COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, October 7, 2009 10:10 a.m. - - - PRESENT: COUNCILMAN W. WILSON GOODE, JR., CHAIR COUNCILMAN DARRELL L. CLARKE COUNCILMAN FRANK DiCICCO COUNCILMAN CURTIS JONES, JR. COUNCILWOMAN MARIA QUINONES-SANCHEZ BILL 090579 - An ordinance amending Chapter 15 17-1300 of The Philadelphia Code, entitled "Philadelphia 21st Century Minimum Wage and Benefits Standard"... - - - 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
Good morning. This hearing is called to order. This is a public hearing of the Commerce and Economic Development Committee on Bill No. 090579. My name is W. Wilson Goode, Jr., Chair of the Committee. I note that a quorum is present. To my left is Councilman Darrell Clarke. To my far right is Councilman Frank DiCicco, and to my immediate right is Councilman Curtis Jones. The title of the Bill No. 16 090579, amending Chapter 17-1300 of The Philadelphia Code, entitled "Philadelphia 21st Century Minimum Wage and Benefits Standard," by providing that those who violate the Chapter may be suspended from receiving financial assistance from the City or from bidding on or participating in future City contracts for a period of time, and further providing that Council may by resolution determine that there 3 10/7/09 - COMMERCE - BILL 090579 are reasonable grounds to believe that a violation of that Chapter has occurred, that the violator be subject to debarment, and that the appropriate City agency shall, after notice and hearing, make a final determination as to whether there has been a violation of the Chapter 9 and whether debarment should be imposed, all under certain terms and conditions. Our first witness is Mr. Ian Phillips from ACORN. And let me say that as Mr. Phillips approaches the table, that I have enjoyed my working relationship with ACORN. It actually began on the original ordinance back in 2005 and with the amendment that was made last year, and I thank you for coming today to testify on this legislation as well. (Witness approached witness table.)
Thanks for having me. Chairman Goode and members of 4 10/7/09 - COMMERCE - BILL 090579 the Committee, my name is Ian Phillips, and on behalf of the thousands of ACORN member families in Philadelphia, I would like to thank the Committee again for giving us the opportunity to speak in support of the bill before your committee. ACORN continues, despite all the recent hubbub, to be a leading voice in fighting for living wages and increases to the minimum wage. We have been active in Philadelphia since 1977, and our members are proud to enter the 21st century with a robust and modern living wage standard. It is critical to Philadelphia's future that we ensure those working to build and maintain our city can build their own futures at the same time. In 1998, ACORN established the Living Wage Resource Center to track the living wage movement and provide materials and strategies to living wage organizers all over the country. We were 5 10/7/09 - COMMERCE - BILL 090579 proud, as the Chairman mentioned, to support his efforts in seeing Philadelphia implement a living wage ordinance, well ahead of many municipalities. Since then, ACORN has hosted three National Living Wage Training Conferences, drawing organizers from scores of different living wage campaigns across the country to learn from each other about the elements of a living wage campaign such as building local coalitions, doing research, working with city councils, developing message, responding to the substantial opposition to some of these ordinances and using living wage campaigns to build thriving communities. According to the 2008 Self-Sufficiency Standard conducted by PathwaysPA, a Southeast PA organization, a woman with one child in Philadelphia would need to earn over $17 an hour to provide for basic necessities like 6 10/7/09 - COMMERCE - BILL 090579 housing, healthcare, transportation, food and childcare. This again is a hypothetical example of someone who works without a single day off for the entire year, never missing a day because of sickness of her own or that of her child. This theoretical family does not have a car, does not shop outside of providing for the barest of needs and never deviates from these barest of budgets. Unfortunately, in our city, many working families are unable to meet even this hypothetical standard of self-sufficiency. We live in an era in which unprecedented worker productivity is rewarded with steadily declining wages in inflation-adjusted terms. We live in an era in which a working woman can work 40 hours a week 52 weeks a year without a single day off and still be unable to provide for herself and her child. If a society does not reward hard work and offer a path for hard-working people to 7 10/7/09 - COMMERCE - BILL 090579 improve their lives and the lives of their children, what do we value and what do our tomorrows hold? We know that working people on tight budgets for the most part spend any extra money they earn locally, more so than those with higher incomes. 50 and in some cases in some areas $2 is returned to the local economy. We support the enforceability measure before you today that would add to our existing living wage ordinance. Regulated entities, from City contractors to most recently the City's depository banks, have shown little willingness to cooperate with actions taken by Council without clear enforceability language. As an aside, this enforceability language is not YouTube 8 10/7/09 - COMMERCE - BILL 090579 based like our recent attacks have been and they've been able to enforce whatever we're claimed to have done through YouTube. That's not in the bill, so that's nice to see, too. In conclusion, a living wage is critical to a society that values work. The ability to enforce regulations is similarly critical to an effective living wage ordinance.
