m. - - - Bill No. 990023 - An ordinance adopting the Operating Budget for the Fiscal Year 2000. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, Chair COUNCILWOMAN AUGUSTA A. CLARK COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN DAVID COHEN COUNCILMAN JAMES F. KENNEY COUNCILMAN MICHAEL A. NUTTER COUNCILWOMAN MARIAN B. TASCO COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK DICICCO COUNCILMAN RICHARD T. MARIANO COUNCILMAN W. THACHER LONGSTRETH COUNCILMAN FRANK RIZZO CHARLES MCPHERSON, Chief Financial Officer - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 1748 PUBLIC HEARING - COMMITTEE OF THE WHOLE I N D E X John K. Leary, General Manager, SEPTA . . 1751 Joe Casey, Director of Budgets, SEPTA . . 1772 Jettie Newkirk, SEPTA Board Member. . . 1774 Denise Goren, Deputy Mayor of Transportation 1778 Frances Jones, SEPTA. . . . . . . 1782 Richard Voith, SEPTA. . . . . . . 1809 David Volpe, First Deputy City Controller . 1850 Emanuel Ortiz, Chairperson Board of Trustees 1851 Community College of Philadelphia Dr. Ronald A. Williams, Acting President. . 1854 Community College of Philadelphia Dean Kaplan, City Budget Director . . . 1888 Isadore Schreger, Board Member. . . . 1902 Community College of Philadelphia Margaret M. Tartaglione, Chairwoman . . . 1905 City Commissioners Office Bob Lee, Administrator, Voter Registration. 1907 Constantine Papadakis, President. . . . 1924 Drexel University Natasha Barnett, School of Public Health. . 1932 MCP/Hahnemann University Audrey Johnson-Thornton, President. . . 1936 American Women's Heritage Society Belmont Mansion in West Fairmount Park Cathy Paster, Deputy Budget Director. . . ) William Mifflin, Executive Director . . . 1953 Fairmount Park Commission Dr. Walter Palmer, Chairperson. . . . 1972 Health Care Center 2 Shelah Harper, Board Chair. . . . . 1974 Health Care Center 8 Alice Hayes, Member of Board of Citizens. . 1982 9 Health Center No. 9 C. Gloria Akers, President. . . . . 1990 Philadelphia Cultural Fund Adrienne Jenkins, Executive Director. . . 1992 Greater Philadelphia Cultural Alliance James Maxton, Vice President. . . . . , Freedom Theater 1998 Susan Gobreski, Clean Water Action. . . 2001 Jane Bordehaas, Victim Service Agency . . 2006 Stephanie Mayweather, Director. . . . 2018 East Division Crime Victim Services Esther Mercado, Crime Victim. . . . . 2021 Shelly Yanoff, Executive Director, PCYY . . 2024 Dr. Michael Danjczhek, Executive Director & 2040 President, Children's Home of Easton, PA Melvin Buckman, East Philadelphia Coalition 2044 for a Free Library Branch Roseanne Gill, Member, Board of Directors . ) Karen Talarico, the Executive Director . . 2051 Friends of the Free Library, Joe Torres, Vice President. . . . . 2054 Board of Directors, Tabor Rams Youth Gretjen Clausing. . . . . . . . 2057 Philadelphia Community Access Coalition Lauren Townsend, Executive Director . . . 2063 Citizens for Consumer Justice David Acosta, Private Citizen . . . . 2068 For Public Access Television Gerry Givnish, Artistic Director. . . . 2073 Painted Bride Art Center Wendell Young, President. . . . . . 2077 United Food & Commercial Workers, Local 1776 Timothy Siftar, Business Librarian . . . 2079 Keith Brandt, Adjunct Professor of. . . 2082 Communications, Radio Broadcaster Estelle Richman, Commissioner . . . . 2090 Department of Public Health Michael DiBerardinis, Commissioner. . . 2090 Department of Recreation James Tayoun, Former City Councilman. . . 2093 1751 PUBLIC HEARING - COMMITTEE OF THE WHOLE P R O C E E D I N G S
Good morning, everyone. I apologize for the delay. This is the continued public hearing of the Committee of the Whole regarding Bill No. 990023. This morning, we will hear from SEPTA. So I would invite them up to table. (SEPTA panel members come forward.)
Oh, Mr. Leary, before you leave the chamber today, remind me that I want to talk to you about something in my district.
Thank you. Mr. Leary, please identify yourself for the record and proceed with your testimony.
