COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, March 31, 2009, 10:15 a.m. - - - Bill 090212, an ordinance to adopt the Capital Program for the six Fiscal Years 2010 to 2015, inclusive. Bill No. 090213, an ordinance to adopt a Fiscal 2010 Capital Budget. COUNCILMEMBERS PRESENT: Anna C. Verna, Chair Jannie C. Black Marian B. Tasco, Vice Chair Darrell L. Clarke Frank DiCicco Wilson W. Goode, Jr. Bill Green William K. Greenlee Curtis Jones, Jr. Jack Kelly James F. Kenney Donna Reed Miller Blondell Reynolds-Brown Frank Rizzo Maria Quinones-Sanchez - - - V A R A L L O Incorporated Litigation Support Specialists 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2 3/31/09 - WHOLE - BILLS 090212, 090213
Good morning, everyone. This is a public hearing of the Committee of the Whole. I would ask Mr. McPherson to please read the bills before us. MR. McPHERSON: Bill No. 090212, an ordinance to adopt the Capital Program for the six Fiscal Years 2010 to 2015, inclusive. Bill No. 090213, an ordinance to adopt a Fiscal 2010 Capital Budget. Bill No. 090214, an ordinance to adopt the Operating Budget for Fiscal Year 2010. Bill No. 090215, an ordinance 17 amending Chapter 10-700 of the Philadelphia Code, entitled "Refuse and Littering," to increase the amount that must be paid in response to certain code violation notices to avoid initiation of further proceedings, under certain terms and conditions. Bill No. 090218, an ordinance 25 amending Chapter 19-1300 of the 3 3/31/09 - WHOLE - BILLS 090212, 090213 Philadelphia Code, entitled "Real-Estate Taxes," by revising the real-estate tax rate, under certain terms and conditions. Bill No. 090219, an ordinance 6 amending Chapter 19-2700 of the Philadelphia Code, entitled "Sales and Use Tax and Hotel Occupancy Tax," by revising the rate of tax, under certain terms and conditions. Bill No. 090220, an ordinance 12 amending Section 10-1001 of Title 10 ("Regulation of Individual Conduct and Activity") of the Philadelphia Code relating to the fees charged by the Commissioner of Records by modifying the amount of such fees, under certain terms and conditions. Bill No. 090221, an ordinance 20 amending Chapter 10-700 of the Philadelphia Code, entitled "Refuse and Littering" to require certain businesses and property owners to either pay a fee for the City waste-hauling or demonstrate that the business or property owner has a 4 3/31/09 - WHOLE - BILLS 090212, 090213 private provider of waste and recycling disposal services, all under certain terms and conditions. And today, I guess, we will be taking testimony only on Bill Nos. 090212 and 090213.
Thank you. Who in the Administration will be testifying? Please approach the witness table. (Witness comes forward.)
Good morning. Kindly identify yourself for the record and proceed with your testimony.
Alan Greenberger, Executive Director of the City Planning Commission. Good morning, Council President Verna and members of Council. Again, I'm Alan Greenberger, the executive director of the City Planning Commission. And with me back there is Gary Jastrzab. 5 3/31/09 - WHOLE - BILLS 090212, 090213 I'm here today to present for your review and consideration the FY 2010 to 2015 Capital Program and the FY 2010 Capital Budget as recommended by the City Planning Commission at its meetings on March 3 and March 17, 2009. The Philadelphia Home Rule Charter stipulates that the City Planning Commission prepare and submit to the Mayor a recommended Capital Program and Budget. As you know, the recommended Capital Program is a proposed Six-Year Plan for investing in the City's physical infrastructure, community facilities, and public buildings. The Capital Budget is the first year of that spending recommendation. For several months each year, beginning in August, the City Planning Commission staff works closing with the Office of Budget and Program Evaluation, the Department of Public Property, the Managing Director's Office, and City operating departments to prepare the 6 3/31/09 - WHOLE - BILLS 090212, 090213 recommended Capital Program and Budget. It's a highly collaborative, labor-intensive, and iterative process, and we believe it yields a program and budget that carefully balances the capital needs of the City's facilities with limited resources. As in years past, the availability of new City tax-supported, general-obligation funding for capital projects depends on two factors: One, the City debt limit established by the Pennsylvania Constitution; and, two, the City's capacity to service debts on those borrowed funds. This year, based on these factors, we are able to recommend more new City funding for both the budget and the six-year program than we have in several years: Namely, $63 million for the Capital Budget and $495 million for the Six-Year Plan respectively. This increase will allow us to be more aggressive in our work, which, for the 7 3/31/09 - WHOLE - BILLS 090212, 090213 most part, addresses long-tern deferred maintenance. 5 -- this says "million," but I think that's incorrect; it should be "billion" -- billion in the budget year. 8 billion in funds from a variety of sources. There are 76 new projects for FY '10 as well as many ongoing projects that we recommend be carried forward from previous years. Generally, unobligated funds as of November 30, 2008, are carried forward to enable the continuation of projects budgeted previously. 5 billion FY 2010 Capital Budget is made up of the following: $63 million, as I mentioned before, will be provided by new 8 3/31/09 - WHOLE - BILLS 090212, 090213 general-obligation bonds issued by the City of Philadelphia. These bonds are tax-supported. An additional $230 million will come from carry-forward City tax-supported loan funds. Other City sources, including PICA funds, fund pre-finance loans, operating revenue, and revolving funds total $113 million. 3 billion. Funding from other levels of government -- federal, state, and regional sources -- total $711 million. And $82 million will be provided by private sources, the majority of which falls under aviation as passenger facility charges. Throughout our process of developing the recommended budget and program, we focus use of limited capital 9 3/31/09 - WHOLE - BILLS 090212, 090213 funding on: One, addressing critical life-safety needs and court-mandated requirements; two, providing quality facilities needed to support the delivery of essential public services; and, three, leveraging federal, state, and private resources whenever possible. Importantly, projects included in the recommended Capital Program and Budget advance the Administration's stated Philadelphia Plan to foster economic recovery and jobs, enhance public safety, invest in youth and protect our most vulnerable, and reform government.
