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?
The Governor has committed to raise $75 million a year in support of the schools. We believe that he will attempt that and believe that he will be successful in doing that.
So it's all a hope? 46 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) There's no basis now for concluding that that amount of money will arrive in the coffers of the City.
At the end of the day, you know you have the money when the state budget is passed. We believe that the Governor is working to try to fulfill the commitment to provide additional funding to the schools of Philadelphia.
Is it the view of the Mayor's Office that the State has the Constitutional right to compel Philadelphia to tax its citizens for the schools without Council action?
I don't want to speak on that issue. You're asking about compel the taxation.
I don't know that it's an ability to compel taxation as opposed to provide funding. But rather than speak extemporaneously and be misquoted, I'd rather provide something in writing back to you on that simply because it will be read in a lot of different forum.
I just think it's very important to keep the facts clear on the record. And I see nothing in the nature of a 47 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) partnership as I understand a partnership, both legally and in common verbiage. I don't see any partnership that exists where one party has total control and the other party merely has the right to express its views and its hopes, because we always have that right under the First Amendment. We can always express our views and our hopes. But we have no ability to effectuate a result. And there's nothing in which you've said which indicates any power by the City of Philadelphia to compel a result that would maintain public education in Philadelphia. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Clarke.
Thank you, Madam President. Good morning, Ms. Wilkerson. Ms. Wilkerson, early on in the Administration, I guess in the first year there was a discussion about streamlining and there was what I believe -- and maybe the term is incorrect -- a productivity initiative that would support hopefully additional 48 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) tax decreases and an accelerated decrease. And I maybe mischaracterizing. This is kind of my language. Has there been an ongoing analysis of that initiative to determine if it's working and can we look at a document that talks about -- Mr. Dubow, you don't recall that either?
The Administration is working on an ongoing basis to try to deliver services more efficiently. When you say a productivity initiative, I'm not clear --
That's the term I use. But early on in the process there was discussion about having a streamlined government more efficient. And I took that to mean translation less costly government. And I guess I'm trying to get a sense of whether or not there was an ongoing analysis? Was it just a statement at the original budget message, or can we look at some document that shows based on this initiative or whatever you want to call it that in fact we have reduced the cost of government, reduced the cost of providing service but yet maintain the level of service that we're used to?
I don't know 49 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) specifically what you're referring to. I would have to go back to previous to your statement to try to identify a specific initiative. There are a number of things going across government that reflect the Administration's commitment to deliver services more efficiently. For example, when the social service people get here, they can talk to you about better coordination and the ability to deliver programs using fewer staff people. MOIS has initiatives that are going on that would allow the City to support various activity with technology as a way of being more efficient. The City is looking at -- will be living with the outcome of the Drop program in 2003 in October 2003 and have committed to not filling, I think, approximately 30 percent of the slots because we do believe that it's possible to deliver government, quality government with fewer resources out there. But I'd have to go back in order to -- I'm not sure what you're talking about when you talk about a specific productivity initiative.
Okay, I'll cut to the chase. What has been done as a result of streamlining, more efficiency in service delivery? Can you translate that directly into a less costly 50 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) government, a reduction in cost of delivering services? Is there a document? That's what I want to see. I mean, it's one thing to say something, but I need to be able to look at a document that shows that there was an action taken in MOIS or there was an action taken in Department of License and Inspection and the correlation between that and reduced cost of delivering services is clearly documented, that's what I am asking. Has that analysis been done? Is it ongoing? Can you do it? Will you do it?
I don't know if it has been done. We can do that and we'll provide that before the conclusion of the budget process.
The other issue, and you mentioned social services. I had some concern about our social service delivery for a while, in particular when we talk about this NTI initiative we talk about a consolidation of services because after a close analysis of all of the housing industry, we find out that there was a lot of duplication of services. In my humble opinion, I think that we probably had that through our government. Will there be -- and I know we're restricted somewhat as 51 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) it relates to the bargaining agreement with the unions and Civil Service. But will there been or has there been any thought in government we can possibly consolidate some of our City departments? Because as an example, I know right now we have four departments of government whose primary responsibility it is to organize block captains, but yet half the blocks in City of Philadelphia don't have block captains. I mean, there's small things like that. Are we going to look at the departments beyond the housing agencies to talk about consolidating and talk about streamlining government and get rid of these duplication of services?.
The consolidation of departments would require a Charter change, and we are not currently actively looking at Charter changes. We have tried to have departments coordinate their activities more closely and have responsibilities taken by the most appropriate department, but we are not looking at consolidating departments.
No. We have not put 52 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Charter reform at the top of the agenda. I think that it's a discussion that's worth having although it's not ongoing right now. I personally believe that the Charter is very inefficient and that there are a lot of challenges facing the City that are made very complicated because of some of the Charter constraints. I think that to the extent we pull people together and have them in a room really talking about how services are delivered, we've been able to develop strategies for being more cost effective and efficient, you know, just having the social service people sit down in a room with the housing authority people and say: Do we have need to fund all these shelter beds? What are the vacancies in public housing? Perhaps we can get people out of shelters into public housing. We have those kinds of initiatives going on on a daily basis and there are enormous savings that come out of that. It doesn't require any kind of reshuffling of the departments. A lot of times it simply requires putting folk in a room talking about what it is that they do and figuring out whether they can do it more effectively and more efficiency. So, that, we're doing on an ongoing 53 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) basis. But we do not have current plans to propose Charter revisions.
Do you think that there are any similarities in the housing agencies and the departments in terms of staffing that if we had the flexibility that we have in the housing agencies because they're not Charter mandated that if we made the decision to do what we're talking about doing with the housing agencies that we can get the efficiencies that we hope to get as a result of the housing reorganization in the departments?
I think there probably efficiencies. Diana Neff who is sitting behind be will be up later and she can talk about some of the things they're we're looking at on the work order system so that when somebody from the public calls wanting service from the City, the City can present a single face and then deploy the request back to the departments. It doesn't have to be each department in the City with its own receptionist saying, "May I help you?" And then referring you to another -- you know, we can do activity like that in a much more effective way. And the Administration is working on developing some of those systems that 54 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) don't require merging departments. It simply requires doing what we do more strategically, using the technology that's available that wasn't available even five years ago. I think it would be clearest in some questions to Diana Neff when you look at things like systems, IT systems that we can install across government. It's those kinds of systems that we think will result in productivity and in the long run some cost savings for the City. It's initiatives like that we're exploring very aggressively. The merger of departments is something that we're not looking at right now.
Thank you, Madam Chair. I'd like to go back to the School District since the School District seems to be all about money. Could you describe since the State 55 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) takeover where we're starting to save some money over there? From what I understand, we still have a Board of Education in place over there. We still have many of the administrative pieces in place that support a City-run system. What kind of money are we starting to save over there as a result of the State takeover?
Councilman, I don't have that answer. I do not know that there are savings, in what areas they might be if they are. The SRC and the school people will be here, I guess, later or toward the middle of next month and they would be in a position to respond to that.
Does the Mayor's Office in the negotiations, which were so intense, hasn't there been some projections that the Mayor's Office has on what the savings should be, could be, are?
I believe that the Administration has some of thoughts on some savings that are possible. Throughout the course of the negotiations, there was disagreement on a number of areas where the State was projecting savings substantially larger than the Administration thought 56 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) was going to be possible. A line item like health and welfare benefits, the Administration felt the State was being overly aggressive in what projected savings might be in that line item. So there are any number of areas where there was disagreement. I think that -- I can provide you with more detailed information on areas where the Administration thought savings were possible and then the District though would have to respond on what savings its identified and what savings it has in fact been able to realize.
I'll take your suggestion because you've got a big list of things that you need to get back to the Chair with so I won't add that to the list; I'll wait. But I thought there might be something that you could share with us that's very obvious as a result of the State takeover what significant area that we could be realizing some savings. But I'll ask that question again. Thank you, Madam Chair.
You're welcome. The Chair recognizes Councilman Goode. 57 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Thank you, Madam Chair. Good morning, Ms. Wilkerson. The earlier discussion of how bureaucratic government is or isn't, there was a discussion of what's now called the citizens service departments and there was a question about direct reporting relationships and whether the commissioners report to the deputy managing directors or to the managing directors or both. Could you just answer that question for the record in terms of what's the direct reporting relationship?
Under the Charter, they report to the Managing Director. The Managing Director has individuals within her office that have the day-to-day relationship with the departments. And I think that when the Managing Director comes, she can explain how she's organized her office. One of the things that I have seen over the years is just how enormous that span of responsibility is. Everything from the kind of mental health provided to a child in a distressed family to laying pavement on streets, it really is an extraordinarily broad scope of responsibility. And so there are -- while 58 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) everybody continues to be responsible to the Managing Director, I think that all managing directors have found it important to put individuals in the mix that ride herd on issues on a day-to-day basis.
I understand that, and I have an appreciation for what type of policy coordination was sought and achieved. But beyond policy coordination, administratively is government mor or less bureaucratic in terms of whether those commissioners report directly to the Deputy Managing Director or whether they report to the Managing Director?
No, I don't believe it makes it more bureaucratic simply because they're reporting to a Deputy Managing Director.
You're welcome. The Chair recognizes Councilman Kenney.
Thank you, Madam President. Ms. Wilkerson, in the five-year plan, 59 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) the Administration claims that it will eliminate 330 positions as part of the Drop program. Yet the end of FY '07, there are 465 more positions called for or the employee count will be 465 persons more than currently projected at the end of Fiscal Year '02, which is a net increase of 775 people. Unless I'm reading the five-year plan wrong, it doesn't seem that this administration long term is interested in cutting positions if you're going to at the end of the next five years add 775 more.
Good morning. Rob Dubow, City Budget Director. There are a couple of departments where we will have the increase in staffing over time. One is the Department of Human Services where there are mandated coverage ratios based on number of cases. And the other is in prisons because we're opening up a new facility. If you eliminated those areas, you'd see that there's actually a reduction other than that of a couple hundred positions.
But am I incorrect in that the net increase in FY '07 is 775 people, 60 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) 465 more, counting 330 we're going to lose in the Drop than we have now? Whatever they're doing, there's going to be a net increase of almost a thousand positions more than we have now in a City that hopefully will turn around its population loss, but seems no trend in doing so. Whatever they're doing, I'm not saying that they're not doing something that's worthwhile. I guess the overall question is, what is the philosophy of the Administration if on the one hand testimony is given that we are attempting to consolidate, to reduce, streamline, when we keep on adding people?
It's the philosophy is that where there are places where we don't have control because there are mandated ratios or because we have to prison guards because there are an increase in the number prisoners in facilities, that there will be increases there. But in places where we can control the number positions, they're going to go down.
Well, isn't it prudent, considering the City's fiscal condition and considering the projection and the need to reduce the size of the government, to try to offset that 61 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) net increase with more reductions so at least it's zero and not increasing them? I mean, despite what they're doing and who's mandating the ratio, we're paying for it. I mean, is there going to be anybody left to pay for them in FY '07?
The short answer is yes, it does make sense to reduce positions as much as possible, and we are committed to doing that. We've also said that while we set this target of replacing only two out of three people leaving Drop that we will look for more. We'd like to exceed that goal, but we wanted to include numbers that we thought were achievable in the plan. And if we go beyond that, which we hope to, that would be a benefit.
But wouldn't the plan give us a better picture of what's going to happen over the five years if those reductions were included? A layperson reading the plan -- I mean, even a professional like myself in this business for 10 years, reads the plan and says there's 775 more people at the end of five years. It is what it is.
What we've committed to do 62 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) in the plan is to work with departments, bring in a consultant to do this, to look at ways they can be run better, that they can be run more efficiently. We don't know the details of what that will find. So to put in numbers based on conjecture wouldn't have been responsible. But we hope to achieve more than what's in the plan.
We hope to, but the plan says otherwise; is that a fair statement?
Well, that's right, because we want the plan to be reasonable. We don't want to put conjecture in there.
How many people have we added to Human Services -- and I'm not even talking about the Mayor's personal office -- but to the Human Service Department in the past two years?
What did I read in the paper that reported that there's approximately 6 or 700 more people than there was two years ago, 43 or 44 of them in the Mayor's Office? 63 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
I can give get you the exact numbers. There are approximately maybe about 240 additional positions in the General Fund compared to when this Administration started. About 60 of those are from independently elected officials so they're not under the Mayor's control.
Like the First Judicial District, like the Registrar of wills.
We vote on those budgets. It's part of the budget process. I understand the First Judicial District has mandamus powers and can basically hire and pay for who they want. But in other independently officials, even though they're independent elected, they do come through this room.
The point I was trying to make is they don't report to the Mayor.
But they depend on the Mayor's budget process and the Council's approval.
That's correct. But I think it's fair to make a distinction between those positions and positions in agencies that report to 64 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) the Mayor.
Are there discussions with those officials and their budget people when it comes to preparing the budget?
And there's give and take and they say what they need and you say what you can afford?
So it's not just they give you a number and you have to take it?
No, but we have much more control over our departments. Last year we went through a process where we had numbers in the budget that was submitted and Council asked us to put in additional funding for those agencies, and then we did.
I just want to make it clear that hoping to reduce the size of the government and actually doing it are two different things.
Well, we also laid out the process that we're going using to do that to reduce 65 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) the size --
Move to the NTI issue relative to the collapse and combination of various housing agencies --
Can I just go back? I actually didn't really finish my response on positions.
If you further breakdown that 180, the largest increases were in Human Services, which you pointed out, and in police. And I think a lot of police had to do with timing of classes. If you took those two out, there's actually been decrease since the Administration started.
Relative to the planned collapse of the housing agencies under NTI, what are we looking for in savings and personnel in that process?
I don't remember the number off the top. We passed out a proposed reorganization that identified how many positions we anticipated eliminating. Some of them were positions that would go elsewhere in government. 66 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) For example, the PHDC has a work force development operation. That would not be a part of housing any longer to the extent the programs would continue, they would become affiliated with the work force development.
Would those jobs be eliminated or they would just moved to another agency?
We would take a look at that, take a look at what exactly what's being provided, whether it's being provided elsewhere in government. If you look at the proposed reorganization that was distributed, you'll also see that, I believe, there were about 45 positions that were purely administrative positions. We would plan on configuring a new housing organization that had substantially fewer housing administrative positions involved in it. But what we're going to be doing over the course of the next year is creating an organization with real job classifications and figuring out exactly what the demand will be for the various kinds of activities, but our expectation is that it will be substantially smaller and I believe we actually have a number in that. We will be doing 67 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) things that we haven't done before. We've never had, for example, a market rate housing division. And so we'll be taking on responsibilities that have never been done by the City before. But we do believe there will be a net decrease.
What are the agencies involved in the housing agency consolidation?
PHDC, the Redevelopment Authority, office of Housing and Community Development are the major organizations involved.