Good morning, Council President Verna and members of the City Council. 1 million Fiscal Year 2000 SEPTA Budget Request and to describe a few key initiatives the Authority has pursued over this past year. I'm joined this morning by Jettie 1752 PUBLIC HEARING - COMMITTEE OF THE WHOLE Newkirk and Richard Voith, the two Philadelphia representatives to the SEPTA Board, and I appreciate very much their joining me this morning for this hearing. Since last year's Operating Budget hearing, many important initiatives have taken place that will ensure the economic prosperity of the City into the new millennium: the Regional Arts Performing Center is now under construction, the Apollo Arena at Temple University is opened, Market Street and the waterfront area development activity is strong, and the prospects look bright for two new sporting stadiums, and now Philadelphia has been selected for the site of the Republican National Convention. Even with this positive news, we face great challenges, particularly the effective transition from thousands of Philadelphia residents from public assistance into the workforce. Like Philadelphia, SEPTA has experienced positive change, although we also face challenges that will shape our future. A five-year plan for strategic change, adopted just last year, provides the framework for undertaking 1753 PUBLIC HEARING - COMMITTEE OF THE WHOLE business initiatives that will improve the quality of the customer travel environment, enhance the provision of service across all modes, enable the Authority to effectively manage resources and contain costs, and provide a focus for activities to improve ridership and increase revenues. Building on this framework, we've been able to introduce new state-of-the-art vehicles into our fleet, including the new Market-Frankford El cars, and we're moving forward to obtain 88 compliant low-flow buses and articulated buses. We are continuing with our dynamic program to rebuild our aging infrastructure and our facilities, including construction of a new Frankford Transportation Center complex, the reconstruction of the Market El line in West Philadelphia, and we are completing the planning for the Girard Avenue Light Rail Restoration project, with construction scheduled to begin next year. We have also introduced enhanced service in response to the needs of our customers, including better access to growing employment centers in the City on line sections such as the Route 68, 37, 25, 5 and 7. 1754 PUBLIC HEARING - COMMITTEE OF THE WHOLE These achievements, however, were tempered by the unfortunate events of the 40-day strike service interruption this past June. We regret the monumental inconvenience City residents, businesses, employees, and workers faced during this time. We are, however, grateful for the tremendous support from the City and the collective willingness of the public to return to SEPTA. Senior management and the employees of SEPTA are keenly aware of the important role we play in the lives of many Philadelphians to get them to school, to work, to health care, and to leisure destination. We must work to strengthen the partnerships formed with our workforce, our customers, and the local businesses and government stakeholders. For example, an Executive Labor- Management Committee was recently established. By enhancing communications and building a cooperative work ethic, we may be able to work now to avert future work stoppages. The growth and prosperity of the region offers encouragement SEPTA's and for SEPTA's continued ability to bring riders to the system, 1755 PUBLIC HEARING - COMMITTEE OF THE WHOLE if we have the resources to respond to our customers' demands. We have achieved small surpluses in each of the past two years. A similar surplus is forecasted for this fiscal year as well.
These financial outcomes are the result of numerous cost-reduction issues, including reduction of administrative staff, prudent management of contractor services and material purchases, revision to our purchasing process, aggressive negotiations for better fuel and electricity prices, and better management of our injury claims -- all the while, increasing service in the region. In short, SEPTA has made more effective use of its limited resources. 1 million operating subsidy, and believe it provides sufficient revenue to leverage the State's proposed operating subsidy. Several months ago, SEPTA launched an advertising campaign with a theme serious about change. This message reinforces our commitment to the community and to ensure that mission to provide quality transportation service to the Philadelphia region is met on a daily basis. 1756 PUBLIC HEARING - COMMITTEE OF THE WHOLE Now I would just like to summarize a few of our recent activities that focus on the provision of SEPTA's service within the City. Regarding welfare-to-work, we have partnered with the Greater Philadelphia Works Program and established a traditional pass benefit for former welfare recipients who have secured employment. We've improved bus service to the Airport area employment centers and on Routes 124 and 125. We've expanded a pilot program to furnish transit passes for participants in job training and in job search programs from 5 Philadelphia county offices to all 19 Philadelphia County Assistance Offices. And we've partnered with the Private Industry Council to create a job opportunity program for recipients to become paratransit drivers. We've also developed a "How to Ride" guide both in English and in Spanish, with information about transit services to key employment centers. And these How to Ride Guides are in your packets at your desks. I'm also pleased to report that crime is down. Part I crimes, those are serious crimes 1757 PUBLIC HEARING - COMMITTEE OF THE WHOLE against persons and property, are down an additional 45 percent in calendar year 1998, and this is due to the increased police visibility on the system and in the community SEPTA serves with a very aggressive outreach program. We have also -- we ran the Operation Lifesaver Program for over 25,000 children from 65 schools throughout the City. This program is designed to teach children about the safe crossings and crossings only at designated place along the railroad tracks. We're continuing the SEPTA Sparkles Program, a program we're very proud of, with particular emphasis on the improvements to the Broad Street Subway stations, including Olney, Race and Vine, and Walnut-Locust. And we've completed the Phase I renovations regional rail stations at Overbrook and Allen's Lane Regional Rail stations. And we're moving forward with major modernization projects for City Hall Station, Spring Garden Station, Fairmount Station, and Girard Avenue Station on the Broad Street Line. These are just a few of the long list 1758 PUBLIC HEARING - COMMITTEE OF THE WHOLE of improvements that will move SEPTA and the City into the new millennium. org. Council President Verna, thank you again for the opportunity to provide testimony this morning. The City Council's generosity and continued support of SEPTA and our commitment to enhance public transportation service in Philadelphia has made it possible for the Authority to be responsive to the needs of our constituents. I look forward to working with you and Councilman DiCicco in his new responsibilities as Chair of your Transportation Committee, and with other members of Council to address key business initiatives in the coming fiscal year. If there are any questions, I'd be more than happy to respond. And I also, Council President, would like to introduce you to our new Board Chairman who has just. I understand that Pat Dion, the new 1759 PUBLIC HEARING - COMMITTEE OF THE WHOLE Chair of the SEPTA Board is -- (Mr. )
We welcome you. Thank you. Mr. Leary, you have all of these beautiful charts up here. Did you want to share them with us before we get into the question-and-answer portion.
Yes. I've tried to provide just a little information to graphically display the budget breakdown, Council President, both from the point of view of total expenses -- well, let me begin on the left -- total operating subsidies and the breakdown of where the subsidies come from; total operating revenue and where it comes from; total expenses; and then a total look at the budget and some general facts about the SEPTA service and the extent of SEPTA service in the City of Philadelphia. Each of these charts is in your packet. So if you have a chance, you can take a look at them.
Thank you. The Chair recognizes Councilman 1760 PUBLIC HEARING - COMMITTEE OF THE WHOLE DiCicco.
Thank you, Madam President. Good morning. First let me start out by thanking you, Mr. Leary, and your staff for the cooperation that you've been giving my office over the last year few years that you've been here.
