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Minutes

Committee Hearing, March 24, 2009

Philadelphia City Council Committee HearingsMar 24, 2009

People mentioned

Names our system found in this transcript. Automatically extracted, so it can include anyone named in the record, not only officials or parties.

Organizations mentioned

Councilman Dicicco

Thank you, gentlemen, for waiting. I know it's been a long day. But, nonetheless, I'm sure you found it entertaining or interesting. We were hoping -- we thought we would have somebody from the Parking Authority here. So proceed with your testimony, and then we'll take it from there.

Mr. Master

Councilman DiCicco, should PhillyCarShare start?

Councilman Dicicco

That's fine.

Mr. Master

I guess, for the record, my name is Eli Master, and I'm the acting executive director of PhillyCarShare. Mr. Chairman and members of the committee, as you know, my name is Eli 197 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING Master. On behalf of the board, staff, and thousands of Philadelphia businesses and residents who share the cost-savings and conveniences of our services, I would like to thank you for your considerable support of PhillyCarShare. I would also like to particularly thank you, Councilman DiCicco, for your longstanding leadership on car-sharing issues. Yours and the committee's and the Council's efforts have been integral to our success and have enabled us to become the nation's largest regional car-sharing organization as well as the national model first mentioned by other cities looking to create car-sharing in their communities. I'm grateful for the opportunity to testify today in support of Bill No. 21 090014, which introduces a fair competitive environment for publicly- owned car-sharing spaces. I'm also here to testify today on Bill No. 090013, which designates 198 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING PhillyCarShare pods at 200 Moore Street, south side; 1100 Catharine Street, on the north side; and 700 McClellan Street, on the north side. As you may know, (indiscernible) have already gained the community support with the well-established current administrative and legislative process. As many of you already know, PhillyCarShare serves the residents and businesses of nine out of the City's ten Council districts by providing the nation's least expensive and barrier-free access to care-sharing. We currently maintain approximately 400 cars in our fleet, every single one of which is, and always has been, repaired in Philadelphia. Our collision repairs are done in South Philadelphia. We support local businesses through our Key to the City promotional program, ninety percent of our vehicles are leased from companies within the region, our insurance agent is 199 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING within the region, our first office was in West Philadelphia space that had been vacant and unimproved, and all of our banking is conducted at a local bank. I don't mention these local credentials because they make our vehicles drive better than our competitors; they don't. However, I do mention them because they attest to the superior economic impact that accrues to the City and is its residents from each PhillyCarShare reservation. Here's how. Because our rate structure is designed to promote the typical trip, like a run to the food store, a visit to a relative, or a work-related site visit, by using PCS, our members enjoy lower rates on the overwhelming majority of their trips, saving money for themselves or their companies, a critically important result in this economy. By using PCS, the majority of members' costs is recycled into the local economy, supporting spending and jobs 200 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING here in Philadelphia. By using PCS, a member directly supports almost 60 Philadelphia jobs at PCS, with at least 90 percent living in the City and an unknown number of indirect jobs at our local suppliers and vendors. And by using PCS, a member supports one of the most diverse workforces in the City. Eighty-five percent of our staff is comprised of women and/or minorities, 82 percent of our management is comprised of the same. Non-white minorities represent 54 percent of staff 45 percent of management. PhillyCarShare is very proud of these statistics, particularly because they are evidence that the often-maligned focus on proximity and diversity can be -- and in the case of car-sharing in Philly -- is the most competitive strategy. With regard to competition, please don't get me wrong. We're not opposed to it; in fact, we support it. 201 3/24/09 - STREETS/SVCS.

