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Minutes

Committee Hearing, November 19, 2009

Philadelphia City Council Committee HearingsNov 19, 2009

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COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON APPROPRIATIONS - - - Room 400, City Hall Philadelphia, Pennsylvania Thursday, November 19, 2009, 2:50 p.m. - - - Bill 090736 - Transfers in appropriations for FY '10 within Grants Revenue Fund from the Director of Finance - Federal Stimulus Funding to certain or all City, offices, boards and commissions. (Bill held till 12/3/09.) Bill 090737 - Transfers in appropriations for FY '09 within Aviation Fund... Bill 090738 - Transfers in appropriations for FY '09 within Water Fund... (Bill held till 12/3/09.) Bill 090739 - Transfers in appropriations for FY '09 within General Fund... Bill 090740 - Transfer in appropriations for FY '09 within Grants Revenue Fund... COMMITTEE MEMBERS PRESENT: Joan L. Krajewski, Chair Darrell L. Clarke, Vice Chair Frank DiCicco W. Wilson Goode, Jr. Jack Kelly Donna Reed Miller Maria Quiñones-Sanchez - - - V A R A L L O Incorporated Litigation Support Specialists 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Councilwoman Krajewski

Good afternoon. Thank you all for waiting. It held up a little. But anyway, the Committee on Appropriations is about to begin. Will the clerk please read the title of the bill. But before we begin, I would like to recognize: To my left, we have Councilwoman Sanchez, Councilman Goode; to my right, Councilman O'Neill, Councilwoman Miller, and Councilman Clarke. Will the clerk please read the bills.

The Clerk

Bill No. 090736, an ordinance authorizing transfers in appropriations for Fiscal Year 2010 within the Grants Revenue Fund from the Director of Finance - Federal Stimulus Funding to certain or all City, offices, boards and commissions. Bill No. 090737, an ordinance 25 authorizing transfers in appropriations 3 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 for Fiscal Year 2009 within the Aviation Fund from certain or all City offices, departments, boards, and commissions to certain or all City offices, departments, boards, and commissions. Bill No. 090738, an ordinance 8 authorizing transfers in appropriations for Fiscal Year 2009 within the Water Fund from certain or all City offices, departments, boards, and commissions to certain or all City offices, departments, boards, and commissions. Bill No. 090739, an ordinance 15 authorizing transfers in appropriations for Fiscal Year 2009 within the General Fund from certain or all City offices, departments, boards, and commissions to certain or all City offices, departments boards, and commissions. Bill No. 090740, an ordinance 22 authorizing transfer in appropriations for Fiscal Year 2009 within the Grants Revenue Fund from certain or all City offices, departments, boards, and 4 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 commissions to certain or all City offices, departments, boards, and commissions.

Councilwoman Krajewski

Thank you. Is there anyone from the Administration here to testify? (Witness comes forward.)

Mr. Agostini

Good afternoon.

Councilwoman Krajewski

Good afternoon.

Mr. Agostini

Good afternoon, Councilwoman Krajewski and members of the Appropriations Committee. My name is Steve Agostini; I am the Budget Director of City of Philadelphia and I am here to testify on bills before you at the moment having to do with our year-end transfer ordinance for the General Fund. Those bills 090739, 090738, 090738, and 090736 make FYI 2009 budget appropriations between and among classes and departments in the City's General, Water, Aviation, and Grants Revenue Funds 5 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 respectively. These transfers are requested so that final appropriations agree with the requirements of the annual financial report. With respect to Bill No. 7 090739, there are six transfers requested in the bill, including five transfers involving a net change in departmental appropriations and one transfer between class within departmental budgets that do not result in any net change in appropriations. All General Fund transfers total $11,585,068. One of the largest transfers, the Police Department requests $8.9 million to fund increased uniform costs associated with the 2009 arbitration award and a small increase in postage. The First Judicial District of Pennsylvania requests $1.9 million to fund payroll and other costs associated with the zero-growth agreement between the City and the First Judicial District. 6 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 The sheriff requests a transfer of $359,000 to fund increased costs associated with the 2009 arbitration award and overtime spending that exceeded budgeted levels. The City Commissioners request a transfer or $223,000 to fund increased overtime incurred in processing a higher the higher volume of voter registrations for the 2008 presidential election. An internal transfer of $130,000 is requested by the Free Library of Philadelphia to fund telecommunication costs. Bill No. 090738 requests a transfer of $3.9 million in the Water Fund to cover the pension costs and retiree health-benefit costs associated with employees of the fund. Bill No. 090736 requests a transfer of $11.7 million in the Grants Revenue Fund to facilitate the transfer of remaining productivity bank loan proceeds to the General Fund. The bank 7 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 had been discontinued and will be closed out. I appreciate the opportunity to testify before this committee today and would be happy to answer any questions you may have. Additionally, representatives from all departments involved with the transfers are here and available for your questions as well.

Councilwoman Krajewski

Are there any questions from members of the committee? Councilman Clarke.

Councilman Clarke

Thank you.

Councilwoman Krajewski

Before we begin, I'm sorry, I'd like to recognize Councilman Kelly, that he's here today.

Councilman Clarke

Thank you. Thank you, Madam Chair. Real, real quick. First, Mr. Agostini, good afternoon.

Mr. Agostini

Good afternoon. 8 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Councilman Clarke

The increase for funds, albeit small, it says it references for the Police Department arbitration award; what is that?

Mr. Agostini

As part of --

Councilman Clarke

That's not the current.

Mr. Agostini

As part of our bargaining, two of the bargaining units are covered under binding arbitration awards.

Councilman Clarke

Right.

Mr. Agostini

So we have a neutral arbitrator, a representative from the City and a representative from either the firefighters union or the police union. And that then results, after many weeks, months of discussions --

Councilman Clarke

I know. I know about the process.

Mr. Agostini

So the arbitration award --

Councilman Clarke

I'm asking -- I guess the question is -- I'm 9 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 asking is, I thought the arbitration was ongoing.

Mr. Agostini

This is for the 2009 --

Councilman Clarke

So fiscal 2009.

Mr. Agostini

Correct. So this is to close the books on 2009.

Councilman Clarke

Right.

Mr. Agostini

You are correct, there is an arbitration ongoing currently with the FOP and one that has begun with the firefighters union as well, but those are prospective --

Councilman Clarke

All right.

Mr. Agostini

-- for -- (Indiscernible; parties talking over each other.)

Councilman Clarke

Okay, I just wanted to make sure. I'm good.

Councilwoman Krajewski

Are there any other questions from members of the committee? 10 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 (No further questions.)

Councilwoman Krajewski

Well, seeing none, thank you very much.

Mr. Agostini

Thank you.

Councilwoman Krajewski

Is there anyone else here opposed [sic] to these bills? Oh, I'm sorry. We do have the stimulus bill -- do you want to call the stimulus bill up? Okay. Anyone here from the Administration on the stimulus bill? 009736.