It certainly has been a very positive thing for my office to get that kind of cooperation. In particular, the Broad and Oregon situation where the Head House area is now a portion of that land that was really of no use to anyone is now going to be additional yard space for the people on the 2600 block of Watts Street. I think at the end, they will think they're in suburbia with an extra 15 feet of yard space. And I want to thank you for that effort and your cooperation, and in particular, Frances Jones. I have a couple of questions. Within the next year, the City of Philadelphia, along with the Council President and I, anticipate some 1761 PUBLIC HEARING - COMMITTEE OF THE WHOLE major streetscape improvements on South Broad Street, from Washington Avenue at least until Oregon -- maybe somewhat further than that, but at least to Oregon Avenue. Senator Fumo has been very helpful and will be getting us some additional State money to do those improvements. The improvements will be in the area of lighting and banner poles and trees and median planters, what you have. There is a condition, though, an unsightly condition, both on the east and west side at the intersection of Broad and Snyder, and I was wondering if there's anything in your budget to address those two head houses; and if not, is there something that we can look to do? You know, Broad Street will be probably the major, if not the major arteries for he Republican National Convention bringing the conventioneers down Broad Street, so I thought this was a good opportune time to look at doing something with those head houses. Do you know if there's anything in your --
Councilman, I can't say specifically whether we've got anything in the 1762 PUBLIC HEARING - COMMITTEE OF THE WHOLE program at this time, but that's an excellent recommendation. I mean, we're focussing our resources these days a great deal in trying to improve the experience and the environment of the rider, and what you're talking about is exactly the kind of thing we're trying to do. I'd like very much to work with you on that and to do just that, kind of improve the environment of the station areas, much like we did at Broad and Oregon, and I was pleased we were able to do that for you. I will look into that and --
Yeah, I'd like to, if we can, maybe set meeting up with the Council President and go over that.
Yeah. And it's typically not a big money issue; it's just a matter of putting effort into it.
I don't think we're looking for anything really elaborate there, but those glass enclosures have seen better days, and I think it just -- esthetically, it just doesn't fit it.
And when we're going to do the other investment, I think it would be in appropriate. As to the other subway entrances, which are the staircase entrances, I think just a paint job would probably be sufficient there, so we're not looking for anything in major capital dollars there.
On that same issue of head houses, now that DisneyQuest is coming to Eighth and Market, I was wondering if there's anything in the plans to renovate, restore, improve the Head House condition at Eighth and Market. Frances Jones and I had had a little sidebar before you began your testimony, and she suggested that maybe Disney -- or you're looking to see if Disney would be willing to adopt that head house.
That would be wonderful, and I would love to promote the "Adopt-a-Station" idea.
Well, I'm letting 1764 PUBLIC HEARING - COMMITTEE OF THE WHOLE you know, as the chair of the Transportation Committee, and the fact that Eighth and Market's in my district, I'd be more than willing to see if we can schedule a meeting with yourself and your staff and the Disney people to talk about that.
I'd love to do that. And at the very least, we'll move our SEPTA Sparkles team in and make sure the place doesn't -- as we tell our people in the organization these days, it's okay for it to be old, but it has to be clean and shiny and sparkling.
But, again, I would be more than willing to facilitate that meeting.
And sooner, obviously, rather than later, because they're in the construction phases now. And I think it would probably work. You and I had a conversation a year or so ago where I had suggested that maybe we could to do something to make the experience of standing at an el stop or on a subway platform a little bit more pleasurable, with some public service 1765 PUBLIC HEARING - COMMITTEE OF THE WHOLE announcements. And where are we with that, by the way? Have we moved any closer to doing something like that? Or --
No, no, we have. I mean, I'm just a little disappointed 'cause these things are not easy to do. We do have a major station renovation program going on along on the whole line, including the introduction of a closed-circuit television study. And coming with the closed-circuit television study is a communications system that will then enable us to communicate with our customers on the platform. Those stations that have it today, it's very, very old, and it barely works. So we're moving in that direction. But I'd have to get back to you to say just what the timetable is. I think we're still at least a year away from seeing any of that in place.
Okay. But I thought with Disney at Eighth and Market -- I mean, if you've ever been to Disneyland or Disney 1766 PUBLIC HEARING - COMMITTEE OF THE WHOLE World, when you wait for the shuttles or the trams or the monorail, I mean, there's messages constantly being put out over the PA system. And I just thought that for those people who sit on the -- stand at the subway elevated -- the elevated -- the platforms, thank you, the platforms, that message is -- and I think we maybe even talked about maybe some advertisement there like, "White Sale at Strawbridge's Today," you know. But, again, you know, it's just to make the experience of being more pleasurable. And Disney might be an opportunity for us to work with the Disney people, and that could possibly be a pilot for some of the things we'd like to do, and I'd be more than glad to work with you SEPTA people on doing that.
A couple of other quick questions. One has to do with, what is the status of the light rail line I think we discussed about a year ago? At least as far as it relates to the 23 Line. Is there going to be light rail back on 1767 PUBLIC HEARING - COMMITTEE OF THE WHOLE the 23? And if so --
Councilman, what we're doing is, we're moving forward to restore the light rail on the Route 15, which is the Girard Avenue Line; that was the route that was selected to move forward first. We've engaged a consulting team -- Robert Burns Associates is doing the engineering and design necessary to begin a construction program sometime next year, with a scheduled completion of that restoration project in the year 2001. We've taken the position that we're one like back, and when it becomes a success, it would create the momentum to begin to talk about the other lines.
