COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING - COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, April 27, 2005, 10:50 a.m. BILL 050235 - An Ordinance repealing an Ordinance, approved by the Mayor on January 25, 2005 (Bill No. 041041), entitled "An Ordinance authorizing the Commissioner of Public Property and the Director of Commerce, on behalf of the City of Philadelphia.... PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN JAMES F. KENNEY COUNCILMAN JUAN F. RAMOS COUNCILMAN DAVID COHEN COUNCILMAN FRANK RIZZO COUNCILMAN FRANK DI CICCO COUNCILMAN DARRELL L. CLARKE COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN MARIAN B. TASCO COUNCILMAN MICHAEL A. NUTTER COUNCILMAN JACK KELLY COUNCILMAN BRIAN J. O'NEILL V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, PA 19103 215.561.2220 215.567.2670 2 4/27/05 - Bill No. 050235 - Whole
Good morning, everyone I regret the delay. We now have a quorum, so this will be the public hearing of Committee of the Whole regarding Bill No. 050235, and I would ask Mr. McPherson to please read the title of the bill. MR. McPHERSON: Bill No. 9 050235, an Ordinance repealing an Ordinance 10 approved by the Mayor on January 25, 2005, Bill No. 041041.
Thank you. I would ask the Administration to come forward. It is my understanding that we do have witnesses here who are under a time constraint. I don't know who they are. So I would suggest you call those witnesses, if you so desire, at this point in time.
Good morning, President Verna and members of the Committee. 3 4/27/05 - Bill No. 050235 - Whole My name is Stephanie Naidoff and I am Philadelphia's City representative and Director of Commerce. I'm here today with my colleagues from the Free Library and the Finance Department to provide testimony regarding the proposed bill to repeal the Ordinance approved January 25, 2005 that supports improvements and renovations to the Central Library of the Free Library of Philadelphia. The expansion and renovation of the Central Library is the last phase of a decade-long effort to improve library facilities throughout the City. Rather than start the library renovation project at the Central Library, which I might add is what most other major cities in America have done, Philadelphia began its renovations with the 53 neighborhood branches. It is only now that we're turning to improvements at the Central Library. When the Central Library opened almost 80 years ago, there were no computers. There was no Internet. There were no CDs and 4 4/27/05 - Bill No. 050235 - Whole DVDs. 2 million items. Today the collection at the Central Library alone is 7 million items, all housed in a building designed for a City-wide collection of 1 million. Some of these 7 million items make up the Central Library special collections. Although these items are housed in the Central Library, they are among the world-class resources the library provides to all City residents. The Rare Book collection contains ancient cuneiform tablets and illuminated manuscripts, some of which have been displayed at the Philadelphia Museum of Art. The Automobile Collection is the largest automobile reference collection in the world outside of Detroit. The Edwin A. Fleisher Collection of Orchestral Music is the world's largest lending library of orchestral performance material. These are just some of the 5 4/27/05 - Bill No. 050235 - Whole collections that have attracted the interest of people from all over the world and they are housed at the Central Library for the enjoyment of everyone. An expanded Central Library will help to provide improved access to these materials and provide space for these collections to grow. The building has not been renovated since it was opened and is in dire need of improvements. Some of these improvements include updating the life safety systems, creating 160,000 additional square feet of space for reading and learning, and improvements to support an increase in the number of public access computers from 80 to 300. At a time when the Administration is working to implement the wireless Philadelphia initiative, the Free Library system is already the largest provider of technology and free Internet access in Philadelphia. The Central Library alone receives more than 1,000 requests per day to use the public access computers, and cannot add more computers to 6 4/27/05 - Bill No. 050235 - Whole meet these requests until they have a facility to house them properly. These improvements are necessary to make a building from 1927 meet the 21st century needs of City residents, job seekers, children, students, researchers, businesses and visitors. The expansion of the Central Library is the cornerstone of the Administration's efforts to promote economic development, increase tourism and provide 21st century facilities for all of our City residents. For this reason, the expansion project is highlighted in the Administration's Economic Development Blueprint. The Benjamin Franklin Parkway is the heart of the City's arts and culture community and is the focus of a number of the Administration's economic development initiatives. 6 million annually in economic activity. 7 4/27/05 - Bill No. 050235 - Whole An expanded Central Library building designed by the world-renowned architect Moshe Safdie will be an important civic anchor for other proposed developments, including the additions of the Barnes Collection and the Calder Museum, to the Parkway.
The library expansion also includes plans for a Parkway Pavilion with a cafe, complementing the recent efforts of the Moore College of Art and Design to create a sidewalk cafe and outdoor sculpture garden on the Parkway. These are the types of enhancements we are seeking to better engage the visitors who come to the Parkway. Approximately one-third of the expended library site will be open green space for community use. As it has for Salt Like City and Seattle, the expansion of the Central Library represents the City's investment in its own facilities within the context of the larger economic development picture. A nationwide study has shown that usage of public libraries increases in difficult economic times. As such, an 8 4/27/05 - Bill No. 050235 - Whole upgraded facility for the Central Library will be available to assist the 4,300 job seekers that visit the library annually and use the computers to create resumes and search for employment. At story hours in the Children's Department, as many as 70 children and adults routinely squeeze into a basement space designed for 30. The creation of a Teen Center and plans to take the Children's Room 12 out of the basement and double its size support City efforts to promote early literacy and instill in our children a life-long interest in learning. More space means the library can increase its collection with updated materials to support these goals. Other organizations, including the Annenberg Foundation, the Independence Foundation and the William Penn Foundation recognize the value of an expanded library and have already made significant pledges to this project. With the generous support of these and other institutions, we will maximize the City's investment in this project. 9 4/27/05 - Bill No. 050235 - Whole It is expected that 75 percent of the cost of the renovation and the expansion of the building will come from non-City public funds and other private investment. This public-private partnership is unique to Philadelphia and is a testament to our civic generosity. With almost $18 million in hand, the partnership has created momentum for the capital campaign, something that would be lost if the project was halted now. " While the Administration understands the frustration that comes with hard economic choices for public institutions, the project before the Committee today is a project that we strongly support for current development because we recognize the enormous benefits it can have for City residents. Thank you for the opportunity to testify on this important issue, and I will certainly be happy to answer any questions.
