Because we'd 245 4/12/10 - WHOLE - BILL 100115, etc. love for you to have the resources.
Councilwoman Blackwell, your light was on. Did you want to be recognized?
Thank you, Madam President. Good afternoon. Can you clarify for me as it relates to your work staffing what is our requirement with our unions about staffing levels?
There is no 21 requirement with the union on staffing level.
There is no requirement for the unions around staffing levels. I'm trying to get at 246 4/12/10 - WHOLE - BILL 100115, etc. the requirements for staffing at the branch level. So I wanted to make sure it didn't conflict with any of our bargaining units.
It is not. In terms of the four-person, one of them being a guard, are you going to readdress that as it relates to the smaller branches? Because McPherson, by no means, needs the same amount of staffing as Kensington, my Kensington branch. So in light of the fact that we've had this discussion back and forth, are you guys going to readdress that or are you going to hold to this four number?
I'm going to hold to it, and let me explain McPherson, because that is a library that's in need of services and so we are looking at the library. And, actually, McPherson is not a small library. I would not consider 247 4/12/10 - WHOLE - BILL 100115, etc. McPherson a small library.
And that was my point. We can't compare McPherson's campus compared to Kensington Library. So I'm trying to get at the need to require --
But interestingly enough, Kensington, while it appears small, actually isn't small, because it has a lot of rooms on the side. So it has a computer lab there and it has a conference room to the rear. So there are within every single facility sort of hidden-away spaces, particularly relative to wherever it is we have the reference desk. Those two are great cases, because those are two areas where we're really focusing a lot of energy, particularly when we are working with the Mayor's Commission on Literacy, to add all kinds of literacy, and whether it's English as a second language or GED classes. And so necessarily the staff is needed there to 248 4/12/10 - WHOLE - BILL 100115, etc. help put the program together, make sure that everybody knows where they're going, at a minimum.
I was just trying to get at -- you guys are getting good at giving long responses. I was just trying to get at where we got the number, because there's an issue of when we arbitrarily set numbers versus what we actually need as it relates to keeping the branches open. Of the 35 vacancies, how many of those are going to be security guards?
We're just about finished on the hiring all the guards. So most of them are library assistants, librarians. We have building maintenance and then our library supervisor, which is a promotional position.
Will this allocation allow you to ensure -- what's your goal with this allocation in comparison to closures this year for next year? Is that going to be enough 249 4/12/10 - WHOLE - BILL 100115, etc. personnel?
If all 35 positions are hired, it will be sufficient to stabilize the operation at five days.
In the year 2009, we had a separate contract to the tune of $270,000 to provide emergency security guard services. Is there any reason why we don't keep the buffer to allow us the flexibility?
It's there. We do have a contract for security services in addition to the guards.
Where is that listed? Because it doesn't come out --
It comes out budgeted for 2009, but I don't see it in the 2011 allocation. So if you can tell me what page. In Section 31, 45, there's no allocation in 2011. Is that because we're going to a different 250 4/12/10 - WHOLE - BILL 100115, etc. contractor?
We're going to let you know what page it's on, because it's there.
Is it because you moved it from your Executive and General Supports to another department?
We did move money from our security guard contract from the, whatever, 200 series into the 100 series so that we were able to have sufficient guards to cover the losses we had in the 2009 budget. So we did move money out of the security guard contract into staff.
Okay. I just can't see it here. It's not reflected, so I'll wait for you --
-- to get it to me. In terms of your -- let me understand your schedule, public hours 251 4/12/10 - WHOLE - BILL 100115, etc. versus administrative hours. One of your issues as to why you want to stick to this four staffing requirement is because you need people for shelving or whatever. How many administrative hours versus public hours do we allocate per branch?
Of the 37 hours we're open, the staff works 40 hours. So two and a half hours a week is for administration. The rest is all public service.
How is that broken up? Is that half an hour a day, a half an hour before, after?
We open the -- so on our days where we're open 10:00 to 5:00, the staff reports at 9 o'clock. 252 4/12/10 - WHOLE - BILL 100115, etc.
So that's the hour that they're supposed to use for administrative time?
You're saying you're filling these positions. In light of the fact of the diversity throughout the City, how are you going to ensure that some of these positions reflect the City?
We have just put together a pretty impressive training program that encourages staff at all levels to get involved with their own professional development, but in particular, we are inside a multi-year Institute of Museum and Library Services grant, IMLS grant, where it's called Growing Your Own. And so we have a number of staff that join the program, we put them through college, and these are, I want to say, 60 to 70 percent of them are people of color, are staff of color. About -- 253 4/12/10 - WHOLE - BILL 100115, etc.
How about language as it relates to language access, how many languages in terms of your staff?
My goodness. We have staff that speak up to 30 different languages and we have actually a central listing, so that when a patron comes in and speaks Monk, we will know where to go to that staff room to get the proper services for that.
Can you submit that chart to the Chair? I'd like to see --
And how that staff is spread out among the branches.
Thank you. 254 4/12/10 - WHOLE - BILL 100115, etc. The Chair recognizes Councilman Green.
Thank you, Madam Chair. I have been talking to the Board of Trustees of the Library and its leadership and Grand Puba about a topic, dedicated library funding, and I'm just wondering where that conversation is within the Free Library.