And I'll end with this question and then come back on the second round. We had some discussion this past holiday season about for next year, extending the trolley line on the down into South 23 Philadelphia. I think, based on my conversations with my neighbors, that if it came further down to South Philadelphia, that you'd probably get -- 1768 PUBLIC HEARING - COMMITTEE OF THE WHOLE ridership would improve. Leaving people off at 12th and Bainbridge just doesn't work for anybody who lives below Washington Avenue. And, again, I think, being a baby boomer, and I really don't have any grandchildren yet, but many of my friends do, it's very exciting for the kids when they see that going by. And I think it's a good way of promoting public transportation. I mean, for me, that's -- the nostalgic thing is obviously one thing, but more importantly, I think it may give people an opportunity to get on public transportation that have not been using public transportation for the better part of or 30 years -- who only live 10 16 blocks outside of Center City but, for some 17 reason, figure they have to drive in. And that 18 might be a good way of getting -- 19
Okay, I'll end 1769 PUBLIC HEARING - COMMITTEE OF THE WHOLE with that and then come back possibly with another question. Thank you.
Thank you Councilman. Mr. Leary, you indicated in your testimony that the implementation of the five-year plan for a strategic plan adopted by the Board one year ago provides a framework for undertaking various business initiatives. Would you elaborate on what actions you have taken to improve ridership and increase revenues?
Yes. Council President, we put together the five-year strategic plan for change as a blueprint for the entire organization to take us into the future and to guide us so we would all be working in the same direction as we move forward to modernize the organization, modernize and change the way we conduct our business on a daily basis. And we've already seen some things develop from that that have allowed us to reinvest in some productivity improvements and allowed us to reinvest in service on the street. Today we 1770 PUBLIC HEARING - COMMITTEE OF THE WHOLE have we've been able to put a half a dozen new service initiatives out on the street. The five-year strategy plan has a focus in five areas. The first area deals with customer service and customer quality. We try to tell all our people now that it's no longer acceptable just to have a bus run from Point A to Point B and be on time; it's more than that. We need to have not a satisfied customer, but a delighted customer, a customer that's an advocate of public transportation if we're going to be successful in the next century. But service quality, ridership and revenue. And on the ridership and revenue front, as you know, we were very aggressive in an advertising campaign earlier this year. Almost unheard of, but we have now returned to the ridership levels of the pre-strike ridership levels in just a few months. A lot of people worked very hard to bring that about, and we're very proud of that initiative. Customer safety and customer security. We want people to feel -- we want our facilities to feel very friendly and very comfortable. When 1771 PUBLIC HEARING - COMMITTEE OF THE WHOLE you walk into a transit station, it should be like walking into the lobby of City Hall where you feel very comfortable. And also, we want to empower our employees to do the very best job possible. And that entails the installation of -- new training program have been put in place and partnering programs inside the organization. So everybody knows exactly where we want to go and how we want to get there.
Thank you. For the record, would you please tell us the amount of the proposed State's subsidy for SEPTA.
I see that in part of your testimony, and I would like to ask why, you are projecting revenues generated by the Shared Ride Program and Senior Citizens Transit to decline in FY 2000. Can you give us an explanation for that, please.
Yes, let me. . . (Joe Casey comes forward.) 1772 PUBLIC HEARING - COMMITTEE OF THE WHOLE
My name is Joe Casey. I'm Director of Budgets for SEPTA. The senior citizen counts projected for next year are really based on actual counts. During the last few years, we've been converting to cycle counts or test count to actual counts from the fare box. The decline in senior citizens is really a reflection on what the actually ridership is, which has steadily been going down over the last couple years. But primarily, it's a recording of the senior citizens, the change in way we report or count our senior citizen ridership.
Thank you. Mr. Leary, why are you projecting employee benefit costs to grow at a faster rate than your direct labor costs?
Yes. I said, why are you projecting employee benefits costs to 1773 PUBLIC HEARING - COMMITTEE OF THE WHOLE grow faster than your direct labor costs?
There's two major increases in our benefit area. One is the -- one of the things that we negotiated with the TW Union is an early retirement program. That had a major impact on our pension costs for next year. The other area is our health benefits costs.
Our health benefits costs. We're currently projecting approximately an 8 percent increase in our health benefits costs for next year.
What is your early retirement plan? How many years must an employee work there? You said you have an early retirement plan. What was it and what are you seeking now?
The early retirement plan is basically a one-time offer to TWU members. It affects approximately -- we're talking about approximately 400 people to go out on the early retirement. It's similar to what we offered our 1774 PUBLIC HEARING - COMMITTEE OF THE WHOLE management employees a few years ago. Basically, it -- the program provides for an additional three years to their service base so it accelerates some of the workers, but a large part of the 400 people that are going out basically retire a couple years earlier than they normally would have.
I believe it's a minimum age of 55, with a minimum of 30 years of service.
So one can now retire, what, at 52? Or would he still have to be 55?
No, because it's limited to 400 people, no one would be earlier than 55.
This one-time offer, Council Lady came as a result of the recent TWU contract. So this is a one-time matter.
So how old would one have to be to be eligible to retire with 30 years of service?
Theoretically, it could be 52 years old if you had 27 years of service, but I 1775 PUBLIC HEARING - COMMITTEE OF THE WHOLE don't think there's anybody in that category.
Okay, fine. Thank you. The Chair recognizes Councilman Cohen.
Thank you, Madam President. First, let me congratulate SEPTA on at least two aspects since the labor strike: the fact that the ridership program is very close to what it was prior to the strike; and the establishment of the Executive-Labor Management Committee in the hopes that long-range-wise, labor problems will be at a minimum.
And I think effectiveness will also be increased at every level to the extent you can develop increased cooperation from the labor force and really make it a joint partnership. I think moving in the directions you have in those two areas is extremely important. Just to finish the budgetary aspect, how much of the funding is coming from neighboring counties? 1776 PUBLIC HEARING - COMMITTEE OF THE WHOLE
So if you compare it with the 58.1 budget of the City, which is also a county, I think there are four other counties participating in it.
Yes, there are four other counties. Delaware County provides $5.8 million; Montgomery County, $3.4 million; Bucks County, $1.8 million; and Chester County $1.1 million. And then the State gives total subsidies of $288 million.