I 10 4/27/05 - Bill No. 050235 - Whole believe you indicated that there were other witnesses who had time constraints, so if you want to call them up now, and we can ask questions of you afterward, would be fine.
Good morning. Thank you, Council President Verna and members of City Council, and thank you for giving me the opportunity to speak with you today. I'm here because I'm supposed to represent the voice of business, so I'm going to dispose of my notes that were prepared for me and just cover a few quick key points so we can get along our way. From a businessman's perspective --
Excuse me, sir. Please identify yourself for the record.
Oh, I'm sorry. Ron Wilson. I'm the President of Philadelphia Coca-Cola Bottling Company and I'm also on the 11 4/27/05 - Bill No. 050235 - Whole Board of the Free Public Library, and when Stephanie took the position as City Commerce Director, I also assumed the position of Chairman of the Development and Campaign Committee. Thank you, Stephanie.
I would ask the President, in addition to when the witnesses come up to testify, in addition to supplying their name, would they also give us the county in which they reside.
I don't want to limit anybody's testimony or to do anything to stop anybody from speaking, but I don't think anything that Stephanie Naidoff 12 4/27/05 - Bill No. 050235 - Whole said or that these witnesses are going to say, that anyone in this room disagrees with. We don't disagree that the library needs tremendous renovations and expansion. Our whole argument from day one has been the method of financing, whether we borrow the money and pay a couple hundred million dollars over the next 30 years or whether we take it from available funds that we've identified that are available now, without having to go into debt to do it. I mean, all the things that Stephanie explained and talked about, we're all in favor of, and we think it's necessary. However, the Administration just won't budge on its desire to borrow this money as opposed to taking it from available funds at PICA and other places that are readily usable. I mean, certainly your testimony, we want to hear it, but I thought this discussion was about alternative financing, not whether or not the project was worthwhile.
Again, this is not my area of expertise. 13 4/27/05 - Bill No. 050235 - Whole
But I do live in Montgomery County, but we're one of the few exceptions in this country in terms of businesses. We bought this business in December of '85. We took our facilities from outside the City, put them in here, created a 750,000-square-foot facility. It's the largest in North America for a soft drink facility. We added about 500 jobs to Philadelphia. So our constituency really does represent a lot of folks from Philadelphia. So we do wear a Philadelphia hat quite a bit. Philadelphia is about percent of 17 our business, and yet we are very 18 Philly-centric in a lot of our charity and civic activities, things like that.
No. That was Frank's. But from a business point of view, I have the task of raising money for this 14 4/27/05 - Bill No. 050235 - Whole endeavor, and I think the dialogue you all created here is good for us, because people have a passion about libraries. I grew up in the inner city. My parents didn't graduate high school. I walked by a library in the first grade and that got me hooked on books, and that's where I'm at today because of libraries, and I bet you a lot of people in this room are the same way. They are important. We don't do a great job quantifying how important they are, so I'm here kind of to represent from the business point of view. If you look at a lot of job growth and creation in the City, it's small business people. It's all over the place. But they need help, and the best thing about the Free Public Library is, it's free. So a lot of these folks go in there and they find ways to get small business loans, they find ways to find employees, they find ways to do D&B analysis on things. Those are all good things, and I guess we're all on the same page there, but in 15 4/27/05 - Bill No. 050235 - Whole terms of how do you find alternative funds? This should not be a zero sum game. This dialogue should create a sense of urgency that people can find a way, within democracy to find a win-win solution here. Delay of the project is my major concern, because it's $5 million a year each year we wait, and if you look at construction costs, cement and steel, things like that, it's a killer. This price tag can be so great, there won't be one. Secondly, we need sales persons for this. I need help. I'm going around everywhere asking people for money and a lot of money, and I personally put in money, and the first dollar I ever put into the library system was to put the wiring and computers in two branch libraries about ten years ago. So we're all on the same page, but we need people to help us in this endeavor and we need people in Council to help us go pitch people and say, How do we get money for this? Because as a business person, getting the facility worth over a hundred million dollars 16 4/27/05 - Bill No. 050235 - Whole and only provide 30 million, it's the best deal in America. As Stephanie said, every single major city has had a major new central library renovation, addition, whatever, and 100 percent was paid by City taxpayer funds. That is not the case here. So we're trying to find ways to find a win-win here. My job is to get money from a lot of folks out there, and I really need your help, and this dialogue could be good if we can find a win-win out there. If it's not, it's going to be really tough on me and other members of the Board to get that money.
Thank you, Madam President, and thank you, Mr. Wilson, and I do appreciate the role your company has played in the economic development of this City and the fact that you chose to stay in Philadelphia and created all those jobs. In your testimony, I think I heard you say that you went to a branch library 17 4/27/05 - Bill No. 050235 - Whole as --
As a kid. I group up in Paterson, New Jersey, inner city environment, and I've been here since '84.
And you said something to the effect that when you passed by that library, you use that library?
I suspect that a majority of the people who work at your plant -- is that the one up on Erie Avenue, is it?
Erie Avenue. -- (continued) are local Philadelphia residents, for the most part?
I'd say it's a mix. I'm not sure exactly, but it's pretty big. 18 4/27/05 - Bill No. 050235 - Whole
Would you agree that the majority of those Philadelphia residents who work at your plant probably have either never used the Central Library or, more likely, will not use the Central Library and are more relying on their local branch, as you did probably when you were a kid?
I don't know the answer. I use both, so that's the only experience I have, but it's probably a good guess on your part.