How many positions are represented by those agencies that are in consideration of being collapsed into one?
I don't know. I will recirculate the information we passed. In that information, we identified how many people were with each organization, how many individuals were involved in each function within those organizations. And the final chart in that document, we show how many would, if we simply moved everybody over, how many there would be available to carry out the various functions in the new organization. 68 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
What I'd like to do, if possible, is to get a total number of people involved in those agencies and what the Administration projects in the raw number of reductions. Not moving people from one agency to another, the total number of proposed eliminated positions in those agencies.
To the extent that we have that at this point, I'll make that available. I think that as we work over the next several months trying to flush out the details of new organization, we'll have a refine number.
Well, we know that FY '07 we're going to have 775 more people net, so I think that since NTI is apparently a lot closer than FY '07, we would be further along in that number by now.
Just one question. What is the total of City personnel today, the number? 69 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
In the General Fund it's about -- I think the last year it was 24,613. 4
Could you tell me 9 what was the number of City in the General Fund in 10 1985? 11
I think we're actually 16 putting that together. There was a question last 17 week -- 18
I think it was around 19 25 or 24,000-something at that point also. I just 20 want to know -- we lost half a million in terms of 21 population during that period of time and government 22 has remained more or less static in terms of 23 employees. What I would like you to do is give me a 24 comparison as to how we have maintained, because where has the growth been during those years to 70 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) maintain the level of City employees of the General Fund at 24.5 and at the same sort of static level that we have seen and no movement down, given the loss of population that we have suffered.
We can give you that. I can tell you before I send it over that the growth has been in functions that are traditionally county functions, places like Human Services, places like prisons. And then when you look at things that are traditionally city functions, the number of employees in those areas has gone down. But we'll give you the full comparison.
You're welcome. Are there any further questions? All right the next group will be Mayor's Office Labor Relations. I'm sorry, Councilwoman Tasco has questions.
Thank you. I'm looking at the Mayor's Office for the dues and I see that years 2002 and 2003 there's no membership for National Association of Counties. 71 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
I don't know the answer to that. I don't know if we pay it elsewhere, but I'll check on that.
Thank you. Any further questions? Mayor's Office Labor Relations. (Witnesses come forward.)
Good morning. Thank you for your patience. Please identify yourself for the record and begin your testimony.
Good morning, Members of Council. My name is Bill Graub. I'm the Director of Labor Relations. I'm here with Joseph Tolin and Delia Gorman, Deputy Directors of Labor Relations to present the Office of Labor Relation for Fiscal Year 2003 Operating Budget. The Office of Labor Relations works with city managers, union representatives and their 72 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) members in collective bargaining, labor contract administration, dispute resolution, and labor management cooperation. Our budget request is for $589,694 in Fiscal Year 2003 General Fund Budget which represents an increase $7,512 over our Fiscal 2002 estimated obligations. $515,892 is to continue to support positions. That's an increase of the 9 $7,512. $41,302 is for purchase of service. 10 $32,500 is for materials, supplies, and equipment. Currently, we are engaged in contract negotiations for successor agreements with the FOP and the IAFF. Both unions have requested interest arbitration, and selection of the arbitrators is under way. The Office of Labor Relations is also responsible for handling District Council 33 and District Council 47 grievances prior to arbitration. In calendar year 2001, a total of 183 grievances were filed at the fourth step. Through the staff's very hard work, we disposed 203 grievances. Another Office of Labor Relations service level was training. We train managers and supervisors in labor relations. To date this Fiscal Year we have trained over 250 supervisors and 73 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) managers. Our goal is 320 managers and supervisors by the end of the Fiscal Year. By redesigning government initiatives, a joint labor management cooperation program designed to improve services to the citizens and to reduce the cost of City government. To date, successful RGI programs include the Recreation Department Summer Meals Program, a police department's forensic laboratory, and the L & I license issuance. The Office of Labor Relations is working with District Councils 33 and 47 and the departments to increase number of departmental of RGI programs. Thank you for this opportunity to present our budget request. We will answer any questions that you might have.
Thank you very much. Councilwoman Blondel Reynolds-Brown.
Thank you, Madam Chair. Good morning. On of your testimony, you speak to examples of how the department has revised and enhanced the license issuance processes and you mention seven. Are any 74 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) of them in the area of child care?
Would you identify yourself for our record, please? My.
My name is Delia Gorman, I'm Deputy Director of Labor Relations. The RGI Project Committee that has tackled license issuance had identified -- I believe it was up to 10 of the most common licenses and engaged in redesigning the process to try to cut the amount of time that it took to issue the license. They have not tackled child care licensing yet that I know of. Licenses they focused on were those where they had the highest volume at first. Parking lot license, newsstand, sidewalk cafe, and there were -- those were the major ones that they've done. They are still working and they will continue to tackle the different licenses and we go forward.
So you're tackling them on a priority need basis, based on volume?
That's the way they started, yes. And primarily what they were focusing on is mapping the process of issuance of licenses 75 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) and trying to cut the ones that were the most time consuming down to a reasonable amount of time.
For the record, those who opt to go into family child care and or day care centers, the issuance of license, the entire process is a barrier and a barrier that many family child care providers find it difficult to overcome. So I would be interested at a later hour to know where that falls on the list, where that is in the lineup of being tackled.
My second and final question speaks to, again, of your testimony next to the last paragraph. Briefly you speak about the partnership with DC 33 and DC 47 and how you're going to use RGI improve services and costs. Can you give us some detail about some of the initiatives on-line or in progress specifically with regards to those partnerships?
We have recently completed a first project with the Police Department's forensic sciences division, and the focus there was on trying to improve the process for DNA testing. 76 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) And as a result of that cooperative process, they were able to reduce the amount of time it took to retrieve samples from storage and they improved the record-keeping so that they actually are able to conduct three tests in the time it took them to do one before. And it's allowed them to keep up with the burgeoning demand for DNA testing. We are entering into a second RGI project with that group, that is both District Council 47, District 33, and Police Department management that is focused on their new facility that will be on-line next year in order to help maximize the efficiency of their processes once they move into that facility that will help them get certified by the American Society of Crime Lab Directors.
The Wister School is being renovated to accommodate the forensic sciences division and put all of their crime lab offices together, the criminalistics chemistry, firearms. Right now, they're kind of spread out throughout the Police Administration Building and their evidence 77 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) storage is off-site.
Thank you, Madam president. Mr. Graub, the 589,000 budget request, is any of that money inclusive of the hiring of outside legal counsel to negotiate these or arbitrate these union contracts with 33, 47, the fire fighters and police.
The money for outside legal counsel goes through the Law Department.
Do you know how much money the City is spending or has spent, say, in the last two years with outside legal counsel relative 78 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) to the labor issues, both negotiation and arbitration of contracts, appeals of arbitration awards, or any other labor-related activity? Could I find the number that was spent on outside legal counsel and which firms received those contracts?
I believe that's in the detailed budget in the Law Department. I do not know that total amount.
Do you have any involvement with that? Are you aware when outside legal counsel is hired to take on labor-related duties?
Well, as the head of this particular office, don't you think it should be all the times yes? I mean, certainly -- I mean, I don't want to put in an awkward position, but this is what this office does. And if a law firm is hired to deal with labor, I would think that this office would know about it.
Whether or not to 79 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) hire them is not necessarily --
Sometimes departments don't go along with our recommendations.
Councilmember Brown would piggyback on that ans ask what is the procedure for the hiring of outside legal counsel? How does it happen?
Basically, we look at the case, case loads, what cases we have for the grievance arbitrations that come in, when they're scheduled, and we see what we can do in-house, what we can't do in-house. We look at the cost of loss if we lost, what would this cost, so that might be a reason to send out.
So 590,000 is not inclusive at all of any outside hiring?
In the second of your testimony, it says, "The arbitration process with both the Act 111 unions, fire fighters and police are underway and we and we anticipate issuance of new awards before the end of the current Fiscal Year. Typically, once such awards are issued, the office of labor relations will work 80 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) closely with the unions, the Law Department, Finance Department, Managing Director's Office, Fire Department and Police department on an implementation for the new awards." Could tell me the status of the implementation plan for the last award for fire fighters Local 22?
My name is Joe Tolan, and I'm Deputy Director of the Office of Labor Relations. We have developed and implemented what we believe is the appropriate interpretation of all the contract language. There has been several disputes. And as is the process provided for under the collective bargaining agreement, those disputes are being taken to grievance arbitration at this time. There were four grievances filed.
Could you delineate the areas of contention that still exists as related to the last arbitration award for the fire fighters?
The three grievance arbitrations which are currently open include one concerning the development of sick leave bank and rules for its administration. There's one over 81 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) salary progression issues.
There's one over salary progression issues. And the third involves the administration of a reimbursement program for employees who take certain educational courses.
Those are the only three that are currently at grievance arbitration.
There as an additional one concerning extended health care benefits at retirement where an arbitration award has been issued at the end of January.
How long have you been handling this particular area of the implementation of arbitration awards? Have you been with the City long?
Yes. I've been in the Labor Relation function since 1980. And for most of that time, I've been focused on the fire fighters and District Council 47.
Are you aware of 82 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) other instances in the past and other administrations where Act 111 arbitrations which are, I believe, supposed to be binding were appealed in this fashion?
Well, I think that it's not uncommon to have grievances filed over contract interpretation issues and, certainly, with all four unions, whether they're issued by a binding arbitration or they're negotiated, there can be disagreements over what language means and how it should be interpreted and applied, and it's not uncommon.
How often has it happened in the past? Just from your anecdotal experience.
From my anecdotal experience, I would say we probably have at least three or four issues from each contract that arise.
And, again, outside legal counsel, I guess, are handling that particular legal process?
Well, in this 83 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) particular three or four, one resolved and now three pending, who's the legal people handling it.
Well, the one which was recently issued was handled by outside counsel, the extended health care benefits. I'm not certain that we have assigned an attorney yet to the other cases. They're in the process, and I don't believe we've actually assigned anyone yet.
I don't want to hold you here long ,but can you give me a little thumbnail sketch on what the sick leave bank issue is? What was awarded and what does the City contend was misinterpreted.
There are two points. One concerns whether or not someone who can make -- the way the sick leave bank works is during a certain period of time each year that's specified in the contract, you donate time to the bank. The union has asked that people who are separating from City service but not during that donation period of time 84 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) they're not an active employee, can they donate there time.
So this is someone who retires or leaves the position and has accumulated sick leave that they want donate to the bank?
I assume that this issue is more critical and I guess more attention focussed on it relative to the recent revelations of hepatitis C and the numbers of people that have it and some of the debilitating affects of that disease and treatment that required more time than is given under a normal contract for a particular employee and also the desire for other employees who are healthy at the time to contribute to their brothers and sisters that time that they've accumulated.
Could you give me or if you know what the economic -- what's the economic argument? I mean, obviously 22 has one view of what the arbitrator said, what the award says, and the 85 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) City has another view. Can you tell me from the City side what the economic hardship is or problem is for the City in this regard.
I think that having been a member of the committee of the leave bank, so far there have only been two individuals in the year who have asked for a grant of leave. And we have thousands upon thousands of hours in that bank. And so given the fact that the rules were arrived and set forth, there doesn't seem to be any need to deviate from them now. I mean, our experience is that we have an extraordinary number of hours available to cover anything, and we have not experienced any shortfall or any problem yet.
So no one's actually making withdrawals from the bank?
So having the other hours sitting in there, isn't a hardship or problem for the City?
Well, we have, I believe, somewhere in the neighborhood of 40,000 hours sitting there available without doing this.
If they sat there or 86 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) 40,000 more sat there, what would be the issue? Do we have a pay a person for any of the accumulated sick leave time when they separate?
An normal individual who separates, if you retire into a City pension plan there is a payment, a percentage payment.
These people are people who are not going into a pension plan, they're just leaving the City. And so they would get no payment for the sick leave.
So the people who are actually separated -- separating, retiring, going into a City pension plan, they're allowed to make that donation to the sick bank?
Well, they get paid for sick leave, so they're not looking to do this. The only 87 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) request and the request that's in dispute is for somebody who is City to take a job with someone else.
Let me turn a minute -- and this may be your area or maybe it's the Law Department; I'm not sure. What's the status of the City's position on the acknowledgment of Hepatitis C as a work-related disease vis-a-vis the State's recent passage of a state statute that presumes those types of jobs along with nurses? I think they extended the number of professions to fire-related paramedic-related positions. Could you give me an update on what that is.
We've been meeting with the State. The risk management Office of Labor Relations and the Law Department have been meeting with the State and have been working with them on implementation.
What's the status what's the city's Position on what the law says?
We have asked for some legal advice on what the law means. Because it is so new, we've asked for outside experts to take a look at that. 88 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Do we have an idea -- is there a parameter set for the amount of money that could paid for this?
Can you give me what the Mayor's Office of Labor Relations' position is on what the law says? What is your opinion on what the State says the presumed -- when an individual in that position is found to have Hepatitis C and the State now believes, according to what law was passed, that 89 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) the presumption of that person's injury or disease is a result of their employment.
I think that because, A, the law is new; and B, when we attended an information session from the State, there was contradictory information and interpretation given by the State Department of Labor and Industry. I don't know that we have a position right now until we get some additional advice.
Would it make any sense in consideration of those particular individuals and their dedication and service to the City that we would take the more liberal view that this is in fact a work-related injury so they can receive the disability benefits that many people believe is due and owing to them, or we're going to wait until we get the lawyers to tell us it's okay?
Because the law is new, we want to have some advise on how to interpret it.
I really don't have a time. 90 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
I don't mean to be sarcastic with you directly, but you could understand, I guess, I hope, that an individual who served this fire department, served this City for 15, years that has this disease, what they're 7 going through in their personal, physical, mental, 8 family, financial life that the City itself has some 9 responsibility and something that they owe them to 10 allow them to gain disability and have some economic 11 and financial piece of mind. An issue of simple 12 fairness, especially since the State has passed a 13 special law on their behalf. 14
As I said, the law is new. 15 The information that was give, which was at the 16 session last week, was very contradictory. And in 17 fact, after the presentation, the President of Local 18 22 told me that the main speaker had changed his 19 position within hours after the meeting. So it's 20 very confusing on that law. In regards to the other things, we do have the Hepatitis C bank and we do have the sick leave bank that we control.