Totally, the four counties come to approximately 11, $12 million?
So less than one-fourth -- just about a fifth is the City of Philadelphia's contribution. Are special steps being taken? I note with respect to the so-called welfare reform program, are there special steps being taken to afford improved transportation possibilities for folks that may be leaving the welfare rolls 1777 PUBLIC HEARING - COMMITTEE OF THE WHOLE hopefully to get jobs?
Could you explain what the details are of this transitional pass benefit that you referred to.
Yes. We've been working with all the local agencies to try to facilitate their efforts to get people into jobs. It's been said that on the welfare-to-work program, that transit is the "to" in the welfare-to-work program, and that is very true. So working with both the State Department of Welfare and the City organizations, we have made passes available to people, monthly transit passes.
Sir, could I ask to you speak additional in the microphone.
Yes, okay. We have been working both with the City and the State organizations. We have been working to make transit passes available to recipients that are both in the process of searching for jobs and training for jobs. And there is a program that 1778 PUBLIC HEARING - COMMITTEE OF THE WHOLE when they get a job and begin to work, they're provided a transit pass for a period of time to ease the burden of going into the workplace. At the present time, we're selling thousands of passes to both the State Department of Public Welfare and the City of Philadelphia Works Program for this purpose.
Well, what is the financial cost to the welfare recipient currently?
I don't believe the recipient pays anything. And Denise Goren, the Deputy Mayor, has offered to help with this. So come on, Denise. (Denise Goren comes forward.)
Councilman, there are several different programs available under the welfare-to-work. For specific recipients, actually the passes are free. Under other programs, there's going to be a sliding scale of passes so that at the first month, it's free; the next month, they'll be half price; then a quarter price. So that there will be an to opportunity then as they start to get paychecks in for them to 1779 PUBLIC HEARING - COMMITTEE OF THE WHOLE be able to cover their own transit service. In addition, SEPTA's program has been spectacular in really targeting specific transit routes and matching those up with employment centers that we know have jobs available -- it's particularly focused on this population to assist them in realigning those transit services. So that there's really a three-part point partnership between the job placement centers, the employees, and SEPTA -- not just on transit passes, but also on service times and hours and routing needs.
All right. That's good to hear. We'd like to avoid the situation that occurred with day care where there was a sharp increase in the costs to the person for day care service, because the salaries that the folks will get when they get a job will probably be at a very low rate, and any charge for the transportation's going to be a burden, whatever it turns out to be. So I'll just say I think you're in the right direction, moving in the right direction, but I think we've got to be particularly sensitive 1780 PUBLIC HEARING - COMMITTEE OF THE WHOLE at every level to understand that every penny is very important and that to whatever degree we can cut or eliminate the transportation cost, I think it will help the whole drive to take people from welfare into the workforce. Because otherwise, I think, you know, people may just drop off, they may just find that from a financial point of view itself, that it's too burdensome, and they may not be able to carry the weight. Thanks very much. And City Council is also going to be working continuously in that area and we hope that when have hearings, we'll hear from both the Mayor's Office and from SEPTA about what it is doing to make it possible for people to travel to the suburbs, if that's needed for job placement. Now, in discussions with Councilman DiCicco, you spoke about rehabilitation of some -- I think you called them "head houses." Are they what, out in the northern part of the city, are called station "station houses"?
Yes. I believe they're the same -- that portion of the station that's above the sidewalk. 1781 PUBLIC HEARING - COMMITTEE OF THE WHOLE
Right. Allen's Lane, that's been the subject of discussion in that community for a long time. What is the outlook for the rehabilitation, not just of the house, but of the whole station? It's been an historic landmark, it's been one of the most attractive aspects of the community. It's what we have used to strengthen the efforts that bring people into the community and there's widespread concern that other than that money applied for the renovation of the house itself, which I think the community worked with SEPTA on to obtain a number of years ago, that the rest of the station is in danger of kind of falling apart and getting to the point where it won't be safe.
You know, Councilman, you're right. That's a beautiful little station, and we've got to do what we can to save it.
The Phase I, saving the building, has already been undertaken. The building has been now restored.
That's that 1782 PUBLIC HEARING - COMMITTEE OF THE WHOLE transitional grant, the 500,000?
Yes, the first transitional grant. And, in fact, the work has been completed and we actually now have a resident that has been awarded a license to move into the building and take care of it. So we're feeling pretty good about that. We're moving forward now on Phase II. We've applied to the State, and I believe we've received some State money and some federal money to move to the next phase of the project. And I also believe the City, in the City's Capital Budget, has put some money in. It's about a 3.5 or a $4 million investment to finish it. And I think we've assembled, I'm going to say, approximately 2 to $3 million at this point, to keep the project going.
It was approved yesterday 1783 PUBLIC HEARING - COMMITTEE OF THE WHOLE by our Board.
The real estate action was approved by our Board yesterday for Allen's Lane.
Could I get a summary of the conclusion of those statements. How much more money is there available for the rehabilitation currently of the result of the actions -- including the action taken yesterday by the Board.
The action by the Board yesterday authorized the execution of the contract with the real estate for someone to move into it and take care of the property. So the property is now occupied. The building has been rebuilt.
And someone is moving in and will be -- the building will be occupied; is that right?
Okay, Councilman, the first phase, for half a million dollars, has been done. The building has been renovated.
The second phase is a $1.2 million phase to begin to deal with the overpass and the station structure itself, and the Board awarded that contract yesterday.
It's been awarded, so that will take place. Now, there's one more phase that has to take place, and we'll be working over the next year so that the third phase will be continuous with the second phase. And I believe the City is helping with that.
Right. And we appreciate the City's participation in the Capital Program. 1785 PUBLIC HEARING - COMMITTEE OF THE WHOLE What portion of the 1.2 million comes from federal and State sources? Or is that all capital funding from the City?
