COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE OF THE WHOLE FY '03 OPERATING BUDGET - - - Room 401, City Hall Philadelphia, Pennsylvania Wednesday, February 20, 2002 10:00 a.m. - - - BILL 020001 - An Ordinance adopting the Operating Budget for Fiscal Year 2003. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK J. DI CICCO COUNCILMAN WILSON W. GOODE, JR. COUNCILMAN JAMES F. KENNEY COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN W. THACHER LONGSTRETH COUNCILMAN RICHARD T. MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 2 BILL 020001 JOYCE WILKERSON, Chief of Staff ............... ROB DUBOW, City Budget Director ............... 59 BILL GRAUB, Director, Labor Relations 71 DELIA GORMAN, Deputy Director, Labor Relations 74 JOE TOLAN, Deputy Director, Labor Relations ... 80 DIANA NEFF, Chief Information Officer ......... 107 KARL BORTNICK, Central IT Director ............ 116 DARRYL HAMLIN, CIO, Social Services .......... 122 RALPH BLAKNEY, Exec. Dir., Community Services 156 EVA GLADSTEIN, Exec. Dir., Empowerment Zone .. 159 DEBORAH MCCOLLOCH, Director of Housing ....... 209 3 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Good morning, everyone. This is the public hearing Committee of the whole regarding Bill No. 020001. I would ask Mr. McPherson to please read the title of that bill.
Bill 02001, an ordinance 8 adopting the operating Budget for Fiscal Year 2003.
Good morning. My name is Joyce Wilkerson. I'm presenting the testimony for the Mayor's Office. I'm Chief of Staff to Mayor John F. Street. I thank you for this opportunity to provide testimony regarding Fiscal Year 2003 Operating Budget for the Office of the Mayor. The total amount of the requested for the Mayor's Office from the General Fund for FY '03 is $4,818,425, an increase of $30,532 from FY '02. Estimated obligations of this total amount 4,618,425 is for employee compensation and purchases of services, materials, supplies, and equipment. The largest portion of this, the Class 100 budget includes 3,818,401 for 67 positions and represents an increase of 30,000 from FY '02 estimated 4 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) obligations. The 67 positions represent a reduction of three positions from the authorized level of FY '02 and the requested Class 100 appropriation reflects the 1.5 percent across the board reduction in Class 100 spending applied elsewhere in City Government. All other appropriation classes remain unchanged from the estimated obligation for FY '02. The remaining portion of the General Fund total 200,000 is for the City scholarships. This amount will continue the existing Mayor's Office Scholarship Program for Philadelphia students who attend classes at area colleges and universities. The grant revenue request for FY '03 is $4,376,951, an increase of $1,788,119 from FY '02 estimated obligation. This figure principally reflects federal and state grants to the Mayor's Commission on Aging and Mayor's Commission on Literacy. The grants will enable funding for occupational training for older adults, literacy programs for the community, and staff support for the Mayor's Action Center and the Office of Transportation. The Mayor's Office has had a very 5 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) productive year. On the education front, the Secretaries of Education and External Affairs were instrumental in a negotiating an historic partnership a with the governor to improve the School District's financial situation, maintain a City role in School District governance, and avoid a hostile takeover by the Commonwealth. Meanwhile, the Secretary of External Affairs has worked hard to strengthen or relationships in Harrisburg Washington. With respect to the Neighborhood Transformation Initiative, I'm tremendously encouraged by the progress that has been achieved to date by all involved including the Director of Neighborhood Transformation of the Secretary of Strategic Planning, their staffs, departments and agencies across City Government. On another front, I'm proud of the prognosis being achieved at PGW under extraordinarily challenging circumstances --
May ask Ms. Wilkerson 6 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) to please read a little slower?
Councilman, do you have a copy of Ms. Wilkerson's testimony.
Okay. On another front I'm proud of the progress being achieved at PGW under extraordinarily challenging circumstances, including continuing and well-documented financial pressures. That progress includes a new forward-looking collective bargaining agreement that significantly increases management flexibility while saving an estimated $76.5 million over five years stabilization of a billing system to a point where its performance is well within industry standards and a dramatic improvement in PGW'S customer service call center. Adding the Secretaries of Strategic Planning, Education, External Affairs, Public Safety, and boards and authorities to Mayor's traditional cabinet continues to pay a real dividend in enhanced planning and coordination. You will 7 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) hearing from the Mayor's Office of Community Services, Mayor's Office of Housing and Community development, the Office of Labor Relations, and the Mayor's Office of Information Services on their FY '03 Operating Budgets later in these hearings. Thank you for your support, and we'll be happy to answer any questions you may have.