How many people have withdrawn from the Hepatitis C bank, made withdrawals, so to speak. 91 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
I think it's somewhere in the neighborhood of about to people. 4
It's simply my 5 position that -- and we can talk to all lawyers we 6 need too talk to and I'm sure there's a law firm 7 that will give us a ruling or opinion on we want 8 them to say. That's what lawyers do. But at some 9 point in time, I think the City has to acknowledge 10 and be very forthright with the understanding that 11 these individuals obtained this disease as a result 12 of their employment, that the longer delay and the 13 longer we ignore and the longer we try to limit the 14 City's liability, I think the more liability in the 15 long run we're going to obtain because these people are afraid to come out, they're afraid to be tested, they're afraid to start treatment. And the longer they delay these treatments and issues and not acknowledging this because the City's intransigence, the longer I think the road to recovery is going to be, the more expenses we're going to pay down the road of potential liver transplants and other types of major procedures. And I think that the City -- no offense to you personally. I think the City has been extremely 92 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) shortsighted and cold and calculating as a result of their position, vis-a-vis our fire fighters and other paramedic and emergency personnel. And I think that it has been an absolute disgrace. And I know that you are simply carrying out the policy of the City. But I need to say for the record that I think that it has been disgraceful the way these people have been treated, to jump through hoops, to go through a process that asks a person like Mary Kohler about her sexual habits when she was years 12 of age. And questions like that, I think really 13 amount to a torturous process for these poor people, 14 and they need help. And they'll be there -- when my 15 house is on fire they don't ask me a slew of questions, they run through the door and try to drag my rear-end out. So I think that the City ought to reassess its position, stop hiding behind law firms and do what's right by those people. I appreciate you listening to me, and I know you're carrying out that policy and I thank you. Thank you, Madam President.
You're welcome. 93 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Can you tell us what if any role that your office will have in work redesign efforts as a result of the Drop program?
There is a committee that's being established to get a consultant to talk about the Drop and work reassignment and we are a member of that committee.
No. The RFP is out for consultants, but the study has not been started.
Can you tell me who is on the committee for the City, please?
The consultant has actually been hired, it's Perente Randolph (ph). They're going to start their work early in March. It will take about eight months. The committee is going to 94 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) be have about six members, representatives from Personnel, Managing Director's Office, Office of Budget Program Evaluation and Labor Relations.
Mr. Dubow, do I understand you to say they're going to start the study next month, March?
How long is it anticipated that it will take them to complete their study?
We're talking about all of the police and fireman --
They're not looking at police and fire. Police and fire are not included in the study because we're not reducing the police and fire work forces.
How many employees do we have that are under the Drop program.
There are, I think, about 2400 in Drop and about 1,000 of those in non-uniform departments.
I beg your 95 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) pardon?
There are, I think, about 2400 and 1,000 of those are non-uniform.
Would you provide us with that information also, please?
Thank you. The Chair recognizes Councilman Goode.
Thank you, Madam Chair. Good morning. In 1996, the City and the labor unions through negotiation of a contract decided to embark upon this Redesigning Government Initiative. And at that point, it was mostly or was as far as I know just labor and management and the public sector. Has there been any thought of bringing the business community, the private sector into the Redesigning Government Initiative?
This is Delia Gorman again. As you said, the Redesigning Government Initiative 96 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) in the '96 agreements was structured in such a way that labor and management would work together in order to improve services, reduce costs, and improve work life for the unions. We have had on an ad hoc basis in some of our projects involvement or input from the business community. And the one example that comes to mind is when we were looking at in the L & I project the sidewalk cafe license, we contacted the head of Restaurant Business Owners Association to meet with us, the committee, to talk about what concerns the restaurant business owners had with regard to licensing procedures and the licensing requirements for this particular license. We have not had systematic approach to doing that, but more on an ad hock basis.
So there has been no 18 engagement of the business community in terms of how to sort of reform form L & I and its whole license procedure. I notice in testimony on it talks about improving services to citizens, but then later on in the same testimony on it talks about business compliance as if our business residents are not citizens. And rather than talking about how to 97 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) improve the business environment, it talks about business compliance. I think that beyond talking about really cutting them out of time for licenses, and beyond talking about web access to licenses and those type of things, an appropriate discussion might be to talk about how to create a better business environment in Philadelphia by reducing the regulatory burden. And I'm wondering when the business community is going to brought into that discussion in terms of the Redesigning Government Initiative, or is that going to happen some other place in government?
Well, I want to clarify what we meant by business compliance. I think one of the problems we have is because of licensing procedure is so complicated or lengthy that some businesses are frustrated and put off by that. And even though they would like to comply, it is very difficult or more difficult than it needs to be. So when we were talking about business compliance in that sense, encouraging business compliance by simplifying the procedure. And we certainly are open, especially in that L & I project, to getting input from business people and we have conducted 98 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) surveys in the concourse of folks coming in to apply for permits and licenses and asking them questions and getting feedback about what is it that they don't understand or are frustrated with or what is it they don't like about the process. So certainly, the focus for the Licenses and Inspections Project Committee is on decreasing the regulatory burden to the extent that legally it can be done.
But does simplifying the process means simplifying the number of licenses that businesses are required to have?
Right. That's part of it. It's reducing the number of licenses by maybe consolidating them or eliminating ones that are no 16 longer necessary.
What sort of progress are we making on that front? And how has the private sector been engaged in that process in terms of redesigning government?
I can give you examples. With the Licenses and Inspections Committee, the dance hall license which had a very broad application, even if you had a jukebox in a tavern without a dance floor, you had to apply for a dance 99 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) hall license or you had occasional live music. When they looked at that again, they said really what's the purpose of the license? What is it we're trying to regulate? Who are we trying to regulate? And let's focus this so that it addresses the needs the City has without putting out.
So to answer my question, it is being done on a ad hoc basis, it's not being done in a comprehensive manner?
Right now with Redesigning Government Initiative, it's a comprehensive approach. We're not being all inclusive the entire business community. We're doing it focussed on the business community affected by the license.
But it's not a comprehensive approach to reducing the regulatory burden for businesses?
Not RGI. I think generally speaking, RGI is trying to get involved in the overall City effort to do that, where I know that Mayor's Office of Information Services has some proposals about where we're going to go with electronic businesses. And I think the RGI can play a role in that because we've been looking at the 100 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) manual processes.
That's still web access to licenses. I'm talking about reducing the actual number of licenses required. Is there anyone working on that as far you know, or is RGI a part of any committee or process toward making that happen?
I don't want to speak for the L & I Commissioner, but I think that from the feedback we've gotten in doing RGI he's very supportive of that concept in terms of reducing and streamlining. So we have been working hand in had with the management of Licenses and Inspections.
Lastly, do you think that is a role for RGI or should it just take place within L & I, particularly from my perception if you enhance the economic environment, you bring more revenue to the City, there's more money available for labor contracts.
I think it benefits everybody if we can effect that kind of streamlining and reduction and complications, not just the business community, but the unions and management as well. And a lot of the times we've been dealing with when we talk with the union members on our 101 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) committee is, you know, they're the frontline workers, they're the ones getting blamed for the fact that the license hasn't been issued or that things are overly complicated. So it's in their interest as well as everyone else in the department to get rid of as much of that as we can. So RGI is certainly supportive of that. I think L & I is the driving force behind getting that done.
Thank you. The Chair recognizes Councilman Cohen.
Thank you, Madam President. Isn't the RGI program a union initiative by District Council 47? Or does the City have its own RGI program in addition? I'm confused.
There's one Redesigning Government Initiative program. Both the AFSCME unions, both District Council 47 and District Council 33 agreed to a pilot program in the 1996 agreements. That pilot program has been extended by mutual agreement now through at least 2002 of the current agreement. Both District Council 47 and 33 have been involved. I would say that District 102 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Council 47 was the union that took the lead with the very first project, but we've been involved with both them and District Council 33. Because it's a labor management cooperation initiative, there are union representatives and City representatives who are involved with the Redesigning Government Initiative. So it's not separate -- it's not the union doing one and the City doing one. We're doing it together.
Well, I haven't heard any response by District Council 33, but I understand that District Council 47 is very unhappy with the pace of the City's involvement. They say that they often make proposals and nothing happens to them. Incidentally, I think the suggestion by Councilman Goode of City involvement of the business community is very good with respect to each initiative because there is the separate problem that particularly small business seems to have with the City, and we can't blame the State in this case when small business people say that the maze of getting an approval from the City for anything is just a horrendous task. And I'm wondering why we 103 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) can't really resolve that. The small business people have enough economic problems to concentrate on that we would do a world of good for everybody if we could get away from this lost maze they find themselves in when they try to get permits or to have contractors or draftsman have to spend hours in Municipal Service Building waiting. It seems to me the City just isn't and the ready to handle small businesses in an efficient manner. And while we talk of wanting to encourage the growth of small business, because that's where more jobs are coming from, we act just in a contrary fashion. So if you could, I know I've included a few questions all together, I'd like to hear your reason. Why is it impossible for the City in a short time clear up the kind of nuisances itself has created? I don't understand that there's any problem with the State on this. The areas of concern I hear small businessmen speak of are City concerns.
Yes. I imagine that's true. I think that with Licenses and Inspections there are a number of things the City can do to make 104 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) small business owners -- make life easier for them with the licensing or permitting process by taking a hard look at what is the process, how many layers have been added over the years that really are not necessary or can be streamlined. And that is exactly what the L & I RGI Committee is doing.
Both 47 and 33. Both are involved in that. And what they're in the process of doing, and as I said on a case-by-case basis, looking at the business community most affected by it. And I would think we have expanded into the permitting, what is the permitting process. Then the other thing that gets complicated is the permitting process then leads to the inspection process, and how do those two interact. The other thing that is of concern and may slow things down sometimes is some licensing changes to licensing processes or procedures need Council approval, some of them don't; it depends. So each one has to be taken on its on own because it's kind of grown into its own monster over he years on its own, and we have to tackle them 105 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) one at a time. It is a little time consuming, but it's the only way you end up with that better process. And hopefully, that can ducktail with the computerization efforts and the web business efforts so that people don't have to go down to MSV and wait in line for hours. They can get it done more quickly.
Do you think it's possible to create a system or have a system in which small businessmen can concentrate on their business and not on the filling out of forms or wait in line?
I would hope so. And I think L & I Commissioner would also hope that that can be accomplished, not to speak for him.
Now, with respect to another aspect, it is common talk in labor circles that this Administration recognizes the building grades unions, and as to all other labor organizations it just gives a cold shoulder, does not in fact deal with them on anywhere near the same basis as it does the building trades unions. Do you have any comment with respect to that?
We can respond in response 106 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) to the City unions District Councils 33 and 47, AFSCME --
If you would speak into the microphone, I'd be able to hear you better.
District 33, AFSCME, Fraternal Order of Police and Fire Fighters, this Administration has dealt with them up-front in a current process. How the Administration reacts to other non-City unions, we do not get involved with that.
You know that's not the opinion of any of those four unions, that each of those four unions would contradict your statement as to the way in which the City treats them or deals with them. I'm talking the fire and police and District Council 33 and 47.
We talk with the presidents and union officials daily. And I've heard no new complaints, let's put it that way, about the way --
That's an interesting 107 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) contradiction. Thank you, Madam President.
You're welcome. Are there any other questions from Members of the committee? Thank you so much.
The next department to testify is the Mayor's Office of Information Services. (Witnesses come forward.)
Good morning, Madam President. My name is Diana Neff. I'm the Chief Information Officer for the Mayor's Office of Information Services. I'd like to introduce some of the staff that are here today. Karl Bortnick to my right who is the Central IT Director, Darryl Hamlin to my far left who is the Social Services CIO, Howard Baker who is the Public Safety CIO, David Lewis who is the Finance and Enterprise Services CIO, Oliver Thorton who is the Municipal Services CIO, Jackie Henry who is the Administrative Services Manager, and Cheryl Ford who is our Budget Officer. 108 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Information Services was created by an executive order in 1993. And in 2001, the CIO was formed as a cabinet member to the current Mayor. We provide centralized planning and standards in project management and computer training and support to all of the departments in the City. This year we are presenting a budget of $13,464,335 which is an increase of 277,000 from Fiscal 2002. The estimated cost increase are in our maintenance for mainframe database and software licenses. We also are requesting a total of $974,501 in the water fund. And that is a decrease of $33,281 from the year 2002 due to the elimination of maintenance on obsolete equipment that was retired. The. Year 2002 was a building and structural year. I joined the City in May of 2001, and during the process of the summer and fall hired the different cluster CIOs that were introduced. We also took this as a time frame to meet with the departments to look at how we can support them through senior IT managers. However, we didn't just do organizational activities. You've had the opportunity to look at the City's website, we have had major improvements in that initiative. We have 109 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) worked and brought the City Council's website up. We now have address-based mapping services to help citizens in a business locate geographic features, zoning information, and facilities. We have worked with the Public Property to bring on the property assessment information and made that available. We've worked Fun, Fit, and Free. We've created a special Philly's Kids and a lot of activity was done in the neighborhood transformation area, particularly with GIS. We also, I think, should recognize Darryl Hamlin in the work that he has done with the social services department in raising over $2,485,000 in grants for our recreation, education, computer site program. This is a program by which we are looking to put computer labs in 128 of our recreation facilities across the City. Our goal was to bring up 10 sites this year. We have funding for that. Cost us approximately $250,000 to outfit and put in the software and get the training instructors to have valid programs at those centers. We also use this as a foundation year by which we are developing the infrastructure to support areas like our Citizen Relationship 110 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Management Program. We are now out on the street with a number RFPs, Request for Proposals, to support us in an area of bringing on a work management system. That is one of those systems where when I came on board I had requests for four different work management applications, all of them having their favorite vendor. We brought them together, did joint requirements definitions, have issued a combined request for proposal, and that will close the end of March and it will bring on board as part of its first two activities will be a customer information system that will allow us to track requests coming in from any point within the City against a parcel or a complaint. And we will then be doing the work management and it will have a billing and collection system to support the Water Revenue Borough.
Also in 2003, we have an RFP out for consulting services to do an enterprise IT strategic plan and information technology strategic plan that will involve all of the departments in the City to help us select and prioritize where we need to be going with the use our dollars and how we use technology effectively in the organization. 111 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) We will also be working with Public Safety. We have a request for proposal that has just closed on the Police Instant Information Network called PIIN, and they're continuing to also do their internal borough application. Implementation will conclude next year as well. We will be doing an analysis of a 311, you may have heard of this terminology. I believe it's been discussed before you before. This is where citizens would not have to know a specific department or phone number to call. They could call 311. There would be knowledge base system that would take that call and it would be able to direct it to the appropriate department for response. It would also feed in our back-in systems so that we could get some efficiencies and improve the process as far as performance and delivery. The Neighborhood Transformation, we're working with the departments to build collection systems particularly with L & I. We are continuing to build and support our infrastructure. We are looking to higher the six main facilities so that we have redundancy for disaster recovery in our applications. We are also continuing to enhance our 112 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) geographic information system relationship with NTI in developing a uniform land information system that will have a common addressing database that we do not have today. And with that, Madam President, that ends my testimony and I welcome any questions.
Thank you. What are the cluster chief information officers?