Good. And you feel 14 the outlook in the near future for the rest of the 15 funding will -- 16
Oh, I think it will happen. 17 I think there's a whole lot of people that want to 18 see it happen. 19
All right, very 20 good. We'd like to continue to work with you, with the community, and to do whatever is needed to maximize the federal and State support.
Very good, thank you. 1786 PUBLIC HEARING - COMMITTEE OF THE WHOLE One last question. I do appreciate the way which SEPTA has been approaching the problem of Riverview, the senior citizen apartment house that has very special problems. And I appreciate the sensitivity of SEPTA in arranging for the hearing to take place at the location where the senior citizens live. I hope I will be able to as warm in my recognition of SEPTA's role after the decisions are made because it's just a very important thing in Philadelphia to make sure that senior citizens don't feel that they've been discarded, that they have the same ability as other citizens not only to meet their own needs but to feel like a full person if they want to go down to Penn's Landing, to be able to make the same decisions that other people make, sometimes almost at the last moment, decide, Well, let's see what it's like, if they want to go shopping somewhere, to be able to do that. So we hope that when it's all over, that something will be worked out that will basically accommodate the needs of the citizens and accommodate SEPTA's needs as well. 1787 PUBLIC HEARING - COMMITTEE OF THE WHOLE So thank you very much.
You're welcome. The Chair recognizes Councilman Nutter.
To the Board members Mr. Voith, Ms. Newkirk, and to Frances Jones. Mr. Leary, it's my understanding that you have not exercised the good wisdom as the other three individuals that I mentioned to have moved into the 4th Councilmatic District. (Laughter.)
And I would hope that by this time next year at the budget hearing, you will have corrected that particular condition. I will not hold it against you during these hearings. 1788 PUBLIC HEARING - COMMITTEE OF THE WHOLE (Laughter.)
Mr. Leary, I'd like to commend you for your excellent choice of being a member of the 1st Councilmatic District. It is also my understanding, Madam Chair, that the new chairman of the board may be here with us today.
Yes. Mr. Dion is here. Mr. Dion? (Mr. Dion stands for recognition.)
Good morning, welcome. Would you like to move into the 4th District? No, I'm only kidding. (Laughter.)
Pleased to have you this morning, and congratulations to you. Actually, I'd like to talk about at least two, possibly three, topics, the first of which is the long-standing issue which we -- some of us may have tortured you and the City representatives and even the most recent board 1789 PUBLIC HEARING - COMMITTEE OF THE WHOLE chairman, tortured all of you to death, which is R6 commuter rail line. A couple issues do arise with that, and some of you may not have an answer to it right now, but I'd like to talk about additional upgrades or attention to that particular line, specifically with inbound 9:30 a.m. service and outbound 2 p.m. service to serve senior citizens in the area who are trying to possibly get into town. And with the changing composition of the workforce and some people getting out a little earlier, trying to possibly get back home to deal with kids getting out of school, the service in the afternoon needs some additional look-see. In our various meetings -- and I see that you decided to spare Susan Stern from further torture on the R6 -- we've had a lot of discussion about Zone 1, Zone 2 for the Bala Station. We've had a lot of discussion about this. I guess the -- I don't know whether you measure distance from Suburban Station to determine what the zones are, but I think we might find that the Bala Station is very close in comparison to other stations to being more of a Zone station than a Zone 1790 PUBLIC HEARING - COMMITTEE OF THE WHOLE station, and I think that would help with our ridership. Ridership is up on the R6, I believe; is that correct? It continues to be up?
Okay. The third issue has to do with the stopping of the train at a particular switching point. I think now we presently do -- you go to a log situation. They stop the train, someone gets off, they fill out a log. This has to do with Federal Railroad Administration guidelines, but SEPTA has been looking at the prospect of getting approval from the FRA for radio communication as opposed to physically stopping the train? Do we have any updated information on that?
I don't have a report on that at this time, but I can get back to you on that. I'll look at that.
Okay. And lastly on that particular situation is the Manayunk Bridge rehab. Any update on the status of that particular project?
Councilman, I can only tell 1791 PUBLIC HEARING - COMMITTEE OF THE WHOLE you that I have been working on that personally to try to get that project off dead-center. I have personally met with the contractor and, as you know, the contractor left the site. The contractor has advised us that he is willing to come back on the site, and we are negotiating, as we speak, with the contractor, trying to bring this to a resolution and get that work finished. I can only tell you that as a backup plan, if necessary, we have the plans and specifications being assembled to rebid it to bring another contractor on board, if that's necessary. But I'm hoping within the next 60 days, there will be a resolution of that, and work will get underway again.
Well, I appreciate that and I would refrain from getting into the deep details of those particular discussions. But, I mean, you feel a sense of confidence given what has happened in the past? I don't want to get into the contractor is at this particular moment, but just all things being equal and looking at the situation, I mean, obviously, we want to get the project moved. 1792 PUBLIC HEARING - COMMITTEE OF THE WHOLE As I said, I don't know who the contractor is, I don't want to know, and if you end up going to somebody else, I don't want to know who they are, so I have no -- you know, I don't have anything in that gain. I want to get a project done, and if we're having a problem with someone for whatever reason, we need to fish or cut bait here.
Councilman, I know exactly where you are. My intention is to get that project moving again. And if the project ends up in court between the contractors, so be it.
That will give the General Counsel's Office something to do.
Okay, all right. I appreciate that. The second issue is, can you, for the record, give an update on the West Philadelphia Market-Frankford El project. Where are things, are we on schedule, behind schedule, ahead of schedule? And can you give us a sense, for the record of the scope of this project. 1793 PUBLIC HEARING - COMMITTEE OF THE WHOLE
Okay. Councilman, that's, as you know, that's the biggest and most aggressive project that we have undertaken at SEPTA, and we're very anxious to get that project moving. Just yesterday, the Board of Directors at SEPTA took some action to allow the design to again get rolling.