Thank you. Ms. Wilkerson, in your testimony you mention the historic partnership with the State concerning our schools. Do we have a signed agreement with the State?
There have been meetings recently. They're trying to tie down the last few remaining few issues. I don't want to give a specific date, but I expect that very shortly.
So we can assume that it will be signed before we consider the budget?
I would expect that. 8 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Thank you. The Chair recognizes Councilman Nutter.
I will come back, Madam President. It doesn't mean that I don't want to ask any questions.
Thank you, Madam President. With respect to the so-called historic partnership, I think there are different points of view on that score as to what has been arrived at, if anything. I'm concerned because the Governor is not an elected -- I just think it's such a risky proposal when you have a Governor who has just slightly over 10 months to go. He's already a lame duck. I don't know how he's expected to have the political clout that the incoming Governor who can look forward to or at least claimed he's looking forward to or she proclaimed she's looking forward to an eight-year term. So I just think there's a lot of doubt. But until we see the agreement, we can withhold comment on that score. With respect to commissioners, how many 9 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) people under the Mayor's jurisdiction have the title of commissioner, whether they have it alone or in conjunction with a secretaryship? How many hold the office of commissioner in the City?
I don't know that number right off the top -- how many commissions there are throughout the whole City? I don't know that number.
Do you know how many commissioners also hold the duplicate title of secretary?
Janice Davis holds dual appointment. Commissioner Johnson, the police commissioner, holds Secretary of Public Safety. I believe those are the -- and Maxine Griffith is the secretary of Strategic Planning and also the Director of the Planning Commission. I believe those are the only three.
Do any of the commissioners hold the title of Deputy Managing Director in addition to being Commissioner?
Reilly Harrison who heads the Office of Fleet Management is the Deputy Managing Director in the office the Fleet Management.
In the cases you know about, does the holding of the second office entitle the commissioner to a higher salary than if the commissioner just remained commissioner?
I believe that the City Solicitor has ruled that -- I can provide you with the guidance from the City Solicitor.
I do believe that it does. But rather than speak without the -- speak off the cuff, I'd rather rely on the opinions that we've gotten from the City Solicitor's Office. I do believe that they are paid in excess of because of the dual appointment.
Is it because of the dual appointment, do you think, or is it because the post of Secretary or Deputy Managing Director allow for a higher salary?
I'd have to get -- I 11 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) don't know the answer to that.
At this time I have no further questions. The reason I raise the question, Ms. Wilkerson, is from newspaper reports it seems that salaries are being paid to at least some employees of the City who hold the rank of commissioner and maybe another rank are getting compensation beyond that that was covered in the last ordinance passed by the City Council and signed by the Mayor with respect to the salary ranges. And I was wondering whether or not, in view of the Mayor's publicized statement saying how difficult it is to get qualified people at the salary ranges, whether the appointment as Deputy Managing Director or Secretary was motivated, at least in part, by the decision that it's necessary to pay more money to obtain the qualified people the Mayor seeks.
I'll get you a complete answer on that. Who holds dual appointments and the supporting rationale for that. 12 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Not the legal supporting rationale, but the policy supporting rationale.
Thank you. The Chair recognizes Councilman Ortiz.
Ms. Wilkerson, how many people make up the Mayor's Office? How many employees right now in the Mayor's Office.
Do you have a chart describing how that have breaks down? It's the Mayor, you, and then the different branches and break off from there?
Do you have a general 13 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) description of the functions of each one of those individuals? And can you have that for the President?
Yes. It's in summary form. It doesn't have the function described in detail, but I can amplify what's on -12 in the budget detail.
You describe the Secretary of External Affairs and the relationship that has been built up in Harrisburg and Washington. How would you describe that? And can you give us victories that we've gotten there other than the agreement that we never seem to finalize, which is the education agreement?
