COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON APPROPRIATIONS - - - - Room 696, City Hall Philadelphia, Pennsylvania Wednesday, December 3, 2003 11:30 a.m. - - - - BILL 030656 - An Ordinance authorizing transfers in appropriations for Fiscal Year 2004 within the General Fund from City Representative and Director of Commerce- Economic Stimulus-City Subsidy for SEPTA... BILL 030771 - An Ordinance authorizing transfers in appropriations for Fiscal Year 2003 within the General Fund... RESOLUTION 030575 - Resolution authorizing the Committee on Appropriations to hold hearings to determine whether an additional appropriation is necessary to fund the expansion of the Police Department's Neighborhood Services Unit. PRESENT: COUNCILWOMAN JOAN KRAJEWSKI COUNCILMAN MICHAEL NUTTER COUNCILMAN DARRELL CLARKE COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN BRIAN O'NEILL COUNCILMAN RICHARD MARIANO COUNCILWOMAN DONNA REED MILLER - - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2 I N D E X RESOLUTION 030575 THOMAS NESTEL, Police Dept........... BILL 030771 ROBERT DUBOW, Budget Director........ 29 THOMAS NESTEL, Police Dept........... 33 JOSEPH KIRONE, 1st Judicial District 50 BOB SOLVIBILE, L&I................... 56 BILL 030656 ANTHONY HONG, 6Oth St. Korean-American Business Association............. 62 CHARLES O'CONNOR, 52nd St. Business Association...................... 63 3 12/3/03 - APPROPRIATIONS
Good morning. The Committee on Appropriations is now in session. Will the Clerk please read the title of the bills?
Bill No. 030656, an ordinance authorizing transfers in appropriations for the Fiscal Year 2004 within the General Fund from the City Representative and the Director of Commerce Economic Stimulus City Subsidy for SEPTA to the Director of Finance, and authorizing the Director of Finance to convene a panel for the purpose of administering funds to distressed businesses affected by the Market Street Elevated Reconstruction Project, all under certain terms and conditions. Bill No. 030771, an Ordinance 20 authorizing transfers in appropriations for Fiscal Year 2003 within all General Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions. And Resolution No. 030575, a 4 12/3/03 - APPROPRIATIONS - RES. 030575 resolution authorizing the Committee on Appropriations to hold hearings to determine whether an addition appropriation is necessary to fund the expansion of the Police Department's Neighborhood Services Unit.
I believe we'll start with the Resolution 030575. Do we have someone from the Police Department here? Good morning.
Thank you. Regarding the Neighborhood Services Unit resolution, my question is, does the Police Department track calls regarding quality of life issues such as underage drinking, vandalism, graffiti, et cetera, et cetera? I know the Department tracks 911 5 12/3/03 - APPROPRIATIONS - RES. 030575 calls. How about the direct calls to the district reporting these crimes?
Direct calls to a district would not be tracked through our automated system, so we would not have that. We would have information on calls that were placed to police radio, but not to the district.
Well, my office, and I'm sure other offices, have been receiving a great amount of calls from recreation centers, civic business leaders, residents claiming that the Police Department no longer responds to their calls or take forever for an officer to respond. Does the Department investigate these crimes?
Yes, we do. And if we receive complaints, we also investigate those complaints.
Well, what's the average response time to these types of complaints? I know it really depends on the district's work load, but can you give us an 6 12/3/03 - APPROPRIATIONS - RES. 030575 idea?
Can you tell us the average cost to deploy an officer hourly, including the benefits? I read recently that it was somewhere around $40 an hour. Is that an accurate figure?
Does the Department have any plans on how to address these issues, similar to the way they devised the Safe Streets Plan?
Yes. The Commissioner is looking at all those issues right now. And additional people have graduated from the Police Academy. He has deployed those officers. We just had 150 graduate. He's deployed those officers in the districts that have shown most need, and he has already has 7 12/3/03 - APPROPRIATIONS - RES. 030575 plans for the class that's going to graduate in January on the deployment of those officers. And that should help to alleviate the problem.
Could you forward to the Chair the number of officers scheduled to work by shift, by day, by district?
Also include how many patrol cars, wagons, and bike patrols are on the street during these shifts. Could you also include how the department covers when an officer is out sick or on vacation? You will forward that to the Chair?