I'm sorry, Mr. Leary, just for the record, could you give a brief description of what this project is.
Okay. This is the complete rehabilitation of the guideway and all of the stations for a distance of about 11,000 feet through West Philadelphia, the complete rebuilding of the Market-Frankford structure.
From the point it comes out of the ground, all the way to 69th Street.
(Unintelligible) portion in Delaware County but principally in the City of Philadelphia. And there are six stations involved 1794 PUBLIC HEARING - COMMITTEE OF THE WHOLE and about 11,000 feet of guideway. The project has undergone some pretty substantial revisions along the way. As you know, we have converted from the standard type of four-column bent structure to a single-column, more modern-looking structure, and that set the project back some time. In the process of doing that, there are companion projects. To fully achieve the benefits of this transportation investment in that corridor, we have combined these -- there are a number of companion projects going on at the same time. The City has there's a streetscape project going on (unintelligible). We are now looking at a schedule that has construction beginning late next year. We have about another year of engineering and design before we will get the major construction projects underway. The good-news part of this story is this, just a few years ago, because the maintenance of the project was a ten-year construction project, we have been able to accelerate it and then reshape the project so there is approximately five and a half to six 1795 PUBLIC HEARING - COMMITTEE OF THE WHOLE years of construction now, and this project will be done. That's a good-news story and sort of a bad-news story in the sense that -- the good-news story is that we'll get the project done and get it out of the way. The level of disruption will be a little more intense. We're very sensitive to that. As you know, we've been working to put some supporting network contracts in place to support the ridership on the el, the business community along Market Street. Those contracts now have been awarded. We're in a full-go mode right now to finish the design. We expect to begin a fairly extensive community participation process in the next 30 days. That community participation process will focus on the coordination of the design detail for the stations. We want the community to see what this is going to look like, how it's going to function, and we want their input as to how the finishing touches should be put on it. And that should take place over the next 30 to 120 days. And the design will be 1796 PUBLIC HEARING - COMMITTEE OF THE WHOLE finished, and construction projects will be out in the street next year.
Thank you for that update. And I would mention for the record, I participated in a meeting recently with -- she'll kill me for not recalling at the moment her last name but I know her first name is Rhonda.
Johnson, was at a meeting not too long ago. There was a great amount of concern expressed not only regarding the timing of the project but the length of time that it takes to have a project of this magnitude completed. But also as a part of the, I guess, regular discussion about this, we should also think about the impact of the project not only along the Market Street corridor, but specifically along the numbered streets, the major numbered streets, where we have intense commercial activity -- 52nd Street; 56th Street; and presently to a smaller extent, soon to be a larger extent, with a massive project that's actually over in Councilwoman's Blackwell's district, on the south 1797 PUBLIC HEARING - COMMITTEE OF THE WHOLE side of Market Street, the Rite Aid project; and the huge tract of land going from 56th to 57th, Market to Chestnut; 60th Street, naturally; and again up to 63rd. The meeting I attended was a 60th Street Business Association meeting, and people are very, very concerned about the impact on their businesses. I mean, some of the mindset is, we look forward to this project; hopefully, we'll still be in business when the thing is over, if we can last, you know, through five and a half to six years of construction. What I said to them is, you know, you're talking about rehabilitating part of the heart of the SEPTA system while the thing is still running. So it is not a -- you know, we're not just repaving the street, if you will; we're changing over an entire system while the train is still going to be running above. I said, now, you know, we could shut the system down and do it in two years. Then you'd have no one virtually walking the streets or being near you; they'd all be on over on Chestnut Street somewhere. So we could shut the system 1798 PUBLIC HEARING - COMMITTEE OF THE WHOLE down for two years and get it done quickly, or we can have it up and running, and it will take, you know, five and a half to six. So, I mean, it's balancing all of those concerns. Lastly, you made mention to the streetscape project. I feel very, very strongly -- and I know Councilwoman Blackwell does as well -- that while you are operating, you know, maybe feet up in the air, we have to better 11 coordinate our efforts for what goes on along the 12 ground level and take advantage of the 13 opportunity. 14 That is, you move down the street, up 15 in the air, and we're at ground zero doing 16 curbside, walk, street trees, signage, lighting, 17 and taking advantage of the opportunity to fully 18 rehabilitate, if you will, Market Street, not just 19 the el, but the place where cars are and where 20 people walk. The business community, working with them, I believe that we're looking at expansion opportunities, financial incentives to help people in their businesses and get through this particular process. So I appreciate your putting that on 1799 PUBLIC HEARING - COMMITTEE OF THE WHOLE the record, and I look forward to working with SEPTA on the massive project. "Patience" will be the watch word of the day to get through it. Lastly, but equally important, from time to time, the issue of SEPTA tokens and the School District and cost issues of getting kids to and from school, at least the kids who generally want to go to school. We presently have, I guess, a contract, or you have a contract with the School District of Philadelphia for tokens; is that correct?
We sell at a discounted price to the School Department -- Councilman, I'm going to say nearly $20 million worth of tokens in the course of the year for distribution to the --
Yeah, for distribution to the students. The School Department, I think, gets reimbursed from the State, and they discount them even further to the students. 1800 PUBLIC HEARING - COMMITTEE OF THE WHOLE
Now, does the School District pay you $20 million, or do you give them $20 million worth of tokens?
No, they pay us. The sale of tokens is a fairly substantial --
Well, we discount them; we them the discounted rate of $1.15 apiece, I believe.
Okay. And then there is some reimbursement from the State.
And then they turn around and discount them to the students and get reimbursed from the State. They sell 'em, I believe, for 90 cents to the students.
How does that 1801 PUBLIC HEARING - COMMITTEE OF THE WHOLE work?