Mr. Master

- CAR-SHARING PARKING To be sure, for years, as the only car-sharing organization interested in serving Philadelphia, we enjoyed our hundred percent market share. However, we are proud to point out that despite this monopoly, we did exploit it and, instead, maintained the nation's lowest prices. In the process, we broke the ground, proved the viability of car-sharing in Philly, and attracted other entrants into the market. But today, despite well-funded competition, we still maintain the best rates in the nation, and we still believe that a competitive market for car-sharing increases consumer choice and access to innovation. Consistent with our proven commitment to affordable car-sharing and our pro-competition philosophy, we believe that, particularly where there are public resources in involved, the concept of competition should be maintained. 202 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING More specifically, we support the strategy underlying Councilman DiCicco's Bill No. 090014 because it directs the appropriate administrative authorities to create a set of criteria under which PCS and our competitors can fairly compete for parking spaces based on our ability to serve the broadest definition of the Philadelphia market. Even by removing my PCS hat and thinking only as a local resident, I still support the bill, as it provides incentives for PCS to continue to serve diverse neighborhoods while simultaneously providing incentive for other entrants to begin to serve those neighborhoods. For a resident, the availability of more car-sharing in more places seems like a winning strategy. Because it institutionalizes a competitive but fair process for the long-term allocation of public parking space, PhillyCarShare supports Bill No. 25 090014 and encourages the committee to 203 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING bring it to a vote of the whole Council. Because it codifies spaces according to the existing process for on-street space creation, PhillyCarShare also supports Bill No. 090013 and encourages the committee to recommend adoption to the whole Council. Thank you for the opportunity to testify today, and I look forward to providing answers to your questions.

Councilman Dicicco

Thank you. Thank you for your testimony. Please proceed with your testimony.

Mr. Norman

Thank you. Good afternoon, Mr. Chairman and members of the committee. I'm Mark Norman, president of Zipcar, and I'd like to thank you for allowing me to present my testimony today in support of Bill No. 22 090014. This bill will allow Zipcar and the car-sharing category in general to effectively expand in all parts of the 204 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING City in such a way that it will benefit all of the residents of Philadelphia. By way of background, I'd like to point out that Zipcar has been in the business for nine years, and has had significant success with private and public partnerships between cities and agencies that we serve around the world. We've been an effective model in reducing car usage and ownership in urban areas, and because of it, we find ourselves growing in every market that we've entered. The last time appeared before this committee was in October, and we were concerned about the committee's decision to add additional parking spaces to benefit only one organization. As we said, the City should be concerned out creating an atmosphere in which car-sharing as a category can flourish rather than favoring one company over another or promoting nonprofit versus for-profit car-sharing. 205 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING As PhillyCarShare does, Zipcar takes cars off the road, reduces driving by our members, increases the use of mass transit, reduces greenhouse gas emissions, and saves people money. We're pleased to be back before you today to talk about what we believe to be an appropriate response to our concerns with the bill introduced by Chairman DiCicco. In general, it's a significant step in creating the kind of level playing field that will allow car-sharing to flourish even more widely in Philadelphia. We have one particular concern with the bill as originally drafted, however. Section 7 says that "no permit shall be revoked and reissued to a competing auto-sharing organization for the same location or block face." Given the current makeup of where we are with on-street parking, it could conceivably leave room for abuse 206 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING between both companies, but I know there's been great work by you, Mr. Chairman, and the committee taking interest in this and crafting proposed amendments. So one other comment I had related to Section 8 of the bill 9 supporting collaboration jointly with us and PhillyCarShare and the Parking Authority. As we understand it, the Parking Authority will be responsible for adopting and implementing these regulations, so I'd ask the committee to allow both PhillyCarShare and Zipcar to be a part of this process to produce the best, most fair, and open result. We're the largest car-sharing company in the world, and PhillyCarShare is the largest in the City. Together, we have many partnerships, and we believe our combined and expertise can serve as a value added to the Parking Authority's deliberation. 207 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING With that said and in closing, we're committed to Philadelphia. We have every intention of growing our business here. And with the passage of Bill 6 090014, we will. Thanks again for your time. And I'd be happy to answer any questions.

Councilman Dicicco

Thank you. We have other folks to be testifying, I believe? Yes. Why don't we get all of the testimony and then we'll take questions. Whoever is next. (Witness comes forward.)

Mr. Callahan

Good afternoon.

Councilman Dicicco

Good afternoon.