Well, as you know, we had a very interesting, provocative and I think in-depth discussion with you, because you were good enough to come to a Board of Trustees meeting and talk to us about it. It's difficult for me to say where the trustees would wind up ultimately. I think it's -- and this is just my judgment -- that it's reasonably certain that the trustees would support a dedicated funding mechanism that provided sufficient assured, unrestricted funds for current and future operations. It would surprise me if the trustees didn't 255 4/12/10 - WHOLE - BILL 100115, etc. do that. But as you know and as we said at the meeting, there's always some truth in two cliches, and those cliches are "be careful what you ask for" and "the devil is in the details." So until we get to a final resting place with a bill that would do those things, I think we probably wouldn't take a position with regard to it. So we'll be interested to see what the final resting place is.
Thank you. Are there any other questions from members of the Committee? (No response.)
So as not to leave that last item out there, the Administration would have some very significant concerns and reservations about any kind of dedicated funding like that, and we would clearly be interested 256 4/12/10 - WHOLE - BILL 100115, etc. in reviewing it. But absent some details, as Mr. Heim said -- yes, indeed the devil is in the details -- we'd have some significant concerns and reservations moving forward on a proposal like that.
For the record, Madam President, I'd just like to state that the Board of Trustees of the Free Library is an independent body that can make these decisions on their own when they'd like to. Thank you, Madam President.
Thank you. Gentlemen, thank you very much. Thank you, Ms. Reardon. MR. McPHERSON: The next department is the Philadelphia Art Museum. (Short recess for court 257 4/12/10 - WHOLE - BILL 100115, etc. stenographers to switch.) 258 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) (Second-shift stenographer Josephine Cardillo relieves first-shift stenographer Michele Murphy.)
The Committee of the Whole is now back in session. Good afternoon. Kindly identify yourself for the record. And proceed with your testimony.
Thank you. My name is Timothy Rub. I'm director and chief executive officer of the Philadelphia Museum of Art. And with me today is Gail Harrity, who's our president and chief operating officer.
Thank you. 10 - COMMITTEE OF THE WHOLE (BUDGET) esteem for my predecessor, Anne d'Harnoncourt, who served in this same position for years and did so much to 5 advance the cause of the arts in 6 Philadelphia. 7 I knew Anne well and am honored 8 to have been chosen as her successor. I 9 also look forward to building upon her 10 legacy of extraordinary public service. 11 Today, the museum is bustling 12 with activity, as it has throughout the 13 past year. Our current exhibition, 14 "Picasso and the Avant-Garde in Paris," 15 is a success by any measure, with more 16 than 110,000 tickets issued to date and 17 with the busiest four weeks of the 18 exhibition still ahead of us. 10 - COMMITTEE OF THE WHOLE (BUDGET) read or seen by over one million travelers along the northeast corridor routes by the time the exhibition closes, in early May. Philadelphia's ever-expanding social network on the web has also embraced the Picasso exhibition. The museum's Facebook page has received over 4,000 page views, and we've added almost 2,000 followers on Twitter. I'm also pleased to report that in order to keep up with demand, we've increased the exhibition's capacity, extending hours on weekends and adding an additional week to the run of the exhibition now through early May. What should not go unremarked here is that the Philadelphia Museum of Art is one of the few museums in the world that can organize exhibitions of this type and quality from its own collection. 10 - COMMITTEE OF THE WHOLE (BUDGET) virtually inexhaustible resource and one of the City's most significant cultural assets. Caring for it, creatively tapping its potential for education and enjoyment, and strengthening it over time is not only our obligation as responsible stewards; it is also a wise and economical investment in the future of our city. I look forward to seeing all of you over the summer, when the museum presents "Late Renoir," an exhibition that premiered late last year in Paris, where it drew over 420,000 visitors. Philadelphia will be its only venue on the East Coast, and rightly so: Between the museum's own holdings and those of the Barnes Foundation, the collections in Philadelphia have more works by Renoir than those of any other city, including Paris. 10 - COMMITTEE OF THE WHOLE (BUDGET) In the fall of 2010, we will present exhibitions dedicated to the work of Michelangelo Pistoletto, a leading international figure in contemporary art, and Alberto Alessi, whose design firm produces some of the world's most innovative household objects. And the following spring, we will offer an exhibition of works by the legendary Italian designer Roberto Capucci, who set new course for Italian fashion in the decades after World War II and is admired throughout the world for his extraordinary creativity and his exceptional technical skills. The museum's exhibitions serve our local communities as well as tourists from across Pennsylvania and indeed around the globe, putting heads in beds and contributing to the economic vitality of our city. 10 - COMMITTEE OF THE WHOLE (BUDGET) global research in our programming. In Fiscal Year 2009, we recorded over 19,000 international visitors from 110 countries; and in general, international visitors account for between 6 and 7 percent of all general admissions to the 8 museum. Right now, masterpieces from the museum's great collection are on view at the Busan Museum of Art in South Korea, earning recognition for Philadelphia's cultural vitality across East Asia. Moreover, in today's economy, in which companies' employes have more flexibility than ever before as to where they choose to do business. We know that a great art museum creates a sense of identity for a city and encourages business attraction and economic growth. Of course, it is impossible to quantify certain aspects of economic impact. 10 - COMMITTEE OF THE WHOLE (BUDGET) educates and nurtures the creativity and self-expression of generations of Philadelphians and Pennsylvanians.
