2171 COUNCIL OF THE CITY OF PHILADELPHIA CONTINUED PUBLIC HEARING COMMITTEE OF THE WHOLE FY '04 OPERATING BUDGET - - - Room 696, City Hall Philadelphia, Pennsylvania Tuesday, March 11, 2003 9:40 a.m. - - - BILL 030004 BILL 030008 BILL 030010 - - - PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK J. DI CICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JAMES F. KENNEY COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN RICHARD T. MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO - - - V A R A L L O, INCORPORATED Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 2172 I N D E X WITNESSES REPSIE WARREN, Civil Service Commission .... 2173 LYNDA ORFANELLI, City's Personnel Director . 2174 KEVIN VAUGHN, Free Library ................. 2176 ROBERT DUBOW, City's Budget Director ....... 2180 FAYE MOORE, SEPTA .......................... 2182 FRANCES JONES, SEPTA ....................... 2203 CECIL BOND, SEPTA .......................... 2246 RHONDA COHEN, Community College ............ 2322 STEPHEN CURTIS, Community College .......... 2324 JACK NURASKIN (ph), Community College ...... 2349 DEBORAH COBB ............................... 2381 2173 3/11/03 - FY '04 OPERATING BUDGET
Good morning. We thank you all for coming, certainly, to make testimony before the Committee of the Whole on our Operating Budget. This morning our first department is the Personnel Department. And we ask you to identify yourselves to the record and begin your testimony. Thank you again and welcome.
Good morning. I'm going to defer my testimony to the Reverend Repsie Warren from the Civil Service Commission to start first, if that's all right with you, because she has hearings back at the Commission that she must attend.
Thank you again. It is always a pleasure to see Reverend Repsie Warren and thank her for all that she does in our community and with youngsters who are hearing impaired and who need help. Thank you, Reverend Warren. REV. WARREN: Good morning, Honorable Blackwell and Members of City Council. I am Repsie Warren, Chairperson of the Civil Service Commission. I'm very pleased to testify on behalf of myself and Civil Service Commissioners Marwan Kreidie and 2174 3/11/03 - FY '04 OPERATING BUDGET Edward Keenan in support of the Commission's budget request for Fiscal Year 2004. Our total budget request of $164,385 represents an increase of $2,733 over our Fiscal Year '03 estimated obligation of $161,642. This increase is reflected in Class 100 primarily, and it provides for the negotiated salary increases for Civil Service employees. The remainder of our request is slightly reduced from our FY '03 level and will provide funds for training, necessary materials, supplies, and the purchase of minor equipment. This is our report. If you have any questions at this time, I'll be happy to answer them.
Thank you very much. Are there any questions? (No response.)
No questions. Thank you. REV. WARREN: Thank you. Have a blessed day.
Good morning, 2175 3/11/03 - FY '04 OPERATING BUDGET Councilwoman Blackwell and Members of City Council, wherever you are. I'm Lynda Orfanelli, the City's Personnel Director. I'm here to present the budget for our Department. With me today are my deputies, Celia O'Leary, James Kimpson; my Administrative Services Director, Dan Earley, and a few other staff members in case there are questions that they can answer, if you have any. Our Fiscal Year 2004 proposed budget is $5,024,130. It contains $4,405,592 in Class 100, $550,132 in Class 200, $68,406 in Class 300 and 400. This represents an increase of $175,855 from Fiscal Year '03 estimated obligations due to negotiated pay increases for Civil Service employees and the cost of terminal leave payments for employees in the DROP. You have my testimony. I'll be glad to entertain any questions.
Thank you very much. Are there any questions? (No response.)
Thank you. Free Library. Human Relations Commission. Is the Free Library here? If not, we will move to the Human Relations Commission and then come back to the Free Library. Free Library, please come up. Thank you. You must forgive me.
Thank you very much. And the President and Director of the Library, Elliott Shelkrot, is on his way. He'll be here momentarily, but if you'd like me to begin.
Sure. Would you identify yourself for the record, please?