I'd like to highlight some of the key projects in the recommended Capital Budget. Capital projects that support fostering economic recovery and jobs include the Commerce Department's commercial development projects, totaling $3 million in state and federal funds, FY 2010, for upgrades to neighborhood commercial centers for curbs, sidewalks 10 3/31/09 - WHOLE - BILLS 090212, 090213 lighting, landscaping, and other complements to public and private reinvestment. This continues to match a significant amount of previously budgeted City bond funds for commercial corridors. 5 million in federal, state and new City funds for Navy Yard infrastructure and support of public and private redevelopment. Third, SEPTA bridge, track, signal and infrastructure improvements secure access to work and other destinations for Philadelphia's population. In FY 2010, $105 million in state, federal, city and other monies will be used to substantially complete the Market-Frankford elevated reconstruction and make regional-rail substation bridge and signal improvements. 3 million from federal, state, 11 3/31/09 - WHOLE - BILLS 090212, 090213 private, and city-sustaining funds will enable Philadelphia International Airport terminal expansion and modernization, airfield renovations and additions and enhancements to baggage inspection to provide faster and better service for the growing demand of air traffic in and out of Philadelphia. Capital projects that support enhancing public safety include: $890,000 in new City funds to be used for critical window and door and roof replacements, mechanical and electrical and plumbing renovations in fourteen police stations. 6 million in new City funds for much-needed prison facility renovations, including ventilation and mold-remediation at the Curran-Fromhold detention facility and an automatic-lock security system, critical multi-phase mechanical, electrical, and plumbing restoration, and fire-alarm system at the House of Corrections. 9 million in New city funds will new reconstruction and resurfacing across the City's neighborhoods, as safe streets play a role in its public safety. 3 million total in FY 2010 in new City funds for Recreation Department projects. Free Library improvements for FY 2010, totaling $965,000 in new City funds, will upgrade and enhance libraries serving the public across the City. Included are much-needed HVAC and boiler system replacements at several branches. Fairmount Park site-improvement projects totaling nearly $16 million from multiple sources in FY '10 for drainage improvements on parkland to stabilizing embankments, natural terrain, and pathways, tree-planting, play-area improvements across the City, and new 13 3/31/09 - WHOLE - BILLS 090212, 090213 amenities on the Parkway. $630,000 of new City funds will fund health-facility renovations at various health centers around the City to improve service, safety, and longevity of buildings. $500,000 in new City funds to replace windows at the Office of Supportive Housing's Woodstock shelter. Last, capital projects that support reforming government include a total of $4 million to fund the Division of Technology's network infrastructure, stabilization, and enhancements for the City's computing foundation, improving business operations across agencies. $500,000 of new City funding will enable energy-efficiency improvements to the newly-created Office of Sustainability. This funding, coupled with carry-forward loans from previous years, will enable energy-efficiency improvements at locations across the City, Energy Star building upgrades, and 14 3/31/09 - WHOLE - BILLS 090212, 090213 green lights lighting upgrades. Third, SEPTA new payment technologies will be funded with nearly $24 million in state, federal, new city and other government funds. This new fare system will replace the entire array of current collection equipment, providing better service to SEPTA riders throughout the region.
6 million in new City funds and PICA prefinanced funds enable quadplex facility improvements, namely City Hall, the Municipal Services Building, One Parkway, and the Criminal Justice Center through the Department of Public Property for improved business operations. I hope that this sampling of capital projects demonstrates the variety of projects recommended for funding in the budget year and how the FY 2010-2015 recommended Capital Program seeks to make strategic targeted investments in Philadelphia's infrastructure and uses our 15 3/31/09 - WHOLE - BILLS 090212, 090213 limited resources for the greatest public benefit. Thank you for your attention, and I'll be happy to address any questions that you may have. Please note that the leadership of City departments is present, in addition to representatives from the Office of Budget and Program Evaluation and the Department of Public Property to assist in answering your questions And I might add that, like a Verizon commercial, I have many, many people back here ready are to answer your questions
Thank you very much. Can you tell us what funding has been included in the 2010 Capital Budget from the American Recovery and Reinvestment Act?
In order to answer that, I'm going to ask Mark Allen Hughes and Steve Agostini to help give 16 3/31/09 - WHOLE - BILLS 090212, 090213 you an update of what we know about the American Recovery Act. (Witnesses come forward.)
On the specifics for the Capital Plan, we actually had a fairly significant conversation and discussion internally about what, if anything, we should include in the Capital Plan. And given the uncertainties surrounding the dollars, how they would be distributed, how we would be successful in competing for them, we made a decision not to include any dollars 17 3/31/09 - WHOLE - BILLS 090212, 090213 from the Recovery Act in this Capital Plan but wanted to hold out that at that point, when we have better information about what we might be eligible for and what we might receive in grants, that we would come forward with an amendment process that would begin with planning and then come back to Council so that you have an ability to see what those projects are that we would be requesting in an amendment.