Mr. Callahan

My name is James Callahan. I'm a regional vice president with Enterprise Rent-a-Car, and several of the branches that I manage are located in the City of Philadelphia. Councilman DiCicco and members of the Committee on Streets and Services, 208 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING thank you for allowing me to give testimony on Bill No. 090014. Enterprise has been doing business in the City of Philadelphia for nearly years. We have locations 7 and employ more than 350 people in the 8 City. We also spend more than 9 $10 million annually in Philadelphia 10 through a variety of taxes and fees. 11 Enterprise recently created 12 nearly 100 jobs in the City when we moved 13 our regional office from a neighboring 14 suburb into the City of Philadelphia. 15 We are very proud of the 16 commitment we have made in Philadelphia, 17 and we look forward to expanding our 18 presence in years to come. 19 In addition, our staff at the 20 highest level is very involved with 21 organizations that provide invaluable 22 services to the City. Our general 23 manager, Vita Keys, serves as vice chair 24 of the Urban League, and many of our 25 employees serve on the leadership forum 209 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING of this organization. Also, Mr. Keys is on the cabinet of the United Way. I also wanted to take this opportunity to highlight our strong environmental platform. Enterprise has the world's vehicles fleet of fuel-efficient vehicles. We have over 60,000 hybrids and flex fuel vehicles in the United States. More than ten percent of our Philadelphia branches are hybrid-specific branches, where we provide a wide selection of fuel-efficient vehicles. In addition, Enterprise recently planted trees in Fairmount Park as 18 part of our national pledge to plant 19 50 million trees over a period of 50 20 years. 21 I come before the committee 22 today to share our concerns with 23 Councilman DiCicco's Bill No. 090014, 24 which pertains to parking spaces for 25 auto-sharing organizations. As currently 210 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING written, the bill creates an advantage for so-called car-sharing organizations over other companies in the form of free parking spaces. Enterprise, which provides many of the same services as these car-sharing companies, should have the same City-provided opportunities afforded these companies. We've met with Councilman DiCicco regarding the issue, and we really do appreciate his willingness to examine the topic. I've submitted language to the committee that amends the definition of "auto-sharing organizations," and we believe this would resolve this disparity and level the playing field, which, in the end, benefits all customers. Enterprise believes that it has a strong case to make on the issue, in large part, because of our history. If I may digress for a moment. The company you now know as Enterprise Rent-A-Car actually started as a leasing 211 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING company in 1957. After a couple of short years, our daily rental service began as a result of the our leasing customers' need for temporary vehicles while their vehicle was being serviced. As a leasing business group, so did the rental business. Therefore, our daily rental service began in neighborhoods, renting to local customers who had temporary needs. Their vehicles were being serviced or they needed a larger vehicle for a special occasion, or some didn't own vehicles at all. These are still the same needs that we are meeting today. It is serving these local customers and doing it better than anyone else that has allowed us to grow into the largest rent-a-car company in the country. To put this in perspective, we began the daily rental business in 1962. It was 32 years later before Enterprise entered the airport market. So you can say that Enterprise created and built the 212 3/24/09 - STREETS/SVCS.

Mr. Callahan

- CAR-SHARING PARKING local rental-car market, a market in which car-sharing companies participate today. We welcome that, as we welcome competition, because that is good for the consumer. But that competition must be fair. And that is why I am here today, because of fairness. The current bill 10 you have today is simply not fair, in our opinion. The government should not be in the business of picking winners and losers. Enterprise provides the same services as car-sharing organizations. We offer hourly rentals, we make cars available at convenient locations, and we rent flex fuel and hybrid vehicles. We've been renting to the City residents who did not only a vehicle for years, certainly longer than car-sharing companies. Our prices are very competitive and, in some case, are even better than those of car-sharing companies, although 213 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING we do not charge membership fees as some of them do. We build and grow business by listening to our customers. Therefore, we are committed to making it very convenient for our customers to use our vehicles, even if it means meeting them at a designated parking spot in the City to deliver the keys to the vehicle. Enterprise's locations in the City are open seven days a week, and we provide services to our commerce over a wide range of hours each day. In short, we are very accessible on weekends as well as evenings. In closing, I would once again like to state that this is an issue of fairness. Exclusively providing car- sharing companies with valuable parking spaces in the City puts others, including Enterprise, at a competitive disadvantage. If the City were considering a tax reduction, would the City reduce the 214 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING salaries tax for customers at Sam's Club or at Cosco but not for customers at Target? We find ourselves competing with these organizations more than ever for daily, corporate, and governmental business. All that we ask is that the competition for the business be fair and let the market pick who should receive the business and not the government. Thank you again for allowing me the opportunity to provide testimony. And I'd be happy to answer any questions.