Sure. My name is Kevin Vaughn. I'm the Associate Director of the Free Library of Philadelphia. I want to thank you for having us here today. I know that you have the complete written testimony, so I don't want to cover the entire thing again, but I will say that today, the 2177 3/11/03 - FY '04 OPERATING BUDGET Free Library is requesting a Fiscal Year '04 total budget of $50,310,256, including $38,281,893 in City General Fund and $12,028,363 in Grant Revenue Fund from the Commonwealth of the Pennsylvania. This total requested budget represents an increase of $2,968,373 over our Fiscal Year '03 estimated obligations of $47,341,883, of which $35,957,170 is represented in City General Funds and $11,384,713 represented Grant Revenue Funds. The resulting net increase specified above consists of payroll expenses resulting from mandated union payroll increases and minor increases in Grant Funding, fund appropriations, and it will allow for inflation. A few of the highlights of the current year is that we have a new circulation record. We circulated 7 million books in Fiscal Year '03. We also had, in the first half of Fiscal Year '03, we had $3,200,000 library visits, a 5 percent increase over last year. Hits to our Web totalled almost $42 million, a 53 percent increase in the previous year. Summer Reading Program totaled nearly 54,000 children, which represents a 13 percent increase over Fiscal Year '02, and actually it means that 32 percent of the City's 6- to 12-year-olds 2178 3/11/03 - FY '04 OPERATING BUDGET participated in the Free Library's Summer Reading Program.
Thank you so much. I assume the Governor's budget will effect our Free Libraries negatively, potentially. We're hoping that before we pass the budget that some of that will be rectified.
We certainly agree with you, Councilwoman. We currently receive $9.4 million, or are projecting $9.4 million from the Governor's budget for next year. And the decrease that was put into the budget that was submitted last week would be 50 percent, which would bring us down to $4.7 million. So we'd have a $4.7 million hole in the budget to fill.
It's taken us so long to get this far. We certainly hope we don't go backward. Thank you very much. Any questions? Councilman Rizzo.
I'd like to follow-up on that. When will you have a plan in place, after the budget is passed, in this 50 proposed cut? How 2179 3/11/03 - FY '04 OPERATING BUDGET are you going to react to that? What exactly will be the Library's plan, to close branches?
We are in the process of looking at all the options that we have. We hope that no branch closings would be necessary, of course; but $4.7 is a significant amount of money to our budget and we'll have to be nimble to try to find the best ways we can do it and still serve the people of the City of Philadelphia as best we can.
When will that be available to Council, that plan with this reduced budget?
I don't have a projected date, but as I said, we're trying to put together something as quickly as we can. Hopefully, the cut from the State won't be as hefty as proposed, but we're going to look at a couple of different scenarios.
Please, could you provide the Chair with the proposed date when that information will be available? And when it is available, would you provide your plan to respond to that cut in the budget?
Thank you, Councilman. Thank you very much, Mr. Vaughn. Next will be Human Relations Commission. Good morning, Mr. Dubow. We appreciate the fact that you can wear so many hats. Please identify yourself for the record and proceed.
Good morning, Councilwoman Blackwell and Councilman Rizzo. My name is Rob Dubow. I'm the City's Budget Director, and I'm here to provide testimony for the Commission of Human Relations Fiscal Year '04 Operating Budget. The Commission and the Fair Housing Commission are requesting a combined budget of $2,279,873 in FY 2004, a $90,173 increase over FY '03's estimated obligations. Increases necessary to support negotiated wage increases and higher court reporting services. The Commission is authorized for 44 staff positions, which is a decrease of one position from the '03 budget positions. I'd be happy to take any questions.
Thank you very 2181 3/11/03 - FY '04 OPERATING BUDGET much. Councilman Rizzo.
Mr. Dubow, is there a report available from the Commission on their activities, what they involve themselves in, or are they more confidential? It would be interesting to see what they do, where their interaction is.
Their testimony actually lays out many of the things that they do. But if you'd like a more in-depth report, we'll get that to the Chair.
Well, I'd be interested in some of the hot spots. You know, what exactly are they involved in. There might be issues that they're involved in that I'd like to know about. And I'm sure that we don't need names and addresses, but just complete information. I'd like to see exactly what services they're providing. I know they do good work, but it would be interesting to see what, where, when, what they do.
Thank you, 2182 3/11/03 - FY '04 OPERATING BUDGET Councilman. Any other questions?