Can somebody -- and I'm sure Mr. Hughes can -- explain what the application process is that the City must follow to receive these federal funds? And can you tell me if we're actively working with City departments and agencies to maximize the amount of funding the City could possibly receive under the Act? And is there a deadline date that we would have to follow to try to be under the wire, so to speak, under the 18 3/31/09 - WHOLE - BILLS 090212, 090213 Act?
It's a pleasure to be here. Yes, let me answer your series of questions. There are approximately 200 separate funding opportunities in the Recovery Act itself. We've identified a set of those for which we are both eligible by formula to receive funds as well as eligible to apply for competitive funds. Each one of those -- there's about eight in the first category, formula allegations, and about 18 that we've identified so far that we could compete for. Each one of those has a separate set of rules and deadlines. We are aware of the deadlines for each. They tend to 19 3/31/09 - WHOLE - BILLS 090212, 090213 fall in April and May. Some of them actually have not been announced at this point. But the formula allocations, which we've also identified, which we'll get kind of by entitlement, in several cases, will also require us to, as the Budget Director has suggested, will require us to submit a revised plans. For example, for CDBG: We will amend our comp plan, our comprehensive plan, for CDBG when we submit that. Then the new funds that will be coming from the Recovery through CDBG, that particular case, in that particular case, it's 14 million; those will then be allocated to us through our line of credit. So we are working diligently for each of these eight and eighteen opportunities that I've mentioned so far. We have lead local agencies who are pursuing the application process, who are aware of the emerging guidelines and 20 3/31/09 - WHOLE - BILLS 090212, 090213 deadlines.
Okay. Mr. Hughes, I know that we've been asking the Mayor for a briefing of the Stimulus Plan, and I know that you've been looking at that very carefully. I don't know if you've been asked as yet, but once the Mayor does put forth our request, I would like you, if at all possible, to brief Council as soon as possible.
Yes, ma'am, I'd be very happy to do that. I'm sorry I was out of town last week for the first round of hearings that you had on that but happy to make up for that absence and --
I know. I hope you had a good vacation. (Laughter.)
Yes, ma'am. I actually came back a little early on the red eye, but while I was there, it was very nice, indeed. 21 3/31/09 - WHOLE - BILLS 090212, 090213
Great. Are any of the projects that are labeled "CN," which are new loans, eligible to be funded from the American Recovery and Reinvestment Act?
Madam Chair, I think the short answer is: We don't know. I think, as we run through the process, we will identify those opportunities. I'll tell you -- and I think you may be aware of this -- in the runup to the Recovery Act being proposed and adopted by Congress, we provided a number of lists to the U.S. Conference of Mayors as well as our own delegation to give them a sense of what kind of, quote/unquote, shovel-ready projects would be ready for us to begin spending within 30 to 60 days. There are some of those projects in the CN category that we had hoped, if there were dollars made available from the Recovery Act, we could use those 22 3/31/09 - WHOLE - BILLS 090212, 090213 funds to do. But until we go through the process of looking at the applications and looking at the competitive process, we won't know for sure.
Thank you. Are any items that were funded by the General Fund for materials and supplies in FY '09 being funded out of the 2010 Capital Budget?
Madam Chair, we will go back and look at it, but our first response is no, we don't -- we can't think of anything that would fall into that description that you've given us.
Okay. You know, I think somebody has to explain why it takes so long, so long, for the City to spend its capital dollars. We just keep rolling the capital dollars over from one year to the next, from one year to the next. If the City were to expedite its 23 3/31/09 - WHOLE - BILLS 090212, 090213 capital spending, wouldn't it be creating jobs and helping businesses and also taking care of many of our dilapidated buildings?
The answer to the last question is yes. And I think the -- what we've been doing is working closely with Public Property -- and we can have the commissioner come up and talk about that, if need be -- to figure out ways to make that expediting happen. And as somebody who was in private practice in architecture for 34 years, I'm very sensitive to the fact that projects are complicated, they often take longer than everybody hopes, for reasons that are technical and related to the circumstances that unfold as a project unfolds. So I don't think it's simply a matter of pushing the projects through; it's also dealing with the realities that (indiscernible) are there any way that we can speed that up are things that we are 24 3/31/09 - WHOLE - BILLS 090212, 090213 actively talking about.
Well, we can't say that all them are complicated.
Well, you know, no, I'm not going to tell you that all of them are complicated.
I mean, particularly with the Recreation Department. We're not going to get into that, okay?
All right. I see that there are a number of Councilmembers that want to be recognized, and I do have several other questions that I'd like to ask, but I'll take my turn along with everybody else. Again, I'd like to remind my colleagues: With the first go-around, we have five minutes. The Chair recognizes Councilman Jones. 25 3/31/09 - WHOLE - BILLS 090212, 090213
Thank you, Madam President. Good morning, gentlemen. PANEL MEMBERS: Good morning.
First of all, is it accurate to say that we have about $2.5 billion's worth of capital requests in the plan here?
And 1.3 billion of it is water- and airport-related projects?
Madam President, related to a Main Street Economic Recovery Wish List that was produced by your office -- and are you familiar with this list?