Thank you. One more question. How much would it cost the Department to have two additional officers deployed per district to respond to these type of calls on specific nights? Maybe weekends, which are usually the busiest nights for these complaints. 8 12/3/03 - APPROPRIATIONS - RES. 030575
The cost per officer -- I'm sorry, two per district, was that your question, Councilwoman?
Councilwoman, their hourly rate is about $25 an hour, so that would be $50 per district per hour, and we have patrol districts. 11
Has the 12 Police Department looked into developing a 13 quality of life unit to specifically deal with 14 these types of complaints like some other 15 cities have, most notably, New York? 16
I am not aware of any 21 plans to do that, but I will talk to the 22 Commissioner.
How about using SNU to perform these duties? They already investigate certain quality of life 9 12/3/03 - APPROPRIATIONS - RES. 030575 issues.
The Neighborhood Services Unit mainly concentrates on abandoned autos, sanitation issues, that type of call. As far as the responses to 911 calls, responses to quality of life issues, that is handled by the district captains.
Well, I think I'd like the Police Department to submit to the Chair a proposal on how to address these issue and include all costs involved, which police districts which would benefit the most from the implementation of a plan, an estimate of the cost involved of either expanding the SNU to include the investigation of these crimes, the creation of a new unit that will be responsible for responding and investigating these crimes.
Councilman 10 12/3/03 - APPROPRIATIONS - RES. 030575 Nutter.
Thank you, Madam Chair. The Chair is right in the area where I think many of us would like to be. And I apologize if I ask a question that the Chair already asked because I was talking to Councilman Clarke. You'll just tell me that and you don't have to be tortured by it. I've only relatively recently, I guess, come in contact with this Police Department Neighborhood Services Unit. So could you tell us, when did this start?
The Neighborhood Services Unit was formed about, I would say, three years ago when the Mayor started the drive on the abandoned autos. That's when the Neighborhood Services Unit was formed, when that program was initiated.
They are based at A and Luzerne. They work out of an office there and then they're deployed to the patrol districts. 11 12/3/03 - APPROPRIATIONS - RES. 030575
There is a captain in charge of the unit and the Chief Inspector of Special Operations would be the overall commander of the bureau.
Not that you can keep track of all the 7,000 police officers, but is this also the unit where -- is this where Sergeant Bee (ph) is?
So what exactly does this unit do? I didn't know them as this name. I just knew Chief Bullock, Sergeant Bee, you got an abandoned car, they disappear. They've got that all under control. What else do they do?
There are actually two components of the Neighborhood Services Unit, the biggest component being those that deal with the abandoned vehicles. They're in marked vehicles throughout the City. In addition to that, the Sanitation Unit is also part of the Neighborhood Services Unit.
Back at that time, you centralized both abandoned car and sanitation, you draw them out of the districts and centralized them; is that right?
But then the Chair was asking you about either expansion or how does it work in the different districts. 13 12/3/03 - APPROPRIATIONS - RES. 030575 Does every police district get service from the Neighborhood Services Unit?
How many people are in this unit? If you can't say, I understand.
I believe it's about 60, but I can get you that number. And they work predominately day work tour of duty.
Well, I know the Chair asked you for a significant amount of information. I'll wait until the data comes and we'll probably have a follow-up or something.
Just a follow-up on the Chair's question. The frustration if you don't live in a district that is having your calls prioritized on a Friday or Saturday night primarily, you feel 14 12/3/03 - APPROPRIATIONS - RES. 030575 like you don't have a Police Department. If you're at the top end of a district where a lot of violent crimes occurring in the bottom end, your crime isn't important if you hit 3, 4, or 5 instead of or on the list, because the police are coming out four or five hours after the call often times or never coming out because it's too stale. After a period of time, people stop calling because, why bother? You've already ben told that it's not going to get responded to. So the people that are causing the quality of life problems, usually younger generation, have the free reign of things. And until you get a captain who has something peculator boil to the point where everyone wants a meeting and then you get a special detail, it stops during the period of the special detail usually because the officers know how to handle it. Could I put an addition on what Councilwoman Krajewski asked for, and that is, if we were to have a mandate to make sure that even though the crime in your neighborhood is 15 12/3/03 - APPROPRIATIONS - RES. 030575 a low priority of the scale of priorities -- and I understand part one crimes and everything are first. What strategies could be had or put in place? What would they cost? So that those crimes would be recognized as important to the people in those neighborhoods. That's all, to me, what is a major part of community policing. It's not just people seeing a police officer, being able to talk to him or her from time to time, but feeling that their community needs are being addressed and what's happening in their community is just as bad for them -- maybe oftentimes worse because the victim is never even being helped. So if you could add that to the request, I'd appreciate it.