Seeing none, this hearing will be recessed until 2 o'clock when we will hear from SEPTA and, immediately thereafter, Community College. Thank you all.
Good afternoon. This is the continued public hearing of the Committee of the Whole. I would ask that the representatives from SEPTA please approach the witness table. Good afternoon.
Please identify yourself the record and proceed with your testimony.
My name is Faye Moore. I'm SEPTA's general manager. I'm joined today by Joe Casey of our Finance Division, and Frances Jones from Government Affairs. 5 million for Fiscal 2004 for SEPTA's Operating Budget request and to report on initiatives and milestones achieved over the past year. Included in this request are funds to pay for operating subsidies to leverage State operating assistance. SEPTA's 2,866 vehicle multi-modal network provides travel access for those who live and work in Philadelphia and the region. 1 million daily trips are taken on a SEPTA vehicle, with about 87 percent starting or ending in Philadelphia. Many of these trips are journeys to work. Last year we enhanced access by extending route service to Philadelphia business centers, creating mid-day service and establishing express service on access to job routes. , and Philadelphia residents who commute to suburban employment centers in Radnor, Strafford, Paoli and Great Valley. The value of public transit can be measured not only by where it takes riders, but also 2184 3/11/03 - FY '04 OPERATING BUDGET by accessibility improvements. Through an ongoing program of fleet upgrades, SEPTA is moving towards a 90 percent achievement rate for Americans with Disabilities Act, referred to as ADA, accessible buses and revenue service. Today 99 of our bus routes use either lift or ramp-equipped vehicles. Public transit also provides environmental value to the communities we serve. Transit vehicles promote energy resource conservation and alleviate local traffic congestion. SEPTA is currently testing an energy efficient hybrid-electric bus for inclusion in its 40-foot ADA accessible, low floor bus fleet. Powered by an electric battery, traditional diesel power system, these buses use less fuel and reduce fuel emissions. Maintaining a state of good repair, renewing mature transit infrastructures, introducing new technology and completing station renovation and new construction projects are all part of a comprehensive program to safeguard the value of SEPTA's assets and improve service delivery to customers. SEPTA's internal forces completed several station projects, including the start of a 2185 3/11/03 - FY '04 OPERATING BUDGET major renovation or rehabilitation project at Allegheny Station and cosmetic improvements at Hunting Park, Wyoming, and Erie Stations on the Broad Street Subway Line. Infrastructure improvements, including installation of new continuously welded track on Elmwood Avenue, the R8 Fox Chase Line and along portions of Broad Street Subway were also made. " This line is a main transit artery for the City providing strategic connections to the region. To date, work is nearing completion on the Frankford end with the reconstruction of the Berks, Church and Huntingdon Stations and the new Frankford Transportation Center Complex. In Center City, ADA improvements were completed at the 5th Street Station. And ADA and station improvements are being designed for the 8th and 13th Street Stations. In West Philadelphia, ADA renovations are underway at the 30th Street stop and work is occurring on the Market Street Elevated reconstruction project between 46th and 63rd 2186 3/11/03 - FY '04 OPERATING BUDGET Streets. As part of this project, the five existing stations will be demolished and new stations built and the entire 11,000 of guideway will be replaced. In accordance with the US Department of Transportation regulations, small, minority and women-owned businesses, referred to as DBE firms, are afforded an opportunity to participate in the bidding and contract procurement processes established from major capital investment programs. Under SEPTA's DBE program, the goals for MSE contracts are established on a contract by contract basis. 5 percent is based on the contract award of four professional services and three major construction contracts. 4 percent for minority. SEPTA has also established a 10 percent employment goal for construction area residents.