Those are a group of senior IT -- I guess the equivalent would be deputy CIO's -- that work with various departments. For example in Social Services, all of the different 14 agencies that are within that cluster as the Mayor 15 has defined clusters, Darryl works with those 16 departments to look at how do they develop a 17 business case for new projects, doing project 18 management to ensure that we're getting the delivery 19 of what we're paying for in the way of IT projects. In municipal services that includes Water, Streets, L & I, Records. So we've taken like-functional groups and put a senior IT person to work with those departments to help the commissioners understand how technology can be effectively used within their departments. And then as a group, we work to 113 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) coordinate our effort so that we have an enterprise view of how technology can be used across the City.
When do you expect to complete your citywide five-year IT strategic plan?
Will you be doing this in-house or will you be engaging a consultant?
Both. We will be engaging a consultant and that request for proposal is on the street right now and bids are due in by March 4th. Then we will be forming an IT Strategic Plan Committee comprised of 16 commissioners, deputy commissioners across the City, plus the deputy CIO's and the technical directors from MOIS to work together to craft the strategic plan.
Can you tell us what the Mayor's IT executive order does? And you said the it was initiated when? In 1993 it was created? 114 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
In 1993, right. And that created the Mayor's Office of Information Services as it stands today and Karl was here at that time and can talk more to that. And then there's a new executive order that hasn't been released yet out of this Mayor's Office which will bring some changes to the organization.
Thank you. The Chair recognizes Councilman Nutter.
Thank you, Madam Chair. Good morning -- good afternoon. Why don't we start with the last item you mentioned and then I have some other questions. What's the new executive order?
What is the new executive order that you just made reference to?
In year 2000, the Mayor had commissioned a Transition Committee to look at how IT might be structured within the City. It followed up with a second commission that built on the work that was done by the Transition Committee, and they came out with a series of recommendations. Those 115 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) recommendations were then used to solicit a cabinet level CIO, to hire a cabinet member CIO of which I was selected. And then from that, I put together an executive order that addressed some of the issues that came out of the transition report which is available on the website under the Mayor's transition reports and will look at how we more effectively use technology across the enterprise by centralizing the IT planning and funding.
To submit to the Mayor's Office based on the two committee reports.
What did you say was available on the website, the Transition Committee report?
And based on those reports and other reports, you then wrote an executive order or a draft of an executive order and submitted it to the Mayor's Office?
What was the budget of this office back when it was created in 1993, do 116 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) you know or does Mr. Bortnick know?
I'm Karl Bortnick. And if, I believe, you'll look at that period of time, we were under $7 million at that time. If you go back to 1985, you will note that the budget at that time was in that to $14 million range. 8
And then in 1993 11 you're saying that it was less than 7? 12
Yes. I can get the exact 13 number, but that was dollars at that time.
The City suffered a severe financial crisis in the early '80s, early 90s.
And from year to year the budget decreased over that period of time.
And you're saying since '93 it's basically built up almost virtually to the 1985 level. 117 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Well, what were we doing in 1985 from a technology standpoint, we then slid to half of that budget and now built up back to the same level? I mean, some of the things that you do now didn't exist then.
Absolutely. You have not to make along story technology evolved highly centralized type of technology that was typical of the late '70s, early '80s into a more significantly decentralized technology. And with the decentralization went also increases in equipment costs into departmental budgets. So if you look at the cost within the departmental budgets over that period of time, you'll see they're increasing even as there's a generalized decrease as the amount of equipment goes.
Okay. How many people were in the department or -- actually, I'm not sure what --
In 1983, if my memory 118 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) serves me correctly, there were 108 people at that time.
Excuse me. 1993. In 1985 there were approximately 194 people.
Could you repeat the answer to that question.
I'm sorry. I may not have spoken loudly enough. In the 1985 time frame there were approximately 194 people. In 1993 the agency had contracted to approximately 108 people. And that was the answer.
And today there are -- we have a budget before you for 151 people.
The roles and responsibilities -- let me please add here -- of an organization in this decade of the '90s and growing into this new millennium are significantly broader than they were in an historically earlier time. 119 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Ms. Neff, tell me who are the, you call them clusters, CIOs for these four areas, Public Safety, Social Services, Municipal Services and Financial and Enterprise Services? Who are the actual individuals?
These are the gentlemen that I introduced to you. Darryl Hamlin for Social Service, Howard baker for Public Safety. David Lewis for Finance and Enterprise Services, Oliver Thorton for Municipal Services.
And I made a previous request of the Chief of Staff. Could you provide a complete organization chart with all the individuals listed and their titles and their salaries?
And did you recruit the CIO's? I know, obviously, Mr. Thorton was already in the government. Were the other three individuals in the government when you arrived or did you hire them yourself.
Mr. Hamlin was with the organization for Social Services as a program manager. And then Mr. Baker and Mr. Lewis were new 120 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) hires.
And what are their respective backgrounds in these particular areas?
What are their respective backgrounds in these particular areas?
Mr. Baker was the Public Safety CIO for the State of Massachusetts. He was also the Deputy CIO for the City of New York. And prior to that, he had, I believe, years in the 12 law enforcement in California. 13 Mr. Lewis has both a planning degree as 14 well as was involved in consulting in the IT arena, 15 was from the private sector prior to joining 16 although has municipal service background in the 17 planning area. 18 Mr. Hamlin was with the City, but prior 19 to the City from the City of Atlanta as well as 20 Washington, D.C. and a military background. 21
And they work with a 22 variety of commissioners and departments for their 23 management information system issues or information technology services and programs?
That's correct. 121 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
And I know that we have a direct entity that may work as a consultant that works with us here in Council. Do any of these folks have responsibility or interaction to work with any of us?
With the Kimmel Group? Am I assuming that's the group that you're speaking that supports you and your desktop?
But your four cluster areas, is there any contact or relationship between either your office, you directly or the four CIO's about any of the information technology or management information systems of the City as it relates to anything that we do here in City Council.
Yes. My office is directly open to you. I have worked at request of the different departments to have people come in and talk about technology. Or if there are issues, I'm always open and available from calls from Councilmembers or the Council President.
Let's talk about 122 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) your testimony on the recreation education computer sites. Where are the centers? 4
Good morning. I'm Darryl 7 Hamlin, CIO for Social Services. The first 10 8 centers are located in seven of the councilmatic 9 districts. Many of the centers in the first phase 10 were determined by outside entities. For example, the Shepherd Recreation Center which was open to the NBA All Star Game was chosen by the NBA because that was Wilt Chamberlin and Earl Monroe's center. Because, again, we are fund-raising, many times the funder dictates where they would like those locations put in the City. The remainder of those are selected by the Recreation Commissioner.
We actually are running this program, somewhat what the Free Library did. All funds for the computer labs are raised outside the Operating Budget. We actually have applied for federal grants, state grants. We also are receiving contributions from the corporate community. 123 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
What's the programmatic activity at these particular sites and who's in charge of them?
The programmatic activities include support of the after school program. We also do public technology education in the evenings. The actual activities are determined by the local recreation boards. What we have done is provided them a framework which includes technology and then the local recreation boards determine exactly what activities go on in there, but they are geared around the after school program.
Well, give me an idea of the kinds of things that the kids might work on. I mean, what's the goal? What are we trying to teach them? Why are they there and what do they do on a computer?
For example, starting this year, we have just closed an agreement with Intel Corporation. We will use something called the Computer Clubhouse. And what the Computer Clubhouse would do is actually teach young people how to design the games they are currently familiar with. So it provides them opportunities to get inside into 124 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) the world of IT. We're also working with M.L. King Center out of Harvard University to bring a computer oriented training program centered around African-American history. Those of two of the types of programs that we want to bring to the City starting next year.
Do the activities at these various centers and specifically the computer training that the young people may receive, does it have any connection or relationship with anything that might be going on in their local school?
Yes. We are working directly with the School District to ensure -- what we want to have happen is that the computers, regardless of whether they're in recreation centers, the Free Library, the community technology education center, the that they become extension of what the child learns in the day in school.
How many of these centers do you ultimately anticipate trying to open?
Our goal in the second phase is to get up to 40, depending on how we do our fund-raising. There are a 128 sites throughout the City that can in fact support a computer lab. 125 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
You made reference the funder often dictates where the activity is going to take place.
Yes. For example, again, with the NBA, they want to honor Wilt Chamberlin and so they selected the Shepherd Recreation Center which was his home site.
I'm familiar with that. How do you deal with -- again, particular community involved, elected officials in a particular area, and suppose there's a difference of opinion about where a particular site should be or where even the need, maybe one site versus another, how do you deal with those issues?
Those are handled by the Department of Recreation. What we have attempted to do is to look at where the most need is and that where recommend the site is. However, again, based on the funder's desire, they may overrule that. And again, once there is a computer lab in a recreation center, it is up to the local board to determine what type of activities go on there.
Let's talk about the public safety area in the testimony. 126 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Councilman, can we ask you to wait until the next go-round if that would be okay.
Thank you, Madam Chair. I think it's becoming clearer as every question that's been asked is kind of answer you want and usually you don't get. It's something very positive. This is, I think, the all star team of this Administration and it's very much below the surface. I know and knew of Diana Neff prior to her being hired because she was considered the finest CIO in the country when she was in San Diego. In fact, chaired Public Technology is the organization in washington that's owned by the local government organizations for technology purposes. She chaired their IT task force. And this is real forward thinking stuff that we're hearing about. It's not going on in most large counties and most large cities. They're thinking about it, they're trying to figure out how to get from here to there. And I just want to congratulate the Administration, 127 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) whoever was responsible for Ms. Neff's hire, and then for giving her the ability to start doing the things that need to be done. I was just in a meeting at Public Technology the other day in Washington and her name came up twice when they talked about the run this the top CIOs in the country. So I think we're very fortunate to have lured her away from San Diego. And I can just tell you that Sand Diego just hired a CIO. That took almost a year to fill that position. These are not easy jobs to fill. And I'm sure it wasn't easy to get the layer of deputies that were described. And I appreciate Councilman Nutter asking that question because the biographies, the resumes of those people are as impressive in their own right as Ms. Neff. I just have a couple of questions. One, NTI, in a private conversation we were talking about more things that could be done. You had mentioned that NTI had significant money in there for Information Technology and things you could do if NTI funds became available. If you could go over that. And then the other is just with GIS and 128 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) where we are because, again, I think it's one of the areas where we're ahead of most jurisdictions in the country. Even though we have a ways to go, we're looked nationally as one the leaders in GIS area. And when the fellow from New York was giving a presentation, the guy that set up everything after 911, their GIS director, he's giving a presentation to federal department heads as he goes through this history from 911. He mentions Philadelphia first as where they learned about what the best practices are with GIS. I mean, this is New York City. So I would ask you to just give us an overview of GIS. And lastly, are we filling all the task forces at PTI, the five task forces? I know they don't have a Human Service component yet. But in terms of the other ones, Energy, Environment, Transportation, Public Safety, IT, do we have somebody participating on a regular basis as you were and, I'm sure, will continue to. So there's just NTI, GIS, and Public Technology involvement with your peers around the country.
Thank you. As a part of the NTI program, there is $5 million that has been 129 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) identified to use in various IT-related projects. Two of the programs are in the GIS area to create a uniform land records system. And to do that, we need to go back in and take the 5,000 individual sheets from Records Department and digitize all the updates that have occurred since 1995. We are recognized nationally for our GIS. It has served the City well. As we now get down to the parcel base, we have somewhere between 4 and 20 percent err, depending on what the portions of the City that you're in. Because as properties have changed, been divided, the legal identifiers have not been updated in that system. So this helps us bring together and create a uniform land base such that you don't have a separate land base in Planning versus Streets or Water.
Could you explain GIS for the record and in lay terms and what the benefits are to a City like Philadelphia and also the region and how it can tie into economic development if developed properly?
Geographic Information Systems have actually been around since the '80s. What they do is they allow you to take information 130 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) about unique pieces of land. Virtually every service that we provide in the City touches land in some way, whether it's our watershed, impervious services as we look at storm water where there are our curbs and gutters, our center lines for our Streets Department. But it attaches what they cal attributes or identifiers to those parcels so that we would know where certain things are, what the topography of a land might be. It's used extensively in routing in the License and Inspections and Sanitation.
I'm sorry. We've got some higher than usual noise in the room. I'm having trouble hearing her.
Thank you. Could we keep our voices down or step in the hallway for conversations. It's difficult to hear. Thank you.
Thank you. Even the Revenue Department and the Borough of Taxation attaches what they do to a parcel of land. If you have 11 different departments having their own land information systems, you get conflicts. What we want to do is develop -- 131 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Excuse me, Madam Chair. I'm getting it from both sides now. I'm really having trouble hearing.
Can we please keep our voices down or step out in the hallway for conversation. This is a room where it's very, very difficult to hear. So please could you take your conversations out in the hallway. It's just built into this building and we all love our building but we just can't hear when there are other conversations going on. Thank you. Thank you, Councilman. Please continue.
Thank you. So our goal is to have an integrated single parcel database that let's any user, not just a GIS or geographic information analyst go in and have access to that information. Just this past week we have placed interactive mapping capability up on our website so that if you are a business and you need to know parcel zoning, you can go put in address, be able to get that and then link back to the zoning codes. So it's the information about that parcel of land, not just the graphic picture of it that makes the value GIS so 132 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) important. As we look at with NTI and how we're going to aggregate properties and the ability for commercial entities or residential neighbors to come in and get information that's important to them about a fixed geographic area, that that will be accessible. And so we're working very closely. One of the things that we were able to do is when the Mayor was going out into the various different neighborhoods to be able to bring up these mapping and show neighborhoods the different parcels and what was there and how they might be used. You can do modelling from there, so the Planning Department using GIS extensively as they're looking for their economic development.
Does the Police Department or Human Services, which are never sort of doing the same thing, can they utilize GIS?
Absolutely. And I should have mentioned that because one of the things that the City is known for that Commissioner Timoney brought with him is New York is Comstat which is maps prime data. And this highly used program and has been successfully used by the Police Department 133 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) to identify crime patterns, look for common patterns that helps in the resolution of crimes. The Fire Department is able to look at building footprints where hazardous materials might be stored in relationship to buildings and how they would need. Many organizations uses GIS disaster recovery in their emergency operation centers. Being able to know where your equipment is deployed if you've got a fire and being able to bring up that building and understand how it's laid out. The one area the GIS is just beginning to become active in is in the Human Services. And we're very excited about being a leader in that and taking a look at being able to identify patterns in the Social Services arena and will be working with the different departments to see how we might use this, again, as an underlying tool in helping them do their service delivery better, whether that's a case worker being able to pull up information, whether it's a probation officer having a picture of a client while they're out in the field and being able to appointments based on where they're located, so better management of their case management.
Thank you. And the 134 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) PTI program?
Yes. PTI, Mr. Baker is on the Public Safety Task Force. I am not aware whether we have anyone from the Transportation Energy or Environmental Departments, and I will look into that.