Thank you, Madam Chair. Commissioner, on what the two Councilpeople were talking about, the quality 16 12/3/03 - APPROPRIATIONS - RES. 030575 of life crimes like, for instance, the 24th District, depending who the captain is, depending how it goes. We've got a guy named Captain Mockus (ph) who's a good guy. He works as hard as he can. The problem is -- I live up in Juniata Park and that is per se the less violent of the 24th District so a lot of the calls -- and the same with Bridesburg which I don't represent; I think Councilwoman Krajewski does -- and Richmond, that' the 24th. They don't get the calls. When the stuff shifts like Councilman O'Neill says in Juniata, parts of Richmond, they feel that all the other stuff's happening at the other end. So depending who the captain is -- now, if he doesn't have time there to prioritize -- prioritize is not the right word. He may have done in his mind. Those nuisance quality of life crimes. For instance, now as the neighborhood has changed both racially and economically -- which is a good thing. Don't catch me wrong. Everybody brings a different thing and all the cultures mix and it works out. But then we have a different economic 17 12/3/03 - APPROPRIATIONS - RES. 030575 class of citizens. In Juniata, for instance, there's a lot of truck drivers and a lot of people that work as opposed to the people that was an older constituency before. Everyone was pretty much retired. We have a lot of trucks parked. So I passed legislation no 8 trucks parked on these streets over half a ton. But nobody ever goes around and tickets these trucks. And they're a nuisance. They're big giant tractors without the trailers parked. Now people are selling on the cars on the street. Not just one guy selling one car; two cars a week, two cars every couple weeks. It's not the captain fault because he only has so much manpower to put in those sectors and it works that the serious stuff there, you know, robberies and things like that as opposed to trucks parked blocking the view. You can't pull out of street because there's a big tow truck parked there from 8 o'clock at night. I mean, I made it very clear when I did the legislation. The sign is there. I was told you got to have the signs. I would 18 12/3/03 - APPROPRIATIONS - RES. 030575 love to know what the tab was for that. They sent out an engineer who sits out there in his car with a piece of graft designing paper and writes feet from this corner, feet over. Every street in Juniata Park because I went from Erie up to end from the east to the west. I got two sectors covered. Nobody gets a ticket because it's just not a priority, and understandably so. If we can do what these other Councilpeople and I are saying, somehow work out something where those quality of life, not a top of echelon of violent crime -- and I think Sergeant Bee's and Inspector DiLacqua's group is probably doing that. Every time I call, they do pretty much as we ask. But they can't be there constantly in the 24th doing that. Now, do we need patrol cars in the 24th just giving tickets? That makes the citizens mad to. But these are the rules. We make the rules, let's learn to live by the rules and then we all work it out. If you don't like it, vote against your elected 19 12/3/03 - APPROPRIATIONS - RES. 030575 officials four years from now. We got four years to do what we gotta do. You get what I'm trying to say?
I don't know what the answer is, but I know you're smart, I know you're up there and you've been around and you know there's got to be a way. Maybe that's the way. Maybe that same group could handle the quality of life in Councilman Nutter's, Councilman O'Neill's, hers and mine. I don't know if that's how you do that. My second question is -- and I read this in the paper or there was a hearing on a bill. What is happening with the police overtime as for as -- remember we changed the law where police could work for vendors or for like businesses, and the business is supposed to pay the City directly? Then I read something that now they're not and we don't really know who was out there and for how many hours. Can you enlighten me on that?
I can tell you that 20 12/3/03 - APPROPRIATIONS - RES. 030575 there have been a lot of distortions in the reporting that has been made. There is no 4 question there had been some people who have not paid their bills. They have been turned over to the Law Department. We are now working with the Revenue Department and the Finance Officer and Solicitor's Office and Risk Management to come up so that our collection system can be part of the Revenue Department collection system, and then the Police Department would be out of collecting any bills. But we do bill individuals we provide service for. We try to get them to pay. If they do not pay, we turn that over to the Law Department.
If someone has a club, for instance, say, like one of them places on Delaware Ave -- by the way, I've never been in any of them; just so you know. I know Councilman Nutter has and he told me about them. (Laughter.)