Okay. It's 3/31/09 - WHOLE - BILLS 090212, 090213 about $2.6 billion in wish list there.
And my questions becomes: What is the average carryover time for a project in capital project status? So if we put something on the books or put it in the budget, what is the average time it takes for that project to come to fruition?
Madam Chair and Councilmember, it actually -- depends on the department and the type of project.
And with reference to the sheet, if that's something that you pulled from the Mayor's website, I think that is the collection of items that we provided either in the first or second round to the U.S. Conference of Mayors -- 27 3/31/09 - WHOLE - BILLS 090212, 090213
All right. And if, tomorrow, our wishes were granted by the federal government, and they said, "Everything you put on that list, whether it's 2 billion or 1 billion, we're going to give you, and the only proviso is that you have to have it done within a specific 90-day window," how are we geared up, equipped to actually implement those kinds of projects in a timely fashion? Because it's my understanding that if we fail to do that, that money returns to a pool where it is reallocated to other cities that are ready.
Councilmember, your question and concern is a legitimate one with respect to our ability to get projects through, sort of a "through-put," if you will. If we were to get that entire 28 3/31/09 - WHOLE - BILLS 090212, 090213 2.6 billion tomorrow, not only would I go and buy myself a lottery ticket, but I think I would also sort of sit down and say, We've got a big job ahead of us in terms of trying to get all of these projects done. I don't think it's a secret -- I think the chairperson raised that -- that we have had some difficulty in getting some of the projects done in a timely fashion. We've made some changes in terms of our Capital Programs Office, in terms of oversight in order to improve that. I'm sure that at some point, there will be questions regarding that. We understand that that's going to be an issue for us.
And we're going to either have to plan a little more creatively and a little more carefully, we're going to have to sort of bulk up in terms of the staffing to get that kind of sizeable list of projects through. We're 29 3/31/09 - WHOLE - BILLS 090212, 090213 going to have to do that 'cause I think the worst outcome for this would be for us to turn money back that we were given.
My second part of that question is: If, in fact, the only ones that are able to go are the ones that are on the books and ready to go, how do we do things different, like create green jobs? How do we do things different like stimulate parts of the City of Philadelphia that have been out of the economy by way of their workforce? How do we include all of those worthwhile goes if we're under the clock right now? And if, indeed, we anticipate getting some portion of this list granted, shouldn't we be taking those steps now to tool up so that we can take advantage of this prosperity?
That's exactly right, Councilman. That's much of the work that we are pursuing right now in 30 3/31/09 - WHOLE - BILLS 090212, 090213 addition to preparing our applications. Let's talk about the specific one you're referring to kind of most specifically. There's $750 million for high- growth industry job-training in the recovery; 500 million of that is set aside for so-called green jobs. We are an active and, I think, well-positioned applicant to compete for those funds, some large share of those funds to support the training pipeline in particular to connect to another piece of the recovery that we're trying to focus on, which is weatherization, because, as you well know, right? every time you weatherize somebody's house, it lowers the electric bill or a gas bill for that homeowner, and it also creates a job for the person who does the weatherization. So it's a double win at least. So this is a challenge that every local and state government is facing across the country to deal with these -- as you've identified, these twin 31 3/31/09 - WHOLE - BILLS 090212, 090213 and competing pressures. On the one hand, spend it really fast; but, on the other hand, spend it really well because there's lots of transparency and accountability measures that are also a big piece of the recovery legislation. So what we are doing, while we're trying to make strong applications to the federal government, we are also trying to prepare locally with systems change that will allow us, working with the Web, with some of our own agencies, to prepare and strengthen the pipeline around some very specific tasks; in this, preparing people to be building auditors and installers of weatherization.
So in some senses, we will have to hire or engage people to actually -- and I know this is a time where we're talking layoffs, but at some point, we have to -- not to cut our nose off to spite our face, really tool up to be able to implement this stuff. 32 3/31/09 - WHOLE - BILLS 090212, 090213 And then the final question I have for you is: What is the process by which we purge old projects that, you know, to make sure we aren't building bridges that go nowhere, erecting monuments of nothingness? How do we every now and then go back through the book and say, These are viable projects, these are not viable projects at this time? And how do we reallocate those funds to worthwhile projects?
Good question. One of the things that we are doing -- you know, this is my first time at the Capital Budget, but one of the things I've observed is the same thing that you have observed, that we need to look at these old projects. Now, this year, we did a much more extensive set of interviews with operating departments to find out what was on their books, what do they think they need to do. 33 3/31/09 - WHOLE - BILLS 090212, 090213 And we did that -- we asked them to do that without saying to them yet what a limit might be of funding, which has been the practice in previous years. We did that specifically so that we could get out on the books exactly what was needed and identify as well the ongoing projects that they were carrying. Our intention, as we move forward into the next budget cycle, is to really look at those old projects, start this process much earlier, start to talk to each and every department about what they're carrying that's old, and put pressure in the system to either do them or push them aside, and then use that allocation else-wise for things that are current and absolutely needed.
I know that -- and I'm going to turn it over to my colleagues, but Madam President, a question of specifics about what projects are ready to go, what projects that we are applying for Stimulus money for? is 34 3/31/09 - WHOLE - BILLS 090212, 090213 an important one. As we start to readjust and recalibrate what projects are real, I think the involvement of Councilpeople -- and particularly District Councilpeople -- is essential. Population shifts occur, priorities change, and our involvement in that process is critical. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Green.