We would urge you to take as one of the lessons of our recent economic collapse that designing complex derivatives and, more broadly, designing tools for the movement of money was and still continues to be more valued than actually building or producing something in our country. Labor is valued less today than aptitude for the next great Wall Street scheme. If the old adage that if you work hard and do right you'll live a comfortable, if not prosperous life is no longer true, then we have bigger problems on our hands than even 9 10/7/09 - COMMERCE - BILL 090579 foreclosures or 100 days without a state budget. That concludes my testimony. I'm happy to answer any questions.
Thank you for your testimony, Mr. Phillips. Let me note for the record we've been joined by Councilwoman Sanchez. Are there questions from members of the Committee? (No response.)
Our next witness is Hugh Ortman, Procurement Commissioner. (Witness approached witness table.)
Good morning, Commissioner. COMMISSIONER ORTMAN: Good morning, Councilman. 10 10/7/09 - COMMERCE - BILL 090579 Good morning, Councilman Goode and members of the Committee. I am Procurement Commissioner Hugh Ortman. I am here to provide testimony in support of Bill No. 090579. This bill provides that vendors who violate the 21st Century Minimum Wage and Benefits law may be suspended from receiving financial assistance from the City or submitting bids. The bill also provides that Council may by resolution recommend to the Finance Director or me that the vendor be debarred. As Procurement Commissioner, I have authority to suspend and debar vendors from City bids for a period of up to three years. The City's policy for the debarment and suspension of vendors and contractors ensures that the City's contracting process is free of fraud, waste and abuse. The policy, which has been adopted as a formal regulation of the Department of Finance, identifies specific grounds by which a vendor can be 11 10/7/09 - COMMERCE - BILL 090579 suspended or debarred. The regulation also prescribes a procedure for debarment, which includes notice and an opportunity to be heard. Provisions implementing the 21st Century Minimum Wage and Benefits law are contained in all bids for service, supply and equipment. In fact, our contract provisions were just revised at the inception of Fiscal Year 2010 to include the recently enacted amendments concerning benefits and the federal minimum wage standard. Under the City's debarment regulation, I am already authorized to do what the bill proposes. If a City vendor violates a City contract provision, including the 21st Century Wage and Benefit law, the vendor can be suspended, leading to debarment. Also, if an individual member of Council or any City department head presents information to me about a vendor that constitutes grounds for debarment, I will certainly 12 10/7/09 - COMMERCE - BILL 090579 investigate and follow the appropriate procedures under the debarment regulation. However, having this specifically provided for in the Code as the bill proposes helps to ensure the importance of compliance with the 21st Century Wage and Benefit law. The Procurement Department and the Department of Finance have previously suspended and debarred vendors, more frequently for indictment or conviction under criminal law. Debarment is a serious measure. Not only does it prevent the vendor from doing business with the City for a period of time, it calls that vendor's responsibility into question in any other governmental jurisdiction where it seeks to do business. I am not opposed to this bill, but want you to know that the mechanisms are already in place to sanction those vendors who violate City laws. I'd like to thank you, and any questions, I'll feel free to answer as 13 10/7/09 - COMMERCE - BILL 090579 many as I can.