But say they 21 12/3/03 - APPROPRIATIONS - RES. 030575 have someone there for four ours, and they do it for two weeks and they don't pay. I mean, somebody doesn't go back there in two months when we know they're not going pay, right?
Is there a captain at the 26th District making that decision, or is that up --
When the captain makes an agreement with a private individual or with a company to provide additional service, that agreement is sent into our Finance Unit. The Finance Unit will tell the captain if there is an outstanding bill. At one point, we recommended that they not do it. Sometimes the Commander would make a decision. We felt they had a reason for making that decision. We have changed that. Now they can not override if there is an outstanding bill. One of the things that has to be considered in that is if the bill 24 has not been paid within 60 days, we send a notice to the individual telling them if we 22 12/3/03 - APPROPRIATIONS - RES. 030575 haven't received payment within 90 days of the date that the service was rendered, then we will turn this over for collection. So if it's two weeks beyond, we wouldn't have them on the list yet. But if they hit that list, absolutely, we will not provide service.
So they could probably -- I don't want to use this word so I'll say cheat you once but they probably won't ge to cheat you second time.
Thank you, Madam Chair. Not to belabor the point, Commissioner Nestel, but recovering from the scars of a community meeting from last night, this issue about the no truck parking in the whole scheme of things may seem to be trivial, but after about an hour of conversation and a lieutenant and a sergeant were tortured about it, I know the officers have a variety of things to do, 23 12/3/03 - APPROPRIATIONS - RES. 030575 but it doesn't help the City's image when citizens actually see the officers ride past what is clearly a truck with truck tags on a residential street and a big sign up there that says no truck parking 6 P to 6 A and the officers don't even put ticket on it. I mean, we're going to put some additional signage up and probably go to a tow zone and that kind of stuff. But these are the kinds of things that in some neighborhoods people have a variety of priorities. They're all taxpayers. They have a right to make their complaint. And I think that as we're paying attention to our more worldly and global problems here in the City, I think every now and then if citizens also knew that they were getting some of the basics taken care of, it would be very helpful and the officers may have actually gotten out of the meeting a little earlier last night.
Councilman, I agree with you. I will make sure that is brought to the attention operations. And we should be enforcing that law.
Thank you. 24 12/3/03 - APPROPRIATIONS - RES. 030575 Thank you, Madam Chair.
I also would like to add too, I'm sure you're familiar with these X box where they can't park their car in order to go into the driveway or ti come out of the driveway. It's constant where they're never ticketed either. It's the same as the no truck parking. We've had the same problem. This has nothing to do with it, but since you're sitting here, Commissioner, I'd like to know for a fact one question. Is it a policy of the Police Department or is it -- maybe Councilman Mariano can answer this. I had a constituent's car that was stolen the other night in the 8th District. They found it a few hours later. She received a call later that the car was on American Street. They called her. She had to come down. Now, why couldn't they have just called her a couple hours later and said, "We found your car. Come get it." She had to go to American Street. 25 12/3/03 - APPROPRIATIONS - RES. 030575 Then from there, she had to go to the towing place in order to get it. So she got fined a hundred dollars she had to pay. Then she had to pay three days the of towing company because they were closed Friday, Saturday and Sunday, she had to pay for those three days plus a hundred dollars because the car was stolen. Why should she be penalized or anyone in this City be penalized when their car is stolen? Could you answer that? Is that an internal or what?
Councilwoman, if you would give me the particulars on that one afterwards, I will look into it.
Well, it's not just me; it's a City-wide program. Councilman Nutter had the same problem. I'm sure other Councilpeople. And thousands of people in this City that don't report it. Why should they have to pay $100 when their car was stolen. And if the towing company is closed, that she has to pay for those two or three days until they open Monday when they 12/3/03 - APPROPRIATIONS - RES. 030575 were called Saturday and Sunday? Why penalized the people?