Thank you, Madam President. It is a pleasure to see you here, Mr. Greenberger. You did note that this was your first Capital Budget, and I've enjoyed working with you --
No. I've enjoyed working with you -- 35 3/31/09 - WHOLE - BILLS 090212, 090213
-- on the Zoning Code Commission and the work you're doing at the Planning Commission. And it's good to see you over here. So I have a specific question about the William Penn Foundation's Commercial Corridors -- eConsult did a report paid for by the William Penn Foundation for LISK called "Commercial Corridors: A Strategic Investment Framework for Philadelphia." And I note that the 10 to -- 15 FY '10 to '15 Capital Program includes a hundred million in federal, state, and local money to provide site improvements to neighborhood commercial centers. And I'm wondering to what extent these recommendations in this study are incorporated into our Capital Program. (Witness comes forward.)
Good morning, 36 3/31/09 - WHOLE - BILLS 090212, 090213 members of Council. Andy Altman, Deputy Mayor for Planning, Economic Development, and Commerce Director. Just -- Councilman, just one clarification: When you said "commercial corridor" -- I'll speak to the eConsult in a moment, but which line-item in terms of commercial-corridor investment? What was your number?
In the Five-Year Plan -- the or Six-Year Plan, it's 100 million in federal, state, and local government funding to provide site improvements to neighborhood commercial centers, and that would be of the plan.
Yeah. Thank you. I was just looking; I just wanted to make sure I had the right number. We are -- there are a few things. One is, the eConsult study, what that looked at, did an analysis of all of the commercial corridors in the City. And what it tried to get at is, what 37 3/31/09 - WHOLE - BILLS 090212, 090213 would be the factors to make for a successful commercial revitalization along all of the corridors and kind of came up with a typology of different corridors in the City and the kind of investment strategies you would look at. So we are taking that information -- that was literally just released within the last month; they've been working on it for a couple of years -- and we will be applying that or using parts of it to the extent in terms of how we shape some of these investments. Much of this money, also I should say, is to complete out. There's a lot of commercial-corridor improvements that have been identified with Council offices. And we also have a -- we'll be talking about this, I know, at a future date, but cultural-corridor bond money that's used for commercial-corridor improvements, streetscape improvements, 38 3/31/09 - WHOLE - BILLS 090212, 090213 facade improvements; there's a whole set of investments that are due to be complete within the next nine months. So the answer is: We have money for next nine months to complete those. And then in the next round of capital improvements, as you can see, to 2015, we'll use that study to help us inform that as well as working with the Council.
I appreciate that the study just came out; I just would hate to see another study done by William Penn and others who were kind enough essentially ignored as we continue with programs that have been existing for five years rather than paying attention to new data and information we have. And next year, I will be asking specifically how what you're doing in neighborhood commercial corridors ties to the report that has been prepared by eConsult in this regard. And I understand it just came out.
Thank you. Everybody's familiar with the PICA 2007 report about capital facilities in Philadelphia. Specifically -- I won't belabor it -- the prisons had priority to repairs of $64 million and priority 1 repairs for 11 million. I note they only got four here. The police department had 47 million, with 22 million in priority 1 and 2 repairs, 32 million for the Fire Department, million for Public Health. 17 We asked a lot of questions 18 about this at the last year's Capital 19 Budget, and I understand that you were not with us, Mr. Greenberger, but members of the Administration, including Mr. Agostino, were. In response to those questions that were asked on March 4th, on March 26th, the Council President received a 40 3/31/09 - WHOLE - BILLS 090212, 090213 letter from the Capital Planning Office, which said that at the end of FY '08, beginning of FY '09, the City would complete a review of all of the facilities identified in the PICA report and give us their view of what was spent. And, as of today, I don't believe the Council President's office has seen that review. It hasn't been shared with members of City Council. Could you please tell us the status of that promise to complete review of the properties identified in the PICA report?
Gary Knappick from Public Property will answer that. (Witness comes forward.) DEPT. COMM. KNAPPICK: Good morning, members of the Council. I'm Gary Knappick, Deputy Commissioner, Public Property. And, Councilman Green, we looked pretty extensively at that report and tried to identify a number of initiatives 41 3/31/09 - WHOLE - BILLS 090212, 090213 that we could implement. That report was very bullet-pointed. It really didn't represent projects. In the past year, we've undertaken a number of initiatives that were identified in the report. For Police, we've implemented fire-alarm projects at police districts for about 10 1.5 million. 11 Some of these projects are still 12 underway. 13 We've implemented $3.5 million of improvements at the 660 East Erie tactical and warehouse facility. We've done a roof replacement -- or have it underway right now, a roof replacement at the 22nd and 23rd District for 500,000. MEP improvements at six police districts, using PICA money. We're starting up on some improvements at the nine high-crime districts, and specifically Police District 35. 42 3/31/09 - WHOLE - BILLS 090212, 090213 As far as the Fire Department is concerned, we've implemented fire-alarm and electrical improvements at fire 5 stations. We've also implemented roof 6 replacements at seven fire stations for 7 $1.6 million; at least that's what the 8 budget is right now. 9 In the prisons, we've undertaken 10 Phase III of a $6 million program to 11 improve the PIC facility security system. 12 And, also, I've undertaken a $600,000 13 improvements for the fire-damaged laundry 14 facility. We haven't started the 15 dorm-heating project yet, but we do have 16 the funding set aside to get that moving; we just haven't been able to get that going. Also, for City Hall, we've implemented $3.5 million to complete the sprinkler system in this building. And --
Okay. I understand what you're saying, but my question was, you promised to review for 43 3/31/09 - WHOLE - BILLS 090212, 090213 City Council a comparison between what PICA said had to be done at those facilities and what in the City's view has to be done at those facilities, and what you're telling me is kind of what you've done. But the reason you weren't able to provide it timely was because the PICA report had just come out, you needed time to investigate it. Where is the review that was promised City Council? That's the question?