Mr. Agostini

Councilwoman Krajewski, members, I am Steve Agostini, Budget Director and also Recovery Officer for the City of Philadelphia. I'm here before you to testify on Bill No. 090736, which makes FY 2010 budget appropriation transfers from the Grants Revenue Funds from the Director of Finance - Federal Stimulus Funding to certain or all City offices, commissions, and departments. 11 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 The largest request, $14 million, is for the Office of Housing and Community Development for community development block grant funds for a variety of housing and economic development activities. The Office of Supportive Housing requests $7.9 million for the Homeless Prevention and Rapid Rehousing Program, which will fund homeless prevention and housing stabilization programs. The Mayor's Office of Community Services requests $7 million for the community services block grant, which will fund job-training programs and workforce development for a variety of local populations. The Police Department requests $6.2 million for Byrne Grants for crime prevention and law enforcement activities and to COPS Grants to hire police officers. The Commerce Department 12 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 requests $5.7 million for energy efficiency block grant funds. The Streets Department requests $4.1 million for energy-efficiency block grants funds for investments in energy efficiency and conservation. The First Judicial District requests $3 million for 52 positions -- to fund 52 positions from the Byrne Grant. The Managing Director's Office requests $1 million, which will be used at the Mayor's Office of Sustainability for energy-efficiency block grants as well as some administrative work for the Byrne Grant. Among the smaller transfers, the Department of Public Health requests $748,000 for five grants -- Healthy Homes Foster Care; Healthy Homes Child Care; (indiscernible) Kellenbeck vaccine research, meningococcal vaccine research, and improve immunization and registry programs used for environmental hazard 13 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 inspection and disease prevention programs. The Department of Human Services, Prisons, requests $700,000 for ex-offenders job-training programs. The Department of Licenses and Inspections requests $573,000 for clean-and-seal programs from the Byrne Grant and in training programs from the energy efficiency block grant. The Mayor's Office of Arts and Culture and the Creative Economy requests 460,000 for Mural Arts restoration through the Byrne Grant. The Mayor's Office requests $450,000 for the Mayor's Office of Faith-Based Initiative Strengthening Communities Fund for nonprofit capacity-building and the Mayor's Commission on Aging Senior Committee Service Employment Program, which provides job training for low-income seniors. The Mayor's Office of 14 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 Transportation requests $254,000 for an energy management office from energy efficiency block grant funds. I appreciate the opportunity to before this committee today and would be happy to answer any questions. I also understand that there's a lot to cover here. It's a fairly sizeable transfer ordinance covering over just $52 million, and I understand that there will be a lot of questions. Representatives from each of the grants entities that have received grants are here to answer your questions. I have also taken the liberty, if it would be helpful to Council, I have a -- what I'm calling sort of a "cheat sheet" that breaks out which departments getting what grants and to what level. Sorry I didn't include that with this, but I have it here if anyone is interested in seeing that. It's just a sort of easy way and it's one of the things I am using to sort of stay on top 15 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 of this. And I have sufficient copies for everyone if folks are interested. So with that, if there are questions, I'm happy to answer them.

Councilwoman Krajewski

You could answer me. What is the current status of the proposal to relocate the Police Academy?

Mr. Agostini

I will defer to the -- I believe Deputy Commissioner Gaittens is here. (Witness comes forward.) DEPT. COMM. GAITTENS: Good afternoon, Councilwoman Krajewski and members of Council.

Councilwoman Krajewski

Good afternoon. DEPT. COMM. GAITTENS: I'm Deputy Commissioner Jack Gaittens. Our intent to move Police Academy is based on us getting a military facility. It's part of the BRACC closure -- that's the base realignment and closing committee. 16 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 There is a joint army and marine facility on Woodhaven Road. And when we submitted our proposal, we said we were going to move all of our training facilities up there. The estimated date that we were given was September of 2011. We are now checking with the City Planning Commission to get back to the Department of Defense to confirm that date. We have heard rumors that that may be pushed back because the location that they were supposed to move to has not been completed yet, so we are awaiting for confirmation of the date, but in our last discussion with them, they said September of 2011.

Councilwoman Krajewski

In the Police Commissioner's testimony, it stated that the grant will allow for the funding of 50 new police officer positions over a 36-month period. Is there any other hiring of police officers currently being 17 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 conducted? And what are the current staffing levels of the police officers? DEPT. COMM. GAITTENS: All right. Currently, we have 6,557 sworn. We had originally anticipated putting a class in in November, but because of budgetary constraints, that has been pushed back. We are now hoping to put a class in in February.

Councilwoman Krajewski

Thank you. Are there any other questions from members of the committee?

Councilwoman Miller

I have a question.

Councilwoman Krajewski

Councilman Clarke -- Councilwoman Miller.

Councilwoman Miller

Thank you. Thank you, Madam Chair. Good afternoon, Mr. Agostini.

Mr. Agostini

Good afternoon.

Councilwoman Miller

I have questions about the personal services and fringe benefits that total a little more 18 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 than 6.6 million. Are these funds being used to hire additional staff offset the cost of existing staff or a combination of both?

Mr. Agostini

Excuse me. With respect to -- for that 6.6 million, if you are looking at the Byrne Grants and the courts, it is -- and I'm trying to find the exact reference of the 6.6 million.

Councilwoman Miller

Well --

Mr. Agostini

That would be to maintain existing staff, approximately 52 court staff, in order to keep a number of courts open. As part of the 2010 budget, we made some changes to the appropriations to lower court funding that has -- at the time, we mentioned to this Council that we plan to pursue Byrne Grant funding in order to keep those courts open. I believe that the 6.6 million, however, represents an either two- or three-year funding period for the grants 19 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 and not solely a one-year period. If the Court decides it wishes to use it all in one year, it would mean that it's not available in subsequent years to defray their budget. That's still something that I think the Courts are contemplating. And I believe representatives from the Court are here to answer questions.

Councilwoman Miller

Well, we weren't just looking at the Courts; I mean, we were looking at the -- we actually looked at this ordinance that describes personal services for most of these departments, not just the Courts.

Mr. Agostini

And in the case with most of the departments, what we are looking at is either maintaining existing staff, most notably in the Courts, but in some cases augmenting staff, additional staff. Most of the funding that we receive, with the exception of the Byrne 20 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 Grant, cannot be used to supplant existing General Fund dollars, so they would have to go for new staff members. One of the things that we have been insistent upon is that if we are to hire new staff with these grants, that as much of our benefit costs as possible should be picked up by the grants so that they are not a cost to the General Fund. And if you want, I can try to give you a breakdown by the total number of positions so that you have an appreciation of what's new and what represents sort of existing staff.

Councilwoman Miller

Okay. I'd actually like that if you could just send it to the chair of this committee.

Mr. Agostini

I will do that.

Councilwoman Miller

Thank you. And also, for the materials and supplies with a total of over $4 million, I basically have the same question: Are these funds being used to purchase 21 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 materials and supplies that would not have otherwise been purchased offset the cost of materials and supplies already budgeted, or a combination of both?

Mr. Agostini

I can say -- and I will go back and check this. For the materials and supplies, that represents expenditures that would not have happened but for these grant dollars.

Councilwoman Miller

Okay.

Mr. Agostini

And I can go back, but I don't anticipate -- I don't remember offhand any expenditures going for existing purchases that we had planned, again, with the expectation that we could not use those dollars to supplant the existing General Fund; they had to be used for additional funds. But I will check and confirm that for you.

Councilwoman Miller

Okay. You know, nearly 80 percent of over 41 million of the stimulus funds are being used towards the purchase of 22 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 services. Can you give examples by office or department what services are being purchased?

Mr. Agostini

I think in many instances, Councilwoman, they are either contractors or vendors that we are utilizing for the purposes of delivering some of the services. I believe, for example, in some of the energy-efficiency grants that we are receiving, that it is a direct purchase with a provider that will actually then go in and do that work. I believe that, in some cases, that is also the case with some of the supportive-housing dollars that we have in hand or that we are about to receive, where they are either expansions of existing programs or augmentations to programs that we have, where we're using a vendor, a contractor; and, hence, the services component that you see are reflected here.

Councilwoman Miller

So these 23 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 are the same vendors that were probably listed in the budget testimony of departments, or new vendors?

Mr. Agostini

In some cases, they may be existing vendors. In some cases, we will be going out with new requests for proposal for new vendors.