I think the education initiative has been one of the initiatives. We've used the Secretary of External Affairs in our ongoing dialog with the Governor's Office around myriad issues, including the Gas Works. During the labor negotiations around the School District, the 14 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Secretary of External Affairs played a key role. We've got a very active relationship down in Washington around any number of issues. We are working trying to identify expanded resources for the City historically. We've gone after HUD dollars, for example, using that for our neighborhood activities. We're looking at trying to bring in other additional resources, more discretionary funding for the City.
We are getting some discretionary money. We were successful in getting a Hope 6 grant. We've gotten $300,000 for greening that matches a William Penn grant of $300,000. I think we got between 250 and $300,000 in the wake of the collapsing properties. There have been a number of other discretionary grants coming down.
How did the Parking Authority takeover really take place? It seems that we lack information in terms of what they were planning and how they were going to do it. It seems like it caught the City Administration by surprise. Where is that right now 15 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) and how did that happen? I don't want -- it's sort of like the question during the 1950's of who loss China, right? But who lost the Parking Authority?
I don't know that anybody lost the Parking Authority. I think that there was clearly support among the General Assembly to take over the Parking Authority. I don't know that it was a matter of anybody losing it. I think that the City does not have the kind of leverage the Administration would like to have in Harrisburg, certainly. And we have made an effort to remain vigilant in order to try to protect the City's prerogatives under the Home Rule Charter.
Are there any other institutions that we have that the General Assembly may be looking at in terms of perpetrating one more act such as the one they did with the Parking Authority? And what are we doing to try to avoid that?
Because I know they tried to do certain things just prior to a few weeks back. 16 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Well, there have been a number of initiatives. There was House Bill 1944 that would have exercised more control over the City's financings. I think the Mayor's Office probably hears a lot of the other conversation about the legislature and Harrisburg looking at some of the other authorities that are creations of the State. There's always been talk about the airport. So we are monitoring. We have weekly meetings where we monitor all the legislation going on in Harrisburg, try to figure out whether or not the City's interest is at stake, whether there are financial ramifications for the City. So it's and constant process. The process in Harrisburg frequently moves very quickly and so it is a challenge trying to stay on top of all of that. But we are being very vigilant trying to protect and preserve the City's interests.
Thank you. Councilman Nutter, your light was on earlier. Do you still want to be recognized?
Yes. 17 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Good morning, Ms. Wilkerson. In the testimony, there was discussion about -- and I think Councilman Ortiz may have been in the same area. If I am repetitive or redundant, I'm sure you will tell me. It had to do with a number of positions in the Mayor's Office. There was a story not too long ago with regard to that issue and some statements that the number of staff in the Mayor's Office had increased because of the voter approval of the ballot question a couple years ago giving the Mayor more responsibility for public education. Who are the additional people that were brought on to deal with the Mayor's added responsibility for education.
The Administration has Debra Kahn appointed as the Secretary of Education. She has full-time responsibility for education issues. She's supported by Shane Kramer who also works in that office. And I believe there's one support person working full time with the Secretary of Education. I think in addition, although George Burrell as Secretary for External Affairs has his own title. There's probably been more time spent -- 18 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) more of his time spent around education issues than any other major agenda item.
With regard to the Secretary of External Affairs, though, I mean, he wasn't necessarily or the position wasn't necessarily created because of the voter approval of the change in the appointment process for board members. I mean, that was the primary change that was made in 1999.
I think that we understood -- the Mayor understood that there was going to be an expanded dialog with Harrisburg. That the City -- we've all known for years that the financial condition of the public schools was going to play out in this kind of way and that it was going to involve an expanded dialog with Harrisburg. And I think the creation of the Office of External Affairs, to some extent, reflects an understanding that we were going to have a fuller relationship or a fuller dialog that was going to be necessary in Harrisburg.
What is the primary -- I guess at this moment, what is the primary responsibility, again, as it relates to the 19 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) decision by the voters to change the process by which people are appointed to the board? And we know now that the board's powers has been suspended as a result of the declaration of distress. What is the responsibility, as you see going forward, for the Secretary of Education and the Mayor's responsibility for education? I mean, is there more now, is there less? We've got a School Reform Commission appointed by the State and the City. The State seems to be taking more responsibility for education. How do you envision this working going forward?