Has the review been done or not? That's a simple 44 3/31/09 - WHOLE - BILLS 090212, 090213 yes or no question. DEPT. COMM. KNAPPICK: If I may, Councilman --
Councilman, we did the review. And, as I said, we'll get back to you on that.
We will get back to you on where we are with that review. We'll go back and look at it.
Madam President, I mean, we have people from the Administration here. That's a simple question. I would like a simple answer to a simple question. Has the promised review that was sent -- a promise made to you March 26, 2008 begun? 45 3/31/09 - WHOLE - BILLS 090212, 090213 DEPT. COMM. KNAPPICK: Councilma n, may I just say one thing? All of the projects that I mentioned to you were a part of that report and prioritized by us to be --
No, I understand, but this body asked for information. We passed capital budgets and other budgets based on a promise of getting that information at a future date. And then the Capital Budget's passed, yet we never get the information that we requested that we were told we would get as part of a process. And, you know, I'd like answers to these questions that I asked last year before anybody gets my vote on a Capital Budget this year. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Rizzo. 46 3/31/09 - WHOLE - BILLS 090212, 090213
Thank you, Madam Chair. In preparing for this committee hearing this morning, I reviewed the plan. Why is there a difference in your presentation this morning versus what's on and 3? They are not even close. Lots of the information that's in the plan isn't even mentioned, or it's been renamed.
Could you just point -- Councilman, do you mind pointing out to me where you're looking?
And looking at an example: Smart population, you do refer to Safe City, but there's no 47 3/31/09 - WHOLE - BILLS 090212, 090213 consistency to what your presentation is this morning versus what's in the plan.
Okay. I'm being advised that the changes -- the differences you're seeing are simple renamings of categories rather than any changes of substance.
I think this was all a part of just perfecting the language that's used in the Philadelphia Plan to continue to make it more appropriate and understandable.
Obviously, it's caused some confusion on your end so I apologize for that.
But I think the examples cited here are the ones in my testimony. I'm not -- I can't read that fast and sort of know whether that's 48 3/31/09 - WHOLE - BILLS 090212, 090213 true point by point, but that looks like what I said. And I think the names of the categories, you know, have been moving around a bit but they fundamentally mean the same thing.
Okay, that's good. The point is that we do read this stuff, you know.
There was a change, and I just was curious as to what that change was. Thanks, Madam Chair. (Vice Chairwoman Tasco assumes chair.)
Thank you, Madam Chair. A couple of questions, Mr. Greenberger, on your testimony. 49 3/31/09 - WHOLE - BILLS 090212, 090213 Probably somebody else may have to give the specifics. Towards the end, you talk about SEPTA new-payment technologies.
And providing the fare -- the new fare system will provide better service. Could you or someone tell a little more specifics on that, what the new fare system is, what better service that, kind of thing?
All right. I actually can't, but is there somebody here from SEPTA? Steve, do you want to -- who are you pointing to?
I can tell you that I'm very much looking forward to it, but I'll let them explain the details. 50 3/31/09 - WHOLE - BILLS 090212, 090213
John Duner, Manager of Capital Budgets for SEPTA. We're still -- at this point, we have a RFP that we put on the street. And the RFP, the way that was designed, we have it -- in the new system, we're looking for what they call "an open architect," so it's not a proprietary system that it can use all of the new -- all of the current type of credit cards and passes that you can swipe as you go by. We -- in the RFP, we left it open for the proposals -- excuse me, for the proposers to kind of inform us what will be the best solution, looking at all the available technologies, looking at the other systems and the credit card technology. So that, right now, we're responding to questions by the various vendors that are interested. And, in essence, we didn't define the system. 51 3/31/09 - WHOLE - BILLS 090212, 090213 We're leaving it open, we're letting the consultants and the parties that are interested kind of propose to SEPTA what would be the best approach. And our goal is to have a system that is open, that can interact with all the other type of payment processes currently going on, including like, if people go to Wawa just for a small transaction and they have a card, or you go to a gas station, you might have a card that you just have to get near the device.
Okay. I understand a lot of this is still open, and I don't know if this has been discussed yet. You know, in New York, at least on the subways, you just have one way to get through, to swipe the card.
Is that something, do you know, that's also in the works to do away with coins and paper money totally? 52 3/31/09 - WHOLE - BILLS 090212, 090213
Yeah. Paper money totally? No. We will allow for the opportunity to pay fares with paper money.
But the monthly passes and all of those things will be changed, where we expect that people with a credit card or a card that they purchased through -- a SEPTA card that you -- and these cards, like I said, it might not even be a swipe. It might be a card that has the ability to just be in the vicinity of the reader.
But the transfers will go away, the paper transfers will go away. Tokens, we envision, will go away.
And we'll be more into just a credit card-type of approach as well as cash, is where we're headed to.