Thank you for your testimony, Mr. Ortman. How many contractors are currently on the City's debarment list? COMMISSIONER ORTMAN: There are no contractors on our current City debarment list.
There are none? COMMISSIONER ORTMAN: None. We have defaulted vendors, but we have no 14 debarred vendors.
Since you've been Procurement Commissioner, how many contractors have been debarred? COMMISSIONER ORTMAN: Since I've been Procurement Commissioner, no 20 contractors have been debarred. Contractors, again, as I said, have been defaulted, but not debarred.
Does the City require responsibility certification that a contractor is not on any debarment 14 10/7/09 - COMMERCE - BILL 090579 list? COMMISSIONER ORTMAN: Excuse me, sir?
Does the City require responsibility certification that contractors are not on any other debarment list? COMMISSIONER ORTMAN: In some contracts, yes.
But not on all contracts? COMMISSIONER ORTMAN: Mostly in our public works contracts and some of the larger SS&E contracts.
But you do not require responsibility certification on all contracts? COMMISSIONER ORTMAN: We require responsibility. We don't actually check to see if they've been debarred from somewhere else. If they have been, that's usually brought to our attention by another vendor, to be quite honest with you. 15 10/7/09 - COMMERCE - BILL 090579
Which is my next question. Are there contractors that are doing business in the City of Philadelphia that are on other debarment lists? COMMISSIONER ORTMAN: Yes. I'm familiar with at least one.
So there are contractors allowed to do business even if they're on other debarment lists? COMMISSIONER ORTMAN: After investigation, I can speak for one contract in particular where a vendor was debarred in the State of New Jersey because one of his subcontractors in, I'm going to say, 2005 -- I'm not sure. Maybe it was 2006 -- did not pay the prevailing wage, which is very difficult obviously for the prime contractor to be aware of. It was determined by a committee of three members of the -- three City employees that that particular violation should not bar this vendor from receiving a City contract and he was 16 10/7/09 - COMMERCE - BILL 090579 allowed to receive the award.
Which leads to my next question. I think you said that you do not review other debarment lists. Do you at least review the Pennsylvania debarment list and the New Jersey debarment list? COMMISSIONER ORTMAN: For public works, yes.
Because essentially this relates to supply and service contracts, and that's what the bill is pertaining to, so public works is not really relevant at this hearing. COMMISSIONER ORTMAN: Correct.
The Pennsylvania Labor and Industry has a debarment list. Have you reviewed it? COMMISSIONER ORTMAN: No, I have not.
It's not 17 10/7/09 - COMMERCE - BILL 090579 that extensive, but it has at least 20 or so names on it. But the New Jersey debarment list is extremely extensive. New Jersey has been very aggressive about debarring people, particularly related to prevailing wage. Have you reviewed that list? COMMISSIONER ORTMAN: I have reviewed that list. I was quite surprised by the number that are actually for criminal violations. There are some for prevailing wage, but, again, they go way deep down into the subcontractors, whereas when we find out that a subcontractor is not being paid, we go to the prime vendor and give them the chance to correct that, and whatever I have, they have.
What City agency is responsible for implementation of the existing local minimum wage ordinance? COMMISSIONER ORTMAN: Within the City of Philadelphia? 18 10/7/09 - COMMERCE - BILL 090579
Yes. COMMISSIONER ORTMAN: The only agency that we have that is charged with enforcement of wages is Labor Standards for prevailing wages.
What City -- COMMISSIONER ORTMAN: They do look at this particular minimum wage situation when a vendor may ask for a waiver, but that's very rare. They are the department that's allowed to give a waiver, but it's very rare that it's even requested.