It's somewhat of a guess, but it's more of a reality when you represent neighborhoods, as each of us do, especially the District Council people. We have very diverse neighborhoods. The district I represent runs from Oregon Avenue in South Philadelphia up through the River wards to the lower end of Oxford Circle. Port Richmond, Kensington, Northern Liberties, you name it, I represent those districts, and 19 4/27/05 - Bill No. 050235 - Whole I can tell you from my experience, that the majority of the people in those neighborhoods don't use the Central Library. Now, as Councilman Kenney said, there is no one in this Council who does not believe that the project, the expansion, would be a great thing for the City, a great thing for the Free Library. We passed the legislation back in December unanimously, but we passed it at a time when we were being told that it would not be at the expense of branch libraries. You as a business person make decisions. We're a business here. We have to make decisions. Do we put a huge investment, which will take somewhere from two and a half to three and a half million dollars a year to pay for the debt service to do the upgrades and the expansions for the Central Library, or do we use that money, which would be earmarked for that expansion, to keep neighborhood branch libraries open full time, fully staffed with librarians year in and year out? That's the decision, the business decision, that we 20 4/27/05 - Bill No. 050235 - Whole need to make. Because, in my opinion, the overall population -- and I think it was in the Commerce Director's testimony where she said that the Free Library system -- the question before this Committee today is, "How important is the library to the City's residents and how does this bill help them?" Well, I take that to mean all of the City residents, not just people who either live in close proximity to the Central Library or students who go to the universities, which are important, they're important, who probably are the bulk of the clientele who use that Central Library. For me, when I hear City residents, for me that means Kensington, Port Richmond, North Philadelphia, South Philadelphia, Southwest Philadelphia. So that's the business -- (Applause.)
Elliot, I wish you were just as quick on responses when we gave you -- your testimony, by the way, I don't know if my colleagues -- we just got the 21 4/27/05 - Bill No. 050235 - Whole responses on Elliot Shelkrot's testimony this morning from April 6th. It came into my office at 9:15 a.m. But anyway -- and you can respond on what Elliot is telling you. City residents are across this City, from one end of City Line Avenue to the deep end of South Philadelphia, to Northeast Philadelphia, out to the airport, all our boundaries. Those are the people that we have to make that business decision on. If the Administration would have told us in December that the branch libraries may have a cut in services, that librarians, certified librarians, their hours would either be reduced or they were going to be laid off, it may have been a different business decision on behalf of this Council, and maybe, and maybe, we may have been able to work with the Administration to get the best of both worlds, but we're not in that situation today. (Applause.)
I'm kind of the outside person looking in on this. 22 4/27/05 - Bill No. 050235 - Whole
And I'm not being critical of you, because you're a good guy. You come here, you're putting your money where your mouth is, you're doing all the great things, but your decision of whether you stay in Philadelphia, leave Philadelphia is primarily based on a lot of things, moral issues, as well as financial. It's a moral obligation for me to keep branch libraries open in my district. (Applause.)
And I guess a challenge to everybody is, again, how do you all work together to find a win-win solution here? I think in a world where we have less folks, you have to do some reengineering out there. What's the best solution? I wasn't involved in that. All I can say is that there's probably more people go to Central Library than go see professional football games here. More people in America go to libraries than go to all professional sports combined. Eight hundred thousand people go to the Central Library. 23 4/27/05 - Bill No. 050235 - Whole A friend of mine is the Coke bottler out in Salt Lake. They built a library there. They tripled the attendance there. People from the neighborhood started to go there. It got to be a great place. The arts are out in the Parkway now. They're going to explore more of this City when you have this grand facility there. There will be a great cultural benefit to the neighborhoods by having the new magnet out there.
No 14 question. No question. I'm not going to belabor that point, but the schools who are in close proximity to some of the 20 branch libraries that are having hours reduced, the librarians are being replaced by -- I even forgot the title of the people that are replacing them. They don't have the ability to use the Central Library as frequently as they do by walking a block or two from the school. They just don't have that. (Applause.)
I'm 24 4/27/05 - Bill No. 050235 - Whole certain that all of us, all of my colleagues, get requests from schools -- I get them constantly -- asking for some contribution to help pay for a bus so they can take the kids to the zoo for the day or to the Central Library. We can do the best we can. By the way, that money comes out of our campaign accounts, and that's okay, because I don't have a problem and I know none of us have a problem doing that, but you can't do it every week for every school. The economics don't work. We can never raise all that kind of money to do that and everything else we need to do. But you used the statement that it's a great thing, and we agree. As Councilman Kenney said, none of us disagree that the Central Library, renovations and expansions, are proper, they are important and should be done, but not at the expense of the neighborhood libraries. That's the bottom line. (Applause.)
So then to me the 25 4/27/05 - Bill No. 050235 - Whole challenge would be how do we get all the key parties representing business -- I'm not in politics, but how do we get everybody to say, Look, this is a pretty important issue, the Central Library, the branches. How do we find a solution that would satisfy the communities and the general public? That's the challenge you all have.
The general public is the key, I think, to this whole -- the general public, in my mind, speaks to neighborhoods, as well as the Central branch. And how do we get the general public in every single neighborhood, give them the best opportunity, the maximum amount of hours and the best staffing that we could provide for them, is paramount, in my mind, to this whole issue, but, again, not at the expense of those issues for the Central Library. And I don't think this is that big of a deal for us to figure out. If the private sector is going to be raising $80 million, whatever it is, towards the expansion, in the scheme of things, if we 4/27/05 - Bill No. 050235 - Whole can convince the Governor, who sometimes I'm concerned about being part of that party that he supposedly represents, and the Mayor, who claims to be a neighborhood Mayor, who is closing libraries and closing fire stations, can figure out how to raise $5 million annually, in the scheme of things, it's not a big deal. We shouldn't even be here today. (Applause.)
And, Councilman, we have offered the Administration to look at alternate financing. Mr. Wilson, I think there are a number of Council people that would like to be recognized. And, Councilman Kenney, I assume that you will talk about the alternate options.
I have a question, business question, for this person. I'd like to get his view.
Thank you, Madam President. 27 4/27/05 - Bill No. 050235 - Whole First of all, I want to apologize that you have to go through this. I mean, Councilman DiCicco is doing his job and sometimes it looks as if we're not appreciative of the business community and their efforts, and the fact that you're from Montgomery County doesn't bother me at all, because I view this library as a regional asset for everyone in the region. But I guess we have a solution at our fingertips. We have two available sources of dollars. One is $10 million that we could access from Act 71 monies that are sitting in an account. Act 71 was reimbursement from the state for prison construction. What a wonderfully symbolic gesture that would be to use money that was used to build prisons to renovate or help renovate and expand our library. That would be a wonderful symbolic gesture. The other is money that's available from PICA proceeds that's available for the improvement of public buildings that exist in Philadelphia for life safety and other issues. 28 4/27/05 - Bill No. 050235 - Whole So the existing building of the Free Library, Central Library, is a perfect opportunity to use those proceeds to upgrade the life safety and health systems of that building. Would you, as a business person, think it prudent for us to borrow, to finance, $30 million and to pay the debt service over 30 years when we have two available sources of money right now at our fingertips that could be used to provide the $30 million that you need and that the library needs to expand and to renovate and be able to set aside the debt service we'd be paying for the borrowing to keep the neighborhood branches open and fully staffed? To me, as a business person, it seems insane to borrow $30 million, pay it off over 30 years when we have $30 million at our fingertips ready to be used for this important project. Would you borrow 30 million and pay it over 30 years?