Thank you. 53 3/31/09 - WHOLE - BILLS 090212, 090213 Thank you very much. One other question while I'm still on time here. You mentioned new amenities on the Parkway. Could you give a little more description of what you're talking about there?
Since we live close to each other, I could have just walked around the corner and just asked you this, Mark, but...
Good morning. Mark Focht, Executive Director of Fairmount Park. Councilman, the improvements that are referenced in the plan are those that were announced by the Governor and the Mayor and the private foundations along the Benjamin Franklin Parkway, from 16th Street to Eakins Oval.
And they include largely improvements to what we call "the subpoena realm." So new paving, benches, trash, receptacles curbing. It's basically taking the improvements that were made around the swan fountains at Logan Square and across the street in Aviator Park and expanding it to the entire rest of the Parkway.
And that deals with also both the pedestrian and traffic flow -- there's always that kidding about the sidewalk that goes nowhere, somewhere around --
Correct. It actually builds upon the study that was done by the Planning Commission and the Commerce Department and completed two years ago that looked at ways to make pedestrian crossing safer and also strike the balance between vehicles, cyclists, and pedestrians.
Okay, all right. Good. Thank you. 55 3/31/09 - WHOLE - BILLS 090212, 090213 It looks like I still have a little more time, so one last question. I guess this is Public Property. The money for the $7.6 million for the quadruplex facility improvements, the gentleman from City Planning talked about $3.5 million for sprinklers. Is there -- what else would be spent on the buildings here? DEPT. COMM. KNAPPICK: Gary Knappick. I believe $4.5 million of that is for completion of the exterior of City Hall and the south courtyard.
So most it would go towards City Hall. DEPT. COMM. KNAPPICK: Yes.
Okay, that's good. I'm not complaining that; I was just wondering. Okay, thank you. Thank you Madam President.
You're welcome. The Chair recognizes 56 3/31/09 - WHOLE - BILLS 090212, 090213 Councilwoman Tasco.
Thank you very much. Are there any funds in this Capital Budget to provide for lighting on all of the floors of City Hall such as exist on the fourth floor here? Because the lighting is very poor and very dark. Are there any funds appropriated for that here?
Not at the moment? Could we get a cost estimate on what that might cost, please?
Thank you. My question goes to , the cultural facilities renovations. And there are funds for the Robin Hood Dell, the African-American Museum, and the Mummers Museum. Where are we on the Dell at this point? The money goes out to 2015. 57 3/31/09 - WHOLE - BILLS 090212, 090213
I'll let Gary answer that for you. DEPT. COMM. KNAPPICK: Good morning, Councilwoman.
Good morning. DEPT. COMM. KNAPPICK: Gary Knappick. As far as the Dell is concerned, the Dell has been bid, and we are currently in the construction permitting phase of the job.
So now, this is -- is this 250,000 per year from 2011? DEPT. COMM. KNAPPICK: I believe that's for additional improvements. The initial Dell project was really for drainage issues and handicap, with some other amenities in that.
It goes out to 2011? It's going to take that long to spend the money, the $1.2 million? DEPT. COMM. KNAPPICK: Councilwo 58 3/31/09 - WHOLE - BILLS 090212, 090213 man, I believe they were placeholders for additional improvements.
In this budget? DEPT. COMM. KNAPPICK: Yes. You're at the out-year, if I'm understanding you correctly.
Well, for additional improvements what would that be, do you suppose? DEPT. COMM. KNAPPICK: I think I'd have to get back to you on that, if you don't mind, to speak with our project directors.
And also, Councilwoman, before you get onto your next question, I also want to add that I'm aware that several of you on Council have put some of your own capital allotments into the Dell, and we thank you for that.
And I guess 59 3/31/09 - WHOLE - BILLS 090212, 090213 that's my question too, 'cause it came to about $1.2 million; five of us gave $250,000.
Will that money be used in 2009 to complete the project, the Dell project?
Is that going to be enough money to complete the project? Will that be enough?
Councilmember, the intent was that it would indeed -- the dollars would indeed be used starting in '09. And I think Mr. Knappick can give you sort of an update as to where we are with the Dell currently, what's been done, and what is planned to be done. 60 3/31/09 - WHOLE - BILLS 090212, 090213 And I think it might even include some bids. DEPT. COMM. KNAPPICK: As I had mentioned, Councilwoman, I'm hoping I'm understanding the question, and I'm sorry if I --
Well, I guess I just want to know the status of the Dell. What is happening at the Dell? Have they started the construction? Is it -- DEPT. COMM. KNAPPICK: Onsite, no, it has not started onsite. It is -- we've applied for permits -- or the contractors have applied for the permits.
So you have selected the contractors? DEPT. COMM. KNAPPICK: The contractors have been selected.
And do you know how much the renovation is going to cost? DEPT. COMM. KNAPPICK: Yes, yes.
Okay. 61 3/31/09 - WHOLE - BILLS 090212, 090213 DEPT. COMM. KNAPPICK: We exact figures on that.
You have exact figures on that. And the 1.2 million, plus whatever you're going to put in there will be enough? DEPT. COMM. KNAPPICK: Yes.
Okay. To complete -- DEPT. COMM. KNAPPICK: That portion of the work that we've previously discussed, yes.
Okay. And so, then you have additional dollars for the out-years to continue -- DEPT. COMM. KNAPPICK: Yes.
-- with capital improvements to the Dell? DEPT. COMM. KNAPPICK: That's correct, Councilwoman.
