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.