Again, this is not my turf, so -- 29 4/27/05 - Bill No. 050235 - Whole
-- if there was a choice between free and interest, you know the answer, but I don't know are those real options. Again, you folks are going to deal with the Administration on that.
What I would appreciate the business community doing in an effort to get this moving and to get us all enthusiastically behind it is to say, Mayor, perhaps you should look at those two sources of money. Wouldn't it be nice to pay for some of the library expansion out of funds set aside to build prisons? Wouldn't it be nice to improve the health and safety of the existing library systems by using PICA money that's sitting in an account somewhere doing nothing for no one? And maybe we shouldn't borrow the money and pay it back over 30 years at an exorbitant rate when we have the money available. That would be a help for us, because I believe, frankly, that the cuts that we're 30 4/27/05 - Bill No. 050235 - Whole experiencing now or being proposed now, libraries, rec centers, fire houses and the like, were done in a way to make people angry because the Mayor is angry about what we did with tax cuts last year. So he figured this budget, let me send something over that's going to really stir them up over there and give them some grief. We'll deal with that. And that's the way this Administration works, and that's fine. I don't think it gets us anywhere in a progressive way. There are other areas in this government to cut besides libraries, rec centers and fire houses, but that's his decision and we'll fight that battle. But you could help us by going to the Administration and saying, Why don't you really seriously look at this method of funding, maybe we don't have to borrow 30 million and pay it back over 30 years. That would be a help, if you could. And, again, I want to thank you for all -- I'm sorry. I apologize, because I'm speaking through someone's back. I do want to thank you for your 31 4/27/05 - Bill No. 050235 - Whole efforts, your continued efforts. Again, I believe this is a regional asset. I think it could be a tourist attraction. When I go to New York, I stop by to see the Rose Room, the New York City Library. I mean, it's a kind of a place that you want to bring tourists and people to. And we want to do it. We just don't want to do it at the expense of borrowing money in an insane effort which results in the closure of facilities that we all think are important also. So you could be helpful in helping us get that message across.
I'll help that, and then when you guys resolve that issue, will you help me get some contributions from marketplace? That would be great.
And help us with some tax reform. That would be another step in the right direction. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman 32 4/27/05 - Bill No. 050235 - Whole Cohen.
Unfortunately, I have to leave for a short period of time, but I wanted to say --
-- in the interest of business, the libraries would have been better for us and for the City of Philadelphia if your emphasis were on the importance of libraries, the young children in the neighborhoods. That's where we're expecting growth in the future. That's where we're expecting the real strength and power of a strong Philadelphia. It's important for business, but it's much more important for the neighborhoods. And to us, it seems clear, neighborhoods are being sacrificed, they're being told while education is important, it's 33 4/27/05 - Bill No. 050235 - Whole not as important as making sure the big people, the influential people, can get to the main library and get what they need, you will have to suffer until sometime in the future. And that's the part that's disappointing about what you said. In your statement, you did not speak to the needs of the neighborhoods, of the people that are going to be the future Philadelphians that chart the course for the City. (Applause.)
And my vote, if there is a vote, Madam, unless there is some action that develops from this meeting to indicate that there's going to be an emphasis to get this thing straight on the libraries, putting children and neighborhoods first and then all other needs second, unless there's steps taken in that direction, I will be supporting and my vote should be cast for Councilman DiCicco's ordinance. (Applause.)
Council 34 4/27/05 - Bill No. 050235 - Whole President?
Yes, Councilman. The Chair recognizes Councilman Kelly.
Thank you, Madam Chair. Mr. Wilson, I just want to congratulate you for your efforts and all of the interest that you're showing for our libraries in Philadelphia. I think it's very commendable. I think your efforts are, I think, well deserved, but I have a problem and I have a -- probably my question is to Mr. Shelkrot. I think that what we have to do -- and I think Councilman DiCicco addressed this situation. It was more or less, the state has been cutting back on the libraries for the last few years, and I would like to know what you have been doing or what your associates have been doing to try to convince the Governor, the legislators, or whoever, to try to restore as much of that funding as possible. 35 4/27/05 - Bill No. 050235 - Whole Because, again, with Councilman DiCicco, if we could restore the funding that the state has been cutting and this Administration can restore the cuts that the City has made or plans to make, I think that we wouldn't be sitting here today, because you would have full funding, you wouldn't be laying off any librarians, you would have full staffing and you would have libraries open at their normal times, as they should be. In fact, I am one that would prefer the libraries to be open staying longer -- or open longer than what they are. So I just want to know what efforts have been made, especially to our state government.
There have been -- that's a very good question, because there's no question that part of this problem has to do with the reduction in state money for libraries, and it was two and a half years ago when the proposal in Harrisburg was to cut library support in half. After a great deal of effort from 36 4/27/05 - Bill No. 050235 - Whole communities all over the state and a very strong effort from the Friends, the staff in leadership roles here in Philadelphia, contacts were made with all of the legislators, meetings were held with the legislators from Philadelphia. There were bus loads of people who went to join the rest of the state when they met in Harrisburg to push for this money, and thousands of letters and communications were received by the legislators and the Governor. As a matter of fact, to the point where some of our state senators said they've never seen so many letters on any single issue. That resulted in a slight increase from that 50 percent cut that was proposed. We are now seeing another slight increase in the Governor's budget, which is being challenged to make it more.
Okay. The slight increase is -- I'm just trying to find that number. 37 4/27/05 - Bill No. 050235 - Whole It's a two and a half percent increase, which only pushes us up from about 4 million from the state, just two and a half 5 percent up from that, when the state's budget 6 three years ago was over $9 million for libraries.