Could you try and see if we can. Because they have a conference in April.
Particularly Home Land Security being the main focus, environment, Energy. Thank you.
Thank you, Madam Chair. Good afternoon. In your testimony you talk a feasibility study and the creation of a 311 contact center as a means of residents requesting non-emergency information. Post September 11th, have you thought about any feasibility studies related to creating an additional emergency contact 135 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) resource?
The Police Department is looking at 911. And how actually 311 would be able to help eliminate the non-emergency calls that come currently into 911 so that they can respond to those true emergency issues. So the two go hand in hand. The 311 would take those non-emergency, allow us to track and be able to feed our back-in system so that if a pothole needed to be fixed or a tree needed to be removed, we'd be able to do so without those calls having to go in.
But in case of extreme, God forbid, like in New York or DC, even 911 was clogged up. Is there any thought of giving some feasibility analysis to whether it may be a need for additional emergency resource?
Yes. And in fact, that will be something we look at as a part of the study and how the two systems can cross over. Is there any benefit to cross training -- there's union issues that would have to be addressed, but it is one of the items we will look at as a part of the study.
So that can be accomplished between 911 and 311. 136 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Thank you, Madam Chair. Good afternoon, MOIS. I just want to thank you for finally helping me get trained, me personally get trained on the computer. I really do enjoy it. I want to particularly thank Karl Bortnick and the technical people that are down on the third floor. They've been great assistance to myself and to my office. They were always there to help us. One of the things that I think we're still struggling with in my office, and I'll just use Access as an example, the program Access. And I don't know whether in the training whether this is included. But it's one thing to teach people to use Access, how to operate Access, but I was wondering in the training, does it also help people understand, help the trainees understand why we even use access and how the use of that database can 137 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) increase the effectiveness of our office as it relates to pulling up reports? I am probably the least computer literate person in my office, but I read a lot, I read a lot of the books and the manuals. So I know the purpose of the program and why we use it. Is that a part of the training, rather than just to show people how to actually operate Access? You understand what I'm saying?
Usually, when you've gone to training, it has been that type of how do I use the tool. What we've found in working together was there is how does the tool fit in my office, that additional mile that makes the tool meaningful. And indeed, we can take your suggestion and have more real world office examples built into so that it would be even a greater help to you because the fact that you use it yourself is really important to us. Just like it occurs also in Councilman Rizzo's office and some of the other Council offices that I know where the Councilpeople now in this cycle have been very interested in technology. So, yes, we 138 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) will get back to our training providers, of which we have five, and ask them for some more sample examples you can take away.
That would be good because it's one thing to put the data in, but then when you want to access it to use and the people have not -- they don't understand about -- I'm just calling the fields. I don't know if it's called fields or not. But I'll say, "Well, pull up a report on this." And they're looking at me like I'm nuts, like, "I don't really understand." So I'm really glad to hear that. I think sometimes just basic things that people -- I believe staff should take the initiative to do some self-directed learning. But some of the things that you showed us about how do the messages and some of these other things that you can do, it's no point having these computers in these offices and people are not using one quarter of the capacity that they could be using to access and deliver information to each other. The other question, yesterday we were on a blight tour, and actually on our last three tours I've taken notice of the young man that's 139 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) accompanying us from your department with the GIS mapping. And it was very useful yesterday. We were in an area where the question was very key of who owned a particular parcel. And he went in, really couldn't pull up the owner only because we think the owner was actually a common piece of property that everybody in that block radius owned. But that information and the young man being there has been very useful on our blight tours, and I did want to mention that. Now, if there was a single owner of that parcel, he would have been able to pull that up? I just want to be sure?
That is correct. They can put in an address. Or if they don't have an address, if they have a parcel number. One of the benefits of the funding that's in NTI for this is that we'll get a more accurate parcel base on which to do that. So this may have been part of that error percentage that we have in our parcel base that will be created through the program, going through and getting the legal descriptions and owners and verifying that the parcels are how they're listed in the database today. 140 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Having that information on site during these tours and when you're dealing right out in the neighborhood, particularly since we'll be out so much dealing with NTI, is very, very useful. So I wanted to make those comments. Thank you.
Thank you, Madam Chair. I'd like to also let you know how much I appreciate Karl's personal effort in getting us straightened out and on the right track. In reference to your relocation, I can understand you wanting to come from San Diego to this climate.
We'll give you credit 141 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) for that. Earlier during the Capital Budget, I asked a couple questions about the difference, and I assume some of your new cluster leaders -- I thought we hadn't heard that word anymore, but it's good that it's still around. As you remember, we used that term when we had the clusters at Board of Education but they're no longer. I asked the question about looking at the difference between government and the private sector, and I believe some of you folks came from the private sector at one time. We do things differently in government, and I assume all governments do. Do you control the budget? Can you explain the budget? If the Police Department needs computers, are they at your mercy or do they have the ability to say, "We can't deal with this any longer. We need new equipment." Would you just explain in brief how the government works and how it could work better. I'm not suggesting that the private sector's got the best idea. Maybe ours is better. I don't know. But could you just describe briefly on how we can move this technology effort forward the way we do business now? Is it the best 142 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) way?
The trend in the industry being led by the private sector and with government following up, you tend to see the pendulum swing and you've seen it through the decades go from a very centralized where all IT was housed in one place, controlled by the mainframe to a very decentralized when we went to server technology and network based. And they have found is the pendulum needs to swing back more towards the middle in that there are certain services that need to be done in the department, but there is an opportunity for cost savings, for an enterprise approach to the use of technology through centralizing the control of IT personnel and budgets and planning where the staff stays in the department, works with them, understands the business, and become more of the business analyst. So the trend is going to the purchase of what they call commercial off-the-shelf products rather than developing in-house that where you need your skills and staff is in the business analysis, the project management, and the integration. And then they're also looking at what they call enterprise applications, some of the terms 143 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) you will hear today is CRM, Customer Relationship Management, where you have a common customer interface so that you build the knowledge and you're able from anywhere in an organization to get information. So you as a Councilmember may want to know, well, how many complaints came in at L & I, Streets, Social Services. We you can't do that today without picking up the phone and going through quite a bit. With the new systems that are coming out there, you can do that. It builds that information and would be accessible to you on line in your office by your staff. To do that, you must look at common applications. So that you instead of having six different systems that require you to try and make them work together, this concept of open systems has never quite come about. It's been parlayed by the private sector for many years. But still you have to write interfaces to all these different systems today. We're looking to try and find where do the enterprise systems, what are those that we should looking at. For example, the work order management. Instead of having two, which we already had in the organization and four different ones that meant you have to upgrade them and try and 144 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) manage them, there's a lot of synergy and cost effectiveness by having one system, should reduce the manual processes. We found as we went through and did our joint requirements that there was a lot of redundancy in how work was done that we will be able to eliminate.
I hope it's not my imagination, but I want to thank the whole crew for the improvement. It appears that the e-mail -- I had people that would not even send me an because they said, "We're not sure when it's ever going to get to you." And vice versa. But it appears that it's faster. Whatever the problem we had has seemed to go away. I hope it's just not my imagine. It appears to be working well. And the 34 cent postage letter is not beating the e-mail now.
It really has. In fact, the City embarked on reducing down from as many five different e-mail systems in across the City in the hand-off. We also has 60 different mail post offices. We've reduced those down to 27 and we're 145 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) down to -- 9,000 clients are now on Lotus Notes. And by the time we finish in June, we should be close to 12,000 and we will have only two remaining other E-mail systems, one being at the courts that we don't control. And that certainly makes the performance, the ability to share information that much greater. It has reduced our maintenance and support cost for those servers.
Again, thank you. The relationship -- we mentioned the Kimmel Group supporting counsel. They have been very responsive. The rest of your organization has been very responsive, and not just responsive but we can see a significant difference. My office is a better place because of your effort, and I thank you all.
Thank you. The Chair recognizes Councilwoman Brown.
Thank you, Madam Chair. Good afternoon. I join my colleagues who are appreciative of the expertise that the professionals are providing in your unit. I am confused about a couple of things. I gather from 146 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Councilman Brian O'Neill's questions that participation on the task force is optional for the departments, or is it not?
And what departments -- so there's not a thread of -- interest would a good word. Where all city departments are at the table participating on how their particular division can work smarter?
The Public Technology, Inc. out of Washington, D.C., is a volunteer organization that the City of Philadelphia along with a hundred other cities and counties across the United States belong to. They have five different task forces, and in April I will end up my two year term as Chair of that task force. We also have Public Safety of which we do have a member. I need to follow-up to see if we have a member from Transportation, Energy and Environment. There's a lot of opportunities for potential grants, understanding new technologies related in those various areas. And I know that in the four different government agencies I've been in, 147 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) I've been a member of PTI through all of those because the benefits have accrued back to those organizations. And so I will encourage those departments to be a part of that, whether they're looking at intelligent transportation systems, green buildings for environment, alternative energy sources. They're things that will directly benefit back to the City of Philadelphia.
I also join Councilman Nutter with the interest in the makeup of the organization. You say that currently there are 151 professional as of 2002, correct?
These are middle managers or deputies, if you will?
They're deputies. I also have an E Government manager position that I'm in the process of hiring for.
Are these professionals to your right a part of your team?
Certainly. Oliver Thorton, again is our Deputy CIO for Municipal Services. Jackie Henry to his left is our Administrative Services Manager. She handles the internal function. And Cheryl Ford is our Budget Officer.
That then takes care of my implied question, which was I think it's important when opportunities arise in government that there's equal access to all of those who make up the tax base of our City. So that answers my question. Thank you very much.
I don't know how you left San Diego, but Philadelphia is a great place to be. Sometime ago in City Council we had talked about upward mobility opportunities for 149 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) employees within the various departments. And we did have some employees from your department, you weren't there, to talk about maybe some effort to move to another position or get a promotion and was not necessarily successful. What is your philosophical view about if you're looking for someone, do you provide the opportunity within for someone to move up to that position?
Yes. In fact, I've been very committed to that. In my history, particularly within government, there are certain technology skills that sometimes we can't afford to compete in the market for so we have to go outside and acquire those skills. But I am working currently with the Personnel Department to put together a program that would allow us to develop career tracks and to simplify the process of what it takes to be able to do that today. So that is something that we are looking at. Secession planning is always critical in an IT organization. I think it's important to understand that through the City, not only just in MOIS, that there are some 470 IT titled positions across the City. So we need to look at a program that build 150 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) career tracks so that if somebody is a desktop support person and they're interested in getting into web development, that they would understand what are those skills that they have acquire to be able to do that. And that, we have not had in the past. It's a lengthy process, but we have begun the talks. We've been coordinating with what the State has done. The State just went through that type of study in their IT area, so we're sharing information. That is helping personnel shorten some of the time frames.
Yes. In fact, I'm kind of their internal person that they report to. In fact, they have a request for a name change to become the Mayor's Commission on Technology versus the Telecommunications Advisory Commission because it more reflects the work that we're doing to day. In fact, we just had our winter summit on January 31st 151 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) and was excellent and well attended. We're working with them to do a survey to find out what the digital divide is in the City of Philadelphia. There hasn't been a study done since 1998. So I meet with them at their meetings and work closely with Carol Smith is the Executive Director of that group.
Thank you very much. The other thing in relationship to the programs in the community, is there a tie-in with what you do in identifying those programs at recreation centers and the work that the T Pack group as doing?
Very much so. And, Darryl, I don't know if you want to talk about the E work force and how that relates and what we're doing with recs.
Yes, ma'am. Right now, the T Pack, the schools, the libraries and ourselves all work together. In fact, what we've done this year is we've also applied for grants. So again, what we want to do is make ure that the technology experience that all of our citizens have confidence 152 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) where we want to go with E government, confidence with the idea of where we want the City to go so we have the right type of skilled work force so that when we want to attract 21st Century technology companies to Philadelphia, that we're now preparing all of our citizens, not only our students, but currently our young people and older adults participate in that new work force.
I appreciate your -- I don't guess it would be limitation, but your effort to raise money to provide technology to the recreation centers and facilities in the City and there may be certain areas that a donor may want to go, but I will urge you to be mindful that we have a large City and that there are all communities that should have access to computer technology. And so in planning, I hope to see some in the 9th District, some in the 10 district. As you move further north, there's some notion that the people in Northwest or Lower Northeast are economically capable of handling their own needs. That's not necessarily so. And that we need to look at the City as a whole and provide globally citywide that access to technology for everybody and just not 153 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) concentrate in certain neighborhoods.
No, ma'am. In fact, we are cognizant. And if you would look at a map, what we've done is we looked at every public facility, our family centers, our community centers, our recreation centers, the libraries. We look at all those facilities so we have the opportunity to place technology in every neighborhood.
Thank you. Are there any other members that have questions?
Ms. Neff, Councilman Nutter would ask you and your other staff members would stay behind. He would like to come in to ask a few more questions. He had to leave the office for a moment. Would you be kind enough to stay, and we will hear another department in the interim. Just a moment, please. Councilman O'Neill.
Ms. Neff, could you explain the concept of seat management and what we're looking at. I heard some exciting things over the weekend at a PTI board meeting. 154 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Yes. In fact, right now we're doing what is called a total cost of ownership for our desktop and our local area networks that will help us define what is costing us today to provide that service. Seat management is one of the new processes that organizations that are looking at that has been done in the private sector, the governments are now looking at where instead of buying and having to worry about obsolete equipment and how do we keep these up to date, you pay a single cost that includes that equipment plus the service at the desktop, and that's what they call a seat. And that this would potentially allow us to get away from the problem of our own internal digital divide. We have those departments that have non-General Fund funding having equipment that turns over every two years, those departments that are General Funded and struggle in this area have equipment that's seven years old. Well, that's very expensive for us to try and support and maintain and so we kind of have our own internal digital divide in that area. Seat management is one technology methodology that we are looking at to see if that would improve how we deliver it while reducing our 155 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) cost for making sure that every department that needs technology has it, has access to it, that we keep it up within three years. And then those departments that need more would be able to do so. But you set a technology baseline. And that's what seat management does. It allows you to lease equipment rather than having to buy it so you don't have the turnover. It looks at how service support should be provided, whether that's internally or through a contract. And we're completing our total cost of ownership study now and in the next Fiscal Year we'll be looking at seat management as a potential alternative to how we could it today.
And have and have-not within the government, that issue, that exists just about in every --
The Committee stand in recess for five minutes. (Brief recess.)
We're now back in session. 156 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Ms. Neff, Councilman Nutter has asked that you please remain. He is in a meeting but should be here shortly. So we'll go on with the hearing. Thank you. The next department is the Mayor's Office of Community Services. (Witnesses come forward.)
Good afternoon. Kindly identify yourself for the record and proceed with your testimony.