There's another constituency, businesses surrounding the Market Street project experiencing changes in their daily lives who have specific issues that must be addressed during construction. One of these initiatives is creating temporary 2187 3/11/03 - FY '04 OPERATING BUDGET parking lots to offset the loss of on-street parking during construction. And for this, in her absence, I would like to thank Councilwoman Blackwell for her invaluable support in helping SEPTA to get these temporary facilities in place. In the midst of our efforts to improve the SEPTA system, we are also keenly aware of the heightened concern for safety and security. Septa's Transit Police Force employs modern policing techniques and Best Practice standards, including the deployment of specialized Canine, Bicycle, Criminal investigations and special operations response team units and officer assignment rotations. This enables them to work in decentralized geographic areas, protecting against traditional criminal activity while remaining constantly vigilant against the potential for terrorism. For the 13th consecutive year, crime in the SEPTA system was reduced through the efforts of our patrol officers. Last year, 7 percent decline in Part crimes translates into an overall 23 reduction of 91 percent since 1989. 24 Addressing the task of communicating 25 information to customers, particularly when 2188 1 3/11/03 - FY '04 OPERATING BUDGET temporary changes to published schedules are necessary due to weather or other operating conditions has certainly been put to the test with this recent snow that our region has experienced. A communication basic, like SEPTA's page in the Metro newspaper, has proven to be an effective way to update riders about service news. More advanced methods, like the Pilot Smart Station at the Cecil B. Moore Station on the Broad Street Line will combine state-of-the-art communication, security and life safety technology. Finally, SEPTA's financial outlook mirrors the conditions of government entities and other transit properties are facing, with growing deficits, escalating costs and decreasing revenues. Like the City of Philadelphia, SEPTA's fiscal disciplines are also guided by balanced budget mandate. Customer service and safety and security cannot be compromised if SEPTA is going to deliver on its core business goal of excellent public transit service. But with an uncertain economic future and the prospect of reduced State subsidy funding, the ability to do more with less is growing increasingly difficult. In addressing its financial 2189 3/11/03 - FY '04 OPERATING BUDGET issues, SEPTA, like the City of Philadelphia, must be realistic about the options available to achieve a balanced budget. In the face of these challenges, SEPTA remains committed to enhancing the vitality and quality of life in the City of Philadelphia by offering the citizens the ability to be mobile using public transit. President Verna, thank you for the opportunity to provide testimony this afternoon. I look forward to working with you, Councilman Goode, Chair of the Transportation and Public Utilities Committee, and with other Members of Council to meet Philadelphia's access needs.
Thank you, Madam Chair. Ms. Moore, thank you for your testimony, I appreciate that. I have a question. It's just one that's been a little nuisance question for many, 2190 3/11/03 - FY '04 OPERATING BUDGET many years. It's the responsibility of the SEPTA Police. It seems very difficult to communicate with your Police Department in reference to some things that I've heard from police officers on the street that maybe you can explain or have one of your staff explain the responsibility of the SEPTA police in the area of parking and bus stops. I've been told that since our Police Department has been so very, very busy doing other things, that they've occasionally asked your chief to be helpful in enforcing the illegal parking in bus stops, and it seems that there is no cooperation in that area. And it's very difficult to get a SEPTA Police Officer to issue a parking ticket when a vehicle is blocking a SEPTA stop. So if we have a SEPTA Police Department and they have the authority to write a ticket, I would appreciate you instructing your chief to do what they're supposed to do and help our Philadelphia Police Department prevent bus stops from being blocked by illegally parked vehicles and using the resources that you have to get those vehicles towed. Your bus drivers constantly complain that they don't pull over and give up that lane of 2191 3/11/03 - FY '04 OPERATING BUDGET traffic because they can't pull over. Well, when SEPTA police ride by and see it, especially in Center City, and do nothing about it, that bothers me. Could you respond to that, please?
Well, the only thing I will tell you is I will take it back to the chief. As you pointed out, if we don't clear that area, our buses can't pull over. We get more complaints about the bus not being able to pull over. So I will take it back to the chief. Because I know we issue tickets. I just --
Well, I'd appreciate you having a response back to the Chair in writing in reference to that issue. A similar condition, not just blocking bus stops, we have issues in Center City where we have posted signs that say, do not park here because it interferes with the bus making the turns. And how many times I've been driving through Center City and there's a driver that won't budge the bus, won't back it up, won't move the bus because there's some rule that they can't back up without a supervisor being present, or whatever the situation is. I'm not even sure I'm accurate on that. That we have an 2192 3/11/03 - FY '04 OPERATING BUDGET intersection blocked by a SEPTA bus because someone is parked in the area that they need to complete their turn. It's not a bus stop. I forget how you refer to it. It's an area that the bus needs to complete their turn. And I think that's a natural job of the SEPTA police, that if they see those areas blocked, do something about it. Not take one of our traffic units or a district car out of service to enforce parking in areas that you need to operate your vehicles. So I'd appreciate those questions being responded to. Because I've tried to communicate with your Police Department with no 14 response. Thank you.