The question was simply which agency is responsible for implementation, and that's the Office of Labor Standards, correct? COMMISSIONER ORTMAN: Yes.
What City agency is responsible for enforcement? COMMISSIONER ORTMAN: If it is brought to the Procurement Commissioner's attention, the Procurement Department will initiate an investigation. 19 10/7/09 - COMMERCE - BILL 090579
The question was which agency is responsible for enforcement. COMMISSIONER ORTMAN: To be responsible, I believe it would have to be legislation. I don't know there is any legislation that determines the exact responsibility. May I ask Michelle Flamer that question? Michelle, are you familiar with who is actually responsible to impose the 21st century wage --
Who is responsible for enforcement of the local minimum wage ordinance? (Witness approached witness table.)
Good morning. Michelle Flamer, City of Philadelphia Law Department. The 21st Century Minimum Wage provisions are part of our contract provision. So they're included in all service, supply and equipment contracts. 20 10/7/09 - COMMERCE - BILL 090579 Any responsible contractor who receives a contract from the City of Philadelphia makes a representation that they will, in the performance of those services, pay their employees the 21st century minimum wage, which is currently about $10.88.
Ms. Flamer, my question is which City agency is responsible for enforcement.
Well, the way the bill is written or the ordinance is written, it's primarily the Labor Standards Unit. In terms of granting any waivers, there's also a private cause of action, which would not be something that the City enforces.
I'm not sure I got an answer to my question yet. Is there one agency that is responsible for enforcement? Can we single out one?
There's really not one agency. It's a combination of the Procurement Commissioner and the Labor Standards Unit working in cooperation. 21 10/7/09 - COMMERCE - BILL 090579
Because the Procurement Commissioner in his testimony almost seemed to say that this ordinance 5 was not necessary because all the mechanisms were in place. In fact, he said, "I am not opposed to the bill, but want you to know that the mechanisms are already in place to sanction those vendors who violate City laws."
Yeah. He's referring to the debarment regulations since this bill amends the 21st Century Minimum Wage to add the recommendation of debarment. The debarment policy and regulation has been in effect in the City probably since --
Excuse me for interrupting you. Is it fair to say that it's very possible that no one was enforcing this ordinance? 22 10/7/09 - COMMERCE - BILL 090579
Is it fair to say that it's possible that no one was enforcing this ordinance? I mean, I know for a fact and previous testimony --
Because it's been included in the Procurement Department boilerplate and it is --
It's been included in the Procurement Department boilerplate --
Seven. It was 2007. In fact, because it was not included for the first two years, the 23 10/7/09 - COMMERCE - BILL 090579 City had to go back and give backpay to those City workers. So at first, it wasn't even being implemented. COMMISSIONER ORTMAN: Whenever -- it has fallen on the Procurement Commissioner and the Procurement Department to do their best to get -- to enforce this regulation. It is not spelled out in any legislation that it is the Procurement Department's responsibility. That's why I was having difficulty answering your initial question.
Can you explain the current enforcement process? Let me put it a little bit more specifically. COMMISSIONER ORTMAN: Well, the current enforcement process would be the Procurement Department would receive a complaint from City Council, from a department head, possibly even from another vendor. The Procurement Department would then initiate through 24 10/7/09 - COMMERCE - BILL 090579 the Law Department, if necessary, a request for payroll -- proof of payroll, et cetera, to prove one way or the other that this vendor has done this. We give them the chance to explain themselves, possibly even fix the situation. If they don't, then we continue with the debarment process as it's spelled out in the procedure that was attached to the paperwork today.
Who is the current head of the Office of Labor Standards? COMMISSIONER ORTMAN: His name is Perri DiVirgilio.
He testified before Council on June 2nd, 2008 and he actually said here, "Okay. Well, as we talked before, under the prior Administration, I was basically told not to do it. Basically what they told me was I work for the Administration, I don't work for the Council, and they asked me that anyone that called, to 25 10/7/09 - COMMERCE - BILL 090579 refer it to them." COMMISSIONER ORTMAN: I've never had that -- I never heard that testimony and I've never been told that.