I don't know that it's any more or less. It certainly is very different. The School District is still enmeshed in a financial crisis. The City will be involved in some way or another in the finances as we work through a very difficult 12, 18-month period. I think that we have an abiding interest in the quality of the education that is delivered to children in the City. And I think part of what the Mayor attempted to achieve in the negotiations was an ongoing place at the table, a place that reflects our interest in the quality of 20 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) education. So I don't foresee any decrease in the involvement, it's just a different role, I think.
Can you provide to us through the Chair a complete organizational chart of the Mayor's Office with the various positions, the names of the person associated with the position, and the salary of each individual?.
And lastly, in the same story in the paper about a month ago, the quote from the paper is "Mayoral Chief of Staff Joyce Wilkerson attributed some of the increases in jobs in the Mayor's Office, 43 in all..." And then it goes on to talk about the charter amendment. Does that mean that there are 43 new jobs in the Mayor's Office since the beginning or since the start of this Fiscal Year?
I don't know the quote you're talking about. There have been an increase in the number of positions in the Mayor's Office. The Secretary of Education, two positions; External 21 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Affairs, three; boards and commission, four; the NTI office is funded out Mayor's Office, that's seven positions. So there have been increases in the Mayor's Office. It's hard to do an apples-to-apples kind of comparison. In the previous Administration there were people working in the Mayor's Office who were in fact part of the Managing Director's budget. So the difference in the number carried in the budget doesn't reflect necessarily a difference in the manpower.
If you do that kind of comparison, would that then give the appearance that -- what were the total number of people were, when did we start, January 3, 2000?
I believe -- no , I don't know that number. Let me get you a comparison. I think that there absolutely has been a net increase no matter what payroll you put the previous administration's staff on, there has been an increase. It's not the number -- I think the number is misleading, though, because people are carried elsewhere. And I will try to generate a report that details that.
Let the record note 22 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) that after the Chief of Staff has valiantly struggled to try to answer the question, Rob Dubow has now come up to provide probably no support whatsoever, but is now occupying a seat next to her, having given her no useful information. Thank you so much, Mr. Dubow. (Laughter.)
He was going to help be provide a level of detail that I feel more confident providing in writing than trying to sit up here and free-lance.
Ms. Wilkerson, you mentioned about the number of employees assigned to the Mayor's Office that are working with the NTI program. Are they people like Pat Smith.
Yes. Pat Smith, Cynthia Bietti (ph). They're supported by a secretary. Ray Jones is working in the -- communicating with managing some of the constituent calls coming in. There is Jonathan Schmidt who is a researcher working with the office. Jessica Diaz is a project manager working on the development of the NTI plan.
Thank you. 23 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) The Chair recognizes Councilman Cohen.
Thank you. The office of Secretary, does that exist anywhere in the City structure other than the Mayor's Office? Is there any statutory ordinance 7 that creates that post?
Is it the theory of the Mayor that any office can be created and any salary can be designated as the appropriate salary for that office without coming to City Council for approval?
Yes. That the Mayor has the authority to create an office and the authority to assign salaries.
Is there a City Solicitor's opinion with respect to that item?
And if there is one, either respond by saying there is none or if there is one sending it to the president?.
I just wonder if the basis for any theory that the offices designated in the City Charter as the basis of the to officials of the City Government can be so easily disregarded and have substituted for them new positions with new titles, new salaries unrelated to any action by Council, which according to the Home Rule Charter, as I understand it, sets the salaries of both the Councilmembers and of the City officials.
I believe your question was offices created by the Mayor. I think, for example, the Secretary of Education is not a position that was anticipated in the Charter. The office Neighborhood Transformation was not anticipated. As you know, the Charter is an old document. It doesn't provide much support to the City in addressing a lot of the challenges that we're facing nowadays. I think that the creation of some of these office is an attempt to better address the challenges that we face by the creation of an 25 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) office, the appointment of somebody to run the office.
I don't question the need for the offices or the intent in creating them, but it seems to me the Home Rule Charter sets forth the manner in which the officers should be determined and the whole scheme of the Home Rule Charter is that there are such officers as the City Council and the Mayor jointly through ordinances shall create. But I'm concerned about the press and effect you could -- if what has happened is legally correct, then any Mayor can disregard anything in the Home Rule Charter and just create his or her own group of officers to run different departments because these secretaries are involved in offices that are covered by the Charter as well as some officers that didn't exist and may have been created for the purpose of dealing with situations you talked about, new challenges to the City. I'm just concerned about the whole scheme of things. It seems to me that the elaborate scheme set forth by the charter is not being followed. Any response to that?.