President Verna and members of City Council. I am Ralph Preston Blakney, Executive Director of the Mayor's Office of Community Services. I am here today along with Eva Gladstein, Executive Director of the Empowerment Zone. I am here to provide a brief description of the work of the agency and present its proposed Operating Budget for Fiscal Year 2003. President Verna, if would permit me, please allow me to say something I believe wholeheartedly and sincerely. I applaud the progressive work of this City Council. The Council continually demonstrates an understanding of the needs of low-income residents 157 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) and continually supports programs and services for low-income people.
Councilman Ortiz, I guess with his opening statement, we can tell him his budget has been approved. (Laughter.)
Since I'm doing so well, let me see if I can get next year's budget approved. (Laughter.)
But sincerely, thank you for being a Council that cares about the self-sufficiency of all residents of the City. The Mayor's Office of Community Services, hereafter referred to as MOCS, requests an FY 2003 appropriation of $46,090,682; $45,278,695 from the Grants Revenue Fund and $811,987 from the General Fund. A brief summary of the Empowerment Zone will follow the testimony on other MOCS programs. MOCS is the locally designated community action agency. It is primarily responsible to provide in neighborhoods throughout the City the social services that those communities identify as necessary to improving the welfare of their 158 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) residents. Services are targeted to low-income neighborhoods and help fill the gaps that exist among the many categorical services provided by other City and private agencies. In Fiscal Year '02, MOCS programs are providing an array of services which are projected to reach over 23,000 individuals. Among the services offered through MOCS are job readiness training, instruction and computer applications, Internet use and computer repair, case management, emergency food supplies, violence prevention and drug abuse prevention programs for youth, workshops on household budgeting and management, parenting and nutrition, provision of new and used baby furniture and clothing, referrals for utility payment assistance, youth conflict resolution, and tax assistance. As part of the division of Social Services, MOCS is working with other City agencies to coordinate or combine resources in order to reach more families who need assistance.
Good afternoon. My name is Eva Gladstein, I'm Executive Director of the Empowerment Zone. Thank you for the opportunity to 159 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) testify today. The proposed budget for the Empowerment Zone is $36,284,887 of which the 691,092 is from the General Fund and the remaining amount from the Grants Fund. The General Fund request covers personnel and associated costs of administration. There's an increase $120,951 from Fiscal Year '02. In previous years the Empowerment Zone grant covered these costs. Because you have written testimony, I'll briefly summarize some of advances we've made in the six years of empowerment zone has been working in its three communities of North Central Philadelphia, West Philadelphia, and the American Street community. We've help create three community lending institutions which collectively have made 109 loans to small businesses totaling over $22 million and leveraging another 95 million. Through those loans, they project the creation of 2,832 new jobs, including 790 jobs for Empowerment Zone residents. Through our Vacant Land Stabilization Program which has existed in the American Street 160 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) neighborhood in two years, we have cleaned over nine acres of land and greened those acres, creating much improved physical appearances in that community, both for the residents and attract businesses and commerce to that neighborhood. We recent provided key funding to Congresso De Latino Unidos to help construct their facility at American and Somerset Street. That facility was completed in December and now houses a state-of-the-art training facility as well as community conference and meeting facilities, and we're very proud of that contribution. In North Central Philadelphia, we have helped 101 homeowners achieve basic systems repairs to their homes and we have committed funding to support the development of new homeownership opportunities surrounding Girard College. The first-time homebuyers who occupy these homes will also have the ability for their children to Girard College, which is an additional benefit that we're very proud of. In the West Philadelphia community in the area of housing, we've been working in a multi-faceted way, but this year we expect in the 161 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) spring that homes will be completed through the Home Start Program and, again, make new homeownership opportunities available for Empowerment zone residents. In the area of providing services to young people, I'll just highlight a few projects. Again, in the last year Norris Square Civic Association opened up a new child care facility funded in part with Empowerment Zone funds. That facility is well on its way to meeting its capacity of serving 200 children. There are now 100 children in that program. Through our Teen Tutor Access Program we've served 4,200 children through different agencies in the American Street neighborhood. Finally, what I would like to say is that with your continued support we really hope to be able to build upon these successes in the year to come and in the future years of the Empowerment Zone probable. With that, I'd like to turn the microphone back over to Ralph Blakney.
In fiscal 2003, MOCS will continue its long history of service delivery to 162 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) those individuals, families, and communities that have the least resources. In Fiscal Year 2003, the agency will continue to be a part of one of the many good things about Philadelphia, which is a caring local government that values its people. In Fiscal Year 2003, MOCS will be strong, of good courage and work diligently to be of service to residents, partnering agencies, the Administration, and to you, City Council. President Verna and Members of City Council, this concludes my testimony. We will be happy to take any questions that you may have at this time.
Thank you. Mr. Blakney, will your agency be involved in the NTI program? And if so, can you tell us what you will be doing?
Yes. NTI, as you know, is an initiative that involves the cooperation of several City agencies. MOCS has been given the responsibility for community engagement. And what that means is, is that our community organizers who are involved in community engagement, they will actually be taking directives from the Neighborhood 163 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Transformation office as they are directed to go out and make the community aware of the different phases of NTI.
An example would be the caretakers program. As you know, many lots were cleaned. And after the cleaning of the lots, there was an endeavor on the part of Community Engagement Unit to go out and identify residents who would be willing to adopt and care for the lots. So our Community Engagement Unit went out and actually informed various communities about the program, assisted residents with completing application to adopt lots, and also followed up in case they were experiencing any problems after they were given a lot to care for.
How successful were you in the adoption of the lots?
The program has been very successful. I don't have the number in my head, but the director of that particular unit is here if you want the exact number.
I'm rather 164 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) curious, only because I know in our office when people have asked that lots be fenced, we do get commitments from the area residents that they will try to beautify the lot. And you go by maybe months later only to find out that the weeds are higher than the fence or there's nothing but trash in the vacant lot. I want to know how successful your program has been in people adopting a lot and really taking care of it.
And have they really been taken care of? Does anybody check to see?
Yes, lots have been cared for in an orderly manner. Some lots we found there have been trash and debris actually put back or thrown back onto the lots. And I know that there have been a few lots that have been subsequently cleaned a second time. But for the most part, the program is extremely successful and the community, people who have taken charge of the lots, have been working closely with other members of their respective blocks to make sure that the lots are 165 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) maintained.
I would like to know how many lots have been adopted in South Philadelphia on the west side of Broad Street.
Would you? And would you let me know the locations, please?
Can you tell me how many employees there are in the Mayor's Office of Community Services?
According to the City of Philadelphia Personnel Department Affirmative Action Section, what I have in front of me is a printout and it actually gives a breakdown by race and gender. We have at this time 305 employees.
So of the 305 employees that you have, do many of them go out to clean the lots or do they just serve in the offices to provide services?
The majority of the employees of MOCS are program people, so they're actually involved in the delivery of services. 166 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
How many offices do we have in the neighborhoods citywide?
I'm not sure of how many we are actually paying rent on at this time. (Confers.)
Yes, the City does pay the rent on the properties that we are currently housed in.
At this point, I think I'll recognize some of my colleagues who have been waiting. Councilman Rizzo.
Thank you, Madam Chair. 167 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Could you tell me what service does MOCS provide the elderly senior citizens? Is there something in this budget testimony that points on possibly what we do for our seniors?
Yes. The attachment, the second page of the attachment, the West Oak Lane Senior Center is a program that is specifically geared toward the elderly. We also provide services through our area offices to older adults as well as other sections of City population. There are a number of entitlement programs that people can avail themselves of and they can access those programs through area offices. West Oak Lane is a fully staffed multi-purpose older adult program with an array of services geared toward the elderly, namely, transportation, nutrition programs, there's a meal program, recreation program, socialization programs. So there is a full compliment of services available for the elderly at that site.
Is that a citywide program or is that geographic to the Northwest?
That's a geographic program. What I did not mention is that through our area offices, we also are able to make referrals to 168 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) a number of older adult programs. So regardless of where a person lives, if they access one of our area offices, they can find out about services that are available to them in their respective neighborhoods.
The Philadelphia Corporation for the Aging, I think I got it right. Is that right?
I believe the Health Department has some contractural or pays for some services. At MOCS do you have any relationship or do you fund any programs with the Philadelphia Corporation for Aging?
Yes, we have a lot of interaction with PCA in that they actually monitor for the State Department of Aging the West Oak Lane Older Adult Program and they provide some level of funding for that particular program.
The Philadelphia Corporation for Aging? 169 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
The reason I'm asking these questions, I just recently had a contact with that organization. And eventually I think I'm going work my way down to the Health Department when there here before Council to talk about their relationship with the City and what funds. But it's interesting you're telling me that you get funding from the Philadelphia Corporation for Aging for the West Oak Lane facility. And I'm curious why is this geographic to Northwest and not available to other citizens from South Philadelphia or from other sections of the City? How did we develop a program that is geographic to a specific community and not available to all citizens throughout the City, all senior citizens?
I'm not able to give you all of the history. But I can say that the City proper does operate a number of other older adult centers. The Recreation Department operates five senior citizens which are geographically located around the City. 170 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
I'm not arguing, but I'm a little confused on why you would have one that's in the Northwest and five others that would be run by somebody else. Did you say the Health Department?
The Recreation Department. Excuse me. What's the rationale of having one and five over here? Why aren't they all together? Or do they have different missions?
I don't know why they're not all under one umbrella. This is something that was structured prior to me coming on into this position. But I do believe that that's something that we need to take a look at. I believe under the Department of Social Services under the new Director of Social Services we'll be able to -- and I'm saying the Recreation Department Commissioner, myself and others will be able to take a look at the fact that we do have similar programs operating under different departments.
That, I guess, would 171 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) be good under this streamlining government or making government more efficient, whether it should be your responsibility all of them, or that one should be with the Recreation Department. I'm not trying to re-engineer government here. But it just stuck why we would have one program under MOCS that would be in the Northwest and no place else. Thank you, Madam Chair.
You're welcome. The Chair recognizes Councilwoman Brown.
Thank you, Madam President. Good afternoon. I have a series of questions. First with regards to the description of the various programs currently under your supervision. And your point is well taken that these are brief descriptions. However, I am interested in impact. Currently, as they're presented here, there are no numbers that speak to how many young people you're serving. So I'm curious about that. And secondly, what measures do you have in place to measure the evaluation around a number 172 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) of these programs? And then thirdly, what parts of the City are these programs implemented? And I ask that question to see if there is a match between service area and need. Do you follow me?
So speak to any one or all three of those points? And if you can't provide numbers at this point, I would be curious to know how many young people you're touching through each one of these programs simply because, given the limited time, they're not provided in the testimony.
We will provide you with a chart of the service levels for each program. That's something that we do have on hand and we can provide you with. Regarding impact, MOCS which receives a large number of federal dollars through the Department of Community Economic Development, it's actually monitored by the State. There's been movement at the federal and state level to ensure that outcomes are actually measured, that we're able to look at not only the people we are servicing, but actually make some determination or draw conclusions 173 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) around whether we are accomplishing the things that we're trying to do. Just recently, we had 40 professional staff people of MOCS trained in ROMA. ROMA is Results Oriented Management and Accountability. And that was a training for people who work at community action agencies of which MOCS is one. Through that training, we'll be able to further develop our ability look at and measure what people are actually doing, what they're accomplishing in our programs. We have long tracked the movement of clients. We just have not done it in accordance with federal and state guidelines.
At what point do you see utilizing the training from this new model you've just mentioned?
We will be using the information and the knowledge that we've obtained as an agency this Fiscal Year.
Ms. Gladstein, your testimony on -- first of all, let me commend you on the kinds of things that are happening in the area of child care and tutoring. I'm curious to know, are there plans for foster care children in 174 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) the Empowerment Zone area, similar to that which you're doing with the Norris Square Civic?
Good afternoon. I'm sorry to report that although I've only highlighted several of the projects here, we had a number of projects relating to day care, both in expanding the capacity providers, training residents to become providers, making centers compliant with state regulation and actually constructing centers to fill capacity, but none of them specifically targeted foster care.
How do the centers come to your attention? What's the process?
Virtually all of our projects were first articulated in the strategic planning process to create the Empowerment Zone in 1994. Over 100 projects were identified at that time. Through the three community trust boards that operate in each neighborhood, some of those project have been refined over time, some have been found to be not feasible, and some have been revised. But basically, we're working from that original base from 1994.
Okay, that 175 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) original pool of information.
You mentioned that you're attempting to build a capacity of center and home-based day care providers grants for physical improvement and facilities. The Office of Child Care is actually requesting an increase health and safety fund also for child care centers around the City. Is there any dialog with them to see if there's an opportunity to maximize the limited dollars available through the Empowerment Zone and what they're trying to do?
I actually did have a conversation with Paul from the Office of Children Policy to explain what we had funded and where and to so if there were ways to match our resources. One of those programs, again, were a little bit of an odd animal, and some of our programs have been completed already in prior years and some are now being implemented. So the only program we have being implemented right now in this specific area is with the West Philadelphia YMCA.
Also in the MOCS testimony, and this may be for either one 176 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) of you, with regards to your Food Cupboard Program, what is the outreach process? How do you identify families who can benefit?
Fortunately, those programs have been up and running for a number of years and so that people are generally aware of their existence. BUT in addition to that, as people come into MOCS various sites to receive service, regardless of the nature of the service, they are made aware of the number of things that are available through MOCS.
Are any of these programs at capacity, the ones mentioned in your testimony that lists all of the programs you're providing around the City, Communities that Care, the Adult Education Support Services, Youth Web, Father's Initiative? I'm curious. Any at capacity?
Well, at MOCS we have a philosophy that, you know, even when we are at capacity, we'll make room for somebody else who's in need of service. And I'm saying that to say that if there are people who are in need of services that MOCS does offer, we will find a way to provide the service. 177 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Again, that speaks to the value of having hard data accompanied with the narrative that is here. So, again, I will look forward to the valuation measures that are put in place to see how we're maximizing the output of those dollars.
Thank you. The Chair recognizes Councilman Goode.
Thank you, Madam Chair. I already had the opportunity to comment to Mr. Blakney I was presently surprised at the amount of detail in terms of the Empowerment Zone is funning. I think that there are things working in the Empowerment Zone and lately it's taken probably hit than it should have, and I'm very pleased to see the numbers here talking about the investment in community financial institutions. My first in bill 23 Council was to authorize the City to invest in those institutions, and the Empowerment Zone actually started three of those institutions in Philadelphia. 178 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) And for the record, those institutions have made 109 loans, according to your testimony, totaling $22.7. And it should be noted that they've leverage another $95 million which is above the level of the original grant from the federal government. And I'm very pleased with that. But I have two questions related to that.