It's from a transcript June 2nd, 2008. COMMISSIONER ORTMAN: I understand. I just wasn't --
So if the Office of Labor Standards is the primary agency responsibile for implementing and enforcing and the ordinance was not enforced for the first couple of years -- was not implemented for the first couple of years and you have not received any complaints that you've acted upon, is it fair to say that this ordinance was not being enforced? COMMISSIONER ORTMAN: Not at all. I believe that I -- I never indicated that Perri DiVirgilio and Labor Standards was responsible for the enforcement of this particular provision. It has fallen on the Procurement 10/7/09 - COMMERCE - BILL 090579 Department to try and enforce it when we are so informed of a violation.
Mr. Ortman, how many contractors have been penalized or debarred for violating the existing minimum wage ordinance? COMMISSIONER ORTMAN: For the existing minimum wage ordinance?
How many have been penalized or debarred? COMMISSIONER ORTMAN: None.
-- contractors have been penalized or debarred for violating local prevailing wage ordinances? COMMISSIONER ORTMAN: I can't answer that question. I don't recall of any since I have --
Well, no. I can answer that question. COMMISSIONER ORTMAN: Okay. 27 10/7/09 - COMMERCE - BILL 090579 Please.
Because that's Labor Standards. Right now I believe there are currently three appeals of violations of Labor Standards provisions on prevailing wage and there are probably two that are ripe for the lower-level proceedings before Labor Standards. But there are three pending appeals before the Board of Labor Standards, before the Board. It's probably a total of five right now currently. COMMISSIONER ORTMAN: I'm aware of at least one or two contracts where Perri has been successful in getting back wages for particular vendors that have violated the prevailing wage.
Ms. Flamer, I'll ask you the last two questions. Does this bill remove any authority from the Administration?
And will 28 10/7/09 - COMMERCE - BILL 090579 this ordinance be legally valid without an amendment to the Home Rule Charter? COMMISSIONER ORTMAN: Absolutely.
Good morning. Thank you, Mr. Chairman, first of all for having called these important hearings, and I am almost like deja vu all over again when not more than a couple of weeks ago we were in hearings talking about the OEO enforcement. I kind of remember that same exact line of questioning by way of the debarment process as it relates to discrimination and whether or not the laws on the books were actually being enforced, and the evidence of it was presented similarly with the fact that there have been no 24 debarments in the area of discrimination. And it just baffles my mind to believe 29 10/7/09 - COMMERCE - BILL 090579 that we have arrived, Martin Luther King's dream is finally here, that we don't have discrimination in the City of Philadelphia and, therefore, I'm hearing also that there is no problems with Labor Standards and that everyone is being paid a comparable wage. I also hear the same complaint last night, and thank you for attending the MED Week workshop, but I heard from the actual subcontractors and minority contractors and women contractors that says that there is an unwritten understanding that there will be no 16 enforcement of laws on the books and so, therefore, in effect, and what the Chairman has been alluding to, is there a law. And so if people have the understanding that no one is checking, then they get a little lax and they get a little sense of freedom to do what they want to do, not what the law calls for. And I'm beginning to see that pattern both in OEO, in wage and in Licenses and 30 10/7/09 - COMMERCE - BILL 090579 Inspection when we, by virtue of the fact that we cut inspectors, send a pretty bad signal to developers and contractors and GCs that we're not out there looking. That's like saying if we don't have traffic cops, it's okay to run the lights. So I'm wondering -- I guess I'm leading to, do you -- when was the last time someone was debarred? COMMISSIONER ORTMAN: I would be guessing. I have a list of people that were debarred, but they were all cleared waivers, as we might say.
It would have been right before this current Administration. It would have been probably in November of that year. COMMISSIONER ORTMAN: Five years ago.