Councilman Dicicco

Thank you, Mr. Callahan. Is there anyone else here testifying on this bill? (No response.)

Councilman Dicicco

Look, as you know, Mr. Callahan, we did have a conversation in my office about a week ago, which was about the 2nd or 3rd. (Cellphone rings.) And all cellphones off, please. 215 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING Thank you.

Councilwoman Krajewski

I'm not driving. (Laughter.)

Councilman Dicicco

All of you serve a great purpose to the citizens of this city and other municipalities where you have your businesses. And all of you employ people -- some more than others -- in the City of Philadelphia businesses. You're good businesses and you pay your taxes and employ people, which helps our economy. We've been trying to figure out a way in which we can accommodate everyone's needs. I mean, there are other rental agencies, automobile rental agencies that are out there that are for-profit that have similar concerns as Enterprise, and I do recognize this. While I will ask for this bill's passage today, I'm on the record committing that I will continue to work with you folks to try to figure out a way 216 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING in which we can accommodate you. Last week, I went out to 12th and Sansom, as an example, and I wanted to figure out a way in which I could designate a spot without opening up a can of worms and defeat what I think is everyone's best intention about providing a unique service and not have all of our limited on-street parking spaces taken up by entities, by business entities, whether they are for profit or not for profit, is a challenge that I'm faced with. I do think we'll come up with something; what that is exactly, I don't know. But I'm confident that when we continue to work through this and work with the Parking Authority and the Streets Department that we will be able to figure a way in which we can get you some of the exposure that you're entitled to and deserve. So you have my commitment on that. 217 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING And we don't have copies of your testimony, do we, Mr. Callahan?

Mr. Callahan

I have a copy.

Councilman Dicicco

Yeah, I'd like to have those 'cause I want to go through those as well so that the committee will have an opportunity to look through that testimony as well. I do appreciates you all coming in. I will apologize again, as I apologized earlier for cancelling the last Streets and Services Committee meeting. I know that some of you came from distances outside of the City of Philadelphia, so I do appreciate it. And we will get back to you on that. Thank you.

Mr. Callahan

Thank you.

Councilman Dicicco

Any questions from this committee? (No questions or comments.)

Councilman Dicicco

Hearing none, if Councilman Jones is listening, we need you down here shortly so that we 218 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING can get these bills out of committee. Please come back to the chambers. In the meantime, Mr. Abernathy, please read the titles of the next bills. Thank you, gentlemen.

Mr. Callahan

Thank you.

The Clerk

Bill 090009, an ordinance establishing a parking regulation on 27th Street, west side, Allegheny Avenue to Clearfield Street. Bill No. 090010, an ordinance 13 authorizing a parking regulation on Arnold Street, west side, Midvale Avenue, to no outlet. Bill No. 090011, an ordinance 17 establishing a parking regulation on Hirst Street, west side, Arch Street to Market Street. Bill No. 090017, an ordinance 21 establishing a parking regulation on Moore Street, both sides, 12th to 13th Street. Bill No. 090018, an ordinance 25 establishing a parking regulation on 219 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING Morris Street, both sides, Broad Street to 13th Street. Bill No. 090019, an ordinance 5 establishing a parking regulation on Ellsworth Street, both sides, 12th Street to 11th Street. Bill No. 090020, an ordinance 9 establishing a parking regulation on Federal Street, both sides, 12th Street to 13th Street. Bill No. 09021, an ordinance 13 establishing a parking regulation on Clarion Street, west side, Federal Street to no outlet. Bill No. 090022, an ordinance 17 establishing a parking regulation on Sartain Street, east side, McKean Street to Mifflin Street. Bill No. 090023, an ordinance 21 establishing a parking regulation on Seventh Street, both sides, Carpenter Street to Christian Street. Bill No. 090024, an ordinance 25 establishing a parking regulation on 220 3/24/09 - STREETS/SVCS. - CAR-SHARING PARKING Packer Avenue, north side, 16th Street to 17th Street. Bill No. 090025, an ordinance 5 establishing a parking regulation on Tasker Street, north side, 11th Street to 12th Street. Bill No. 090026, an ordinance 9 establishing a parking regulation on Darrah Street, both sides, Brill Street to Bridge Street. * * * 221 3/23/09 - STREETS & SERVICES PUBLIC MEETING