Councilwoman, I will look into it. I can't answer that question because I don't know what the particular instance was. Normally, if a vehicle is found stolen, we attempt to notify the owner, have the vehicle removed. If it's necessary to have it towed --
I'm sorry to butt in, but I would like to know in this particular case only because I know the person, I know the area. It was right up the street from where this people lived where they had found the car, which they could have walked up. But no, the District called her later and said that she has come down to American Street to get the car, plus pay a hundred dollars. 27 12/3/03 - APPROPRIATIONS - RES. 030575
I do have a few. I'll just tell you, Commissioner, my experience with this is quite similar to Councilwoman Krajewski's in terms of vehicle stolen from the back. But my recollection is that maybe somewhere in the past couple years there was a change in policy that in the past when the stolen vehicle was found, the person was called and told where the vehicle was literally. It seems that the change in policy was possibly in an effort to protect the vehicle because I think we've found in some instances where the vehicle having been found and identified, known to be stolen, may have either been stolen again or stripped. So they take the vehicles now to protect them to a secure location. The end result is, as the Councilwoman said, that person now ends up paying a tow charge and if you don't get the call at a certain time of day or the weekend 28 12/3/03 - APPROPRIATIONS - RES. 030575 or end of the week, whatever the case may be, you could run up a pretty decent storage fee. As opposed to direct identification, tell the person, "this is where the car is and maybe it's going to be there for the next hour and then we will remove it. Or do you want us to move it to a secure location?" Give them the option. If they want to leave it out and something happens to it, they got put on notice and they know. But in many instances, I think people would go and pick up their vehicle. But it is a relatively new policy. It makes no sense.
I will look into it. When the decision was made to remove vehicles, it was exactly for what you had stated. Vehicles were being damaged after we recovered it or they were being re-stolen. So a decision was made to remove those vehicles. But I will look into that whole policy. I'll discuss it with operations.
Sometimes 29 12/3/03 - APPROPRIATIONS - RES. 030771 they can do more damage towing the car. In this case, it was a good car and they could have just called the person up and said, "We found your car." This was not in the middle of the night. This was maybe or o'clock 7 in the morning and they could have walked 8 right over and got the car. It's not like it 9 was a few blocks or even a couple miles; it was right up the street in the district. Are there any other questions? (No response.)
Thank you, Commissioner. I believe that we'll take the testimony now on Bill 030771. We have someone from the administration? Good morning.
My name is Rob DuBow and I'm the City's Budget Director. I'm here today to offer testimony on Bill No. 030771 30 12/3/03 - APPROPRIATIONS - RES. 030771 which makes FY 2003 budget appropriation transfers between and among classes and departments in the City's General Fund. I've shown in Exhibit A, which is attached, there are a total of 36 transfers requested in the bill, including involving 8 net change in departmental appropriations and 9 15 between classes within the departmental 10 budget that do not result in any net change in 11 appropriations. 12 The largest requested increase in 13 appropriation is 21.7 million in Class 500 14 contributions for the Director of Finance to 15 transfer 21.8 million in financing proceeds 16 revenue to the Philadelphia Gas Works. The 17 City entered into guaranteed investment 18 contracts on behalf of PGW in August 2002. 19 The contracts, which invested a portion of 20 PGW's Sinking Fund reserve was structured to 21 provide an upfront payment in lieu of future interest payments. Of this increased appropriation, 1.4 million is an internal transfer from the Director of Finance's Class 100, 200, 300 and 400 appropriations. The 31 12/3/03 - APPROPRIATIONS - RES. 030771 City collected the upfront revenue on behalf of PGW, and the Administration is now requesting a corresponding transfer to PGW out of the Finance Director's Class 500 budget. The Administration also requests an increase of 3.4 million Class 100 appropriations for the Police Department to cover higher than expected overtime costs, of which 50,796 is an internal transfer from it's Class 200, 300 and 400 appropriations. An increase of 4 million to the First Judicial District's Class 200 appropriation is requested, of which 1.9 million is in an internal transfer from the District's Class 100 appropriation. The transfer will allow the First Judicial District to increase funding for the administrative office of the Pennsylvania Court Improvement Fund. The Administration also request an increase of 3 million for the Class 800 appropriation in the Department of Licenses and Inspections, of which 2 million is an internal transfer from the Department's 200 32 12/3/03 - APPROPRIATIONS - RES. 030771 appropriation. This funding will be used for lot greening programs through the City's neighborhood transformation initiative. An additional 1 million is requested for the Streets Department's sanitation divisions Class 100 appropriation to cover overtime expenses incurred in snow fighting and clean up late last winter. 164,172 of its requested increase is a transfer from the divisions 2, 3 and 400 Classes. The administration also requests an increase an increase of $298,810 for the Record Department's class 100, 300 and 400 appropriations for system improvement projects, the cost of which is being offset by increased fees. A portion of this increase is an internal transfer from Department's Class 2 and 500 appropriations. An increase of $256,351 is requested for the Fire Department Class 100 appropriation, of which $163,315 is an internal transfer.