No, not five. Three. 31 10/7/09 - COMMERCE - BILL 090579 Excuse me. It's three years. It's three years. COMMISSIONER ORTMAN: Three years. They just cleared waivers, as we say, because three years is the maximum that we can debar somebody for.
I'd be interested in finding the exact case, the exact cause and provide that to this committee, because I'm beginning to think we're sending the wrong signal to the development/business community that we're just not watching. And we have to be vigilant in order for people to get paid, for contractors to participate and for L&I standards to be enforced, we have to be vigilant. COMMISSIONER ORTMAN: Councilman, I do appreciate what you're saying, and as I mentioned earlier, if I receive a phone call from City Council, an e-mail from a department head, a complaint about somebody not doing what they're supposed to do, I will follow 32 10/7/09 - COMMERCE - BILL 090579 through on it. The legislation doesn't have any enforcement requirement in it as to who is supposed to enforce this.
It will now, and you will receive a resolution. COMMISSIONER ORTMAN: That would help. Unfortunately, Procurement doesn't have the people to do it and don't have the expertise to do it. Perri DiVirgilio, I believe he might have a secretary. I'm not even sure he has that. So there are definitely the need for more people from the enforcement.
I just want to kind of show the pattern once again, and I'm going to yield to my colleagues, but if we do the work to establish a law and then by virtue of the fact that you cut enforcement or stop enforcement, it sends the signal that it's no law at all. COMMISSIONER ORTMAN: Councilman --
I'm saying to you, we're going to fix it, but even 33 10/7/09 - COMMERCE - BILL 090579 when we fix it, you have to make it a priority to enforce. That's the partnership. COMMISSIONER ORTMAN: Absolutely. And we do the best we can to enforce it currently when we receive complaints.
Have you received any complaints regarding -- COMMISSIONER ORTMAN: No, not in at least over a year.
But you have received complaints regarding the minimum wage ordinance? COMMISSIONER ORTMAN: One.
Thank you, Mr. Chairman. Good morning. COMMISSIONER ORTMAN: Good morning. 34 10/7/09 - COMMERCE - BILL 090579
I want to ask a couple of questions, and I understand if you're not going to be able to answer them today because they're a little bit related to budgetary issues, and I was wondering when you were going to get to the point where you talk about the lack of staffing as it relates to your ability to enforce, not just this issue but a lot of the legislation that we pass here in Council. When you have your department conversations with the Administration, of which you are a part of, about the budgeting issues and what you need to adequately perform your duties and responsibilities as a commissioner, do you determine what the priorities are or does the Administration determine what the priorities are? Well, I should say the Mayor's Office. I don't know how you all, deputy mayors -- it's a different type of setup here and I'm not sure. Traditionally you had that conversation 35 10/7/09 - COMMERCE - BILL 090579 with the Managing Director. Do you determine what the priorities are in your department? As an example, if Councilman Goode's legislation is enacted and in order to fully ensure full enforcement of his proposal, you need additional staff persons to do investigations and things of that nature, do you have those conversations? COMMISSIONER ORTMAN: If indeed we were charged with the enforcement of the regulation, I would have to go to MDO and ask for additional staff, yes. And I would, of course, do that, because we don't have the staff currently to do that.
Yeah. I mean, that tends to be pretty much the statements from most of the commissioners that come before us. So as we move towards the budget process, because it will be here before us -- and I do believe we'll 36 10/7/09 - COMMERCE - BILL 090579 probably have an earlier budget process in the upcoming year and you may already be in the process of understanding our fiscal situation -- can you say here today, given the importance of this issue to City Council and I'm assuming of the Administration, that you will be recommending that we devote more resources to this particular issue? COMMISSIONER ORTMAN: Whatever legislation is passed by City Council, I will do my best to enforce and to pass on --
That's not what I asked you. COMMISSIONER ORTMAN: Well, I'm not responsible to do the investigation, although I am doing it right now.