Okay. I'll follow-up that. And the area you were talking about is the turning radius that they need to actually --
I'm sure your people in SEPTA and you understand what I'm trying to say. You want to go from one street to the other and you need that area to make your turn and people -- I think sometimes it's an innocent error. They don't realize what the ramification is going to be of parking in those areas. But my point being is our Philadelphia Police are very, very busy, and I think 2193 3/11/03 - FY '04 OPERATING BUDGET that SEPTA should be taking care of the prime responsibility keeping your right-of-way clear and all the other things that they do. But that should be one that not be forgotten.
Thank you very much. The Chair recognizes Councilman Goode.
Pretty good. What is the projected total cost for the reconstruction of the Market-Frankford El?
Let's see. I think on the west, it's valued at roughly $560 million and on the other end it might have been, at the point in time 2194 3/11/03 - FY '04 OPERATING BUDGET we started, about $300 million.
Well, I guess the Frankford area under the lease lease back is owned by the City, and the West Philadelphia end is owned by SEPTA.
I guess when all the enterprises merged. That's how it's identified in the lease lease back.
There's a host of things, but the other single biggest asset would be the Broad Street Line.
Can you provide a detailed list of what the City owns and leases to SEPTA? I'm also making that request to Public Property.
Okay. Because I was about to say, we'll coordinate with Public Property. Because what I'd probably say might not be quite 2195 3/11/03 - FY '04 OPERATING BUDGET what they would say.
Actually, I'd prefer a detailed list in writing forwarded to the Chair.
When is the lease of the Frankford side going to expire?
I think the lease lease back is the early part of 2004, so maybe the first quarter of 2004.
Well, some decision has to be about the assets. There are terms -- I can tell you right now SEPTA is -- and I'm sort of thinking the City is on the same wavelength. We're studying the lease lease back to make sure we understand the rights and privileges of what we view to be our side and then I think there's a series of discussions with the City. I would hope that SEPTA would continue as it is.
We have not sat down to have negotiations. I think both parties are studying the 2196 3/11/03 - FY '04 OPERATING BUDGET agreement to make sure we all understand it.
I'm not sure. I would have to guess it's under Strategic Planning, since that's where the transportation arm is. But I don't know.
Is SEPTA interested in purchasing the Frankford portion from the City?
At this point in time, I don't know what our rights and privileges are, so I don't want to speculate. But like all the other agencies around, SEPTA has limited money, so it just depends on how the two parties can negotiate terms and conditions.
What if the City decided it didn't want to lease or sell the Frankford portion of the El to SEPTA?
Good answer. Interesting answer, but a good answer. Could you forward a copy of all leases between the City and SEPTA to the Chair? 2197 3/11/03 - FY '04 OPERATING BUDGET
It's a master lease on the Frankford portion? Is it on the entire El and it just gives the City ownership of the Frankford portion, and SEPTA the Market Street portion; or are they two separate leases?
It deals with assets that we're leasing from the City and assets that SEPTA would have, et cetera. It's pretty complicated. It's pretty thick.
And you're looking for the 1968 lease lease back arrangement with the City of Philadelphia? That's the agreement you're looking for?
I think it's the spring of 2004. We'll send that over. I think it's early 2004.
You're welcome. The Chair recognizes Councilman Ortiz.
On , I'd like to find out -- you said the work is nearing completion on the Frankford side of the line with the reconstruction of Berks, Church, and Huntingdon Stations. Could you detail to me whose doing the prime construction and repair in those places, in that area? What's the company?
I don't remember. We'll have to give that back to you. 2199 3/11/03 - FY '04 OPERATING BUDGET
Well, if you give me that, I'd like to find out a listing of all minority contractors that work in the Berks, Church, and Huntington Stations and the creation of the new Frankford Transportation Complex.