So you're saying it's $6 million, would be the total --
-- for 2006? So it's still under $3 million than what it was three years ago?
That's correct. I think the exact numbers were two and a half million dollars.
Well, this is the problem that I have with it, is that the City Administration is asked, of course, to do all that we can to restore not only the cuts in Administration but to put you back in probably financially a much better position than you are today. In other words, I think somewhere along the line, the state is cutting you, 38 4/27/05 - Bill No. 050235 - Whole we're asked to restore those cuts by the City. In other words, it's the City that's making up the loss here, and I think the state is sort of just not doing much at all. And I don't think it's fair to ask us in this Council to do all we can to restore the cuts so you could operate the libraries as efficiently as you have been and just letting the state do whatever they want to do. And I think that's one of the things that I would like to see, that if we're going to do something, I think that the state also has a responsibility to contribute and to make sure that our libraries in Philadelphia are staying open the way they should stay open and being staffed the way they should be staffed. In going along with Councilman DiCicco, I think he's made a good point, that somehow or other that -- and I think Councilman Kenney has an excellent suggestion, that if there's better ways of financing or actually obtaining the money rather than borrowing the money, I think that three and a half million dollars could go a long way in 39 4/27/05 - Bill No. 050235 - Whole restoring those cuts.
We have a gentleman here who has a time constraint. We'd like for him to make his remarks so that he can leave and then the Council members will come back to have questions for you. Yes. Would you identify yourself for the record, please.
Yes. My name is Alec Kerr. Good morning and thank you very much for altering the schedule to allow me to testify. I'm here today as the immediate past Chair of the Board of Trustees of the Free Library and a current member of the Board, and for the benefit of Councilman DiCicco, I live in Philadelphia. I've lived here for more than 30 years. I'm in the Northwest part of the City. I've raised my family here and I've been using public libraries for a long time.
And the Central Library. I use both. 40 4/27/05 - Bill No. 050235 - Whole And what I think one of the key factors we have to focus on -- and I'm going to try not to stray from my prepared remarks too much -- is that there is an inevitable inner connection between the Central Library project that is before this City Council and the neighborhood branches. This City, this library system did a wonderful thing starting ten years ago, very different from many other cities, which went and did the Central Library first and paid no 13 attention to the branches. The wisdom of a lot of people brighter than I am, but I got some credit because I was Chair of the Board during most of the branch renovation project. We went out and did the branches first. It was a unique public-private partnership throughout the country. People came and studied it, because we raised $35 million from the citizens, from the corporations, from the foundations of this region, and this Council and City put in $25 million, and together we made a difference and changed lives. 41 4/27/05 - Bill No. 050235 - Whole I visited every branch library before the renovations and after the renovations. I got to see all of your districts in a way that I never had before, and it was a true privilege. I got to see branch librarians at work in their neighborhoods. And, yes, I believe branch librarians make a difference. They're extraordinary public servants and they are -- (Applause.)
-- vital to our system, but there is a direct connection with the Central Library. The Central Library project is at the hub of the system. It's the keystone, if you will. We have already started some momentum, and this Council -- I will not go -- I have about two pages of remarks here that go to exactly what Councilman Kenney and Secretary Naidoff and everybody said, and I won't burden the record with that, other than we need it, it's critical. The collections, some of the ones that she didn't mention, like the Theatre 42 4/27/05 - Bill No. 050235 - Whole Collection, the Children's Collection -- I'm sorry Councilman Cohen isn't here -- that Central Library has the finest Children's Collection of books outside of the Library of Congress. It's truly extraordinary. And you can't get around in the Central Library. It's so antiquated. It's so -- you know, if you go back and look at what Lehigh Library was before the renovations, well, Central Library is just as bad. It's overcrowded. You can't use it. The systems don't work, and we need to do this project. And how you finance it, I'm not a financing expert, but what I do know is that if this bill is passed and the City withdraws its support, we're not going to be able to do any of the fund-raising. What is key to our progress is that the City is in the game. Your $30 million is on the table, and that's what allows us to go out and start this public-private partnership all over again. And we want to do it, and this City needs it. And if you withdraw that funding now, we're 43 4/27/05 - Bill No. 050235 - Whole dead. It's not going to happen, and that's what's the tragedy here. Now, there's got to be some way to get the branches open longer, to have people doing their jobs and all the rest of it, but if you stop this project, you're not going to have effective branch libraries without a Central Library that works. It is key to the system, and that's what the point that I think maybe we're missing. I want to extend -- have my remarks been submitted? What I was going to say is, I apologize on behalf of our current Board Chair, Former Mayor W. Wilson Goode, Sr. He was unable to be here today. He very much wanted to be here. I have a quote that I'm supposed to read from him. I don't know if it's part of the record before or not, but out of deference to him, I'm going to at least read it so that somebody can say I did what I was supposed to do. And this is a quote that I think was in some of his recent remarks, perhaps to this 44 4/27/05 - Bill No. 050235 - Whole Council. "A great City needs a great Central Library. And great doesn't mean bigger. Great doesn't mean only repairing the broken windows, fallen plaster and adding more shelving for material. It means recognizing that Central Libraries today reflect the best aspiration of a city. They are vehicles for civic engagement, for breaking down barriers between cultures. "They have become virtual town halls with discussions, lectures, meetings. City after city has invested in their Central Library. "They have become the heartbeat of their cities, a focus for intellectual, civic and economic growth. For us the New Central Library will be the People's Place on a revitalized Ben Franklin Parkway," close quote. So my plea to this Council is, find a way to do both, but we cannot abandon this Central Library project. And my concern is, if you take the $30 million off the table, 45 4/27/05 - Bill No. 050235 - Whole that's the end. Thank you for your courtesy in listening to me and for allowing me to go before some of the others here today. I really appreciate the opportunity, and it's been a privilege, I have to say, for the last years to be on the Board of this great 9 library and to have served as Chair. 10
And 11 we certainly appreciate all the work that you 12 have done. 13 The Chair recognizes Councilman Kenney.