Councilwoman Miller

Okay. And so, did you say that you would send the information over, more detailed?

Mr. Agostini

I can do that. That's not -- in some cases, these are sort of estimates. We have not -- we don't have a firm number. But to the extent that I have a sense of what we will be contracting out, since that's also a function of what we report to the federal government, I'm happy to bring that over to you and bring it over quickly.

Councilwoman Miller

You know, I'd really like to see this information ongoingly, you know, what the contract is. We may even know people that might 24 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 want to bid on these contracts. Would that be listed on your website?

Mr. Agostini

No, that wouldn't be. And in some cases -- in many cases, we will not be able to show you the actual vendors. And the reason is that to date, we've received about $158 million in grant letters, in authorizations if you will. What we actually have in the treasury, I believe, as of this week is just below $20 million. Most of that will require us to go forward with either a request for proposal. So we have not identified in most cases vendors to -- at this date who would be eligible to get a contract awarded to them. To the extent that we do have that -- and I believe there are instances where we have a vendor that's lined up -- I can provide that to you and we will get that to you. 25 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Councilwoman Miller

Okay. Will you also include whether they're a minority vendor.

Mr. Agostini

I will -- I will endeavor to do that. In some cases, I may not know, but I will work to try to capture that information.

Councilwoman Miller

Yeah. Well, the department should know, though, right?

Mr. Agostini

That's my hope.

Councilwoman Miller

So somebody knows. Right, okay, because we wanted to receive that. Okay. I'll let someone else ask some questions. I do have one or two others. Thank you.

Councilwoman Krajewski

Thank you. Councilman O'Neill?

Councilman O'Neill

Mr. Agostini, could you explain how the fringe benefit amounts were determined? 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 They really go from zero percent in some cases to 67 percent in others. And I -- I'm just trying to figure out how fringes could be that high.

Mr. Agostini

In those cases, we tried to calculate -- where we could, we could we tried to calculate the full cost, which would have been not only the fringe benefits associated with health insurance or unemployment insurance or FICA, but also pension-related costs to the extent that we could capture that as well. And I think that's where the higher number comes from. It's including the pensions as well.

Councilman O'Neill

But are you charging the accrued unfunded to this?

Mr. Agostini

I will have to go back. And I'm not sure if it's a portion of the entire payment for that year, which I believe is what it is, as 27 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 opposed to the entire unfunded liability, which probably will be difficult, but I will go back and look to see if that's possible.

Councilman O'Neill

Is it legitimate to charge accrued unfunded?

Mr. Agostini

I don't know. I would have to go back and look at the grants.

Councilman O'Neill

Could you find out?

Mr. Agostini

Okay.

Councilman O'Neill

Thank you, Madam Chair.

Councilwoman Krajewski

Councilman Clarke, you ready? Councilman Goode?

Councilman Goode

Thank you, Madam Chair. Good afternoon, Mr. Agostini.

Mr. Agostini

Good afternoon.

Councilman Goode

Is there someone available from the Office of Economic Opportunity? 28 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Mr. Agostini

I believe so. I believe Mr. Dow and I believe Mr. Greenberger is here as well. (Witness comes forward.)

Councilman Goode

Good afternoon, Mr. Dow.

Mr. Dow

Good afternoon.

Councilman Goode

State your name for the record.

Mr. Dow

My name is Kevin Dow.

Councilman Goode

Previous to this hearing, there was a briefing that was a follow-up to another hearing that was held regarding an Urban League report that dealt with economic inclusion, among other things. We were pleased to have testimony from Dr. Bernard Anderson, who's an economist professor at the Wharton School for several years, also served in the Clinton Administration, at the Department of Labor. In part of his testimony, he said: "Our immediate goal must be to 29 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 assure full minority-group participation in projects supported by economic stimulus funds. "The City's expected to receive more than $157 million for projects on infrastructure, energy, and the environment. The City must assure that systems are in place to identify, train, and hire minority-group workers on the projects and set goals for minority contract participation in all funding opportunities. Post-monitoring must be implemented assure the goals are met." Can you respond to what Dr. Anderson sees as an imperative in terms of what needs to happen in terms of economic inclusion on these dollars?

Mr. Dow

I would -- not having read his testimony and hearing that one expert, I would agree with him.

Councilman Goode

And what is the City prepared to do? Are there goals set for these dollars? And what is the process by which disadvantaged workers 30 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 and businesses can secure these opportunities?

Mr. Agostini

Councilmember, if I might, for a moment, we heard -- we heard Council loud and clear when we did our briefing. I've, since that time, actually met with Della Clark from the Enterprise Center. We are working with the Enterprise Center to participate, if not be a partner, in a number of what we hope will be monthly events from now for the foreseeable future to try and engage the community to be sure that we're out there. So that's one of the things that we're doing. We've also asked representative from the Enterprise Center, who are being used by the federal government as a model for increasing participation across the nation by the U.S. Minority Business Development Agency. We've asked them for a sense of what other communities are doing as best practices so that we'd have 31 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 a handle on that. And I've also requested to the Recovery Office in the President's Office if they can give us information on best practices; and including in that, the potential or waivers, where that might be appropriate for us, so that we can pursue what might be more aggressive goals and --

Councilman Goode

So we have not as of yet, you're saying, ascertained what the best practice would be for economic inclusion.

Mr. Agostini

No, I have not.

Councilman Goode

Okay.

Mr. Agostini

I am certainly not expert on that and I'm trying to pull from as many sources as possible.

Councilman Goode

Have we set any goals for these dollars at all in terms of economic inclusion?

Mr. Agostini

Outside of what we've -- we have in terms of our current OEO goals? No. 32 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Mr. Dow

That would be correct.

Councilman Goode

So if we don't have best practices in place and we don't have goals set, what is the process, even if it is the normal process, for participation? What is the process by which people secure opportunities?

Mr. Dow

It's the normal contracting processes that the City of Philadelphia has in regards to its procurement. So if a contract is going out with an RFP, the Office of Economic Opportunity has the opportunity and will present ranges for individual contracts; and then, before awarding of those contracts, have the ability to confirm whether or not the minorities, women or the disabled that are listed as subcontractors or as primes on those contracts have indeed been communicated to and verified. 33 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 And so, it's the normal operating procedures that we already have in place that we are fine-tuning at the moment.

Councilman Goode

This morning, City Council unanimously passed Councilman Clarke's bill requiring economic opportunity plans for stimulus dollars. How might that affect the process?

Mr. Dow

Currently, as it's written, if not mistaken -- and, again, I don't have those details right off the top of my head, but I don't believe there's a threshold for those EOPs on stimulus projects. So without a threshold on the projects, it would then be -- then the intent would then be for all of the federal projects to have, or federal grants, to have EOPs on it. If that's the case, if that remains the same, that will be very cumbersome for the City of Philadelphia to maintain. 34 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 As an example, most projects have a threshold that they have to be a million dollars or above. We made one exception with the bond funding a couple of years ago; that was at 250,000 and above. Now --

Councilman Goode

My question was: Councilman Clarke's bill was unanimously approved, it will go to the Mayor's desk, the Mayor will sign it. The Administration testified in support of it; how will that affect opportunities for economic inclusion?

Mr. Dow

We would anticipate, as has been our experience when EOPs are involved with contacts, that it would improve opportunities for minorities, women, and the disabled.

Councilman Goode

As a general statement, I'm saying: Specifically how will that help disadvantaged businesses and disadvantaged workers seek opportunities and secure opportunities? 35 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Mr. Dow

How would it help the individual? I mean, what it does is, it puts a greater light on individual contracts.

Councilman Goode

So there will be EOPs for which stimulus contracts?