But you're telling me that you don't have enough staffing to adequately investigate -- COMMISSIONER ORTMAN: Well, is your legislation going to say Procurement will provide the enforcement officers or 37 10/7/09 - COMMERCE - BILL 090579 is it going to say that the Labor Standards will provide the enforcement officers? You have to have people out in the field on a constant basis, which we don't have anyone to do that, you know. So it depends on which is the enforcement agency that you as members of City Council designate as the enforcement agency. Maybe it's a whole separate unit. I don't know.
Well, unfortunately and probably, based on the Administration's view, fortunately, City Council, although we can legislate appropriate financing for agencies and staffing, the executive branch ultimately gets the ability to determine whether or not that money will be spent. So it has to be driven from the Administration. I mean, I'm sure that you want Councilman Goode to put a bill in tomorrow that says that the Procurement will have 20 inspectors and their salaries shall be 38 10/7/09 - COMMERCE - BILL 090579 the following. COMMISSIONER ORTMAN: Right. I understand.
He'll probably put one in that says 40 inspectors. COMMISSIONER ORTMAN: I misspoke a little bit. I should have said whoever is designated by whoever.
Because would it make sense for any agency other than the Office of Labor Standards to deal with the implementation and enforcement?
Not really. COMMISSIONER ORTMAN: I don't think so. Procurement is not a, quote, enforcement agency, whereas Labor Standards is an enforcement agency.
My question is, would it make sense for any agency other than the Office of Labor Standards to be the agency to deal with implementation and enforcement? It 39 10/7/09 - COMMERCE - BILL 090579 wouldn't make any sense. If you have an Office of Labor Standards, that's what it's for, to enforce labor standards, wage standards. COMMISSIONER ORTMAN: Agreed.
So you agree with that. So our ask; i.e., budgetary resources, should be for the Department of Labor Standards to have the necessary people in place to do the investigations and the enforcement. COMMISSIONER ORTMAN: If indeed it is the Administration's choice that they be the enforcement agency.
At first you said we had to legislate it. Now you say it's -- COMMISSIONER ORTMAN: Well, I misspoke a little bit on that one. I'll rephrase it.
I 40 10/7/09 - COMMERCE - BILL 090579 understand the nature of my questions. I've been around for a long time. COMMISSIONER ORTMAN: Yes.
I know commissioners are somewhat limited in terms of what they can say in testimony. But would you be willing to go on the record to say that -- well, you just did actually say that that would be the most appropriate place to have the resources established to do the investigations and the enforcement. COMMISSIONER ORTMAN: In my opinion at this point in time, yes.
So I guess we have to get the Labor Standards people in here. Okay. I just wanted to make sure that the norm is the inability to have the appropriate staffing, and that's pretty much where we are today. We have been having conversations with the Administration here of late about priorities. Frankly speaking, I'm a little concerned about 41 10/7/09 - COMMERCE - BILL 090579 some of the priorities as it relates to staffing for various issues across the board, and I think given our fiscal situation, we may want to think about shifting some of the priorities, because we have limited resources and I think those limited resources should be attached to the things that are important to us. But I understand that may be a little either above or lateral to your pay grade, so I won't burden you with that today. COMMISSIONER ORTMAN: I appreciate that.
I just want to -- and not to pile on, because that is not in our nature to do, but I want to emphasize one thing. There was a visit I 42 10/7/09 - COMMERCE - BILL 090579 had out in the community at 59th and Girard. A single parent was living in a one-bedroom studio where the rent was 750-odd dollars a month. She explained to me that every bit of her salary, every dime, went to just the rent, and she had to, quote, hustle for food money and utility money. We're living in the land of plenty. The only way that people that work for a living get a fair break is if we look out for them, if we stand guard for them. And I understand budgetary constraints, and we're going to discover a word called "transfer ordinance." I hear it coming up soon. So we're going to help you out, but what you have to have is a willingness to actually enforce. I mean, it is so important. When people believe you are watching, they tend to do the right thing, and that's all that we ask. And we have to give you the tools to be able to do the right thing. We get that. I think I 43 10/7/09 - COMMERCE - BILL 090579 heard that from my colleagues. But when we struggle through these hearings, when we put laws on the books, there's a covenant that comes with that, and that is enforcement. And it means so much at the real neighborhood level, and I can just report that back to you, that people are counting on us to do our part. Thank you, Mr. Chairman, for having this hearing, once again.