I will reiterate that a 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) number of the positions, Education, External Affairs, Boards and Commission, NTI, none of those are positions anticipated in the Charter. The Mayor's Office of Housing and Community Development, the Mayor's Office of Information Service, none of those positions are anticipated in the Charter. And I think what has happened over the years is Mayors have attempted to address the current reality by the creation of some of these offices. And I don't know that it's an attempt to subvert the Charter. I think it's an attempt to grapple with very real issues in the City.
Why wouldn't the Charter scheme of ordinances apply to the creation of these offices? I can understand they are new problems that come up requiring perhaps new forms of Administration, but it seems to me the proper medium for determining that would be an ordinance because it involves all 18 members who have a responsibility for passing laws and setting a statutory basis for action.
I would disagree. I think that the authority for organizing the executive function is left to the Mayor. I don't 27 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) believe that it requires an ordinance of City Council. But I can get guidance, provide you with guidance from the City Solicitor on that as opposed to me trying to interpret the City Charter.
Because it seems to me if you're right, then we can shut the Home Rule Charter, the Mayor can devise his own scheme of government and use that to replace the Home Rule Charter. And I don't think that that would be appropriate or contemplated in any fashion by the Home Rule Charter.
You're welcome. The Chair recognizes Councilman Nutter.
Thank you, Madam President. Just one last question. Ms. Wilkerson, I wanted to follow-up on a comment that was reported recently with regard to the interim status or interim title of Police Commissioner Johnson. It's been reported that the 28 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Mayor is conducting an internal and national search to fill the post. One, do you have any information on that?
I don't know that exactly. I am not involved in searching for that position.
The appointment actually happens out of the Managing Director's Office. I have not been involved in the search for that position.
You're saying that you're not aware of who is actually conducting the search?
Are you anticipating the Managing Director being here today?
Is it possible to get an answer while we're -- I mean, I think we're 29 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) going to be here for a little while. Is it possible to get an answer to who is conducting the search, internal and national search?
Yes. I am not familiar with that comment, but I will track down whatever information there is to update.
It was reported in a newspaper story a couple weeks ago. The Mayor apparently was asked a question directly and responded that he was conducting an internal and national search to fill the post, went on to say certainly some complimentary things about Interim Police Commissioner Johnson. But I was just intrigue as to who was actually conducting the search. I missed, and I apologize, the answer to the question which I think the President asked with regard to the agreement between the City and the State, between the Mayor and the Governor. What was the timetable under which that agreement was going to be codified into writing?.
I indicated that I did not have a specific date, didn't want to be nailed down to saying a specific date, that there were 30 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) loose ends being negotiated. The Council President asked me if would it be reasonable to assume that the agreement would be available before Council is asked to make a decision on the tax measures for the District and the other School District finances, and I thought that we would probably have an agreement by then.
Okay. Secretary Kahn did testify about this not too long ago. She put a week to a month parameter on it and I believe that that was --
I understand. I believe that that was back on January 30th, I think. Thank you.
Thank you. The Chair recognizes Councilman Rizzo.
Thank you, Madam Chair. Talking about the increase in salaries for the employees that get the secretary title. What was the salary of the Police Commissioner according to the Charter before the secretary's title. 31 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
And I'd also like to know what's the increase that -- I believe Commissioner Timoney was given the Secretary -- is it Public Safety?
I'd like to know what the salary is with that position and I'd like to know is Commissioner Johnson, our acting Commissioner, getting that compensation? Is he getting the compensation associated with the Secretary position?
Do these secretary positions go with the office or could a police commissioner come in and not be given the title of Secretary of Public Safety? Is there some administrative action that has to occur?
I believe the answer is yes, that it involves expanded responsibilities. But rather than being incomplete in my answer OR inaccurate in the answer, I'd like to get back to you on that. So I will provide a list of who has 32 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) dual appointments, the supporting rationale for that, both policy and legal, and the salary differential.
And it is definite that Commissioner Johnson is getting the compensation?
Let's move down into the ranks a bit. We talked about commissioners. The Charter, I believe, spells out how many deputy commissioners each department should have. I believe we have employees with the title deputy commissioner beyond the Civil Service allotment.