Mr. Dow

That's exactly -- well, right now, the legislation, I believe, states -- it proposes that EOPs would be created for all federal stimulus contracts.

Councilman Goode

So it there will be economic opportunity plans for all stimulus contracts?

Mr. Dow

If the legislation passes as is.

Councilman Goode

It passed this morning.

Mr. Dow

Yeah, so if the Mayor signs that, yes. When the Mayor signs that, yes. What we got to be candid about is that as it's written with all of the 36 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 level -- in the previous EOP legislations, there ever been thresholds so that we can manage the capacity of the economic opportunity -- the Economic Opportunity Office to manage those. Right now, without a threshold, it can create -- and we don't know yet, but it could create an undue burden due to the volume that might result from that, and so what we would want --

Councilwoman Krajewski

Excuse me. Councilman Clarke?

Councilman Clarke

Just real quick, Councilman. I noticed some hesitation in your voice about the timing, 'cause these two bills are on parallel tracks, and we don't know when the Mayor may sign this. We actually -- because we're on recess --

Councilman Goode

We're just ahead of that.

Councilman Clarke

We're ahead of it? So if we were to attach an 37 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 amendment to this bill today, similar to the EOP legislation, how would that impact?

Mr. Dow

An amendment for --

Councilman Clarke

The bill 7 that we passed today that Councilman Goode was referencing required EOP --

Mr. Dow

For every contract.

Councilman Clarke

-- for every contract. If a similar bill or an amendment was attached to this legislation that we're passing today, would that position you -- would that --

Mr. Dow

If we would --

Councilman Clarke

First let me ask you, would that be something that you would be supportive of --

Councilman Clarke

-- to ensure that there's no question, the EOP requirement that's in this bill that's basically making the money available.

Mr. Dow

But we would want to 38 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 have a conversation with and see if we can negotiate or however we can get in it there, is what the proper threshold would be for us in regard to contacts --

Councilman Clarke

I understand.

Mr. Dow

-- so that the volume of contracts is managed. I mean, it's simply a -- it's a matter of the capacity of the unit to --

Councilman Clarke

I understand that. The EOP -- just to make sure we're on the same page -- basically requires that the contractor outline what his game plan is for --

Mr. Dow

Sure, sure.

Councilman Clarke

-- having participation.

Mr. Dow

Sure, sure.

Councilman Clarke

It doesn't set any particular thresholds, and I agree --

Mr. Dow

No, what I'm saying is thresholds, meaning, are we going 39 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 to have a -- let's -- for example, to be simplistic, if there's an RFP for a $40,000 threshold.

Councilman Clarke

You mean a dollar threshold?

Mr. Dow

Yeah, a dollar threshold, that's what I'm saying. I'm sorry.

Councilman Clarke

Okay.

Mr. Dow

Just let me be clear. It's a dollar threshold on the amount of the contract.

Councilwoman Krajewski

Excuse me.

Councilman Clarke

Okay.

Councilwoman Krajewski

Councilman Goode.

Councilman Goode

Just real quickly, Councilman, and I want you to get back to your point. But just for clarification, your testimony today has been that essentially stimulus dollars are going to follow the same process for inclusion as 40 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 normal City contracts.

Mr. Dow

When we go through contracts and we get a --

Councilman Goode

That was a direct question.

Councilman Goode

There was already a EOP component within the Philadelphia Code.

Councilman Goode

There was already thresholds set within the Philadelphia Code.

Councilman Goode

Councilman Clarke amended that to include all stimulus projects. There was no need for an amendment to it if it was going to follow the system that was already in place.

Mr. Dow

I'm comfortable with that. I mean, if that is correct, because the threshold that's in place, 41 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 that dollar threshold per contract --

Councilman Goode

No, no, no. 4 The point is that the reason why there was an amendment that includes stimulus project would be so that we could lower the threshold from what was already in the code.

Councilman Goode

So is the Administration willing to lower the threshold in terms of what's required for EOPs, in compliance with what will be Councilman Clarke's soon-to-be ordinance?

Mr. Dow

I think we would be comfortable, but what we don't know right now, sitting here today, is what the threshold is, what that dollar threshold is.

Councilman Goode

The threshold is all contracts right now.

Mr. Dow

Right. And so right now, in the current legislation is a million-dollar threshold. For every contract above a million dollars, it has 42 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 to have an EOP attached to it.

Councilman Goode

In the current code --

Mr. Dow

In the current code --

Councilman Goode

-- it's a million dollars.

Mr. Dow

Right. And so, if that is --

Councilman Goode

In the bill 12 that was unanimously passed this morning --

Councilman Goode

-- there was no threshold.

Mr. Dow

Right. And what I'm saying is, that would create an undue burden on the Office of Economic Opportunity.

Councilman Goode

That was not your testimony at the economic development hearing.

Mr. Dow

Our testimony was that we were in support of EOPs on 43 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 federally-stimulated programs, as is the current legislation --

Councilman Goode

It was my understanding --

Mr. Dow

-- with the intent that it would be --

Councilman Goode

-- that he was lowering the threshold by making the amendment to the code, 'cause otherwise, there was no need for a bill. The reason why he added the stimulus projects was to lower the threshold.

Mr. Dow

Candidly, that --

Councilman Goode

He can speak for himself, though.

Mr. Dow

Okay. My understanding was that it was to make sure that the intent was to make sure that all federal stimulus contracts, that it was specific to federal standard contracts.

Councilman Goode

But those projects would have already been covered under the City process. Your testimony 44 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 has been that the stimulus dollars that are going through the City process already existed.

Mr. Dow

And if not mistaken, our testimony was that -- we also said that within the context of what was currently on record, or as legislation, was the context that we didn't need that other bill; however, that we support --

Councilman Goode

Councilman Clarke.

Councilman Clarke

No, no. 14 That wasn't the understanding; at least that wasn't my understanding.

Councilman Clarke

We had a conversation about the amount because we believe that $1 million, which is the threshold on the current broader contract, as it relates to the EOP, was too high.

Councilman Clarke

So we purposely did not put in that 45 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 one-million-dollar threshold because we wanted it to affect the smaller contracts.

Mr. Dow

And I would --

Councilman Clarke

So what you're telling me is that your preference would be that we put the specific threshold in the bill. I will ask for the Mayor to send that bill back when we get through with this hearing so I can put a number in there.

Mr. Dow

Will do, will do. We'll ask the Mayor to do just that, and then we'll --

Councilman Clarke

I mean, I don't -- but you tell me what you think the number --

Mr. Dow

I think that we should create a --

Councilman Clarke

We --

Mr. Dow

If the intent is to capture a greater number of contracts, we can lower the threshold dollar amount. We have to be careful about 46 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 what -- how low do we go. I would say, you know, is it 750? is it 500? I think 500 is probably the minimum. We'd have to figure out and see what comfort level you would have, get an indication of what the volume of contracts very well may be, and then go for it. So I would say we would be comfortable with asking you to --

Councilman Clarke

And, actually, as I think through this and I hear your testimony, I actually don't think there should be any threshold, because the reality is, this is one-time money. The reason why we set a million-dollar threshold on the earlier version, which encompassed all contracts, was because of the voluminous nature of how many contracts on an annual basis go through the city. But this is one-time money, and I don't think it would be an undue burden 47 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 either on the Administration or any contractor who got a contract from stimulus dollars just to simply tell us what your plan for inclusion is for the contact that you got. The likelihood that they're going to be here next year getting another contract is virtually nil. So I don't think it's a --

Mr. Dow

I think that what we don't know -- you know, as we are being -- as Steve said, we're being aggressive with applying for contracts. As we are successful in that, it creates a volume that is unknown right now. And we hope and anticipate that that volume is significant; that means that we are being successful at getting additional dollars for the City of Philadelphia. With that in mind, then we know, then, if we have a zero threshold on contracts, it then becomes an undue burden on the City, an undue burden on 48 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 the Office of Economic Opportunity, because of the staffing levels that are appropriate.