Before Mr. Kerr leaves, I would ask you, similar to what I've asked the last witness, is to perhaps attempt to make a forceful argument, as you've made here to us, to the Administration on the desire that this body has to find the money for your needs somewhere else other than financing it over 30 years, which creates, as you can hear from the testimony here, the need to pay debt service, which could be applied to keeping the branches 46 4/27/05 - Bill No. 050235 - Whole open and staffed fully.
I've been pretty consistent in my views. I will tell you one of the reasons I went to law school is, I was promised there was no math. So financing is -- I'm a litigator. I'm not a finance expert, and I don't know -- I can't tell you how to do it. I just know we have to do both. If we abandon one in favor of the other, we have a problem.
We can do both, but, again, our calls to this Administration to look at this have gone totally -- have been totally ignored. Perhaps the business community and the activists who want to get this done can get through to them, because we certainly can't.
Yes. 47 4/27/05 - Bill No. 050235 - Whole Good morning, Elliot. I just want to ask you a question. I know that you were lobbying with the library association across the state for funding for libraries.
Have you sought to creatively lobby solely for Philadelphia? Because while our state representatives here in Philadelphia might be prone to support trying to fund and help Philadelphia's library, they may not be -- and I can't speak for them. I don't know the politics of Harrisburg -- be so inclined to go really strongly for state-wide funding or across-the-state funding. What have you done to reach out to our local legislators to say to them, Philadelphia needs funding?
There is not a legislator in the City that I have not talked with. Well, there may be some that I tried to 48 4/27/05 - Bill No. 050235 - Whole get a meeting with and it didn't work out, but all of the leadership from Philadelphia and many, many more who are from Philadelphia, I have talked with. Board members have talked with or sent letters and communications to. The challenge, they -- it is difficult. There is a formula the way it's divided up among different parts of the state. We do get between 10 and percent of the 11 state-wide allocation. Of course, that's 12 approximately our population as a percentage. They have offered support in the way of legislative initiative grants, one-time grants each year, and those have been helpful for many things, but you can't hire staff based on one-time legislative initiative grants, because they are not the kind of things that are permanent and continue to come forward. And besides, the total amount was nothing like -- came nowhere near the amount of the overall cut in state money. But specifically, we have worked with our state legislators very closely and, you know, Dwight Evans, Senator Fumo and many, 49 4/27/05 - Bill No. 050235 - Whole many more, and they have helped. I believe that some of the increases that were applied were a result of their hard work, and we continue to do that.
You're welcome. I think we went off course. Mr. Jannetti, are you going to testify and then we will have questions and answers?
Thank you, Madam President. I want to excuse myself from this very important hearing. I have cancelled a very important meeting with the great people of the Great Northeast and I have to run up there, because I can't cancel them twice. They might get mad at me. But I wanted to just state for the record -- can you permit me, Madam? 50 4/27/05 - Bill No. 050235 - Whole
I commend my colleague and friend, Councilman DiCicco, for bringing this issue up, because I think we're all very disheartened after we voted. All 11 members of this Council voted to go on ahead 12 and float the bond and get this new library 13 going, but we were disheartened by some of the 14 statements we heard from the Library Director 15 and other folks. It seems like things were 16 not -- we're not in sync, especially because we have neighborhood libraries that need to be kept open. However, I am not ready to go down the path of eliminating this project. We need both. We need this library to go up and we also need for our local branches to be kept open, and I have gone on record in my Committee of Labor and Civil Service public hearings that we will be fighting very, very, 51 4/27/05 - Bill No. 050235 - Whole very hard here to make sure that these library branches are kept open. So in that regard, I'm very glad that Councilman DiCicco has brought this at this level where we cannot permit a new library with all this money that we're going to be having to pay back to be done at the expense of our local libraries. Nevertheless, I believe that we need to proceed with the ordinance that we did approve on January the 25th. So I want you at this time, Madam President -- I hope this is more of a leverage for us to make sure that this library continues to go as it was approved by this Council, but also that our neighborhood libraries will be kept open. So I'll be voting no in this Committee in regards to the appeal. Thank you, Madam President.
You're welcome. I'm sorry. Mr. Jannetti, are you next to testify? 52 4/27/05 - Bill No. 050235 - Whole
I have said repeatedly, Councilman Ramos, that if the Administration would abandon this plan to reduce the number of hours and laying off librarians, that I would withdraw this bill. I've said that at least on two or three occasions over the last two, three weeks, whenever I introduced the bill in the first place, and I've not received any response back from the Administration. And I appreciate your understanding of the situation and the fact that you do have an opinion, but I think the worst thing we can do is use the leverage -- you used leverage in your statement. If you vote no and it's off the table, there is no leverage. So I just wanted to make that known to you, that I did publicly announce that I would withdraw this bill if we get guarantees that libraries will be restored back to where they were and librarians who either have been laid off or 53 4/27/05 - Bill No. 050235 - Whole are planned to be laid off were not laid off. Let's go back to where we were and I'll withdraw the bill.
And we have never been informed as to why the alternative funding sources are not feasible.
That is the big issue. Mr. Jannetti, who is going to testify next?
Let me testify briefly and then Mr. Jannetti will have responses. The testimony that I submitted goes through a lot of the facts pointing out how the children of Philadelphia, as well as the adults of Philadelphia use the Central Library extensively. I'm not going to review that. You can read that. I don't need to review it in oral testimony, because it is understood. I do want to say that we're all in favor, and I know Council is in favor, of this project. They have voted for it. And I want 54 4/27/05 - Bill No. 050235 - Whole to say also that we all believe in the branch libraries. We want branch libraries that are fully staffed, and we share your commitment. We will work to make that happen, but this is in a difficult time. We will work to make that happen in the future, but let's not take the Central Library and make it into a scapegoat. It can't be. It can't be a sacrificial lamb, more to the point. It's vital for the well-being of the City. It's vital for the well-being of the branches. And you've all been involved in fund-raising, and this is what was said before, and you know that once a momentum has been created, you can't stop. And as others have said many times, other projects for this City were built during times of economic stress, and indeed we're one of the last cities to get a Central Library moving. I know we're all in favor of the Central Library, and I just urge us to stay the course and fulfill this vision for Philadelphia. Thank you.
I 55 4/27/05 - Bill No. 050235 - Whole know that Councilman Rizzo is next, but I could just tell that Councilman DiCicco wants to respond to some of your comments.