You know the answer as well as I do: It matters. However, in order to present in greater detail some of the aspects of the museum's economic impact that we are able to quantify now, I would now like to introduce my colleague Gail Harrity.
Thank you, Timothy. And thank you, Madam President and members of City Council. In reporting on the museum's economic impact, I will start by asking you to recall our exhibition "Cezanne and Beyond," which was on view at this time last year, in spring 2009. "Cezanne and Beyond" generated approximately $29 million in economic activity over a three-month period, attracting tourists from near and far, including international visitors from all continents except Antarctica. 10 - COMMITTEE OF THE WHOLE (BUDGET) Economic-impact studies that the museum prepares in collaboration with Urban Partners, an independent financial consulting firm, show that every dollar spent by the museum produces nearly $4 in economic activity. In Fiscal Year 2009, the museum: Generated $209 million in total economic activity; Created 2,980 full-time job equivalents from museum- and visitor- related spending; And 331 full-time job equivalents from construction spending. 2 million for the Commonwealth. 2 billion. 10 - COMMITTEE OF THE WHOLE (BUDGET) that the arts are an economic investment and an investment in our city's future, attracting businesses to Philadelphia, driving cultural tourism, and creating the high quality of life that Philadelphians in all neighborhoods enjoy. Several major capital projects were completed on time and on budget in this past year, in fulfillment of the museum's master plan. A thorough renovation of the exterior of our main building, which is owned and maintained by the City, included the repointing, cleaning, and repair of its limestone-clad exterior, polychrome terracotta ornamentation, and bronze window grills designed by Tiffany Studios, as well as the repair of its 80-year-old four-acre roof. 10 - COMMITTEE OF THE WHOLE (BUDGET) step in the preservation of this great civic landmark. This past September, Councilman Clarke and many others joined us to inaugurate our new sculpture garden, which is integrated structurally with our below-grade parking facility. This was constructed according to green principles, with absorptive substances and natural ventilation, which results in minimal utility load. To honor this project as a model of sustainability, the museum received an official Commendation for Ecological Sensitivity from the federal Environmental Protection Agency; a Citation of Merit from the Pennsylvania Chapter of the American Academy of Architects, and the 10,000 Friends of Pennsylvania Silver Award from the Commonwealth for design and, quote, smart urban growth. 10 - COMMITTEE OF THE WHOLE (BUDGET) $20 million in fiscal '09 alone, and $109 million over the last five years, supporting nearly 400 full-time jobs annually in construction. The museum is proud of the percentage of contracts awarded to minority- and women-owned firms, which is anticipated to be 42 percent in Fiscal 10 and which essentially matches the actual percentage of 43 percent in Fiscal '09, a substantially higher -- and these are, of course, substantially higher than the City's percent goal. 15 We will soon commence work on 16 the next phase of the master plan, an 17 $81 million project to relocate our 18 loading dock from the north side of the 19 museum on Kelly Drive to the south side 20 of the building at the Spring Garden 21 Street Bridge, thereby creating easy 22 access from the expressway for over 6,000 23 trucks that make deliveries to the museum 24 each year. 10 - COMMITTEE OF THE WHOLE (BUDGET) replace the old and substandard loading dock, with which we have been burdened for decades; it will also dramatically improve circulation of all types -- pedestrian, vehicular traffic, bicycles, tour buss, and school buses around our main building, and it will greatly improve public safety. Among the principal goals of our master plan is the need for additional capacity to serve educational needs of our community.
And I would now, like to return the microphone to Timothy to conclude our testimony and describe the museum's accomplishments in the area of education.
10 - COMMITTEE OF THE WHOLE (BUDGET) classroom groups and 500 teenagers from across Philadelphia who participate in our after-school programs. As you know, we annually raise funds from private foundations in order to serve Philadelphia's public schools free of charge and to provide public and parochial school teachers with free curricular materials. Moreover, we launched Art Speaks in September of 2008, with four other Philadelphia museums. Now, in its second year, this new program is well on its way to providing a museum experience to each of the 14,000 4th graders in this city's public schools. This program is funded through a federal grant and corporate support from Target. I would like to extend an open invitation to all members of City Council museum Wachovia Education Resource Center. 10 - COMMITTEE OF THE WHOLE (BUDGET) curricular materials and an array of lesson plans that integrate the visual arts into the full range of Pennsylvania's curricular subjects, including history, English, social studies, and math. None of this work -- the presentation of great exhibitions and the provision of a broad range of educational programs -- would be possible if we do not make an ongoing and substantial investment in the maintenance and improvement of our facilities, housed in five City-owned buildings -- our historic main building, the Rodin Museum, the Perlman Building, Mt. Pleasant, and Cedar Grove. And with responsibility to care for City-owned collections, the museum has depended on annual operating support from the City to pay for the fundamental operating costs of security and building maintenance since it opened the doors of its magnificent main building in 1928. 10 - COMMITTEE OF THE WHOLE (BUDGET) At that time, the City committed to fund one hundred percent of our security and maintenance costs on an annual basis. 6 million still covered security and maintenance costs in full. 25 million. 3 million for Fiscal Year 2010. 7 million in total for Fiscal Year 2011, or more than double our proposed appropriation. 10 - COMMITTEE OF THE WHOLE (BUDGET) that is to say, since the early 1990s -- successive mayors and city councils have impressed upon the museum the necessity of diversifying its sources of revenue; and the museum did just that. It undertook a campaign to build its endowment and successfully developed or strengthened its relationships with foundations, corporations, and individual donors. The museum also made strategic investments that generated a substantial amount of additional earned income, expanding our membership, retail and food service programs. In these and other ways, the museum more than doubled its operating budget over time, raising one-third of its operating revenues from endowment and public support, another third from earned revenue, and the final third from contributed income. 10 - COMMITTEE OF THE WHOLE (BUDGET) crisis that crippled our economy months ago. At that time, the museum's endowment dropped significantly; individuals, corporations, and foundations substantially reduced their support for programs and exhibitions; and previously robust sources of earned income from the museum's gift shops and restaurants were weakened. This was a decline in revenues that made the management of the museum's budget enormously challenging and, as you can well imagine, very unpredictable. Now, given the need to cut costs and enhance revenues, while maintaining our commitment to public service, we made some very tough choices that helped us steer the museum through this storm. Although painful in the short run, these have enabled us to preserve the solid fiscal foundation upon which we can rebuild our budget as the economy becomes stronger.