Councilman Clarke

The term "undue," I guess, bothers me because it implies that it's a little bit too much work for you. And I think that the nature of the issue is, like, very important to a lot of us, as I'm sure it's --

Mr. Dow

It is very important to us. And so the threshold is -- it allows us to -- it becomes a question of quality versus quantity. I think that you would agree in order for us to effect positive change in the minorities (indiscernible) for the City of Philadelphia, we need to do it in a quality way. Now, there's certainly a balance between quality and quantity. So what we need and what we would prefer is that there is a balance there. And that would be a threshold of some number that 49 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 would enable us to achieve that so we could get not only the quantity that we would think is appropriate but also the quality of work that we think is effective for us to achieve our goals.

Councilman Clarke

Okay. I hear you. I mean, I don't agree with you, but I hear you.

Mr. Dow

I understand.

Councilman Clarke

Okay, I'm good.

Councilman Goode

Mr. Dow, is it really reasonable to suggest that there are going to be a lot of smaller contracts?

Councilman Goode

If there might be a number of subcontracts, is it really reasonable to suggest that there are going to be a lot of small contracts?

Mr. Dow

I think it's reasonable to suggest that we just don't know.

Councilman Goode

You don't 50 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 know what contracting you're going to do with these dollars?

Mr. Dow

No. We don't know if it is reasonable to assess --

Councilman Goode

This is an appropriations hearing.

Mr. Dow

I understand.

Councilman Goode

Where you're asking us to allocate funds.

Mr. Dow

I understand.

Councilman Goode

You do not know how you intend to contract those dollars?

Mr. Dow

I understood the question as the reasonable amount of the number of small-dollar contracts. Is it reasonable to --

Councilman Goode

The first issue is if you know how you're going to allocate these dollars in terms of contracting. You already know what size contracts they're going to be in most areas.

Mr. Agostini

Councilmember, 51 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 I'm not sure that we know that. I can query all of the grant managers to see the size of the grants that they anticipate, but sitting here before you, I also don't have an answer to that question.

Councilman Goode

Because even if there are smaller contracts in terms of subcontracts, an EOP is generally done with a prime contractor in some cases, who would they then, in turn, reallocate the money and distribute the money. Then the EOP is done with the prime contractor but applies to subcontracts. And that's one EOP.

Councilman Goode

So to be honest with you, I simply don't believe that at the end of the day that there are going to be so many smaller contracts that there's a need for a threshold. Until you can prove there's a need for a threshold, there's no need for us to accept it as being true. 52 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 Not to mention that Council already unanimously decided today that there should be no threshold, and that the stimulus dollars are that important to us in terms of economic inclusion. So that's something that, you know, I think needs to be roved. But separate from the economic opportunity amendment that Councilman Clarke did, you stated that this would already go for the normal process. So let's discuss what the normal process is. Dr. Anderson, in response to questioning about how we move forward, I talked about how, from 1998 to 2003, businesses owned by minorities received about 2.3 percent of City contract dollars. As of our annual disparity studies of 2006, 2007, that number is up to about 12 percent in terms of contract dollars committed to businesses owned by minorities. I asked Dr. Anderson, how do we move forward and what he would 53 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 recommended in terms of OEO and in terms of strategic plan. His simple statement was that in the context of disparity studies and in terms of what is actual economic parity, that utilization should match availability. But in other testimony by the Pennsylvania, New Jersey, Delaware Minority Supplier Development Council, there was discussion of what availability really is and what it isn't. In the testimony by Darlene Jenkins, she said they have 16,000 businesses that are certified under their organization. What is the amount of businesses certified by the Office of Economic Opportunity?

Mr. Dow

Approximately 1200.

Councilman Goode

Okay. So less than 10 percent, about two-thirds of -- or three-quarters of 10 percent of those businesses are certified by her organization. She also said in her testimony 54 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 that we must push for the acceptance of the National Minority Supplier Development Council certification by the City of Philadelphia for MBEs that want to be certified, and essentially said that that's the way that we reach what we need in terms of the pool of certification.

Councilman Goode

I happen to know from our discussion and meetings that the Office of Economic Opportunity, through its new strategic plan, is planning on opening up the pool of certified businesses by accepting our certifications.

Councilman Goode

How would that apply to the stimulus process?

Mr. Dow

As the stimulus -- as contracts --

Councilman Goode

In other words, are we going to be using the same 1200 firms? 55 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Councilman Goode

Will we reach a figure, a pool of businesses that is more appropriate, that actually deals with the actual availability of businesses that should be able to participate?

Mr. Dow

I think the answer is -- I know the answer is yes. Now, the question is how fast we are able to move in that regard.

Councilman Goode

That is the question.

Mr. Dow

And so, what we're planning on doing is to look at organizations like MSDC, Minority Supplier Development Council, and look at their process and looking at their certification as becoming something -- as becoming the City certification (indiscernible).

Councilman Goode

The question is: Are you going to broaden the certification? 56 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Councilman Goode

Immediately. I don't mean tomorrow, but in time to have a greater pool of people of disadvantaged businesses and workers that can take advantage of stimulus dollars? And at what point can you commit to us that we won't be dealing with the same 1200 certified firms, only about 2 or 300 of which get business?

Councilman Goode

At what point will we have a more significant pool of certified firms that are deemed to be available? 'cause there are actually more available firms with the capacity and that are certified, and that's where and why we should be meeting in terms of greater participation.

Mr. Dow

I agree. And as we've had some conversations about this, around the availability and the utilization. If we increase the availability of firms, then the 57 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 utilization, by theory, should go up, so that's one of our strong strategic objectives that we're working on. We are moving in that direction now to establish the protocols within the Office of Economic Opportunity as they're looking at current certifications to go ahead and consider what this might be. So if they -- "they," meaning a small business or a business comes into us that has a certification for somebody, that we should look at that as that type of reciprocal nature now so that we could begin that process. We would be full force in that January 1st.

Councilman Goode

I'm going to be real clear. There are only two things I need, there are only two things I want to evaluate, whether stimulus dollars had economic inclusion or not and whether they are prepared to have economic inclusion or not. One, what's the thresholds for 58 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 EOPs? And we need a real answer for that. And two, what's the pool of certified firms?

Councilman Goode

And we need a real answer to that immediately, or else you are talking the talk but not walking the walk. Thank you, Madam Chair.

Councilwoman Krajewski

Thank you. Councilman Kelly?

Councilman Kelly

Thank you, Madam Chair. Mr. Agostini, I just have one quick question, you might say. It's more or less alluding to what Councilman Goode has been questioning you about. And that is: As far as I know, the stimulus package, when it was passed, these bills were passed in Washington, D.C., I think the primary objective was to create new jobs. 59 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 And what I would like to know, is, of this $52 million, how many new jobs? Do you have a ballpark figure on how many new jobs would be created?

Mr. Agostini

Councilman, there was an early ballpark figure that was put together, but I have been very reluctant to take those numbers without rigorously looking at them personally. The number that was calculated preceded my taking this role as the recovery officer. And as you may have read recently, there have been rather significant revisions to all of the job numbers from the federal level on the orders of 10 or 11 percent. So I am looking at the number for jobs created carefully and will go through that again and am happy to present that to you. But at the moment, I'm not willing to take at face value the job calculations that were a part of the applications themselves. I just haven't 60 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 felt -- I haven't had the opportunity to personally vet them myself.