Excuse me, Mr. DuBow. I don't think it's necessary to go 33 12/3/03 - APPROPRIATIONS - RES. 030771 through all this. Save your breath.
There are representatives of various departments here if you have specific questions. I'd also like to ask for a suspension of the rules so this can be considered in Council's next session.
Thank you. I think we'll probably bring the Police Department again. Mr. Nestel, Commissioner. You may as well state your name for the record again.
Thank you, Commissioner. Since its inception of May '02, how much has the Police Department spent just on Safe Streets overtime.
Sixty-six million? 34 12/3/03 - APPROPRIATIONS - RES. 030771
What is the average overtime amount being spent per month on Safe Streets? I would like you to have you forward to this Committee in writing a breakdown of crime cost associated with the Safe Streets program by month.
It is higher in the summer, but the 3 million is taking into consideration the reduced amount in the winter months also, when vacations are over --
What other overtime costs has the Police Department incurred since last July 1st? I'd like you to forward in writing again a breakdown overtime costs by month by unit, including Safe Streets 35 12/3/03 - APPROPRIATIONS - RES. 030771 information; what our overtime costs have been over the past three year, excluding Safe Streets.
One more question, maybe two. How many officers are currently scheduled to retire within the next few years due to the DROP Program.
For Fiscal '05, it's about 60; and Fiscal '06, about 50. The big amount was this past year or the present year Fiscal '04 where we had approximately 500.
How many officers will the Department be hiring to replace them? Will it be a one-to-one ratio?
In Fiscal '03, we hired additional officer so that we wouldn't be real short when the wave hit in October. In Fiscal '03 we were about 150, 157 officers over our authorized strength. By the end of this fiscal year, we expect to be back to our authorized strength and the future budgets will include replacing the people who leave. 36 12/3/03 - APPROPRIATIONS - RES. 030771
Well, could you tell us how many officers you expect to be on the force on July 1st of '04 compared to the beginning of the last three fiscal years?
We expect to have 6910 on the Operating Budget, 159 from Aviation, which would be a total of 7,069 officers.
7,069. That is the number that we have had starting each year with the exception of this prior fiscal year when we started with more as a result of planning for the DROP.
Are there any other questions for the Police Department? Councilman Nutter.
Thank you, Madam Chair. Deputy Commissioner, I'm looking at the testimony from Commissioner Johnson. Can you just explain? The second paragraph says, "The request for additional Class 100 funds can be attributed to Operation Safe Streets, 37 12/3/03 - APPROPRIATIONS - RES. 030771 higher than anticipated holiday pay, and increased terminal leave." Can you explain the three components of that sentence? How much of it is related to Operation Safe Streets? Why do you have higher than anticipated holiday pay? And what is terminal leave?
Two million of it is related to Operation Safe Streets. We had anticipated spending 35 million, and we spent about 37.
Yes, additional overtime and meals related to Safe Streets.
Let's back up for a second. The program, as I best understand it, already anticipates a fairly significant amount of overtime. And I think in FY '03, the budget was $35 million; is that 38 12/3/03 - APPROPRIATIONS - RES. 030771 correct?
Well, the program very, very closely monitored by Operations. And if they see a need to put more officers or less officers, they have that flexibility. The Deputy Commissioner of Operations and the Police Commissioner meet with all the commanders every week that are involved in the Safe Streets operation. They are a meeting every Tuesday and they establish their priority for that coming week at that time.
And was there a particular quarter of the fiscal year when there was a particular spike in the now extra, extra overtime?
During the summer months there is a large spike. And that's attributed to both the additional activity that occurs on this street and the fact that vacations of officers are also going on at that time. So therefore, it becomes necessary 39 12/3/03 - APPROPRIATIONS - RES. 030771 to increase the overtime.
Well, would that be the months of May and June because the rest of the summer is in a different fiscal year?
I mean, the summer is like June, July, August for most of us, right?
Right. But July and August are the beginning of the fiscal year. So you're right they're different fiscal years, but they are without a doubt the busiest four months.
Well, this is the FY '03 year-end transfer ordinance, right?
We're trying to reconcile what happened in FY '03, right?