10 - COMMITTEE OF THE WHOLE (BUDGET) undertook included the postponement of exhibitions involving costly international loans, cutting departmental budgets, freezing positions, salary reductions, and the painful elimination of 30 staff positions. In comparison to the staffing of peer museums across the country, we have always been lean and productive. Accordingly, the budgetary reductions we went through during the last year did not trim fat; it, rather, cut into bone. But as challenging as this work has been, we recognize that the recession has affected every department within our city's government. 3 million in operating support be allocated for the museum in Fiscal Year 2011. 10 - COMMITTEE OF THE WHOLE (BUDGET) past, but it is nonetheless very important; for without this funding from the City, we would be forced to institute even more dramatic cost-cutting measures such as a decrease in open hours, exhibitions, and educational programs; thus diminishing our service to the community and the strong impact we've had for a very long time on the City's economy. With your help, the museum and all of Philadelphia's arts and cultural organizations will continue to thrive and contribute to the vitality of our great city, enriching the lives of its citizens and attracting visitors and businesses from beyond its borders. Thank you.
Thank you very much. The Chair recognizes Councilman Goode.
Thank you, Madam President. 277 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) Good afternoon, Mr. Rub and Miss Harrity. In your written testimony as well, as the remarks you gave, you talked about construction spending and the goals you've reached in Fiscal Year '09 and Fiscal Year '10. You did not talk about your performance in terms of contracting with disadvantaged businesses for non- construction spending. Can you tell me what you've achieved in Fiscal Year '09 and Fiscal Year '10 and what your goals are for Fiscal Year '11.
For non- construction spending. I think that we -- we take enormous pride in having exceeded our goals for -- in the construction area and for non- construction spending. 278 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) I don't have those figures in front of me, but I will say that the museum's trustees and leadership are deeply committed to participation and a number of -- and I can supply the exact numbers. But just to give you a sense of where the non-construction spending is, for the security contract and for our larger contracts, such as security, it is the museum's requirement that we include a 10 percent of women-owned businesses, 10 percent of African-American-owned businesses --
So your non-construction spending is not as aggressive in terms of diversity as your construction spending.
For -- it varies. It is -- I would say it is a strong commitment. It is probably not going to reach 40 -- in excess of 40 percent. But for security, for maintenance, for the museum's insurance 279 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) contract, it's very aggressive in terms of --
Ms. Harrity, if you don't have any numbers, you're not being helpful. So could you just forward those numbers through the Chair. Let's start with security contract. When was that bid? Did you have any disadvantaged businesses submit proposals as a prime contractor or a subcontractor? And what was the level of participation on the security contract?
We have a single security contract. And part of our provision is to -- it requires both minority-owned and women-owned businesses.
So what is the level of participation in the security contract?
Ten percent of -- is women-owned for the gallery guards and ten percent for Scotland. So a total of 20 percent. 280 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET)
The goal is 20 5 percent, um, because we think that that 6 is a substantial number, and we continue 7 to, you know, look at it from 8 year-to-year. That's the goal for the 9 current year, 20 percent. 10
So the 11 contract is put out to bid on a 12 year-to-year basis? 13
The contract, 14 um -- we currently have a month-to-month 15 contract. The contract in the past has 16 been a multi-year contract -- 17
We have -- and I'll ask -- we put it out to bid for three different proposals than last time. And it is currently, uh -- you know, we 281 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) send out an RFP.
Are you familiar with the City's minimum-wage and benefits law?
And do you believe that the Art Museum falls under that law?
I believe firmly that the museum will make every attempt to comply with all --
The question is whether you believe the Art Museum falls under the City's minimum-wage and benefits standard.
The answer is, our legal counsel has said it does not fall under but we do -- 282 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) (Booing by some audience members.)
And why does your legal counsel say you do not fall under it, and why was that opinion offered? Why did your legal counsel offer an opinion?
