the City of Los Angeles. In2 the City of Los Angeles, the parking3 tax -- I'm sorry; the commercial parking4 operator groups went out and hired a5 lobbyist to challenge the city to have a6 better audit performance, because they7 were really getting damaged. 11 It took them a few months and12 they found us. We negotiated a contract13 with the city. In that particular14 contract, I'm completely at risk. 17 In the first year, we18 immediately found over $5 million for the19 City of Los Angeles, and believe me, it's20 a big city and very spread out. Also in21 that process of that first year, to show22 you how serious this business is, I had23 employees threatened, assaulted and I had24 my office firebombed. 1 on the 12th floor of the office building2 on Wilshire Boulevard, and it was full of3 people. 7 As we moved forward in the City8 of Los Angeles, we continued to audit,9 and we continue to audit today. The10 findings there continue to be very, very11 large. Over the course of the five years12 that we've audited in the City of Los13 Angeles, the amount of money that we now14 can point to that we identified and15 discovered for the City of Los Angeles is16 $35 million. That's 35 million that17 grows now at a rate better than 5 million18 a year every year for the City of Los19 Angeles, and we do that with three20 people. Because we're totally at risk21 there, the waves go up and down and we22 keep three people -- actually, we're at23 four people now on staff to do that type24 of audit. 1 Angeles, we're able to find numbers that2 are that large. 7 For our part, city auditor8 types tend to really be record audits and9 audits -- accounting-style audits. 13 I think in looking at the City14 and in talking to everybody here, I think15 we see the same thing here that we see in16 many other cities. 1 the tax -- this is a trust fund tax. The2 tax is on the citizens, but it drives the3 parking rates up, and the higher you4 drive the parking rates -- downtown5 thrives on parking, this downtown. A6 perfect example of that -- and I just7 happen to be in national Tennessee a8 couple of weeks ago. Thirty years ago I9 was in national Tennessee and we are10 trying to develop Second Avenue. Second11 Avenue, the developers came in, but they12 really didn't plan parking very well, and13 Second Avenue absolutely died. With all14 the money that was put into it, it15 absolutely died. About five to seven16 years later, parking began to develop17 around Second Avenue. 9 When you reduce the parking rates and you10 attract more people, you increase their11 business and they hire more people. And12 not only do they increase their business13 and hire more people, other downtown14 institutions do as well. We saw the same15 similar things in Los Angeles. As we16 were moving out rogue operators, we got17 rid of bad operators because they weren't18 able -- their business model was built on19 cheating. Once we moved them, good20 operators came in. They were in a good21 business, and business in the area22 improved dramatically. 1 A perfect example of that has2 been Hollywood.
Hollywood today is very,3 very, very busy and doing a great job,4 but because of a lot of work that we did5 five years ago to run out the rogue6 operators that were in Hollywood,7 everything has improved there. 12 Thank you very much. 14
Thank you15 very much for your testimony.16 We're going to do this17 housekeeping real quick. We're going to18 temporarily recess the public hearing and19 enter into a public meeting.20 The Chair will note that Bill21 Nos. 110133, 110134 and 110181 will be22 held to the call of the Chair.23 The Chair recognizes24 Councilmember DiCicco for a motion on25 259 3/23/11 - RULES - BILL 100610, ETC.1 Bill No. 110083.2 COUNCILMAN DiCICCO: Thank you,3 Mr. Chairman. I move that Bill No.4 110083 be reported out of this Committee5 with a favorable recommendation and a6 further recommendation that the rules of7 Council be suspended.8 (Duly seconded.)9
There are14 none opposed. Bill No. 110083 will15 report out of this Committee with a16 favorable recommendation and a request17 made for rules suspension for first18 reading at our next Council session.19 The Chair recognizes20 Councilmember Reynolds Brown for a motion21 to approve the amendment to Bill No.22 100610.23 COUNCILWOMAN BROWN:24 Mr. Chairman, I make a motion that Bill25 260 3/23/11 - RULES - BILL 100610, ETC.1 No. 100610 be approved.2