It's my pleasure. It's moving all in the right direction, I think, when we begin to focus on servicing low-income people we have to focus on how to attract capital and credit to those neighborhoods to improve economic opportunities. So I'm glad to see that we're all on the same page. Now, to that end, of $95 million that has been leveraged, how much of that is bank financing? And if you don't have that available, you could just provide it at a later date. Secondly, a similar question I asked last year, I'm pleased with the progress, as I've said. Is there any opportunity to increase citify investment with Empower Zone money? 179 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
As to your first question, we'll provide that information. I will tell you that the majority of the leverage is private financing. There's some PIDC, PCDC, but the rest would be owner equity or bank financing. I'm not sure I understand your second question, so if you could repeat it, that would be helpful.
The second question is what opportunities exist to increase citify investment with Empowerment Zone money? From my calculations you have about $36 million left. You've spent about million in terms of citify 15 investment which leaves about another 22 million or 16 so. Of that money, I know some money was spent on 17 administration and we're providing some General Fund 18 money for administration now. But it seems that 19 most of the money that's been spent and most of the 20 success that has been realized has been through 21 citify investment. So is that a model that has 22 really caught on yet in terms of further investment or are we still trying to move projects that haven't moved?
Let me clarify how much 180 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) of our original funding was put into revolving loan funds of one type or another because I think that's an important piece of the puzzle. Of the $79 million grant, approximately 40 million was actually put into revolving loan pools. Of that, about 30 million were for economic development purposes or maybe -- let me correct that, 31 or 32 million for economic development and business expansion, attraction, retention, job creation. And the remaining in revolving loan pools for housing development. In addition to that, the Empowerment Zone in 1999, two of its three neighborhoods also created something called the Neighborhood Funding Stream which will also lend out another $10 million. Those funds, once they are repaid will not continue to revolve, but will in essence act as seed capital to establish foundations for each of those neighborhood. So in a way it's a similar kind of activity and would increase by 10 million the amount of funds that will be loaned at least through one cycle. In response to the second half of your question, we have been on a rigorous basis with each community trust board, meeting with them, reviewing 181 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) the success of existing projects, redesigning projects when necessary, and in some cases making adjustments because we feel that the projects may not be feasible. But that's a process that has been ongoing with each community trust board. It has been resulted in, for example, that neighborhood funding stream project I just identified for you. To be quite honest, there are not a lot of resources to look at at this point in the life of the Empowerment Zone. But it's a process we're going through constantly. We have a program administration staff that is out there at the projects on a regular basis doing program monitoring and fiscal monitoring, and we try to catch projects, make sure they can be either succeed if they're being implemented or be successful if they haven't been implemented yet.
Stepping back from trying to make a move on the other projects, how much room is there still in terms of existing capital that's available? And not counting what's in revolving basis but what's actually available to be lent immediately.
From the revolving loan 182 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) funds that were already established, I'm going to have to give you approximate numbers here, but there is -- the North Philadelphia Financial Partnership has actually lent its entire capital at this point, which was million, but it has loan repayments that 7 it's recycling at this point, and less than 1 8 million out of its neighborhood funding stream. In West Philadelphia that probably has the most capital and at this point they probably have about $7 million available to lend. And in the American Street neighborhood, they have about 3 million, maybe 3.2 in their revolving loan pool. They're also underwriting from their neighborhood funding stream, they have 7.6 million. Now, I will tell you that there are loans that are bing underwritten at this point for a lot of that. But that's not lent out yet.
Mr. Blakney, I know you don't know the information at this point in time, but if you could provide me what it is costing 183 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) to rent facilities, I would really appreciate it. I think since we are, in fact, working with the youth, I think there's some recreation centers that we could be housed and I think that would even be much more helpful. And also we have some schools that I'm thinking of in the immediate facility where they have more than enough space to house, for instance, one facility or replace one facility in my district.
Mr. Blakney, you said you have 300 employees? What's the total number of that, 300-something?
You have a breakdown by race and ethnic group of that? And can you forward that to the President?
A breakdown by race, gender, ethnic group of employees in MOCS. 184 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Of the 301, white females, 15; black female, 103; Hispanic females, 5; other females, 4; white males, 27; black males, 135; Hispanic males, 12; other males, 4; for a grand total of 305.
Yes, we can do more to improve the representation of the Latino community.
Thank you. Ms. Gladstein, in terms of the empowerment zone, could you explain to me -- my colleague here knows much more about numbers than I do. I have a problem. I have a problem playing dominos, so you can know. Explain to me the numbers here. In terms of your statement on , the 185 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) loans project the creation of a 187 jobs, including 73 jobs for Empowerment Zone residents. Why not 183 jobs for Empowerment Zone residents instead of just 73?
Each of our lending institutions has its own underwriting policies. They look at each loan according to their underwriting policies and on a case-by-case basis. Some of these businesses to whom they have made loans are able to fill new positions or need to fill new positions from a trained pool with certain skills and capacity. In other cases, there's going to be a broader range of jobs available and greater opportunity for Empowerment Zone residents. It's something that in, I believe, two of our three lending institutions require that for each $35,000 of loan made at least one job for Zone resident be created. And so that's how measure of their expectations.
When this plan was created, the basic tenet of it was to create one entrepreneurial class within these neighborhoods and 186 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) that would lead to the jobs creation within the same neighborhoods that we're spending this money. And then later on down, can you give me a detail where these 73 jobs are and what these loans were and to whom and what are the businesses that these loans were given to?
I can provide you with a report. I have to check in terms of the privacy of the businesses as to how much information. But let me provide you --
Wait, wait. All we're asking is to whom are we giving taxpayers' monies to and lending it to. What would be the privacy of that? We can't know that? I'd like to know who we are lending money to, how many jobs created through these loans, and the expectations that we have. Because in the third paragraph, it says, "Through these loans, a community lending institutions project the creation." That means we haven't created them yet, we're projecting that.
For example, with the loan to Congresso, they projected an increase with 187 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) the larger facility they would be able to house new programs, increase personnel, but it was over a three-year period or five-year period that they provided the projections for. So it's over a period of time. Some of the new jobs may already have been created, but they're not all created the day the loan is first extended.
I understand that. So I would like to see where these loans are going, to whom they're going, what are the projections of those jobs, how many of those jobs are really going to be permanent jobs and jobs that are going to stay in the neighborhood, and how many of these loans are going to Latino, African-American, and women, entrepreneurs that are within Philadelphia, residents that are starting businesses within these areas.
All of the loans are made to businesses that are either located within the Empowerment Zone or --
I understand that. What I want to know, how many Philadelphia residents are getting loans to begin businesses. I understand that we're attracting businesses from the outside 188 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) and that's part of what the Empowerment Zone is supposed to do.
And you're asking about how many are new businesses for Philadelphia?
New businesses, where those businesses come from, whom are these loans given to, and so on.
I'll be happy to do that. I would also just want to add for your information that in two of our neighborhoods, we've begun entrepreneurial training programs as well, which is another method for developing entrepreneur class that you addressed, and in the American Street neighborhood work with 42 individuals in that entrepreneurial training program over two years, and North Central we just began that program this year. I just want to share with you that that's another method.
How many of those individuals have gone on to own businesses, acquire loans through the process and have begun to change, be part of the neighborhood change that we're all seeking? It hit me -- I'm all for day care. I've been an advocate of day care. We held hearings here 189 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) for three years. Three years ago I held and wrote a report on the need of day care and other aspects that we need. But we were looking for day care as to facilitate the ability of people, families within those neighborhoods that are impacted so that they could actually go out and go into the working place. Now, if the Empowerment Zone is funding -- because it sounds like to me more of Social Service issue that's a funding stream for that somewhere. If the Empowerment Zone is funding day care or other aspects, is that entailing and are you keeping track of the ability of those individuals who send their day care center to acquire jobs and become fully employed? Because that would be the one way of using monies that I can see. Can you explain that?
Sure. I would say that the day care programs that the Empowerment Zone has funded over the years had multiple purposes. The Empowerment Zone program, as you know, while being primarily an economic development program was also a very broad revitalization program. It's funded with funds from the Health and Human Services and included a full range of community revitalization, including health, child care, education, and other 190 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) kinds of sport. So in some cases the day care projects had an economic development bent to them. For example, training residents of the community to gain the skills to become a home day care provider. In other cases, the day care --
How many of those have gone on to that and do you have numbers for that?
I don't have numbers today. We can provide those numbers. In other cases, day care programs were seen more as a facility that community felt would meet the needs that there were in Americans Street. There were 2,000 slots, child care slots. We have not tracked that.
You're supposed to spend money in order to create employment, that's what Empowerment Zone is all about, spend money so employment can be created.
In our reporting to HUD, there are a number of outcomes that HUD anticipates. 191 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) In other benchmarks we report on numbers served by various programs. There's a wide variety of outputs how we measure programs, and they're specific to the types of programs.
I'm trying to make some sense of that. PH and C you have were providing basic systems to families. Again, how are we -- this is a function that another institution within City government which is providing basic needs. Why is the Empowerment Zone involved in basic system home repair?
We funded that program based upon the desires of that community trust board where they saw there was an overwhelming demand for those services and a lack of sufficient funding at the citywide level to meet all of those demands and they chose to allocate some of their resources for that, to do basic systems repairs to 100 homes for existing homeowners.
Could you give us 192 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) some information on these 100 homes and how that program is run and who implemented it?
Thank you, Madam Chair. I think Councilman Nutter just waved to me.
Thank you, Madam Chair. I was going to yield to Councilman Nutter, but I see he's gone already. Briefly, I just wanted to respond to a question that Councilman Angel Ortiz made with respect to the basic systems grants because I participated in some of the discussion. One of the issues had to do in that particular community, there was substantial housing initiatives for new construction and new renovation. And that essentially benefited new potential home purchasers in that community. One of the concerns of the existing residents and the leadership in that area, that most of the initiatives were focused for people who didn't live there, essentially people who were to ultimately purchase homes, and they felt that people had stayed in those communities for 10, 30, 193 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) 40 years should have some opportunities to participate in the benefits of some of these City's initiatives. So that's why there was a targeted area to assist those long-time homeowners. Ms. Gladstein, first, good afternoon. I just want to ask a quick question. The renewal communities application, I understand that we were successful in that application?
Is that one of the issues that is currently on the chopping block by the Bush Administration? I know there were some commitments that now are possibly being taken back.
Well, the good news and bad news is that with the renewal communities program, there was not an actual outlay of federal funds associated with it. It was simply the availability to use various tax and financing incentives. So to my knowledge, that program has remained whole.
Tax incentives that were created by law in December 2000 and going into 194 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) effect January 2002.
So what you're telling me -- I want to be clear. My understanding that the renewal communities created incentives in designated areas to be selected by the Administration?
So those particular tax incentives are not available in other areas outside of that? So the law was passed simply to create these incentives in these particular areas?
So that's law, that cannot changed. You said the bad news, what's the bad news?
I was saying the bad news was that there were no funds for the City associated with the program.
So the incentives go 195 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) directly to the entrepreneur, the business owner, the employer/the employee.
The Empowerment Zone will take a lead role in administering that program. We'll be working with the Commerce Department.
Will the Empowerment Zone staff need to be increased as a result of that? Or will you simply phase --
I'm presently talking to Administration about that. We haven't made any decisions.
What's the current status of the existing Empowerment Zone in terms of its longevity? When does that wind down?
The Empowerment Zone was originally a 10 year program, which would end in December 2004. At the same time that the renewal community program was created, the Empowerment Zones were extended so that both the Empowerment Zones and renewal communities incentives will exist through December 2009. 196 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
So although there were credits and incentives associated with the selection of this designated area, there's no 5 funding to provide additional staff?
So what's the advantages? Does the advantages of the potential incentives associated with the tax credits outweigh the burden of the Administration in terms of hiring?
The hope is that we'll be able to really stimulate development on a number of the neighborhood commercial corridors in some of the larger parcels, particularly as we look to NTI moving forward and that that will bring in new businesses, jobs, and income. We think some of the tax incentives associated with renewal community are very strong. They're stronger than the tax incentives that were associated with the Empowerment Zone in some cases and that that was of overall benefit to the City.
So I'm hoping that the increase in staffing will be minimal.
I hear you and 197 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) understand you, and I'm sure the Administration agrees.
The Empowerment Zone in its original form -- and I don't know if it was altered to any degree. If early on there was kind of an equal allocation of resources in a comprehensive way, we talked about the arts, we talked about social services and then we talked about economic development. During the course of employment zone's implementation in the City, have we gotten away from the other aspects, the social service, the arts, and the other categories within the zone.
We've made some changes on a project-by-project basis. We always -- there was a commitment by the City to spend at least 50 percent on economic development in each area, and that commitment has been maintained. On a neighborhood-by-neighborhood basis, while there have been some minor adjustments, we have maintained the projects in the non-economic development areas as well as in the economic development areas. So we have funded, again, a number of programs in the area of child care, after school programs, community 198 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) policing, safety and security, cleaning and greening, health and health outreach. A number of those programs were implemented earlier on in the Empowerment Zone days, so they've already been completed. But I would say overall we have not shifted the percentages very much, the percentages of funds allocated to one area or another area.
The only neighborhood that chose the art and culture was North Central Philadelphia and there were, I believe, five projects. I'd have to go back and review. Several of those were completed. One which we hope will be implemented this year is the only remaining one and that was to create some public art on the Avenue of the Arts North, and that remains to be implemented.
Do you have the dollar amount that could be available?
In retrospect -- I'm looking at the new renewed communities and it essentially focuses on economic development. Was that done purposely as a result of an analysis of 199 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) the original Empowerment Zone application and it was determined that the emphasis on economic development creates more of a return than the more comprehensive approach that the original Empowerment Zone had?
Well, at the national level, there was a debate and there was bipartisan support on a bill that both extended the Empowerment Zones creating new ones and created the renewal communities. And I think there's actually some experimentation with the two models anticipated going forward because Congress debated whether or not to have the broad the empowerment zone type program versus one that was strictly tax and financing incentives in economic development. So with the implementation of the renewal communities, I think they're hoping to be able to compare the relative successes of both programs.
Can I ask that you provide through the Chair your projected staff increase as it relates to the renewal communities application and its implementation.
And additionally, is 200 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) there -- and I know this may be difficult. But is there the potential to have a worse-case and a best-case scenario in terms of the rate of return to the City on the implementation of the renewed communities? And while I understand it's an ever evolving process because we don't know who will take advantage, but there are very finite corridors and businesses in those corridors, and if we can get a sense of realistically what we can consider our return. Best-case scenario, every existing business took advantage of some of the incentives and project --
I think that would take a while to pull together, particularly without any new staff, as you know.
Lord willing, I'll be around for a while. It doesn't have to be next week.
You're welcome. 201 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) The Chair recognizes Councilwoman Brown.
Thank you, Madam President. Two quick follow-ups. On the very successful lot program, does that include corridors, or is it strictly lots throughout the City?
