Good evening, Chairman Blackwell, members of the Finance Committee. I am William Kramer. I'm the Senior Zoning Planner in the Development Planning Division of the Philadelphia City Planning Commission. I am here today to testify on Bill No. 18 070072, which was introduced by Councilmember Kenney on February 8, 2007. This bill would provide a tax credit of percent of the cost of constructing a 22 green roof, up to a maximum amount of 23 $100,000. 24 As a leading agency in the 25 development review process, the City 225 3/19/07 - FINANCE - BILL 060052, ETC. Planning Commission strongly and wholly supports the use of environmentally friendly stormwater management practices that serve the best interest of the citizens of the City of Philadelphia. We recognize that these can take many forms, including green roofs, infiltration islands, porous sidewalks and asphalt and rain gardens. The traditional methods of handling stormwater have created runoff volumes identified as the number one source of pollution for rivers and streams nationwide. Here in Philadelphia we have witnessed the impact of increased runoff in recent years, as evidenced by flooding basements, washed-out creek banks and damaged roads and bridges. While all agencies involved in the development process recognize the value of promoting green roof technology, we feel this bill represents an incremental approach that would more appropriately be incorporated into a 226 3/19/07 - FINANCE - BILL 060052, ETC. broader set of incentives in a manner that would not impact the City's strained revenue stream. The rest of my testimony will include an examination of the proposed green roof benefit in comparison to the Water Department's existing incentives, as well as outlining other work in the area of sustainable design currently underway. Since 1995, the Water Department has been focusing on safe and environmentally friendly stormwater management, and the Planning Commission has been a part of those efforts. This has led to the adoption of a new stormwater regulation effective January 2006. These regulations require developers to handle more of the stormwater runoff on site before the water reaches the combined storm/sewer system. The fees charged for stormwater runoff create an incentive to install roofs, because the water absorbed by the 227 3/19/07 - FINANCE - BILL 060052, ETC. green roof significantly decreases stormwater runoff. 85 per square foot per year in fees. For a 10,000-square-foot roof, assuming a 30-year lifespan, this amounts to a savings of $18,000. The $18,000, which equals approximately 37 percent of the proposed tax credit of $50,000 for the same roof, does not take into account the capital cost savings avoided by not meeting larger, more expensive piping and devices, nor does it include the operational savings due to decreased energy use. If both of these cost savings were added to the savings from reduced rates, the economic benefit for the roof would increase significantly and could very well equal or exceed the value of the tax credit. While the Planning Commission supports the goal of promoting green roofs, we do not favor this bill for 228 3/19/07 - FINANCE - BILL 060052, ETC. several reasons. First, the Water Department is already working to establish additional incentives for green roofs, not only through its new regulations and stormwater fees but also by launching a program to expedite reviews for projects incorporating green technologies. Second, the Planning Commission feels that this legislation, while right in its intent, does not go far enough to promote sustainable design citywide. The Planning Commission is working with a number of City departments to promote LEED-certified designs and we are considering ways to "green" our land use and capital investment policies. Green roofs are only one of many design strategies we must consider.
Rather than adopting an ordinance targeting one practice, which may not be feasible to use in all locations, the Planning Commission favors the use of the LEED standard -- that's Leadership in Energy 229 3/19/07 - FINANCE - BILL 060052, ETC. and Environmental Design -- that applies to a range of performance-based incentives to cover all aspects of sites and building. I have attached a copy of the LEED rating system to my testimony for your information. Finally, this proposed tax bill 9 proposes to take funds from the business privilege tax, a strained revenue source that will be decreasing in future years. This point has been covered more completely this evening by the Revenue Department. This concludes my testimony. I appreciate the opportunity to appear before you on this important issue and would be pleased to answer any questions you may have. Thank you.
Thank you, and thank you for your patience in agreeing to the other witnesses going first. Are there any questions? 230 3/19/07 - FINANCE - BILL 060052, ETC.