I don't know that that's accurate. There are positions within the Managing Director's Office that are working in connection with some of the departments. I don't know that there have been extra positions created outside the Charter.
Let's look at one department. I'm just picking one from the air. The Recreation Department. If a commissioner -- and I'm not sure what the Charter suggests or allows, would you determine how many employees in the Recreation 33 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Department are eligible to be deputy commissioners and how many deputy commissioners you actually have in the Recreation Department?
Go across the government. Your question is what are the Charter authorized deputy positions and how many deputies they are in fact. I can provide that.
Again, I think most of people think that the appointment of deputy managing directors is a way to circumvent the City Charter, whether those positions are absolutely needed to function. That's one thing. But again, I think people perceive some of the things that go on as ways to manipulate the system. And that's why I think you're getting these questions today. I'd appreciate getting that information. Thank you. Thank you, Madam Chair.
Thank you. The Chair recognizes Councilwoman Tasco.
Thank you. 34 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) I'm going to ask a sensitive question.
As you may know, we retain Hydric and Struggles (ph) and have conducted a very aggressive national search trying to find a candidate willing to come into the situation at a salary that we can afford. The total compensation for the gas company is capped at between 8 and $900,000. And so the search has certainly been within some pretty challenging parameters. We are talking in more detail with a number of candidates and hope to be able to make a final decision in the very, very short term.
Does our not having a permanent CEO have any impacts with our relationship with the PUC?
The PUC had asked that the City conclude a process for finding permanent management and wanted that management to be in place commitment four to eight years, I believe. It was some kind of long-term commitment. That is still their expectation. The Mayor has been up to 35 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Harrisburg talking with the PUC updating the PUC on where we are on that. And so I know that they would want the process to have been concluded, and we are trying to move to bring the process to a conclusion. We share the interest in having permanent management. I think that one of the things that we have found out, though, is that the kind of management that's needed at PGW right now may be a very different kind of management that the company needs over the long term. The kind of people who find PGW challenging, find very specific things about PGW challenging and a number of them have no interest in a long-term relationship with PGW, although I think that's what we all were looking at the start of the process. But we expect to bring that process to a close very shortly.
You're welcome. The Chair recognizes Councilman Cohen.
Thank you, Madam President. To whom does the secretary, wherever such a position exists, report? 36 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Under the scheme of the Home Rule Charter, don't all City departments have a responsibility to the Managing Director?
No. You have all your finance departments that don't report directly to the Managing Director. The Law Department does not report to the Managing Director. One of the things that this Mayor has tried to do is empower a number of individuals across government. So you have the Managing Director with responsibility for those departments that are identified in the Home Rule Charter. There are a number of other areas within government that are not anticipated in the Charter. And I keep getting back to education. So, for example, the Secretary of Education is not anticipated in the Charter. It's not appropriate to have -- it doesn't make sense to have that position --
The Recreation Department reports to the Managing Director. 37 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
It may be error. I understood there was a secretary that covered the Recreation Department.
I think point of clarification. Wasn't Estelle, before she became Managing Director, the Secretary of Social Services?
That according to -- this is only what we get from the press. That DHS, Recreation and the Health Department supposedly were supposed to report to Estelle directly and I would imagine that then Estelle would report to the Managing Director or to the Mayor, right? That was never clear.
That's right. Estelle's title was the Director of the Office of Social Services. It was not a cabinet position. Estelle 38 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) reported to the Managing Director. That position was created to provide a level of coordination between the Health Department, the Rec Department, the Department of Human Services there. There's tremendous overlap in the kind of programming that goes on in those departments, the individuals served through those departments, so the Mayor created Estelle's position as a way of trying to better coordinate. And I think that when they come and testify, they will be able to testify about real efficiencies that occur simply because there is somebody who's job it is to make sure that those dollars are spent in a way and programs delivered in a way that better serve the needs of the citizens of Philadelphia.
Then the commissioners report to the Secretary of Social Services?
No. There's no 21 Secretary of Social Services. There is no position Secretary of Social Services.
It's not a 39 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) secretary's --
I think the Mayor's wife was supposed to take that position and now someone else took that position?
It's not a secretary's position, it's not a cabinet level position. It has never been that. Her position is not a Charter position.
I understand about a Charter position. I'm just trying to look at the bureaucracy that is formed because it's like another layer that is put together. I would imagine that Estelle had staff.