If all this activity happened during summer, it happened 40 12/3/03 - APPROPRIATIONS - RES. 030771 in the current fiscal year. Why are we dealing with it in last year's transfer ordinance?
Well, I mean, there must be an answer. You're saying it's higher than anticipated costs related to Safe Streets because of the summer. My understanding generally of the summer is it's June, July, August. I don't know, maybe May 21st starts the summer. Whatever. I'm assuming the bulk of the run-up is probably more in the July, August time period which is in the current fiscal year. This is the year end of '03 transfer ordinance.
But there was a July and August in '03. July and August 2002 are in the '03 budget.
I think July and August of '02 were probably within the first three months of the start of the program. Didn't this program start last year?
The program started in 41 12/3/03 - APPROPRIATIONS - RES. 030771 May of '02, May 1st of '02. And when the program initially started --
Well, wouldn't we have dealt with the increase summer costs from the summer of '02 in the mid-year transfer ordinance for '03.
Yes. But Councilman, maybe I misunderstood your question. My answer to the increase is related to the evaluation that's done by Operations every week. I thought you asked me if it normally does occur in the summer and my answer was yes.
No. My question was quarter of fiscal year did you see a spike in the overtime cost. Your response was, in the summer. If you're talking about last summer, two-thirds of last summer is in the current fiscal year. If you're talking about summer of '02 you had a run-up of cost in that summer, I would think that those additional costs would have been dealt with mid-year transfer ordinance that we did last year. So what summer are we talking about? And either 42 12/3/03 - APPROPRIATIONS - RES. 030771 one of them shouldn't be in front of us right now.
Councilman, that increase -- there are higher costs during summer periods. But the increase above what we had anticipated doesn't necessarily have to relate to that summer higher cost. As I stated, the Operations has a meeting every Tuesday morning to discuss what needs have been added and can be deleted. And it's a result of that activity, that close monitoring that the cost went above what we had anticipated.
Well, I don't want to quibble with you, Deputy Commissioner, but I guess in the whole scheme of things, if there was close monitoring going on, you probably wouldn't have gone over your overtime budget. I probably would have rather you said, "We were not monitoring it as closely as we should have which is why went $2 million over the $35 million that we had budgeted." I mean, they're either monitoring it or they're not. What I'm hearing you saying is they made 43 12/3/03 - APPROPRIATIONS - RES. 030771 a conscious decision to go $2 million over their already allocated $35 million in overtime. I think that's what happened, right. They made a strategic decision based on deployment that we need more officers and we're consciously go over our overtime budget?
They did make an operational decision to increase the number. Whether or not their purpose was to go over the overtime amount, I don't think they did that purposely.
I mean, nobody's trying to waste money around here. I don't think they purposely went over the overtime budget because they don't have anything else to do with themselves. I think they went over the overtime budget because they felt they needed more officers at certain periods of time and said, "We're going to spend the money because that's what we need to do."
Why don't you provide to the Chair a monthly chart of expenses. Show us the regular General Fund 44 12/3/03 - APPROPRIATIONS - RES. 030771 budget, show us where the $35 million dollars in allocated overtime was spent by month, and then show me where the $2 million came from that was additional to your already allocated overtime budget.
The higher than anticipated holiday pay is based on two factors. The officers have a choice each year whether or not to save their holiday time or to be paid for the time. We had some additional officers this time above the average who made the decision to be paid. We also quite a few hours that were related to attendance at court. If an officer is working 4 to 12 tour of duty and the officer goes to court, in addition to getting overtime for going to court, that officer is given two hours vacation time until the vacation reaches 560, which is the maximum number. Then it goes to holiday time.
560 hours. So once they've reached that maximum, then they get two holiday added to their accumulation. And we had a lot of --
The terminal leave is the money that is paid to the officers when they retire. We miscalculated that by $100,000.
My last question is, again, in the testimony. It says, "Operation Safe Streets objectives are eliminating open air street corner drug sales, disrupting the drug trade market, and discourage drug customers from seeking to purchase narcotics in Philadelphia. Success of this program is reflected in the positive response from citizens in the neighborhood." Do we have any other measurements of success with regard to the program? Are there less drugs being sold in Philadelphia? Are there fewer people buying drugs in Philadelphia? Has the price of heroin gone up 46 12/3/03 - APPROPRIATIONS - RES. 030771 or has the quality level gone down? Is there less drug activity actually and people using in the City as a result of the program? How do you measure what success is?