I think that the museum has made a -- you know, I think that we have -- we have looked at both the ordinance, and we -- the museum -- the museum's counsel is -- we are a 501(c)(3), a private entity, for which --
You're a 501(c)(3), but the law states who actually falls under the law. And it says: "Recipients of City leases, concessions, or franchises or subcontractors, thereof which employ more than employees." 23 Why that not cover the museum? 24 (Applause.) 25
I -- we will 283 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) review that again. And going forward, we will look to see -- and certainly get back to you with regard to the reading of the law.
The law does not just apply to City agencies; it applies to the City of Philadelphia, its agencies, departments, and offices; it applies to for-profit service contractors (indiscernible); nonprofit service contractors; City financial aid recipients; public agencies; and recipients of City leases. I'd be very interested in finding out why you believe you don't fall in the provision of people who receive leases and have more than 19 opinions. 20 And if you have a legal opinion 21 from your legal counsel, I ask that you 22 also forward that through the Chair. 23 Thank you, Madam Chair. 24
25 You're welcome. 284 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) (Applause.)
Thank you, Madam President. Good afternoon, everyone. First, congratulations on the Picasso exhibit. We look forward to the Renoir in the summer. Unfortunately, I have to touch on just what is, unfortunately, a little negative subject, the issue with the security guards, which, I think, a few people here might be interested in. (Applause.)
As you know, in October of last year, the work of the security officers at the museum voted to be represented by the Philadelphia Security Officers Union. And since that time, their employer Allied Barton, has done what I feel is everything they can do to try to hold up what is basic people's rights to be 285 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) represented by a union if the majority votes that way. Now, I do want to note for the record and thank you, because we've had some conversations about this subject, that you did write a letter recently to Allied Barton, and you did put in there what I feel, in all fairness to you, is a definitive statement where you urge Allied Barton to recognize the union and to begin negotiating. So I thank you for that. I will ask you -- because after that, I know both the union attorney and myself wrote to Allied Barton to support your position on that issue. Have you received any official response from Allied Barton on that?
Okay. Yeah, neither have we. And this is more of a statement; and if you'd like to respond 286 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) at all, you can. I just think when a -- first of all, Allied Barton, in my opinion, not is only doing right by the workers; they're not doing right by you -- (Applause.)
-- because they're putting a negative attention on something that you shouldn't -- you shouldn't have any negatives because you've done a lot of very good things; you're a positive entity in the City of Philadelphia. And -- but Allied Barton apparently doesn't care about that or the image of the City. And what I would just ask you to seriously consider -- and not just you, but anybody else that employs Allied Barton at this point. If they don't care about their workers and aren't going to adhere to basic rights, then I don't think they should be in the City of Philadelphia. 287 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) (Applause.)
And, again, if you want to have any response, but I would just say -- and, again, I'm -- you're here. I can't yell at Allied Barton, so I apologize for that. I wish they were here, but they probably would want have the nerve to come in. I would just ask you to seriously consider -- you and anybody else that's listening that employs Allied Barton, that if they continue to go against just the basic will of the people, then I don't think they should have a part of Philadelphia. They're a big company, and they can be somewhere else. Thank you. Thank you, Madam President.
Council President, may I respond briefly to Councilman 288 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) Greenlee?
Thank you for your remarks. Just a few things. First of all, I would emphasize for the record that the museum is a third party to this dispute between Philadelphia Security Officers Union and Allied Barton. However -- and this is something we underscored in conversation with you as well, Councilman -- we do respect due process in this matter, as regulated and supervised by the NLRB. We recognize that there has been a vote and that eventually whatever disagreements there are between the union and Allied Barton will be adjudicated. In that regard, we have urged good-faith negotiations between these two parties. And we will respect and, in due course, address the outcome of any negotiations that take place between the 289 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) two. And that is what we indeed must do under the circumstances. (Booing by some audience members.)
The Chair recognizes Councilman Goode for a point of information.
Thank you, Madam President. Mr. Rub, you said that you are simply a third party in this matter? Let's move back to the issue of economic opportunity as it applies to City contracting. The museum made a point of stating in its testimony that it supports the Mayor's goal of percent. It then 19 went on to highlight that it has exceeded 20 that goal in terms of construction 21 spending. It went on to say that it has 22 not exceeded that goal in terms of 23 security contract but put what I believe 24 to be arbitrary, an arbitrary 10 percent 25 number in there for minority businesses 290 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) and an arbitrary 10 percent number for women-owned businesses. Were you required to put that in the RFP?
I can't speak to that; perhaps my colleague can. I was not hear when that RFP was issued several years ago.
No, we were not -- and just to respond, we were not required --
So there's nothing to suggest that, in support of the Mayor's percent goal for 21 disadvantaged business contracting, and 22 since you took it upon yourself as a 23 third party to put in a 10 percent for 24 minority businesses and a 10 percent goal 25 for women-owned businesses, you could 291 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) equally put the City's minimum-wage and benefits standard in your RFP; is that correct?
We haven't reached that point. We put out an RFP several years ago, we have an contractual relationship with Allied Barton, and we have chose not to alter that at the present time.