Thank you. I have a request, because I think it's important, and it goes to what Councilman Clarke and Councilman Jones were speaking to. I'd like to see for the Administration -- and so we should go on record -- one of the things we've requested is during the budget discussion that people present to us clearly where they are as it relates to OEO plans. I'd 44 10/7/09 - COMMERCE - BILL 090579 like to request that the department both on the Procurement side and on the Labor Standards side be prepared to address this initiative as it relates to the Administration priority. That's so you prepare us, you prepare for the budget. Be prepared as part of the testimony to reflect that. I do want to have an ask to the Chair. I'd like to see the last three cases that you've had and a summary of them, of what we went through, were waivers issued, did we get to -- I'd like to see how long that process takes so that I am clear about the fact that what are the resources that we need in order to make sure that this happens. COMMISSIONER ORTMAN: I can sort of answer some of that right now.
Well, if you want to give me a case study. COMMISSIONER ORTMAN: Well, some of the debarments we've done were done because people were convicted of a 45 10/7/09 - COMMERCE - BILL 090579 criminal offense. We can debar them as long as the jury says guilty, and we debar them. We have done that. The process --
Excuse me, Mr. Ortman. I think the Councilwoman is referring to the minimum wage ordinance.
That's what I thought. COMMISSIONER ORTMAN: I know, and I'm trying to get to that as far as debarment. As far as minimum wage, we have not debarred anybody for not paying minimum wage.
But you say you've had cases that you've investigated. So I want to know why they didn't lead to debarment, what did these people do. COMMISSIONER ORTMAN: Okay.
And then what's the follow-up, how do we make sure that people who are on our radar for potential violations, how do we go back 46 10/7/09 - COMMERCE - BILL 090579 and make sure that they're not happening again. So I want to know the process, because it leads to Councilman Clarke's point. We need to understand the resources, because if this is a priority to us and your budget does not reflect that there, then we need to be able to say that's not enough resources, because this is a priority. And I know we're going to be looking at that as it relates to OEO and obviously to this matter also. Thank you. COMMISSIONER ORTMAN: Sure.
Thank you. Any other questions for this panel? (No response.)
Is there anyone else to testify on this bill? (No response.) 47 10/7/09 - COMMERCE - BILL 090579
Seeing none, we will move from our public hearing into a public meeting to consider Bill No. 5 090579. There is a technical amendment to the bill, which simply scraps the need to connect it to an amendment to the Home Rule Charter, so it deletes Section 2. The Chair recognizes Councilwoman Sanchez for a motion on the amendment to Bill No. 090579.
I move that we accept the amendment as presented to Bill 090579. (Duly seconded.)
Bill No. 23 090579 is amended. The Chair recognizes Councilwoman Sanchez for a motion on Bill 48 10/7/09 - COMMERCE - BILL 090579 090579, as amended.
I move that Bill 090579 be moved out of Committee with a favorable recommendation, as amended, and that the rules of Council be suspended to allow first reading at our next public session. (Duly seconded.)
Bill No. 17 090579, as amended, is reported out of Committee with a favorable recommendation and a suspension of the rules to allow first reading at our next Council session. Thank you. This concludes our public meeting. (Committee on Commerce and Economic Development concluded at 10:55 49 10/7/09 - COMMERCE - BILL 090579 a.m.) - - - 50 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 October 7, 2009, 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.)