What was the staff of Estelle as Secretary of Social Services?
I'm just trying -- if she has to oversee, Recreation, Health and DHS and she cannot exercise really any authority over any of the commissioners, then how does she get those commissioners to really do what should be done?
I think that the -- 40 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Well, it's persuasion, but it also because it is a position created, and I believe Estelle spoke with the authority of the Managing Director and bringing people into the room 7 requiring that they plan --
But it seems another layer of bureaucracy that is put between the Managing Director and those departments.
As a practical matter, the Managing Director cannot oversee the vast portfolio that currently falls under the Managing Director's auspices. All the people and initiatives that go on under the Department of Human Services, Recreation, Streets, Water, no one person is ever going to be able to do that directly. And so you have people brought into the organization to allow for the kind of management and oversight that is necessary. I think that if you did not have that coordination happening, you would find what we found traditionally: You have a Health Department that has health programs that operate in a vacuum from DHS departments that operate. And it's in that context that you end up with the stories about the 41 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) family that has social workers because there is no coordination that happens. What this Administration has attempted to do by creating a position like the one Estelle formerly held was better drive a level of coordination through government and so people spend a lot of time sitting down talking about what the program is, what the flexibility is with the funding, how to better serve the --
But again, it's 12 another layer of bureaucracy that seems to form. 13 And bureaucracy -- I don't think ever bureaucracy 14 has led to effective delivery of services. If you 15 have a Managing Director, the Managing Director's 16 Office traditionally has been a very expansive 17 office because you have Deputy Managing Directors 18 and Assistant Managing Directors that are supposed 19 to be able to be the conduits of that sort of activity of coordination.
And I don't know whether it's confusion -- perhaps if we provide an organizational chart of those offices so you can better see how Estelle fit into the Managing Director's Office. She was a Deputy Managing 42 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Director responsible for overseeing the activities in Health, Human Services, Recreation. You call her a secretary. She wasn't a secretary.
We didn't call her a secretary, you guys called her a secretary.
Just to clarify it, she's never been a secretary, did not carry the title secretary. She was Deputy Managing Director responsible for coordinating the activities of the social service group that includes Recreation --
Councilman Cohen, were you finished? Did you yield to Councilman Ortiz?
Everybody has a right to claim whatever they want to under the First 43 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Amendment. And the Mayor has claimed a partnership with the State, and you referred to that. Could you outline the benefits of that partnership that we have now received? What are the specific benefits of the partnership? Are we an equal partner? Are we a majority partner? Are we a minority partner? And what are the benefits we have received from that partnership to date?
From my perspective or from the Administration's perspective, I think there have been a couple of benefits. One is that we are still involved in the delivery of education to children of Philadelphia. With the passage of Act 46, the State, even without the agreement, had the authority to come in and take over the schools of Philadelphia. The City was working behind the ball in a lot of ways, having to figure out a way of getting back at the table. And I think that our ability to remain at the table engaged in the type and quality of education that is delivered to the children of Philadelphia is significant. I think that it was important to the Administration that education in Philadelphia be public education and not privately managed education, that the function 44 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) of the School District be a public function. And I think that that was a significant achievement. Under the state legislation, the State has vast authority to require the City to make payments in a way that would create unprecedented management challenges for the City. I think that we have retained control over the City's finances so that although it's a reach for the City, we will be supporting public education. The Mayor recommends supporting public education at the level City can afford as opposed to at a level the State determines unilaterally to be appropriate.
Isn't that all at the will of the State? Does the state have power at least three to two on the control commission.
I think on some of those issues, the City does not control the outcome. I think on other matters, there is a super majority required and the City has a larger voice. But I think that in light of the City's position going into all of this, in light of the fact that we were faced with a public school system that was not going to be able to make it through the school year, schools weren't going to be able to stay open 45 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) through the year, in light of the total circumstances, I believe that the City is better off than it might have been.
The super majority is not included in the statute; is that right?
I also saw Chairman Nevels the SRC, the State Reform Commission, say he never heard of any proposal involving super majority. There's a clear quote, and newspapers even put it in quotes from him, there's no agreement which confirms any concept of that. Let me ask you about the alleged 75 million. What basis is there for belief that the legislature under Governor Schweiker is going to -- and I described him before as a lame duck Governor, going to be able to achieve more than Governor Ridge did?