The previous testimony was that the contract is month-to-month. When you go back to put out an RFP, as you make future decisions about contracting, do you believe that a security officer should be paid at least the Philadelphia minimum-wage and 292 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) benefits standard, which is at least $10.87 an hour? You can make yourself a first party in that decision.
I can't say at the moment what I would decide on that; I'd have to study it a bit further. (Booing from some audience members.)
So, in essence, you're not really a third-party bystander. You make the decision of what you want to put in your RFP --
Just like you decided to set a percent DBE goal 17 for the security contract, you could set 18 a wage quality, a job quality standard as 19 well. 20
There's nothing wrong with that, and that's particularly consistent with the City's goals, the standard the City has set, and consistent with how we want the money 293 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) spent that we give you.
That seems that such a contract is subject to the City requirements. And we said we would get back to you on where we were with City Council on that, with the RFP.
You don't have to get back to me on it. Clearly, if you think you're not subject to the City's economic opportunity standards or minimum-wage and benefits standards and you think you can do whatever you want, then that's fine. But don't say you're a third party because you've already made it clear that you make the decision of what economic opportunity standards you want to set within your contracts and within your RFPs, and you clearly can set a wage standard within the next RFP if you choose to. Thank you, Madam President.
You're welcome. 294 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) (Applause.)
You'r e finished? The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. Over the years, we've been overjoyed with our museum, and we have done nothing but praise them. But this is a serious issue. We don't have this many people down here in Council if there's not a serious employment issue. And we, who live and work in the City and who represent the citizens here, have an obligation and a responsibility to do our best to protect them. Once the union met and they have decided who they are and they're unionized, then certainly, it's up to 295 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) this company -- in this case, the museum, who pays them -- to be inclusive and to allow them to exist as a union. I mean, it's a union city. That's -- (Applause.)
And certainly, Councilman Goode is excellent at explaining the issue, but it's unconscionable that we're here and that the museum can say they haven't thought about it or they haven't made a decision, like it's an arbitration. When you're the company, you hire them and you can make them behave. You can make this issue go away if you so desire. And that is what we expect people that we fund, that we have anything to do with; we expect them to be fair by the citizens of the City who come in here and who demand justice from us. We demand it of you. Thank you, Madam President.
Thank you. 296 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) (Applause.)
It seems to me the issue is a matter of the company. It's their RFP, as Councilman Goode has said, as well as Councilman Greenlee. There are a whole lot of companies out there. I was very dismayed when I listened to Councilman Goode earlier say that minorities can't babysit, they can't cut trees, and they can't even clean. Oh, my goodness. It's so unconscionable. And certainly, we expect that if companies are not willing to be inclusive -- it's obvious that the museum is included in this -- that if they want our support, then they have to support these people and get rid of a company that won't work in good faith with the citizens of our city. (Applause.)
I hope that they'll respond, Madam President. We would like to know what we're dealing 297 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) with as we're asked to support them.
You're welcome. Councilman Goode, your light was on. And then there was a point of information.
We've made it very clear that you're not a third- party bystander, that you can decide who you want to contract with, you can decide what to put in your RFP. And if you choose to accept the City's minimum-wage and benefits standard, you can put that within the contract, which means that these workers would have to be paid at least 150 298 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) percent of the federal minimum wage, which is currently 10.87. But the law also says that if they strike a separate collective- bargaining agreement that entitles them to more money, then the collective- bargaining agreement would entitle them to that under the same minium-wage and benefits law. Thank you, Madam President.
Thank you, Madam President. I want to ask both the director and Gail to look back at the signs, because I think there's an important piece of this discussion. Those signs say, "We love our museum." The workers at the Art Museum love the museum, do you not? 299 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) And it is very disheartening for us, who work in government, to be in a position where we are told that we can't make things differently. And I'm a supporter of the Art Museum. I think it's a world-renowned museum. And I think that in light of the fact that these workers -- and I wanted to make note: Workers, many of them women, single mothers. That we send a message that we value the love and dedication that they bring to the museum, because they're the first point of contact with the folks who come in, and we want them to be proud, and continue to be proud, of working at the museum. So I just want to echo what my colleagues have said, that, you know, we, in city government, recognize that we need to be supporting this museum more, and we will work towards that. But it is important, it is important, that we support the workers and that -- you know, I watched the City 300 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) shelters use contract loopholes to cut salaries in half of security workers, many of those minorities who live in my district. And we can't use contracting schemes to balance budgets. I'm a tax-and-spend Democrat, and I don't want to ever balance my budget on the budget of a single mother or a worker who works and is as committed as these workers are. So I want to add to -- you know, this museum is too important to us, it is too important to this region and to who we are in Philadelphia to be blemished and to allow one company, one company, to do this to the Art Museum. So I want to implore you to go back on this month-to-month contract and use the hammer that you have and say, "We're not going to take this." There are other providers in the City of Philadelphia who are not union-busters and who respect their employees. Please go to someone else. 301 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) Thank you.
Councilwoman Brown was unable to attend the meeting this afternoon. However, she did leave a statement, which she asked to be read for the record, which reads as follows: "I support investing in the Philadelphia Museum of Art because we know from the museum's testimony and from the work of Urban Partners, an independent financial consulting firm, that every $1 invested in the Philadelphia Museum of Art results in $4 in economic development." So -- but she asks that that be read. Are there think other questions or comments from members of the committee?