Councilman Dicicco

Okay. The public hearing on the Committee on Streets and Services will now move into the public meeting. And the Chair recognizes Councilman Greenlee, who will read off a list of all of the bills that are being recommended for approval.

Councilman Greenlee

Thank you, Mr. Chairman. I move that the following bills, 090001, 090002, 090009, 090010, 090011, 090013, 090015, 090017, 090018, 090019, 090020, 090021, 090022, 090023, 090024, 090025, 090026, 090070, 090076, 090120, 090121, 090126, and 090129 be reported out of committee with a favorable recommendation, and move further that the rules of Council be suspended so as to allow for first reading at our next session of Council. (Motion duly seconded.)

Councilman Dicicco

It has been properly moved and seconded that all of 222 3/23/09 - STREETS & SERVICES PUBLIC MEETING the bills that have just been read into the record be reported out of committee with a favorable recommendation and that the rules of Council be suspended. Those in favor will signify by saying aye. Those opposed? The ayes have it. The chair recognizes Councilman Greenlee for the amended bills.

Councilman Greenlee

Mr. Chairman, I move the approval of the amendment to Bill No. 080645. (Motion duly seconded.)

Councilman Dicicco

It has been properly moved and seconded that the amendment to Bill No. 080645 be approved. All in favor will signify by saying aye. Those opposed? The amendment is approved.

Councilman Greenlee

Thank you, Mr. Chairman. I move that Bill No. 080645, as 223 3/23/09 - STREETS & SERVICES PUBLIC MEETING amended, be reported out of this committee with a favorable recommendation and further that the rules be suspended so as to allow for first reading at our next session of Council. (Motion duly seconded.)

Councilman Dicicco

It's been properly moved and seconded that Bill No. 10 080645, as amended, be reported out of this committee with a favorable recommendation and that the rules of Council be suspended. All in favor will signify by saying aye. Those opposed? The bill is approved. Councilman Greenlee.

Councilman Greenlee

Thank you, Mr. Chairman. I move the amendment to Bill No. 22 090014. (Motion duly seconded.)

Councilman Dicicco

It has been properly moved and seconded that the 224 3/23/09 - STREETS & SERVICES PUBLIC MEETING amendment to Bill No. 090014 be approved. All in favor of the motion signify by saying aye. Those opposed? The amendment's approved. Councilman Greenlee.

Councilman Greenlee

Thank you, Mr. Chairman. I move that Bill No. 090014, as amended, be reported out of this committee with a favorable recommendation and that the rules of Council be suspended so as to allow for first reading at our next session of Council. (Motion duly seconded.)

Councilman Dicicco

It has been properly moved and seconded that Bill No. 19 090014, as amended, be reported out of this committee with a favorable recommendation and that the rules of Council be suspended All in favor will signify by saying aye. Those opposed? The ayes have it. 225 3/23/09 - STREETS & SERVICES PUBLIC MEETING This concludes the public meeting on the Committee of Streets and Services. Thank you all for attending. (Proceedings end at 1:15 p.m.) * * * 226 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 Streets and Services are contained fully and accurately in the stenographic notes taken by me on Tuesday, March 24, 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.)