Okay. Now, what we would like to do is to have sort of an update on where the Dell is in terms of what the 1.2 million and all the 62 3/31/09 - WHOLE - BILLS 090212, 090213 other dollars will buy, what we will get at the end of the day and at least have some idea when that work will be done and the Dell will be up and running, okay? DEPT. COMM. KNAPPICK: Okay. The schedule right now has been breached a little bit. It's taken us a little -- we had originally anticipated having that done in August -- August, September. But I'd have to get you an update on that because I think it's taken a little bit longer to get our permits.
Well, why does it take so long? DEPT. COMM. KNAPPICK: It's the process right now. And we're looking at some storm-water issues that weren't previously accounted for in that project.
Councilmember, we'll come back with a budget, what we have. I think the budget right now is 63 3/31/09 - WHOLE - BILLS 090212, 090213 about 5.5 million, with a schedule of the timeframe and where we think there are issues that are outstanding, that may impact on the schedule. We'll bring that back to you.
Let me just ask this question: Who is responsible for costing-out the project and looking at all of the issues that may come up during the course of the construction project so that that cost can be taken in as a part of their overall planning? I mean, who does that? DEPT. COMM. KNAPPICK: That's pretty much done initially. When we conceive of the job, we start out with a general budget for the project just based on our past experience. And after we hire our consultants, our consultants are required to give us detailed estimates on every aspect of the job that's being designed.
Are you saying that the consultants then see or 64 3/31/09 - WHOLE - BILLS 090212, 090213 know about the storm-water problem? DEPT. COMM. KNAPPICK: I'm saying that things are overlooked sometimes, yes.
Okay. Is it something that they should have known about if they were consultants in this field? DEPT. COMM. KNAPPICK: I would hope so.
So what is their responsibility for not finding them? I mean, what do they pay? What is the penalty for, I guess, being inept? DEPT. COMM. KNAPPICK: Well, if a consultant makes an error or an omission, we look at them for financial restitution.
I'm sorry, but do they give you financial 65 3/31/09 - WHOLE - BILLS 090212, 090213 restitution? DEPT. COMM. KNAPPICK: Generally , the --
Or do you pay them whatever the contract amount is that they're supposed to get? Do you deduct from their contract payments what the penalty might be? DEPT. COMM. KNAPPICK: It becomes a little legal at that point, and we refer that our legal department. But in the matter of something that's missed on a project, it would normally have been a part of that project anyway and the costs associated with it. So it was more of an omission than an error.
I don't know -- if I could add Councilwoman, I don't know any of the details of the contracts and, you know, who saw what or what even the circumstance are. But having done this for most of my life, I can tell that you these are 66 3/31/09 - WHOLE - BILLS 090212, 090213 sort of tricky legal issues. Perfection, however, is not in the construction world, and in any world really, is not considered sort of the standard of care. And so, owners are always advised, as the City of Philadelphia and any other serious institutional owner does, to carry contingency funds to recognize that sometimes things will get missed. Now, whether they are, you might say, negligible misses, this is where it becomes legal matters with insurance companies and becomes subjects of usually long, drawn-out discussions. I offer that in the context of, I actually don't know any of the details of this one, but it's not as simple as a mistake gets made and a consultant is responsible for the cost, 'cause frankly, if that were the case, there wouldn't be any consultants since what they earn from this projects is far less than what they ultimately cost. 67 3/31/09 - WHOLE - BILLS 090212, 090213
Who is the project matter for the Dell? DEPT. COMM. KNAPPICK: Eric Effert (sp?). He's our project director.
Okay. Who is the day-to-day onsite project manager for the Dell? DEPT. COMM. KNAPPICK: Onsite?
Yes. DEPT. COMM. KNAPPICK: When they're out in the field, it would be one of our construction inspectors.
And we'll get you a report on it. Once these contracts are done, we'll get you a report on their working schedule and the project-costing so that you have that in front of you.
Okay, thank you. I just want to comment, having gone through a construction of a $5.4 million rec center, the Dorothy 68 3/31/09 - WHOLE - BILLS 090212, 090213 Emanuel Rec Center, having worked with my staff person, who is now a state representative, if she had not been there every week with the meeting -- she convened a meeting every week about the project. We don't have anyone to stay on these contractors and these projects. And so things get missed. If you have someone there on a daily basis or at least a weekly basis sort of like going through the project, we'll be here next year talking about the Dell.
I'm telling you, we need -- and I've talked to the Mayor about project managers on the site so that the work, one, gets done, gets done in a timely fashion, and that errors or mishaps or omissions are caught, because, in the end, it costs more money. And had we not had Sherrell Parker overseeing that project, we would have just -- really, it would have been 69 3/31/09 - WHOLE - BILLS 090212, 090213 very costly. But at the end of the day, we ended up having money left over because we were very vigilant in that project. And I'm worried about this Dell because I'm not sure who's minding the store.
We understand your concerns. And, yes, in some instances, we probably could have done a better job managing this from its inception, and we need to do a better job moving forward, and we plan to.
Well, I would suggest that we find some way that someone who is held accountable be project managers on all of the City projects 'cause we pay more money because, you know, just the way, Mr. Goldstein [sic], you talked about the whole construction during -- Goldberger, I'm sorry.
70 3/31/09 - WHOLE - BILLS 090212, 090213 Greenberger. I'm sorry.
I mean, we just need to -- the whole, whole, whole process is just one that bears watching, and you need to pay some attention to it.