I have 302 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) one more. In addition to the annual allocation that we have, I know that the Art Museum -- and I want to put it for the record -- had applied for federal recovery money, and we were not successful. And I wanted to ask the Art Museum if there was any other way that the City could support the museum for this upcoming year, what would that be?
Thank you. The first thing I would say, in response to your generous question, is that whatever the City can do to increase its operating support to the museum would be most welcome; and, indeed, it is a very necessary ingredients for growth and for our ability to secure additional contributions from many other sources. As I noted in my testimony, the fact that the City's support has not increased materially since the early 1990s, at a time when many costs -- 303 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) including security, utilities and the like -- has made it difficult for the museum to support its facility and to grow its operations accordingly. So that would be the first thing I would ask for. And it would give us much needed relief. As we look to the future, I would like to applaud those members of the City's Capital Budgeting Office here for the work they do with us year in and year out to take into account the museum's capital needs, which are significant. Our physical plant, counting all of the properties we manage, now numbers over 1 million square feet, and the annual capital costs of maintaining that physical plant are enormous. The City's current capital contribution makes -- or goes some way towards helping us cover the basic costs of maintenance but is nowhere near what we need. And we'd be happy to provide you with what we feel is a reasonable 304 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) number for maintenance on an annual basis that would help us keep our heads above water. Thank you.
Thank you. The Chair again recognizes Councilman Goode.
Thank you, Madam President. I just want to clarify for the record a request I've made for information to be submitted to the Chair. 1. I'd like a copy of the RFP. 2. I'd like a copy of the legal opinion from your legal counsel on whether you believe that the City's minimum-wage and benefits standards should be applied to the RFP and contract. And, lastly, I'd like a copy of the contract as well. Thank you, Madam President.
Thank 305 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) you. (Applause.)
Seeing none, the Committee of the Whole will stand in recess, at which time we will have public testimony. Thank you.
Thank you very much. (Committee stands in recess at 4:27 p.m.) (Proceedings resume at 5:50 p.m.)
Good evening, good evening. The Committee of the Whole is now back in session. And our first witness is...? MR. McPHERSON: Jack Butler. (Witness comes forward.)
Good evening, sir. Please identify yourself 306 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) for the record.
I'm here, representing myself. I'm a lifelong Philadelphian and I love the city very much. And I'm pleased to have a chance to testify before City Council.
Thank you. Now, I'm an ordinary citizen. And like most ordinary citizens, we really have -- I have no idea, you know, what the City's budget process is, what it's like. But I do have a question, and who should I address this question to, because it is directly about, you know, budgeting. I mean --
What is the question, sir? 307 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET)
The question is this: In the budget, on the revenue side, how much is included as an estimate of overdue taxes and fees such as real-estate taxes, sales taxes, business taxes, and the interest and penalties involved in delinquencies, traffic violations? Is there an item on the budget, on the revenue side, that estimates how much could be collected for all of these delinquent taxes and fees?
Mr. McPherson is here; he'd be happy to show you a schedule.
But what puzzles me is that over the years, you know, the citizens of this city have heard about scoff laws, absentee landlords who have not paid their real-estate taxes, other 308 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) money that's owed the City. And, you know, these are stories that we've heard many, many times. So I would surmise that there is a lot of money that is owed the City that has not been collected.
Sir, we not too long ago had very extensive hearings on the delinquency issue. The problem is that some of those delinquencies for property taxes go back more than thirty years. Now, there is no 14 business that I know of that would keep delinquencies on the books that long. I am certain that many of the people -- they're vacant properties, the owners have passed away, they don't have heirs that would take over the property. And I know that the Administration is looking into that, and I know that -- I didn't see you, Steve. And we're doing a tax amnesty program, which I'm sure you have also read about. 309 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) Mr. Agostini is here. He is our budget director, and I'm sure he'd be happy to show you and share with you the schedule that Mr. Butler is interested in seeing.
I could do that. And for the record, Steve Agostini, Budget Director. And your comments are right on point. There's been the issue of very old accounts -- decades, as you mentioned. We do have the amnesty. We had put in the 2010 budget approximately a $30 million estimate for what we thought we would receive through the amnesty. We indeed, as part of the 2010 and 2009 revision to the 2009 budget, also increased a number of items -- property taxes, wage-tax collections -- in our effort to collect from delinquents filers. So -- and I'm happy to share all of that. 310 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET)
That would be great. So Mr. Butler, when you're finished with your testimony, Steve will be there.
Okay. You know, I could ask for an estimate of, you know, like how much is owed the City. I mean, I don't know how far back we want to go.