Well, that's what I'm asking. I'm asking for you to detail to me the companies that have those contracts, the subcontractors, and detail the minorities, African American, Latino, women. And if you can do that also in terms of the renovations that are taking place at Market and Frankford, the 5th Street Station, the renovations that have begun at 30th Street Station, the Market Street Elevated MSE project in West Philadelphia, the five existing stations, 46, 52, 56, 60 and 63 will be demolished and rebuilt. I'd like to find out who are the people who are doing the demolition part of it, if any subcontractors are there.
I understand. Forward the RFP, the bid to us and give us the 2200 3/11/03 - FY '04 OPERATING BUDGET companies, contractors and percentages. I would also like to -- if you can. I don't know if you can -- in each of these projects -- and I really don't know if you really can. I'm asking you to see if you can give to the President a list of people that have worked in each of these projects. Ask from the contractors, the prime contractors and the subcontractors, a list of the individuals that have been employed as laborers, skilled, whatever it is, down the line out of each one of these projects. And my colleague, Councilwoman Blondel Reynolds, asked for the addresses because we want to see how many of those individuals are actual residents of Philadelphia and who are not. And we'd also like to see, if you can, the percentages of minorities, women, Latinos and African American, Latinos and so on, that have been employed in these projects. As you well know -- and my good friend Frances has gone through -- there is a great deal of controversy about this and we want to be able to assure folks that we're being very conscientious and just in following through with these processes. I'd also like to find out the level of 2201 3/11/03 - FY '04 OPERATING BUDGET personal service contracts that SEPTA gives out. In terms of attorneys, law firms, and I'd like to see from you those law firms that have been employed in the last two years and, again, a breakdown of minorities. And other professional contracts also. I'm using law firms because I remember before you came on we had a meeting a few years back, around two years ago. We had a meeting and I was given a set of numbers and, one, there were no Latino professional contracts. There were names of people, but no contracts that had been admitted. There are firms, I figure, that were considered, but, again, no contract submitted. And I'd like to see, you know, how we're doing in terms of inclusion and this SEPTA money that gets spent in both the professional services contracts and in the contracts that go for the actual rebuilding of the system. So if you can do that, I really would appreciate that. Thank you.
Thank you, Councilman. The Chair recognizes Councilwoman Tasco. 2202 3/11/03 - FY '04 OPERATING BUDGET
Thank you. Good afternoon. Also along that line, on of your testimony, you stated that SEPTA has established a Voluntary Construction Area Residents Employment Goal of percent. Could you 7 tell me when that was established and what has been 8 your progress in hiring area residents on SEPTA 9 projects? 10
The time frame established would have been in the early stage, so at least three years. 1999. I can give you that information as of November. And the residential goal was 10 percent and our realization is 11.2 percent.
How does that work? How are you able to get the area residents hired on those construction projects?
Well, we have outreach. We actually have companies consultants that help us identify individuals. We have sign-in sheets when we have all of our community meetings and things of that nature. There's some training programs that they can go to to qualify for the work. So there are several outreach efforts that we do to get the residents. 2203 3/11/03 - FY '04 OPERATING BUDGET
In some cases, yes. In some cases we recommend them to additional training classes, et cetera.
So what happens? How long are they in the training classes and do they ever get a job?
We have a definition between TOP/WIN and DAP. Frances is close to those two agencies.
I'm Frances Jones, Assistant Manager of Government Affairs at SEPTA. As a part of our extensive outreach, before we started the project, we did hear from the community that they were interested in jobs. In any instances where there were people that were interested that didn't have the appropriate training, we worked very closely with a community-based group that was established around the project, Urban Mass Transit Task Force. And a part of the task force were elected officials and community leaders. The training was a project that we thought a component that we felt was absolutely 2204 3/11/03 - FY '04 OPERATING BUDGET critical to the project. But because we couldn't use transportation allocated funds through FTA, Federal Transit Administration, we had to identify external funds for the training program. It didn't come directly through SEPTA. The monies came through an outside source and those dollars were funded directly through the Diversified Apprenticeship Program through one of the local unions. So those persons that were interested in getting training for the apprenticeship test were funneled through that training program. Those persons that were interested in getting construction skills were funneled through TOP/WIN, whose funding comes from Philadelphia Work Force Development Corporation. So we have two very specific tracks that we funnel clients through that are interested in training to work on the project.
Now, they go through the training process. Do they come back to SEPTA? They come to you. You put them in a training program. How long is the training program?