I just wanted to just comment quickly on some of the testimony here. First of all, the Revenue Commissioner is correct, we don't know the impact, and if we have a serious impact in the next three to five years, we certainly can adjust it. I do think that the economic incentive and not the penalty side of it -- we're not penalizing anybody who doesn't do it. We're trying to incentivize it -- is a way to kick-start this important effort. Certainly this Council, along with the Administration, has the ability to adjust those numbers. I don't think it's an extravagant amount of money and I do think it's worth taking the chance, considering the benefits that we're going to derive in other areas of not having to treat stormwater in areas of -- just, in general, a benefit to the City both from a subjective and a scientific way, I 231 3/19/07 - FINANCE - BILL 060052, ETC. think it's worth taking the chance. As far as the Planning Commission's testimony is concerned, I don't see that there's anything that passing this bill is going to do to inhibit or impede any other efforts that they or the Water Department or any other department is making, but is a way to highlight the City's long overdue entrance, public entrance, into this important field. So I don't think that passing this bill is going to stop or halt or alter any of the Planning Commission or Water Department's plans, and I do think that the economic uncertainty that we're entering into potentially is not that dire that we shouldn't take the chance. Thank you.
Thank you very much. Are there any other questions? Yes, sir. MR. PATRICK McDONALD: I know 232 3/19/07 - FINANCE - BILL 060052, ETC. you guys want to get out of here. I just wanted to address one thing that you said along the lines of since 1975 there's been an effort to address issues such as this and other things. Again, I want to impress upon you all that four years ago, I -- three years ago, I went to the Watersheds Department, the Water Department, the Planning Department and numerous people in L&I and asked them what kind of litigation or permits or anything else planned that I would need as a plumbing contractor to put in a rainwater harvesting system or a green roof. Not one single person from the City had any idea what it was, until I was told by an engineer in the Watersheds Department, Just do it. Two years after I accomplished this goal of taking this on myself with all expense out of my pocket, I was asked by Glen Abrams from the Watersheds Department, Water Department, to come and receive an award for the work that I did 233 3/19/07 - FINANCE - BILL 060052, ETC. out of pocket. So I just ask that the Councilpeople to understand that by not supporting this bill and by looking at our environment as the number one issue that we have over and above all of the other issues that we have, as urban communities right now, what we're essentially doing is we're telling the rest of the world, along with our citizens, that we don't need anything implemented other than what our Planning Department and what our L&I Department has going right now. So I just ask for the support and understanding. Thank you.
Thank you very much, Mr. McDonald. Any other questions or comments? (No response.)
Thank you very much. That will conclude our hearing and we will enter into our stated 234 3/19/07 - FINANCE - BILL 060052, ETC. meeting. The Chair recognizes Councilman Ramos with regard to a motion for Bill 5 No. 060389 and also for a suspension of the rules.
Thank you, Madam Chair. I move that Bill No. 060389 be reported out of Committee with a favorable recommendation and further move that the rules of Council be suspended to permit first reading of this bill at our next Council meeting. (Duly seconded.)
It has been moved and seconded that Bill No. 17 060389 be reported out of Committee and, furthermore, that we entertain a suspension of the rules so that we may hear this at our next session of Council. All in favor will say aye. (Aye.)
Opposed? (No response.) 235 3/19/07 - FINANCE - BILL 060052, ETC.
The ayes have it and the bill passes. The Chair recognizes Councilman Greenlee with regard to a motion with a suspension of the rules for Bill No. 7 070150.
Thank you, Madam Chair. I move that Bill No. 10 070150 be reported out of this Committee with a favorable recommendation and that the rules of Council be suspended to allow for first reading at the next session of Council. (Duly seconded.)
Bill 23 070150 has been moved, seconded and reported out of Committee with a favorable recommendation and also a 236 3/19/07 - FINANCE - BILL 060052, ETC. recommendation for a suspension of the rules so that it may be considered at our next session of Council. The Chair recognizes Councilwoman Blondell Reynolds Brown for a motion with regard to Bill No. 070169 and also for a suspension of the rules.
Thank you, Madam Chair. I move that Bill No. 070169 be reported out of Committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit reading at the next scheduled session of City Council. (Duly seconded.)