And, you know, I mean, look, the City government is a large bureaucracy, and large bureaucracies are, by nature, prone to inefficiency, you know, disorganization, poor management, whatever. And, you know, I think the citizens of this city have a right to be angry when they are asked to pay more out of their income for sales taxes; we pay 2 percent more than anybody else in the state except Pittsburgh. We probably have still the 311 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) highest city wage tax of any city in the country; if we don't, I'm sure it's probably second or third. Our business taxes are very high. There's that debilitating gross-receipts tax. And it's no wonder that, you know, many people who would consider moving into the City decide not to, because they hear about these crises going on year after year. We are told that the crisis is partly to blame for the weak economy. But as a person who has lived in the City for well over sixty years, this is something that I've heard continually. So I think what we need is some -- a little more transparency, a little more accountability from the City government saying, Look, before we ask you to shell out more in your income, we really need to do all we can do to collect money that is owed the City. 312 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) And one item that I know a lot of people have been complaining about is the ten-year tax abatement. Now, believe me, I'm thrilled if we can do that because I love to see people moving in. You know, there are so many -- I mean, you have seen condo buildings going up. Unfortunately, you know, some of them are not selling too well. But the fact is that people are coming in because they hear about the ten-year tax abatement. But if, you know, we're in such dire financial straits, I feel it should be considered too. You know, maybe trim down the tax abatement; you know, five years, six years, which certainly would be a very good benefit. If we are so strapped, I think that's something that should be considered. A very good friend of mine -- I'm very, very sorry. Could you excuse me for a second?
Sure. 313 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET)
Sorry about that. A very good friend of mine who is very active in her neighborhood in Overbrook, and has really done a lot to upgrade the neighborhood and to get the neighbors together, you know, to improve the neighborhoods, when we heard about the proposal to impose a trash-collection fee -- and by the way, you know, here's a city that has probably at least a 12 percent poverty rate, and we're asking 13 people to now pay a trash-collection fee? 14 I think that's a bit of a burden. 15 Anyway, this friend of mine 16 wrote to the Inquirer: Instead of 17 imposing trash fees on law-abiding 18 citizens, how about enforcing the 19 anti-litter laws so that we can clean up 20 this city. Deputize block captains to 21 hand out tickets; we know who our are 22 dirty neighbors are. Many block captains 23 do this for free. This would not only 24 raise money for the City but clean it up 25 as well. 314 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) You know, I mean, I see litter all over the place. How do you enforce the anti-litter laws? You know, I mean, I don't know. But the fact is that many people see that they're not being enforced. I thank you for your time. But, you know, I just feel that I would expect that in City Council -- and in your staff, you have a lot of expertise on how to deal with, you know, budgetary matters. You know, I appeal to you: Before imposing these extra fees and taxes to, you know, just do all you can -- and I'm sure you are making an effort, but to do all you can to see where city government can save money, how uncollected delinquent money can be collected before asking the citizens who are already hard-pressed to pay any more in taxes or to have to accept any cuts in vital services.
Thank 315 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) you very much, Mr. Butler.
And we, believe me, sometimes feel the same frustration you do.
Thank you, Madam Chair. I just want to say that I'm proud of the work that we've done on City Council in the last year, holding hearings on these very issues, trying to 316 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) hold the Administration accountable to collecting as many taxes as we can, to try to explain the fact that most of these debts are uncollectible and should have been written off a long time ago, and with respect to the hearings that we're holding in this budget, where we're focusing a lot on efficiencies in department, in unfilled positions, and other places that won't impact citizen services, to see where we can save some costs. So I just want to say that I think all of us agree with the gentleman's testimony and want to assure him that we've been working hard on it all year. Thank you, Madam President.
Thank you. Our next witness? MR. McPHERSON: Harvey Portner. (Witness comes forward.)
Good 317 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) evening, sir. Kindly identify yourself for the record.
Thank you, Madam President. And I also want to address this august body of Councilpeople, men and women. I guess the rest are still at the Phillies game, but we'll disregard that. I am here because I have a school, Professional Health Care Institute, that deals directly with every shelter in the City through the Office of Supportive Services, and I'm here to ask all of you to please consider making no 16 cuts at all and finding a way to get the extra funding that's needed for budgetary consideration. Madam President, I'm the longest-serving commissioner in Cheltenham Township. I deal with budgets every day and every year, so I know what aggravation all of you are going through. And it's simple to say let's cut this and let's add this. But the 318 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) bottom line is: How are we going to help the people we serve? And specifically, those who are in shelters. And I see this every day with the clients that we have that come and take one of our courses. They graduate and we help put them into job placement, and they are successfully working. We've been doing this for consecutive years. 11 And I don't think that OSH can 12 afford a 7.5 cut across the board even 13 though it's a department we're talking about one-on-one. And so, I plead with all of you to -- I'm not here to criticize the numbers or the taxes that you want to put on. It's interesting, just as an aside. And Cheltenham is not a comparison to the City of Philadelphia. We're only 8.7 square miles, but we've had a refuse tax that's put into the taxing mode for quite a few years, nominal. But then, again, we're not the 319 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) City of Philadelphia. And so, I understand completely how each and every one of you must be aggravated in some form or another. I can only extol the Office of Supportive Housing by saying they do a magnificent job, and we are very happy and fortunate to be a part of that operation. And I thank you for the time, Madam President.
We appreciate your coming in and taking the time to testify. Thank you. Our next witness? MR. McPHERSON: Amanda Colini, with the group ACT UP. (Witnesses come forward.)
Good evening, gentlemen. Please identify yourself for the record and proceed with your testimony.
Good evening, Madam 320 4.12.10 - COMMITTEE OF THE WHOLE (BUDGET) President, esteemed Councilpeople, fellow citizens. My name is Paul Yabor. I'm with ACT UP Philadelphia, the AIDS Coalition to Unleash Power.