Councilman Kelly

Yeah, that's -- what I'm interested in is these contractors; would they be hiring new people? would they be creating new jobs?

Mr. Agostini

For many of these, that is the expectation, that either as a subrecipient or a vendor to the City, that they will indeed be spending dollars in a manner that will create jobs, new jobs.

Councilman Kelly

But you have no ballpark figure on how many --

Mr. Agostini

At the moment, I don't, Councilman. And I apologize for that, but I' prefer not to give you a number than one that's erroneous.

Councilman Kelly

Okay, but you will be providing that to the chair?

Mr. Agostini

Yes, sir, I will.

Councilman Kelly

Okay. Thank you, Madam Chair. 61 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Councilwoman Krajewski

Councilman O'Neill, do you want to be recognized?

Councilman O'Neill

No, I'm fine.

Councilwoman Krajewski

Okay. Councilman Clarke?

Councilman Clarke

Thank you, Madam Chair. Good afternoon again, sir. I just wanted to ask a couple of questions on a couple of the hearings we had earlier. I'd like to ask you a couple of west about the Office of Housing and Community Development stimulus dollars -- I'm sorry, American Recovery Dollars; that's the new name we're supposed to call it. I just want to get some clarity on the split. Earlier, we had a hearing and a subsequent discussion about the split, and in part of that, we came to a consensus on a certain amount going to housing, and I see we have it listed here 62 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 as approximately 5.7. And I know that a comparable amount was being, we were told, would be spent for gap financing for projects, some that were in the pipeline. Is that -- I just want to make sure that I understand. Is that the 4-3 that's listed here? It's Creative Industry Workforce Grants?

Mr. Agostini

Councilman, I'm going to --

Councilman Clarke

Or Liveable Communities Commercial development? What are you --

Mr. Agostini

I believe, Councilman, it would best if I deferred to Debra McCullough. I do believe that some of the grants you're discussing are also grants that are being managed not only by Ms. McCullough but also by Andy Racklin (sp?). And so I would ask that both of them come up here --

Councilman Clarke

Yeah, I just want make sure, 'cause we agreed on 63 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 a number, but I don't know if the terminology changed or if it's for the same purpose. But at the time, it was supposed to provide gap financing for projects that were shovel-ready. And I just want to make sure I understand where that money is in this package. (Witnesses come forward.) MS. McCULLOUGH: Good afternoon. I'm Debra McCullough, Director of Housing. The figures that appear in the testimony are the same ones that were in the consolidated plan amendment that we presented to City Council last spring, held a hearing on, and so forth. So the 5.75 million for housing gap financing, that's essentially the construction subsidies that we used for our various housing developments.

Councilman Clarke

Right. MS. McCULLOUGH: Those funds are part of the request for proposals that was issued this fall and for which 64 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 we received 49 proposals.

Councilman Clarke

That along with trust fund dollars. MS. McCULLOUGH: Yes.

Councilman Clarke

Okay. MS. McCULLOUGH: We issued an RFP that included this money Housing Trust Fund earnings, if you will, regular Community Development Block Grant Funds, and home funds. So this becomes a part of that pot of funds that are available.

Councilman Clarke

We're really asking about the agreed-upon amount for commercial-related activity. MS. McCULLOUGH: And these numbers are the same.

Councilman Clarke

I mean, where -- is this for the 4-3, is that it? MS. McCULLOUGH: Oh, I'm sorry. I wasn't understanding the question. Yes, yes. The 4.396629 is the piece -- is the --

Councilman Clarke

So that's 65 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 -- is it called - MS. McCULLOUGH: It's the split that's going to Commerce for Commercial Corridor and Livable Communities.

Councilman Clarke

So it's called Livable Communities, Commercial Development Fund now? MS. McCULLOUGH: Correct.

Councilman Clarke

Okay. 'Cause they didn't have that name before, and that's why -- MS. McCULLOUGH: Right.

Councilman Clarke

'Cause it's called gap financing -- MS. McCULLOUGH: Right.

Councilman Clarke

So we got to -- (Indiscernible; parties talking over each other.)

Councilman Clarke

But it's the same -- MS. McCULLOUGH: There's been no change in the budget than what was proposed and agreed upon and passed by 66 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 this Council last spring.

Councilman Clarke

But will it be used for the same purposes? because there was a list of potential projects that could be funded from that money. And my question is, I guess, if we change the name, does that mean we change the scope of how that money could be spent? Or will it still be spent on projects that are shovel-ready or close to being shovel-ready? That's really what I'm trying to get at.

Mr. Rocklin

Councilman, my name is a Andy Rocklin (sp?). I'm Deputy Chief of Staff for Planning and Economic Development. And the answer to your question is yes.

Councilman Clarke

Same thing.

Mr. Rocklin

Same thing. We --

Councilman Clarke

We got a project --

Mr. Rocklin

(Indiscernible.) 67 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Councilman Clarke

What was that supermarket up on --

Mr. Rocklin

Progress Plaza.

Councilman Clarke

No, it was Germantown -- well, Progress Plaza. So that's the type of project that we will use this for --

Councilman Clarke

Okay. I just wanted to a little clarity on that. Since, I have you up here Miss McCullough -- MS. McCULLOUGH: Yes, Councilman?

Councilman Clarke

-- I've been wondering about this. And I'm sorry, it's a little -- it's kind of totally unrelated to this, but the RFP was $10 million? MS. McCULLOUGH: Approximately, yes.

Councilman Clarke

Okay, approximately. And it included block grant dollars from -- 68 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 MS. McCULLOUGH: The current fiscal year.

Councilman Clarke

It was -- MS. McCULLOUGH: 35.

Councilman Clarke

35? MS. McCULLOUGH: Right.

Councilman Clarke

And the trust fund was how much? MS. McCULLOUGH: Um...

Councilman Clarke

I guess my question is -- let me cut to the chase. MS. McCULLOUGH: Uh-huh.

Councilman Clarke

I was a little concerned about the amount 'cause it was only $10 million, as I'm sure anybody who was interested in getting that money, because we had this obvious increase from the stimulus dollars and the trust fund, it went down a little bit. But I also understood that the block grant dollars had increased from the federal government. Is there a reason why we only did 10 million? 69 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 MS. McCULLOUGH: Well, because we have developments that are in the pipeline --

Councilman Clarke

That were funded. MS. McCULLOUGH: -- that we're funding with available resources.

Councilman Clarke

Okay. MS. McCULLOUGH: So there's always -- as you know, we always have developments in the pipeline from -- that may have come in through a previous RFP that are now being funded --

Councilman Clarke

Okay. MS. McCULLOUGH: -- with current year's funding.

Councilman Clarke

Okay. I guess -- you know, when I heard stimulus dollars, I thought it would be like a bonanza. I got ya. Thank you for that. And I have a question about the Managing Director's testimony. (Witnesses come forward.)

Councilman Clarke

It talks 70 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 about the remaining -- I'm sorry. The total request is for $1,065,000. And a small portion is spent for administration of the Byrne Grant, but then there's a $953,000 for the Mayor's Office of Sustainability for various projects funded through the Efficiency and Conservation Block Grant. What exactly does that mean? MANAGING DIRECTOR BARNETT: What was that first --

Councilman Clarke

What does that mean? MANAGING DIRECTOR BARNETT: I'm Camille Barnett.

Councilman Clarke

I mean, what specifically -- MANAGING DIRECTOR BARNETT: I'm the Managing Director --

Councilman Clarke

What are we doing with it? MANAGING DIRECTOR BARNETT: Tha t has to do with -- specifically the energy efficiency portion of this; is 71 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 that what you're asking about?