The ayes have it and Bill No. 070169 is reported out of Committee with a 237 3/19/07 - FINANCE - BILL 060052, ETC. favorable recommendation and also a recommendation for a suspension of the rules so that it may be heard at our next session of Council. The Chair recognizes Councilman DiCicco with regard to an amendment to Bill No. 070073, and the Chair notes that this was circulated earlier in our meeting. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that the amendment to Bill No. 070073 be approved. (Duly seconded.)
It has been moved and seconded that the amendment to Bill No. 070073 be adopted. All in favor will say aye. (Aye.)
The ayes have it and the amendment is adopted. 238 3/19/07 - FINANCE - BILL 060052, ETC. The Chair now recognizes Councilman DiCicco for the amended bill, for the reporting out with a suspension of the rules of Bill No. 070073 as amended. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill No. 070073 as amended be reported out of this Committee with a favorable recommendation and a further recommendation that the rules of Council be suspended. (Duly seconded.)
It has been moved and seconded that the amended Bill No. 070073 be reported out of Committee with a favorable recommendation and also a recommendation for a suspension of the rules so that it may be considered at our next session of Council. The Chair recognizes Councilman DiCicco with regard to Bill No. 070089 with a suspension of the rules. COUNCILMAN DiCICCO: Thank you, 239 3/19/07 - FINANCE - BILL 060052, ETC. Madam Chair. I move that Bill No. 070089 be reported out of this Committee with a favorable recommendation and that the rules of Council be suspended. (Duly seconded.)
It has been moved and seconded that Bill No. 9 070089 be reported out of Committee with a favorable recommendation and, furthermore, that the rules of Council be suspended so as to permit first reading at our next session of Council. All in favor will say aye. (Aye.)
The ayes have it and the bill just read has been passed, with a suspension of the rules. Councilman Goode, would you give us a motion for Bill No. 070090 with a suspension of the rules, please. 240 3/19/07 - FINANCE - BILL 060052, ETC.
Thank you, Madam Chair. I move that Bill 070090 be reported out of Committee with a favorable recommendations and that the rules of Council be suspended so as to permit first reading at our next session of Council. (Duly seconded.)
The ayes have it. Therefore, Bill No. 070090 is reported out of Committee with a favorable recommendation and also a recommendation for a suspension of the rules so that this may be heard at our next session of Council. The Chair recognizes Councilman Goode with regard to a motion for Bill 25 No. 070091. 241 3/19/07 - FINANCE - BILL 060052, ETC.
Thank you, Madam Chair. I move that Bill No. 070091 be reported out of Committee with a favorable recommendation and that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
The ayes have it. Therefore, Bill No. 070091 is reported out of Committee with a favorable recommendation and also a recommendation for a suspension of the rules so that this may be heard at our next session of Council. The Chair now recognizes Councilman DiCicco with regard to an amendment. 242 3/19/07 - FINANCE - BILL 060052, ETC. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that the amendment to Bill No. 070072 be approved. (Duly seconded.)
It has been moved and seconded that the amendment to Bill No. 070072 be approved. All in favor will say aye. (Aye.)
The ayes have it and, therefore, the amendment is approved. The Chair now recognizes Councilman DiCicco with regard to a motion. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill No. 070072 as amended be reported out of this Committee with a favorable recommendation and that the rules of Council be suspended. 243 3/19/07 - FINANCE - BILL 060052, ETC. (Duly seconded.)
The ayes have it and, therefore, Bill No. 8 070072 as amended is reported out of Committee with a favorable recommendation and also a recommendation that the rules of Council be suspended so as to permit first reading at our next session. The Chair recognizes Councilman Goode with regard to a motion for Bill 15 No. 060052.
Thank you, Madam Chair. I move that Bill No. 060052 be reported out of Committee with no 19 recommendation. (Duly seconded.)
It has been moved and seconded that Bill No. 23 060052 be reported out with no 24 recommendation. All in favor will say aye. 244 3/19/07 - FINANCE - BILL 060052, ETC. (Aye.)
The ayes have it. Therefore, Bill No. 060052 will be reported out of this Committee with no recommendation. That concludes our Calendar. We thank you all for your patience for being here. Thank you. Thank you very much. (Committee on Finance adjourned at 6:20 p.m.) - - - 245 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on March 19, 2007, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)