I need to make sure I've been clear in my request. You have a breadth of good stuff going on. My interest is in service area where those programs are happening and what you believe to be the impact at this hour of the program. You follow me?
Right. When you say service area, are you speaking by ZIP codes, what ZIP codes are being serviced.
202 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Absolutely. And then just a friendly suggestion as a former teacher. We take care of children versus days so the appropriate terminology, my friendly Councilperson, is child care and not day care. Thank you. Thank you, Madam President.
You're welcome. Councilman Nutter has his light on. He wanted to be recognized but he's not in the room. If he is within hearing reach, I'd appreciate it if he could call and let us know if he wants us to wait for him or whether we should proceed. The Chair recognizes Councilwoman Tasco.
I'd just like to MOCS, Mayor's Office of Community Service, what is the process for receiving services from your department?
Service can be provided through a number of means. It depends upon whether you're talking about an individual or a group. We do have literature, and we're in the process of updating our literature. So we have handouts to apprise people of what services are available 203 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) through MOCS. We also have a number of area offices that people can access to get information to be referred to other agencies if it's involving a service that MOCS does not itself deliver. In addition to that, as a part of working with other City departments, we are able to make people aware of various services available at MOCS.
Are there income guidelines to receive services from MOCS?
There are income guidelines for people who are receiving services through staff that are actually paid through Community Services block grant funds. Those individuals are to be at 125 percent of the poverty guidelines.
So if and organization wanted to seek funding for a program in their community , they would have to submit a proposal to you?
Right. There is a mechanism. We do have a tool, a form basically that we can make available to community groups who are interested in gaining some support for various initiatives to service low-income people. 204 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
This 5700 block area office you have, you have an area office at community organizing program, Area D, 5700 block of North Broad Street?
The director of that program is Steve Blackburn. That building actually houses our Youth Web Program and there is a level of constituent service that's provided at that site. But it primarily is geared toward helping you to learn various computer applications as well as computer repair.
In reference to this training for computer repair, what successes have you had for employment? Obviously, the purpose of this training is to prepare people for the work force, or is it just in case your computer breaks you have the 205 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) ability to fix it? What exactly is your rationale for computer repair?
The specific program that Councilwoman Tasco asked about is a program that's primarily geared toward youth, although there are classes there for adults. But it's primarily geared toward youth. What I'd like to add is that MOCS is in the business of actually servicing all segments of society. We're interested in not only youth, adults as well trying to move youth and adults further along toward self-sufficiency. So we do have programs that are geared toward adults that also teach them better use of the computer.
I'm specifically focussing on what I see in here, computer repair. What's the purpose of this training, and what is it like? Does it prepare our youth to completion of high school to go into the computer repair industry? Exactly what is the purpose of teaching youth or adults the computer repair business?
It actually is a program that helps you to enhance their skills. As you do know, the repair of computers are very expensive. And the more knowledge that you have that you can do 206 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) things for yourself, the better able you are to not only to continually using the computer, but to build on knowledge and skills that you have which may led to work. We actually do have the director of that program here. I'd like her to come up because she can speak more specifically in detail about the purpose of that program.
I'd be interested in the mission of a program because to teach a youth how to fix a computer, there's equipment required to diagnose a problem. It seems to me that -- maybe I just don't understand what we're trying to accomplish here. It seems to me that we're training youth to repair computers, and what are they doing with that expertise because when they go home they can't go to the next door neighbor and fix their computer because they don't have the service equipment or the diagnostic equipment. I would assume they would have that type of equipment because what I understand it's a quite specialty. But I'd like to hear more. I would like to have that person come forward and explain exactly how much money we budget for this program, how many 207 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) instructors do we have, how many people do we train and, again, what happens to them once we train them?
I would have the person come up, but I've just been informed that the person is out ill. What I would like to add is that that particular program is also a program which focuses on scholastic work as well. There's a component by which the students get assistance with school work. They also have an opportunity to talk about things that are important to them and things that may be keeping them from moving forward or doing well in school. What we've found is that young people tend to be interested in technology. Technology is something that will help them in the future. And what we believe is that knowledge in computer repair, knowledge in computer applications that they're not necessarily being taught in school will help them long-term, not only in terms of getting into college, but down the road is something that they can build on and probably will lead to possibilities of employment.
Okay. I hear what you're saying. I just got the impression that it was a little more hands-on. When I say hands-on, 208 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) actually repairing computer equipment. And it sounds to me --
It is hands-on. And what we will do is furnish you with more complete information.
Are there any other questions from Members of the Committee? Thank you very much.
I understand that Councilman Nutter is engaged in a meeting. It's taking much longer than he had anticipated. I'm sorry that you've been kept waiting. However, we will have call back on many of the different departments, and you may be called back at another date. Thank you again. The next office to testify is the 209 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Mayor's Office of Housing and Community Development. (Witnesses come forward.)
Good afternoon, President Verna and Members of Council. I'm Deborah McColloch, Director of Housing. I am here today to present testimony on the Office Housing and Community Development's proposed Operating Budget --
Ms. McColloch, just a moment please. We're trying to hear testimony. If you're having conversation, please do so in the corridor. Thank you. Ms. McColloch.
The proposed Operating Budget under the Community Development Fund, Grants Revenue Fund and General Fund will also be presented in the spring to the Finance Committee in its hearing on a Council bill on the consolidated plan authorizing the Community Development Block Grant, known as CDBG, and other housing programs for Fiscal Year 2003 which we call CDBG Year 28. Ideally, the Consolidated Plan hearing 210 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) should occur prior to the consideration of the Operating Budget by City Council. However, as the past nine years, the budget calendar has been accelerated and the hearings are reversed. Should the results of the Consolidated Plan hearing require adjustments to OH City's Operating Budget as adopted by Council, there will be time subsequent to the adoption of the Consolidated Plan to amend the Operating Budget to bring it in line with the plan as adopted by City Council, as we have done regularly in recent years. 9 million in the General Fund. This Operating Budget represents costs for all housing programs as well as salaries for all OHCD, Philadelphia Housing Development Corporation known as PHDC, and Redevelop Authority staffs, rents, materials, and supplies. 2 million reflects an increase of $39,998 compared to the Fiscal Year 2002 estimated obligations. This net increase is due to the negotiated wage increase and 211 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) will support the funding of 85 requested positions. 6 million. 1 million compared to our Fiscal Year 2002 estimated obligation level. And it is required in order to establish sufficient appropriation authority for federal funds being carried forward. 2 million. 6 million. In Classes 300, 400 and 800, our Fiscal Year 2003 proposed obligations do not change as compared with our Fiscal Year 2002 estimated obligations. million from the federal HOPWA Grant, and million from the State. Appropriations are also being requested to provide funding for section 108 loans in the amount 13 million and 15 million for interim construction assistant and bridge loan programs, respectively, should that funding become available. Although the latter two sources may not become OHCD is requesting authority so we will be in a position to administer those funds if received in Fiscal Year 2003. The General Fund programs funding and services goals are: One, the Transitional Housing Program provides rental assistance to homeless families leaving the shelter system. Although a decrease is budgeted in the General Fund for Fiscal Year 2003, the combined funds are anticipated to be sufficient to support the program activity. A total of 109 new households were assisted between July 1, 2001 and December 31, 2001. By the end of the current Fiscal Year, the total number of new households is expected 225. Fiscal Year 2003, the same number of households is expected to receive assistance. The second goal is to provide operating 213 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) support for rental assistance for homeless persons to Tenants Rental Assistance Corporation, known as TRAC, and to the 1260 Housing Development Corporation. An combined total of 131 units of rental assistance is provided in Fiscal Year 2002 with the same level in 2003. The third goal is an additional $355,030 for Fiscal Year 2003, which includes $50,000 for lead abatement related services, 32,000 for OHCD arbitration services, and $273,030 for seven employees in Program Services. In an effort to increase funding to the City, OHC'S planning division is constantly searching for new federal and state grants which can be administered by OHCD. We have requested appropriation authority in the amount 15 million in the Grants Revenue Fund for unanticipated grants in Fiscal Year 2003.
The proposed Fiscal Year 2003 Operating Budget will allow OHCD to continue to provide housing programs such as the Settlement Grant Program, the Basic Systems Repair Program, subsidies for rehabilitation and new construction, housing counseling, and other programs. 214 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) The City's proposed plan for spending the community development block grants as well as other monies is to be detailed at length in the Finance Committee's hearings on the Consolidated Plan. However, I'll be happy to answer any questions which the Council may have today. Thank you.
Thank you. Does the budget before us include the reorganization of the City's housing agencies?
What role will your office have in the reorganization?
I've been involved in discussions with the Administration about the reorganization and will be involved throughout this coming year which is seen as a transition year for the reorganization of the housing agency.
The contact person from 215 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Administration is Linda Berkowitz from the Office of Management and Productivity.
Is there any indication when the reorganization will be completed?
Well, as presented to Council in previous testimony, the Mayor's budget for next Fiscal Year, which would be presented in January, will include the reorganization. So the reorganization is expected to be planned during this Fiscal Year and be implemented July 1, 2003.
Will your office be administering any of the NTI initiatives?
We believe so. All of the planning for the NTI has not been completed. But as that takes place over the next several months, some of those programs, I believe, will be administered through OHCD.
So at this point in time, you don't know which ones you will be handling?
Even if they're budgeted at this point? 216 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Why is the neighborhood based homeownership being reduced by $3.3 million.
I'm sorry, it took me a minute to look at the budget. Some of the budget categories were reassigned in order to match up with categories that will be assigned through the Neighborhood Transformation Initiative. So some of the programs that we had a name for, we've renamed essentially to meet the NTI names.
The funding is being moved. You can see there's a line on -46 of new construction. 217 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
That was my next question. How do you have $2 million budgeted for new construction? Are these funds targeted for any specific projects; and if so, what projects are they?
They're developments that in the pipeline that would expect to be -- some of those funds would be used for, one of them is the Hunter School Homeownership Initiative.
Hunter School Homeownership Initiative. That's on the and 2500 15 blocks of North Howard Street. 16
Are there any 17 other projects that were in the pipeline that are 18 being funded? 19
This is Ron Miles, 20 Director of Finance for Office of Housing of 21 Community Development. 22
Rob was just confirming my explanation of that fund for reclassified. 218 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) In answer to your specific about what other projects would be funded out of the new construction program that are in pipeline, I'll have to check. I don't know off the top of my head. I'll get back to you if there's another thing that's already in the pipeline.
Would you, please? And I'd also like to know how many of the projects that were in the pipeline last year are going to be funded this year.
For the presentation of the plan when I come back before the Council, I'll have a chart outlining every project that was listed before and the discussions that we'd about it last spring and what the status of it is now.
Can you tell us why you're deleting the HRP funding for this budget in FY '03?
I don't know that I have the page number in front of me. It looks as though it's totally being deleted. I think 219 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) it's on the bottom of .
We moved it to another category. I'm sorry, I don't know where --
Isn't it difficult going through the budget and not knowing?
Yes, I understand because our budget is outlined for our consolidated plan in slightly way than is presented on the budget pages. Our intent for the Homeownership Rehab Program, though, is to continue to fund it in Year 28. Our expectation is that the Community Development Block Grant funding for that program will be reduced, but we're assuming that NTI funds will be available and that NTI funds will make up the difference so that the total amount of Homeownership Rehab Program funding expected will actually be higher, but NTI funds are not reflected in the budget as presented to you because, of course, the NTI funds are not available at this time.
Can you provide us with a list of the properties rehabilitated under the HRP Program in FY '01 and FY 220 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) '02, please?
What is the source of the grants revenue funds that will be used to increase the funding for the rehabilitation of rental properties targeting special needs groups? I believe that's on also.
Oh, I'm sorry. I'm sorry that it's confusing as we move between our budgets because this one is a consolidation of our -- the increase is projected to be in home funding, it will be federal funding, home funding.
Thank you. The Chair recognizes Councilman Goode.
Thank you, Madam Chair. 221 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Good afternoon, Ms. McColloch. I think you know what my questioning is going to be. As Council passed Bill No. 716 on October 4th of last year and the bill was signed by the Mayor the following week, that bill mandates that at least 5 percent of all program year funds be allocated toward economic development administered by community development corporations. Can you tell me how much that would represent for Year 28.
I'm sorry, 5 percent of all community economic development funds to be allocated to --
Economic development programs administered by community development corporations. It became law on October 11th.
Is there a specific page in the Operating Budget that you're referencing, Councilman?
There should be some planning toward that 5 percent being allocated.
I beg your pardon. I misunderstood the question. Yes. As we are expected to move forward with the Year 28 Plan, 222 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) there are funds posed to be allocated to Special Services District. Those are administered by --
My first question was, how much does that represent for Year 28?
Let me ask an easier question. It's 5 percent of what? I'm trying to figure out what you were using in terms of program --
The proposed Community Economic Development budget for Year 28 is $12,216,000.
And you are assuming that that's 5 percent of what figure?
No, that's the total Community Economic Development budget.
You're not answering my question. My question is very specific. By law as of October 11, 2001, 5 percent of all program year funds has to go to economic development programs administered by community development corporations.
I don't know that answer 223 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) off the top of my head.
Well, you know what the total program year funds are. I'm trying to figure out what number are you using, whether you're using the --
The number that I just gave you was the amount that's committed community economic development.
We can stay here a long time. For program year funds, are you using the $77 million figure or are you using a higher figure? I want to know whether you're using CDBG entitlement, whether you're using program income, is that on top of that? I want to know what figure you're using in implementing the bill. In implementing the bill, I want to know what figure you're using, even if you're using the lowest figure. I believe the lowest figure in terms of CDBG entitlement is probably about $77 million.
If you take 5 percent of that figure, you're saying that those programs those economic development programs that will be 224 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) administered by CDCs will be able to access percent of that money through what agencies and 4 what programs? 5
Through programs administered by the commercial department and they include, as proposed, neighborhood supports services of 1,046,000 thousand, planning and marketing grants of 200,000, redevelopment financing of 200,000, neighborhood development grants of 1,250,000 and special services districts are proposed to be allocated 300,000.
And that adds up to what roughly because it needs to add up to about and a half million or million.
Could you please just forward to the Chair how you will comply with Bill 20 716 that became in law in October 11?
And which programs 225 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) will CDCs be able to access and how they can access those programs.
I believe the figure will always be somewhere between, as long as there's a steady flow of money, of and a half to million dollars so we should begin planning toward that. Thank you. Thank you, Madam Chair.
You're welcome. Are there any other questions from Members of the Committee. Seeing none, the Committee of the Whole will stand in recess until Monday February 25, at 9:30 a.m. Thank you all very much. (Council adjourned at 3 o'clock p.m.) - - - 226 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of February 20, 2002, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE OF THE WHOLE ___________________________ Lisa C. Bradley, RPR and Notary Public