Councilman Clarke

Yeah, the 900,000. MANAGING DIRECTOR BARNETT: Well, there are various projects in the Mayor's Office of Sustainability that this goes to, specifically those that are funded through the Energy Efficiency and Conservation Block Grant, so there's supervisory. There's 175,200, which is in Class 100, which is for salary; 483,000 in Class 200; and 295,700 in Class 300. Do you have some additional things that you'd like to add? He wants to know what this is for. And so, it's primarily implementation of our Green Works Plan as funded by --

Councilman Clarke

So this is a part of the Commerce-related activity and the stimulus dollars a part of Green Works? MANAGING DIRECTOR BARNETT: 72 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 It's --

Councilman Clarke

You're talking about a portion of it for, I'm assuming, staffing, because of the class. Is it -- does it supplant, or do you hire new people? I guess, what exactly is the money going go for --

Ms. Gajewski

Sure. I'm --

Councilman Clarke

-- specifically?

Ms. Gajewski

Yeah. I'm Katherine --

Councilman Clarke

If we hire somebody, what are they going to do?

Ms. Gajewski

I'm Katherine --

Councilman Clarke

Or is that for job-creating? I'm sorry.

Ms. Gajewski

I'm Katherine Gajewski from the Office of Sustainability. Under our EECBG banner, the Energy Efficiency and Conservation Block Grant Program, we're going to receive a total of $14.1 million in formula funds. 73 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 We are advancing separates programs between that $14 million. So the portion that Dr. Barnett was referencing, three of these programs, the funding is going directly to the Office of Sustainability. A number of the other programs are being administered by the Streets Department and the Commerce Department. The funding that she referenced is going to my office directly.

Councilman Clarke

And so, my follow-up question is: What are the programs?

Ms. Gajewski

So it's going to --

Councilman Clarke

Or is that in the other testimony, in those departments that you mentioned?

Ms. Gajewski

So the funding that's coming to my office directly is going to fund primarily three different programs. One is a million dollars for 74 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 the Municipal Building energy-efficiency and renewable retrofits, which are going to be capital improvements made to City buildings to bring our energy costs down. The second program is to target energy budget support and training. There will be one new position created as a part of that program to oversee the transition to target energy budgets for the departments; again, part of the energy-efficiency and cost-reduction programs. The other program is the Green Works Philadelphia support; there's going to be one new position created there as well, which is what's reflected in the Class 100.

Councilman Clarke

Okay, all right. All right, okay.

Ms. Gajewski

It's a lot of pieces.

Councilman Clarke

As Councilman Kelly was saying earlier, and I'm hearing that we're creating 75 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 approximately three jobs that will essentially oversee other activities in other departments or other funding sources. And I guess, will these be temporary jobs or will they be full-time jobs? Will the City be required to pay for the next fiscal year of that individual?

Ms. Gajewski

We're going to have to --

Councilman Clarke

Or are we supplanting --

Ms. Gajewski

Because the funding is only for 12 to months as 17 part of this grant, we'll have to bring 18 these people on in a contracting capacity and then reassess --

Councilman Clarke

So it's contracting.

Ms. Gajewski

-- for twelve months more.

Councilman Clarke

Okay, I got it. 76 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Ms. Gajewski

Okay. MANAGING DIRECTOR BARNETT: It's more than just the supervision. When we're making capital improvements to City facilities, those will involve contracts to make those capital improvements --

Councilman Clarke

And that's in the -- MANAGING DIRECTOR BARNETT: -- so they will be jobs in the private sector.

Councilman Clarke

And that's in the R14 million part? MANAGING DIRECTOR BARNETT: Yeah.

Councilman Clarke

All right, all right. Thank you.

Councilwoman Krajewski

Councilwoman Miller?

Councilwoman Miller

Okay, thank you, Madam Chair. Mr. Agostini, we talked to you earlier this afternoon regarding giving 77 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 us a list or a list to the chair of this committee regarding where the funding is coming from, what federal funding. And I just want to remind you that we're still looking for that information.

Mr. Agostini

We can provide that in a summary form, as has been requested, Councilwoman. We did provide to Council a list of every one of the grants, with their funding source as well as their department. So what I will do is provide you with a summary that has been requested along with that list, but that list has been provided to Council previously.

Councilwoman Miller

Okay. And I think most of us here in City Council really want to see Philadelphians get back to work. We just don't want this money coming in and in a year from now look, we're looking back and nobody's really gained anything in terms of employment. 78 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 So I have some questions regarding the programs that's going to be delivered by the Mayor's Office of Community Services, the employment training program. Is anyone here from that department?

Mr. Agostini

Yes. (Witnesses come forward.)

Ms. Serendera

Hi there. I'm Jenny Serendera (sp?) from the Mayor's Office.

Councilwoman Krajewski

Good afternoon.

Ms. Mariner

Hi. I'm Mary Mariner. I'm interim executive director of the Mayor's Office of Community Services.

Councilwoman Miller

Okay, great. Thank you. In your testimony, do you have a copy of it? What was actually submitted in this booklet?

Ms. Serendera

Yes. 79 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Councilwoman Miller

Great. At the bottom -- and I know that one of MOCS's goals or MOCS's main purposes is to move people to self-sufficiency. So down at the bottom, at the last paragraph, you're talking jobs for a sustainable neighborhood. Can you tell me what a sustainable neighborhood is?

Ms. Serendera

Oh, sure, absolutely. So one of the job programs that we've put together with the recovery dollars coming through MOCS builds off of the Community Land Care Program that is currently run through the Department of Commerce with CDBG funds. So that program -- it's called the Community Land Care Program. Its neighborhood cleaning and greening of vacant lots. So what we did was, we take folks who have these jobs, they're part-time and they're seasonal jobs. And we said, you know, here's a group of people who've shown every day, they can 80 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 show up to work, they've got some job skills. How can we get them to the next level of employment -- full-time, higher-wage positions. So we are taking the CSGB funds, we're using it to support them in terms of case management and literacy and job-training. And then the idea is that you move them into on-the-job training in more regular employment. And then it's a full-time employment off of the commercial corridors or out of the Community Land Care Program. And then you backfill all of those positions with folks from the neighborhoods who kind of can, with some barriers to employment, start working in those lower -- sort of lower job- readiness positions, if that makes sense. So it's a bit of an assembly line.

Councilwoman Miller

Okay. So that sounds pretty good, that you're going to take folks that are currently 81 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 doing the land care, move them up; and that way, the contractor -- the person that has the contract now can bring more people in, and you're sort of looking at it as a job-readiness program.

Ms. Serendera

That's right, that's right.

Councilwoman Miller

Because the people of 2009 should be moved to this sustainable job-training, et cetera and hopefully, then, in 2010, have a higher job when they complete the program.

Ms. Mariner

Yes, that's the goal.

Councilwoman Miller

But then the contractor can go get new folk, correct?

Ms. Mariner

From the neighborhood and bring them in --

Ms. Serendera

Exactly, exactly.

Councilwoman Miller

So it's like a little (indiscernible). 82 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Ms. Serendera

Right.

Councilwoman Miller

Okay, good. And as a part of that program, you also have GED?

Ms. Serendera

Mm-hmm.

Councilwoman Miller

And literacy?

Ms. Serendera

That's right.

Ms. Mariner

That's correct.

Councilwoman Miller

So if we want to refer someone to that person, then we need to call MOCS?

Councilwoman Miller

Okay.