Thank you, Madam President. I actually reach a point in hearings, not only this hearing, where I get tired of hearing myself, but I don't want people to think that I'm playing up to the media, grandstanding, but the only way we can get our message across is to continually hammer out these issues. I do have a number of questions, which I'll hold later, but to suggest that this Council and this legislation is in some way holding the Central Library or making it a scapegoat I think is an insult. I think the -- (Applause.)
I think, if anything, it's the neighborhoods and their branches that are being used as the scapegoats, because it's all about -- (Applause.) 56 4/27/05 - Bill No. 050235 - Whole
It's all about this so-called economic development. And I can go on for hours. You want to talk about economic development? No disrespect to the library system or the Central Library, they're cutting money to the Art Museum, but I know every dollar we invest in the Art Museum gives us $4 back in return. So if you want to talk business, we don't get that return in dollars from the library system, although we all want the library. So don't come in here, Elliot, and say -- Mr. Shelkrot, and say to us that we're using the library -- we're being used as scapegoats, because the Mayor, as Councilman Kenney said, doesn't want tax reform. He wants an increase in the parking tax. Some of us have sent the signal to him that we're willing to at least talk about it, and all we get is the same stuff, cut fire stations, cut libraries, no more interest in neighborhoods, because he's not running again. We're all running again. I know I'm going to run again. Does that limit me to my 57 4/27/05 - Bill No. 050235 - Whole contributions now that I announced? But we're not using this as a scapegoat. We didn't create this problem. We supported it in December wholeheartedly. There were glowing remarks about it, but we got it stuck to us when we find out that branch libraries are getting their hours reduced and librarians are going out the door. Mr. Kerr, who I think has left, said he was part of this whole plan ten years ago for the renovations to branch libraries, and that's a wonderful thing. I would ask him, if this plan goes forward and the reduction in the librarians, to visit some of those libraries, if they're open when he gets there. He won't see those librarians. So all that money and all that time and effort was put into something that we're not going to use anymore. (Applause.)
It doesn't make sense. And I'll get into your testimony. I appreciate the opportunity to comment, because you're right, I was ready to 58 4/27/05 - Bill No. 050235 - Whole jump out of my skin on that one. And I'll come back with some other comments. Thank you.
Very well. Thank you. The Chair recognizes Councilman Rizzo.
Thank you, Madam Chair. Mr. Shelkrot, can you provide to the Chair any official communications to the state government, either from yourself or the President of the Board? I've talked to some state legislators that told me that you indicated when the budget cuts were presented to you, that you could live with them.
You never said that you thought that you could live with the reduction in the state budget?
Other than 59 4/27/05 - Bill No. 050235 - Whole some visits, what do you have in writing to protest the budget cuts?
I absolutely wrote to the Governor, many times. And I asked Board members in my role as leadership, I asked Board members and many others. I encouraged the Friends in their efforts. We were very concerned about the state cuts and we were very active, not only with the state association but individually on those. I mean, I myself and others at the library.
Well, 60 4/27/05 - Bill No. 050235 - Whole there's a feeling out there among some of the members in Harrisburg that the library thought that they could work themselves through the budget cuts. And I don't want to name names, but we'll get to that point. I'm just curious what the effort was, and it would be interesting to have some exhibits for our record what was done to object to any potential or rumored of -- you knew that there were going to be cuts, so I would be curious how quickly we reacted to those cuts. And then when you got the restored -- then you got some of that money restored, was that for Philadelphia, was that state-wide and you just got restored on a percentage of the rest of the state? How did that work?
Okay. No. We got our percentage through the various formulas. There are about five different formulas that include us, and we got -- you know, the appropriation is distributed according to the law and we got the distribution that is according to the law, which meant the increases that we got. 61 4/27/05 - Bill No. 050235 - Whole But I'm dumbfounded that anybody could say that we were not active, extremely active, in getting that money restored.
I'd like to go back to those individuals and prove them wrong, so help me and provide me with some documents that you have expressing to the Governor, to the leadership in Harrisburg, to the Budget Director, whoever that you communicated with, to say, Hey, look, we can't live with this. Because, again, I've been told that the objection was very, very quiet.
You should ask Senator Kitchen how quiet was. I mean, you should ask Senator Fumo how quiet was. You should ask Senator Stack. I can go through name after name after name.
I'm not suggesting I'm right. Show me what you did in writing to protest that.
I will. A lot of that kind of work goes on one to one, but I will get all the documentation I can find --
Well, I 62 4/27/05 - Bill No. 050235 - Whole think something significant.
-- in writing as well as calendar -- whatever we can find, we will provide.
I'm not looking for any private conversations. I'm just saying that something this significant would have warranted a letter to the Governor.
I will be happy to provide you with all of the documentation I did.
By the way, that's Councilman DiCicco. I'm Rizzo. And Councilman DiCicco did not answer these questions that are on this report that you provided today about the number of computers. So if you could get that record straight.
Thank you. The Chair recognizes Councilman Nutter.
Thank you, 63 4/27/05 - Bill No. 050235 - Whole Madam Chair. I'll be brief. Good morning, Mr. Shelkrot. If I'm referring to the same document that Councilman Rizzo was just talking about, the report dated April 26, 2005, I think we received just somewhere in the past hours, I need to ask 8 you just a couple questions about that 9 document. Do you have a copy? 10
, I 12 believe I did ask the question with regard to, 13 and other members did as well, with regard to 14 alternative plans. I was left with the 15 impression during the regular budget hearing 16 when you were here a couple weeks ago when we 17 asked about how to get service back to the 18 level where it was in January, I thought the 19 response was $1.5 million. In the report 20 here, we're now reading it says 1.5 million 21 plus $450,000 in benefits. 22 So, first, can you tell me what has 23 changed over the past couple weeks and why is 24 there a discrepancy?
Well, the 64 4/27/05 - Bill No. 050235 - Whole discrepancy is quite simple. What I was referring to is the amount of money that needs to be applied to our budget, but in the process of submitting our responses and in the administrative review that went on, it was decided that we should add on the amount that it cost in other parts of the City's budget, which means the 450 for benefits. But the addition to our line item is still that one and a half.