Both training programs, both tracks, have just started the beginning of the year. 2205 3/11/03 - FY '04 OPERATING BUDGET The DAP program is about, I think, to weeks. TOP/WIN is a little less. However, both we're in the process of structuring so that when the training is complete there will be jobs in those specific skills available to the trainees.
How will you 8 identify the jobs? How will you identify the 9 skills? They will be SEPTA jobs? 10
The skills are being 11 identified in cooperation and in coordination with 12 the contractor and our Capital Design and 13 Construction Department. And so based upon the 14 contracts, there are specific skill sets that will 15 be identified and the persons that are going through 16 the training program will be trained to be able to 17 work in those specific skills. 18
So your 11.2 19 percent is really your recruitment? You recruited 20 11.2 percent to participate in the training programs, or you have 11.2 percent workers on jobs?
Yes. These are individuals who are getting some degree of pay checks.
But are they through a training program or are they pay checks 2206 3/11/03 - FY '04 OPERATING BUDGET through employment on a SEPTA job?
They have actually been hired by contractors that are on the SEPTA project.
No, the number of people. I guess I'm asking, 10 percent of what? What is the 10 percent representing? 10 percent of what? And then how does that translate into numbers? Ms. MOORE: I'm leafing through documents. I think I might have it. Again, this is as of November because that's one of the latest pieces that we have. The actual hours worked would be 94,720 hours, so it would be 11 percent of those 95,000 hours.
Well, how many people are working? Because, you, know, they hire one person and work them around in different jobs. They play games with these numbers, you know. It's 2207 3/11/03 - FY '04 OPERATING BUDGET not always people. I had a guy try to explain to me -- and I never learned it -- something about man hours. I don't understand all of that.
I'd like to know how many people are actually working on SEPTA jobs that you have recruited, put through a training program, I'd like to know, out of the number of employees that are on those jobs, how many of them are African American or women.
Okay. The total number of workers is 534. Now, out of that, you want to know those designations?
I would like to know how many of them are part of your program. What does that 11 percent represent? Also, how many of your employees -- do they continue, these individuals who have gone through these training programs, and are working maybe on one project, are they successful in moving to other projects? And the other question I wanted to ask you is, who is in charge of monitoring your program?
I'll answer the last one first. We have an outside agency that works with 2208 3/11/03 - FY '04 OPERATING BUDGET us.
It is a minority-owned firm that has expertise in monitoring and working very closely with projects of the size that SEPTA is and monitoring their DBE goals as well as employment goals on projects.
Who is the executive director or president, the name of the person?
Contract Compliance, Inc. It's located in Philadelphia. The office is here in Philadelphia.
Could you get that information to the President, please?
The first part of your question, they are the employees of the contractor or subcontractor. They're not SEPTA employees. I guess my hope would be that if they are on one project -- these are transferable skills, so would one would think then they would be qualified to move to other projects, but they're not SEPTA employees.
So when you have a construction job, you require that 10 percent of the employees be minority?
Well, for this one case, there is a residential goal, but it's purely voluntary. So under the FTA guidelines, we can't mandate it. But we have been very fortunate in that our contractors have accepted the voluntary goal of 10 percent.
What skill trades do they have and what jobs are they working on? Who are they? What are the skilled areas they're working in?
They are all construction trades skills, under plumbing, carpentry -- 2210 3/11/03 - FY '04 OPERATING BUDGET
I would like to know the number of people on the jobs, the skills they are working in.
On of your testimony also you discuss the Diversified Apprenticeship Program and the Tradeswomen of Purpose/Work in Non-Traditional Work Program. How have these programs worked in reference to getting women and minority sponsors in the building trades? We've had discussions in the Council in the last two weeks about the same programs you talked about, the DAP program and other training program where women, particularly women from the TOP/WIN program and from the DAP programs, they receive the training, but they cannot get into the union, which is the ultimate goal of all of this activity and request for participation. Since it seems to be a requirement that you have to be a member of the Laborers' Unions in order to get work, our goal is to create an environment where they, not only are trained, but have permanent employment, not only with SEPTA, but with other construction jobs at the 2211 3/11/03 - FY '04 OPERATING BUDGET same time.