Ms. Serendera

So the folks who we're recruiting for that program are already doing the commercial corridor work. We hope that if the program is successful, we can keep it going, and then we'll need people to backfill those positions on the corridors. So what we'll do is make all of this information available through MOCS 83 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 and any of the other job-training programs available through MOCS and through the career link centers that the Workforce Investment Board runs. But absolutely, if you want to pass along any information, we'll make sure that folks have the relevant info to find out about these programs.

Councilwoman Miller

Well, any of these programs, Council offices need the information.

Ms. Serendera

Absolutely.

Councilwoman Miller

Because we have constituents that are calling us all the time for employment leads and all kinds of service-oriented services.

Ms. Serendera

Right.

Councilwoman Miller

Now, the job readiness and placement for ex-offenders, so this is just career counseling and wraparound services; job readiness, not training.

Ms. Mariner

It's actually job-training and placement, placement of 84 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 260 ex-offenders into full-time employment. And they will receive retention services for 120 days after placement.

Councilwoman Miller

Have you guys been doing this in the past? I mean, I know this is -

Ms. Mariner

This is done for the Mayor's Office for Reentry.

Councilwoman Miller

For reentry, okay. So their success has been what?

Ms. Serendera

You know, we can get back to you with their rate in terms of retention. I know they have a much lower recidivism rate for their clients than you see throughout the City, but we'd have to get back to you on the exact rate.

Councilwoman Miller

Okay. And with then, the construction trade, you're going to hopefully train 160 people to get into an apprenticeship 85 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 program.

Ms. Mariner

That is actually the PHA program. That's been very successful, and we will have 160 people who will go through that program and take the apprenticeship test or get jobs within the construction trades.

Councilwoman Miller

Is there a timeline on these? I mean, are you looking to do this in what?

Ms. Serendera

So our biggest challenge has been, in part, that the funds are still currently at the state level. So as soon as those dollars come to the City and as soon as we get through the process here in terms of the appropriation process, we'd like to get those programs moving as quickly as possible. We are going to be beginning recruitment efforts very shortly. And then, really, it depends a little bit on just the contracting process and getting those dollars through the state. 86 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 But as soon as any of these are ready to launch, there will be information available.

Councilwoman Miller

I just want to go back for a second to the ex-offenders. Are they -- that's different from what the Prisons is saying it's going to do with green jobs for ex-offenders?

Ms. Mariner

Yes. That's different.

Ms. Serendera

Yes. MS. McCULLOUGH: That's totally different.

Councilwoman Miller

Is someone from the Prisons here? (No response.)

Councilwoman Miller

No? Okay. Well, what we would like to know is just how many people are they targeting? Green jobs for ex-offenders, $700,000. Okay.

Mr. Agostini

Councilmember, I 87 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 don't believe anyone is here from Prisons.

Councilwoman Miller

Okay.

Mr. Agostini

I will check to see if someone can get here.

Councilwoman Miller

Is anyone here from the Mayor's Office of... the Mayor's Office -- the Mayor's Commission on Aging, the Senior Center, Senior Services? (Witness comes forward.)

Ms. Merlin

Good afternoon. I'm Debbie Merlin. And I'm the Assistant Deputy Mayor at the Mayor's Commission on Aging.

Councilwoman Miller

Okay. Good afternoon. Can you tell me a little bit about this job-training program for low-income seniors that you propose?

Ms. Merlin

This is the Senior Community Service Employment Program that the Mayor's Commission on Aging has had a contract from the Philadelphia 88 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 Corporation for Aging, where the money comes from the federal Department of Labor for over 35 years. The stimulus money is in addition to the money and programs that we already have in place. It allows us the opportunity to enroll additional people in the work-training program, where we place low-income seniors that have many barriers to employment at different not-for-profit 501(c)(3)s and government agencies throughout the City for work training, with the eventual goal of helping the people find employment.

Councilwoman Miller

So the work training then, if I decided to take a senior into an -- or if an agency decided to take a senior, that would be called work-training, and then would they move -- but would they get paid for that?

Councilwoman Miller

Okay.

Ms. Merlin

The senior gets paid $7.25 an hour, minimum wage, for 20 89 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 hours of training a week. And the type of training is anything from clerical aide to receptionist aide, maintenance aide, nutritionist aide, and some other types of training opportunities throughout the different host-agency sites.

Councilwoman Miller

And how long can they stay in that training?

Ms. Merlin

Right now, with the stimulus money, they are able to stay in that area until the end of June of 2010. However, what our goal is at that point is either, hopefully, some of the people will have found jobs or will be able to transition them, if appropriate, into our regular senior community service employment, using our regular funds for that. That is our eventual goal.

Councilwoman Miller

And is there an age limit?

Ms. Merlin

The age minimum is 90 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 55 years old; you have to be at least 55. And we have people of every age after that, up to approximately 85, 86 years old.

Councilwoman Miller

Okay, all right. Thank you. And how many people -- this additional funding, how many people do you serve and how many do you anticipate serving with the additional funding?

Ms. Merlin

Our average goal is people. However, right now, we 14 have in the program, as of today, 24 15 active participants that are work- 16 training throughout the City. The total 17 that we've served from June until today 18 is 33. 19

Councilwoman Miller

Okay, all 20 right. Thank you. Thank you very much. 21

Ms. Merlin

Thank you. 22

Councilwoman Krajewski

Are there any other questions from members of the committee? (No further questions.) 91 11/19/09 APPROPRIATIONS - 090736,37,38,39,40

Councilwoman Krajewski

Thank you. Is there anyone else here to testify? (No response.)

Councilwoman Krajewski

All right, thank you. That ends our public hearing. We'll go into our public meeting. The Chair recognizes... The Chair recognizes Councilman Clarke for Bill No. 090737.

Councilman Clarke

Thank you, Madam Chair. I make a motion that Bill No. 17 090737 be reported out of committee with a favorable recommendation and a request for a rules suspension to allow for reading at the next session of Council. (Motion duly seconded.)

Councilwoman Krajewski

All those in favor? Opposed? (None opposed.) 92 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 Therefore, Bill No. 090737 will be voted out of this committee with a favorable recommendation and a suspension of the rules so as to permit first reading at our next session of Council. The Chair recognizes Councilman Clarke for Bill No. 090739.

Councilman Clarke

Thank you, Madam Chair. I move that Bill No. 090739 be reported out of committee with a favorable recommendation and with a rules suspension to allow for reading at the next session of council. (Motion duly seconded.)

Councilwoman Krajewski

All those in favor? Opposed? (None opposed.) Therefore, Bill No. 090739 will be reported out of this committee with a favorable recommendation, with a suspension of the rules, so as to permit first reading at our next session of 93 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 Council. The Chair recognizes Councilman Clarke for Bill No. 090740.

Councilman Clarke

Thank you, Madam Chair. I make a motion that Bill No. 8 090740 be reported out of committee with a favorable recommendation and a rules suspension to allow for reading at the next session of Council. (Motion duly seconded.)

Councilwoman Krajewski

All those in favor? Opposed? (None opposed.) All right. Therefore, Bill No. 18 090740 will be reported out of this committee with a favorable recommendation, with the rules of Council be suspended so as to permit first reading at our next session of Council. Bill No. 090736 and Bill No. 24 090738 will be held till the next session of Council, on December the 3rd, at 9 94 11/19/09 APPROPRIATIONS - 090736,37,38,39,40 o'clock. Thank you. (Proceedings end at 4:00 p.m.) * * * 95 C E R T I F I C A T E I HEREBY CERTIFY that the proceedings of the City of Philadelphia Council Committee on Appropriations are contained fully and accurately in the stenographic notes taken by me on Thursday, November 19, 2009, and that this is a true and correct statement of same. __________________________________ JOSEPHINE CARDILLO Registered Professional Reporter (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.)