I need3 approval of the amendment. There's an4 amendment that was circulated.5
I make a6 motion that Bill No. 100610 be amended.7 (Duly seconded.)8
There are13 none opposed. Bill No. 100610 will be14 amended accordingly.15 The Chair recognizes16 Councilmember Reynolds Brown for a motion17 on the amended bill.18 COUNCILWOMAN BROWN:19 Mr. Chairman, I move that Bill 100610, as20 amended, be reported out of the Committee21 with a favorable recommendation and22 further move that the rules of Council be23 suspended so as to permit first reading.24 (Duly seconded.)25 261 3/23/11 - RULES - BILL 100610, ETC.1
There are6 none opposed. Bill No. 100610, as7 amended, will report out of this8 Committee favorably and a request made9 for rules suspension to allow for first10 reading at our next Council session.11 The Chair recognizes12 Councilmember Greenlee for a motion to13 approve the amendment to 100611.14
Thank15 you, Mr. Chairman. I move the approval16 of the amendment to Bill No. 100611.17 (Duly seconded.)18
There are23 none opposed. The amendment is approved.24 The Chair recognizes25 262 3/23/11 - RULES - BILL 100610, ETC.1 Councilmember Greenlee on the amended2 bill.3
Thank4 you, Mr. Chairman. I move that Bill No.5 100611, as amended, be reported out of6 this Committee with a favorable7 recommendation and that the rules of8 Council be suspended to allow for first9 reading at our next session of Council.10 (Duly seconded.)11
There are16 none opposed. Bill No. 100611, as17 amended, will report out of this18 Committee favorably and a request made19 for rules suspension to allow first20 reading at our next Council session.21 That will end the public22 meeting for today and we will now23 reconvene the public hearing.24 Any questions for these25 263 3/23/11 - RULES - BILL 100610, ETC.1 witnesses?2 (No response.)3
If I may just6 comment, we have letters of support from7 the Building Managers Association.8
And we've sent11 that in. Corie Moskow was going to speak12 for Rittenhouse Row Association. It's13 like two or three hundred restaurants14 along West Chestnut and Walnut.15 The only point that I would16 like to counter is Commissioner17 Richardson's comments about our industry18 being hurt. He mentioned that the tax19 revenue went up 25 percent in the first20 year of the tax increase. The tax went21 up 33 percent, 33 and a third percent.22 That was the impact of the tax increase.23 So right there, you only collected 2524 percent more. That means we did less25 264 3/23/11 - RULES - BILL 100610, ETC.1 revenue and you collected more, but he2 would have collected $16 million in the3 first year, and that's what they had4 budgeted for, if our industry had just5 broken even with our revenues. So I just6 wanted to comment on that.7
Thank you8 very much.9 I want you to consider the fact10 that we're going to have at least one11 more hearing, maybe two. Just pull the12 microphone close. We're desperately13 behind on Capital Budget. So please14 identify yourself for the record.15
I'm Harvey Spear,16 EZ Park and the Parking Association.17 It's very important to18 understand that these rogue lots are not19 insured. They're not lit. People that20 come into the City that park in these21 lots don't know if they're licensed or22 not. I want you to know that if somebody23 gets hurt, falls, there's no insurance.24 I want you to know that the valet25 265 3/23/11 - RULES - BILL 100610, ETC.1 operations that operate have a way to get2 around getting insurance. They call3 their employees independent contractors,4 which leaves the risk of not having5 workmen's comp insurance. So if somebody6 gets hurt working at a valet operation,7 it's not just the tax and the money, it's8 the perception to the public and what9 happens in the future. That's why it's10 important that this bill goes through.11
Thank you12 very much. Again, we will be having13 continuing discussions with the14 Administration relative to the rate and15 the amount of the rate and the speed of16 the reduction, and we will be having17 other hearings before the passage of the18 budget.19 So thank you all for your20 attendance and thank you for your21 patience.22 The Capital Budget hearing will23 begin immediately.24 (Committee on Rules concluded25 266 3/23/11 - RULES - BILL 100610, ETC.1 at 1:50 p.m.)2 - - -3 267 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on March 23, 2011, and that7 this is a true and correct transcript of same.8 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23