Okay. Well, we don't have to have that argument at the moment, but I guess if I ask you how much it costs to get back to a certain point, obviously public employees get benefits, so I would only ask if we could get a clear answer that encompasses what it takes to bring service levels back to a certain point, it would just be helpful that the response is full, because it's not just about salaries. I mean, of course the public employees are going to get benefits. I mean, did you not understand the question at the time?
Yes. No; I 65 4/27/05 - Bill No. 050235 - Whole understand the question. I understand what you're saying now. We will be happy to. I mean, you know in the budget that we submit, however, I don't believe the fringe benefits are part of our line item. But if you would like that in the future, I can make sure that happens.
I believe the Managing Director would like to respond to that. Please identify yourself for the record.
Good morning, President Verna. I'm Pedro Ramos. I'm Managing Director. And I think, Councilman Nutter, that we can probably provide you that answer now, if you permit Mr. Shelkrot and I to just walk you through what the layers are from the number that you heard before, the 1.5, what that represents and I think step you through without a whole lot of talking, step you through up to what -- at least close to what I think the number that I think you're asking 66 4/27/05 - Bill No. 050235 - Whole for.
Well, under any other circumstance, I would love to do that, and if I have the opportunity, I'd like to do that at another point in time. Unfortunately, I'm going to have to leave in a few minutes.
Well, if I may, because you did ask the question and we're prepared to answer.
Let me finish. But part of the issue here is, in this process, I think if we ask someone what it costs to bring a service back to a certain level, then the answer shouldn't change and the answer should encompass what the real number is. So for months, the answer has been $1.5 million. Now we get a report that says, well, it's 1.5, plus close to half a mill on benefits.
Councilman Nutter, I think that what Mr. Shelkrot is saying is that when he answered that question, he 67 4/27/05 - Bill No. 050235 - Whole answered the impact on his budget. He did not answer what the cost to the City would be, since the fringe benefits for the library are carried elsewhere, not in his budget but in the general -- elsewhere in the General Fund. So that in fact the $1.5 million in the library budget in fact represents a third more when you factor in the fringe benefits. So that there is -- that restoring the 1.5 really is restoring 1.9 million, and that also assumes that the two branch libraries and the regional branch library that are currently closed for renovations wouldn't reopen. So that I would just say that that number --
If they're closed for renovations, you're planning to reopen them anyway.
They're not 68 4/27/05 - Bill No. 050235 - Whole a function of the $1.5 million.
This number did not reflect the cost. I'm just trying to clarify what the number meant.
But that question has nothing to do with those, because if they were closed for renovation, I think a reasonable person would assume that they're going to reopen, regardless of express branches or anything else. They have nothing to do with this conversation.
Well, I believe that that's why I want to make it clear. I don't want that -- I don't want there to be miscommunication. The 1.5 number you heard --
I think it's 1.9 plus 1.3. 3.2 to do -- to restore the 1.5 with benefits, and if you were to open the three libraries that are currently closed, that number is 3.2 to the City even though it's a -- 69 1 4/27/05 - Bill No. 050235 - Whole
On the low numbers, I'm really good at the math. So I understand 1.9 and 1.3 is 3.2. I got that. Let's forget about the 1.5 discussion for the moment.
Were you planning to reopen the branches that were closed as a result of renovations or not? Yes or no?
Under the plan that was submitted by the library and the Administration, those libraries would have -- those buildings would have opened and would have been staffed. All 49 branch libraries would have been open. Twenty of them would have been open shorter days.
I understand that. So all I'm suggesting to you is, it does provide confusion to the record to add in a couple branches that are presently closed for renovations to now bring them up in the context of if we add back the 1.5 or now 1.9, you have to add in the other two, because 70 4/27/05 - Bill No. 050235 - Whole you were going to do that anyway by your own statement.
They were going to be done in the library's plan and the Administration's submission through the reallocation of resources that are part of that plan.
Fine. Mr. Shelkrot, when you move into , you now have No. 2, which is 2.7 million plus $800,000 in benefits. That's your second option?
In order to get the branches and everything back to where we were in January --
I'm on No. 2 now. 71 4/27/05 - Bill No. 050235 - Whole
Okay. Then if we are going to put the staff in the two libraries, two branches, and regionals, which we want to do, that costs additional money, 2.7 plus benefits.
These are the two branches that have been closed for repairs? Are we still talking about those?
Councilman Nutter, if you'd look at it as cost to the City, as you're trying to do, compare apples to apples, the next step here is 3 --
But the problem with this discussion is, it's not an apples-to-apples discussion, because you want to talk about places that are presently closed for other reasons and now add them into discussion. That's my problem with this discussion. It's not an apples-to-apples 72 4/27/05 - Bill No. 050235 - Whole discussion, because those branches are affected by other things that have nothing to do with the current conversation, zero.
The budget submitted included those branches and that regional library opening. What has confused the discussion is the singling out of the earlier answer about the $1.5 million impact to the library budget, which was --
Well, I didn't make up the figure. The figure was given in open testimony. I asked the question, how much does it cost to take us back to where we were in January. Answer, 1.5.
And now we're trying to bring clarity to what the answer is for the whole City, and the answer for the whole City is --
Well, didn't you think my question was about the whole City? The library system is a part of the City of Philadelphia. I have not bifurcated it from the rest of the City in 73 4/27/05 - Bill No. 050235 - Whole some manner that would suggest that it's an independent entity that somehow gets its benefits from one place but its personnel from another place. I mean, what in the hell kind of response is that? (Applause.)
Councilman, I suspect that at the time that Mr. Shelkrot answered it, it was an answer to the question he heard as he understood it as compared to the current --
The question was, how do you bring people back to where we were. Of course we know people get benefits.
Excuse me. The Chair recognizes Councilman Kenney for a point of information.
I would assume that when that question was asked, 74 4/27/05 - Bill No. 050235 - Whole there was someone from the Finance Department that was sitting in the audience, because I see them here every hearing. Don't you think it would have been appropriate for someone from the Finance Department to get up and say, Excuse me, Mr. Shelkrot, you're misspeaking here, it's not 1.5, it's 1.9? What's the sense of having them here if they can't correct the record as they're here? (Applause.)
Let's go to No. 2, where we were. So here the real answer is 3.5?