It goes back to what she was saying earlier. For our DAP and TOP/WIN programs, those training classes just started, so we haven't had a graduating class from each either one of them. I think they started in November or December of 2002.
Are you paying for the training in the DAP program or the TOP/WIN?
Neither are using SEPTA funding. Both were funds from outside sources.
And SEPTA, how did you ask them to train these employees?
Keep in mind, they're not our employees. They are employees of the contractor or subcontractor.
How do they come to the program? Where is your involvement here?
We're the owner of the project. We made the project available, and that's where we come into play. 2212 3/11/03 - FY '04 OPERATING BUDGET
And so the DAP Program and the TOP/WIN programs train the workers to go on these projects and out of these training programs, you ask the contractors to take some of these trainees on.
The individuals who graduate from those programs should be eligible to then participate in the project, depending on, again, which craft or what skill they're going after.
If the contractor doesn't meet the goals that SEPTA has put forward and consistently misses those goals, does SEPTA have any power or does SEPTA have a policy that says to that contractor that they will no longer be eligible for bidding on SEPTA contracts because they have not done the job that they contracted for in terms of meeting the minority goals in terms of subcontracts and so on down the line? Is there a policy about that?
It's a complicated, as you can imagine, legal question, but what we do is we encourage our contractors. We routinely meet with 2213 3/11/03 - FY '04 OPERATING BUDGET them. Mr. Bond, who heads our --
I know that everybody encourages, but is there a firm public policy that says, you fail to meet these goals constantly -- is there something that goes towards the objective of getting people who get taxpayers' contracts and money to comply with minority set asides?
Well, we don't do set asides, just in case the federal government is listening.
I understand. I am just using the phrase. That do not meet the goals that you said in terms of minority and female contracts?
If contractors have demonstrated good faith efforts -- and there is a whole litany of definitions for good faith effort -- then it becomes extremely difficult for us to eliminate that vendor from bidding on future work.
Do you have in your specifications or your requirements that the goal of inclusion or diversity is one of the requirements of a project? 2214 3/11/03 - FY '04 OPERATING BUDGET
We have DBE goals, as well as EEO goals. So DBE would be for businesses. EEO would be for individuals.
Well, it's a whole listing of, I guess, legal parameters, et cetera, demonstrated effort.
Well, I'm not sure whether it's federal versus legal versus whatever. Mr. Bond has reminded me it's sort of spelled out in the federal guidelines.
What's the worst that could happen to you if you just didn't pay it any attention?
If I didn't pay what any attention? I'm not sure I understand the question.
The good faith effort. If you saw that a contractor was not really making a good faith effort, what is the worst that could happen to SEPTA if you do not award them that contract? 2215 3/11/03 - FY '04 OPERATING BUDGET
If they have demonstrated but we don't accept that as a good faith effort, then a dispute occurs, legal confrontation occurs. So lawsuits and dispute resolutions.
Let me ask you another question not only on construction. Now, this more directly involves SEPTA, because you are the primary contractor now on vendors in terms of supplies and services. What is your success rate in having diverse suppliers?
As part of some of the many regulations that we have to adhere to, the federal government requires that we send in a DBE report yearly. The first quarter DBE report went in, I guess, we're on the fiscal federal calendar, so it would have started October. That last report showed about a 29 percent DBE participation for goods, services, things of that nature. Now, again, that's just one quarter. Every year we send in a DBE report to the federal government, and I think our goal for the last two years has been 18 percent. And we have satisfied that 18 percent. And that's DBE across the board.
Do you have it 2216 3/11/03 - FY '04 OPERATING BUDGET spelled out? DBE includes a lot of different categories. You could have 29 percent of all women. You could have African-Americans. You could have 29 percent of Asian, Latinos.
Yes. We break it out by ethnic group. So every year we file it with the federal government. And we'd be glad to share the information. It is public. We can send that over for the last fiscal year.
What are the areas? Are they diversified areas of purchase or you have a heavy concentration in one area of service?
They're across the board. Supplies, paper products, consulting. It runs the gamut. And the DBE report, if my memory serves me right -- and correct if I'm wrong -- but the DBE report actually lists the vendor or at least the classification.
Could we have a copy of that, that last report to go to the President?