There are several measurements of success in this program. And one, of course, is the quality of life in those areas and the reaction of the citizens. Another is the number of people who are going into treatment programs. The number of out-of-town people who are arrested in trying to purchase narcotics. And I know that they've seen a decrease in that number of out-of-town buyers. They's also seen an increase in the number of people who have been seeking treatment.
Okay. I'm sure we'll talk a little more about that next year. Thanks. Thank you, Madam Chair.
Thank you, 47 12/3/03 - APPROPRIATIONS - RES. 030771 Commissioner. Can you explain, Mr. DuBow, a little bit further about the PGW appropriations transfer?
Yes. That was essentially a financing deal for PGW that allowed them to take an interest earnings benefit up front instead of over a number of years. We're actually getting revenue from them and putting an appropriation back out to them. There's no impact on our expenditures. It's really a PGW transaction that we're running through our appropriations at the suggesting of Council technical staff..
Thank you. How about Fleet Management reduction in expenditures. Does it have anything to do with the City cutting down on the use of the SUVs?
In part. It really is part of our who fleet reduction strategy. And as part of that strategy, we'll be spending less money on acquisition of vehicles and also on the maintenance of them. 48 12/3/03 - APPROPRIATIONS - RES. 030771
Under the Public Property transfer, you site the reason as being higher than anticipated inter-fund charges. What is inter-fund charges?
Inter-fund charges primarily in this case are payments to the Water Fund mostly to the water bill. We reconcile with the Water Fund at the end of the year. Sometimes the numbers are slightly higher than we thought they were going to be.
What is the status of the security measures that are due to be implemented by the Public Property in City Hall?
The biggest portion f that will be done around February of 2005. That will include security cameras, card access. There are a couple of smaller things that have already been done like the bollards.
We'll go to the First Judicial District. In the First Judicial District testimony, it states that there will be a deficit of 2.9 million in the courts improvement account after certain 49 12/3/03 - APPROPRIATIONS - RES. 030771 projects are completed. What was the original amount of the money in this account?
The account actually started with no money and grew over time as the First Judicial District achieved savings in its budget against original appropriation, so it was able to take the difference between that appropriation and what it actually spent and put it in the court improvement fund. I think it eventually grew to 30 million -- 12 was it's highest? 13
Please come 14 up. I think the question was how much money in the account. (Pause.)
The highest that the fund got was 14.9 million. The budgeted amount of items that the court anticipates to fund through there was 32.9.
Well, what was the highest amount before this? 50 12/3/03 - APPROPRIATIONS - RES. 030771
Madam Chairperson, my name is Joseph Kirone (ph). I'm the Court Administrator for First Judicial District. In our previous testimony that covered Fiscal Years '01 and '02, dated December 31, '01, we showed a balance as of the December 31st of $7.2 million.
$7.2 million. With a projected Class 100 and 200 savings for Fiscal Year '01 of $7.6 million approximately. And then we showed an anticipated balance of $14.8 million. The account never reached those levels, but it showed what we anticipated. As spending went along, the account never reached that specific figure. But funds were available in the amount that Mr. DuBow suggested and were spent for differing expenditures.
Well, how do you plan to address the deficit in future years? Why did the project move forward knowing that it would lead to $3 million 51 12/3/03 - APPROPRIATIONS - RES. 030771 deficit? And the testimony specifically states that your ability to generate savings for future years is greatly diminished.
Well, if you recall in our testimony for settlement of the FY '03 mandamus action that was brought by the court against the City and as part of our FY '04 budget we agreed to forego the FY '02 surplus of $5.6 million that was generated as a result of savings by the First Judicial District. Those monies were to offset deficits in the 4D Child Support Grant Fund over the course of approximately seven years. As a result, expenditures or projects that were formerly contracted with the anticipation of the $5.6 million transfer were expenditures that totaled sums greater than the revenues that then came in. What we anticipate is that the $2.9 million transfer for in the savings that we generated in Class 100 savings from the Fiscal Year '03 budget and the additional revenues that we created through the civil bill filings will go to pay the deficits that currently exist in the court improvement 52 12/3/03 - APPROPRIATIONS - RES. 030771 account totalling $2.9 million. So that when the transfer occurs, the account will be at a zero balance or approximately that amount unless additional sums are generated.