The School Department pays us -- hold on. (Mr. Leary confers off mike with other SEPTA reps.)
I'm told that there's a formula, that the School District pays us for the transfers to enable us to give them to the students free.
Is that a part of the $20 million or is that separate from the 13 million? 14
I was talking on the order 15 of magnitude, and I think that's about right. 16 Yeah, it's all a part of the $20 million. 17 (Mr. Leary confers off mike with other 18 SEPTA reps.) 19
Okay. Now, in some 1802 PUBLIC HEARING - COMMITTEE OF THE WHOLE other cities, are there different distribution or funding scenarios that allow, I guess, the additional distribution of tokens or a cheaper rate? I mean, I guess there are a lot of different ways to try to do this.
Yeah. That's the problem, Councilman. All over the country, it's done in all different ways. The most common is the fact that the State provides revenues to school departments to provide transportation; that's the most common mechanism to fund --
So that's what you're familiar with in other locales where you've worked?
Excuse me, Councilman. Would you conclude your questioning for this round because there are others members whose lights have been on for some time that would like to be recognized.
Thank you. The Chair recognizes Councilman Kenney. 1803 PUBLIC HEARING - COMMITTEE OF THE WHOLE
Thank you, Madam Chair. Continuing on the line of questioning relative to the school tokens, it's my understanding that, for example, in Detroit, those children that are eligible for the free or reduced lunch, which represents about 80 percent of the children in our district, ride for free for the hours before school and the hours immediately after school. Also, it's come to our attention in your testimony that the cost of the transfer issue is about $2.3, 2.5 million a year to the School District. Truancy is one of the major problems we face with getting our kids to school. Because of the difficulty in many families, because of the long stretches that children need to ride early in the mornings and the availability and the affordability of tokens, it creates a situation where many of our kids don't go to school primarily for that reason. While I recognize that -- and I do recognize that the School District's probably the largest single customer that SEPTA has. You say 1804 PUBLIC HEARING - COMMITTEE OF THE WHOLE -- I think you said it was -- is the School District million, or is that combined public 4 and private token purchases t $20 million? My 5 number's about 9 or 10 million. 6
It's combined? So 8 it's about 9 or $10 million that the School 9 District pays for this service. 10 SEPTA has offered discounts to many of 11 our companies in Philadelphia and in the suburbs, 12 larger companies who are committed to moving 13 people through public transportation. Considering 14 the benefits of getting our kids to school on time 15 and every day, considering the cost associated 16 with the cast of transportation for many families 17 in the city who can't afford it, and considering 18 the fact that we give discounts to companies, 19 would it not be appropriate to consider maybe 20 SEPTA eating, for example, the cost of the transfers minimally? Or looking at the possibility of providing, as we do, with senior citizens, for those children who are qualified for the reduced or free-lunch program some type of reduction which maybe could be directed at those 1805 PUBLIC HEARING - COMMITTEE OF THE WHOLE families or spread across the entire system to make it more able for children to get where they got to get in the morning and home at night. And if we can offer it to large companies, what makes a large company or a large customer like the School District any different than a company that's offered a discount?
Well, Councilman, the discounts are very similar. But as much as I'd like to sit here and say, yes I think we should do that, it just becomes a matter of resources.
And, you know, if you take $2 million out of the revenue pool, it translates into $2 million in reduced service somewhere, reduced hours somewhere. And I honestly just don't know how to deal with this. It's a public policy issue that's bigger than SEPTA.
What is the justification economically for the offering of inducements or discounts to companies who get their people to use public transportation? Do we engage in that kind of -- 1806 PUBLIC HEARING - COMMITTEE OF THE WHOLE
It's a volume, it's a volume discount, much like the discount -- we sell tokens for $1.15 to the School Department, and a single token, the cash price for a single token is $1.60, so we sell them for $1.15 to the School Department, and they discount them down to 90 cents.
Well, I recognize that the State does reimburse 66 percent of the cost. I would appreciate -- while I recognize that there's no free lunch and there's no free ride, that somebody pays for it, if the ultimate goal from a public agency like SEPTA, although it should be run as a business, is to get more and more children to school every day affordably -- I mean, we could make an argument, and I won't make it here in election year, that the senior citizen discount perhaps should be approached in a means test. We have discounts for water and gas and other things that everybody pays for.
But the point is that, you know, do the children have a different status than people we offer the business people we 1807 PUBLIC HEARING - COMMITTEE OF THE WHOLE offer discounts to, to seniors we offer discounts to? And there's costs always associated with them. I'm just wondering if there's been any examination of the issue.
Councilman, on the matter of the seniors, that is not a discount; the State pays for that, so SEPTA is actually making money there. And, as you know, SEPTA has been looked upon askance in past years for coming to Council and going to the State looking for additional money while we have not done certain management efficiency budgetary kinds of things. So that if we talk about making this discount more for students, then it means that we then have to go and look someplace else for that money, and it's either going to be here at City Council or it's going to be the State or it's going to be federal. And as you know, federal subsidies have steadily declined over the years. We're getting more federal money in terms of the capital but very little in terms of our operating budget. So, as Mr. Leary has said, it is a matter of discount and a matter of resources. So 1808 PUBLIC HEARING - COMMITTEE OF THE WHOLE if we make a larger discount, and I am sure the Board would have no problem adopting that kind of policy, if we could identify where that additional resource was from. Because, unfortunately, the trend on the Board, as we get more and more of a look at the fiscal side of it, has been to make sure that we are becoming fiscally responsible and in a conservative manner and that we are pulling our own weight and not continually looking for subsidies from everyone else.
Let me just say as a preface that I've been on this Council since 1992 and am fully aware of what it takes to be fiscally responsible and recognize that when you take from one, you need to replace from somewhere else; and when you reduce, you need to increase somewhere else. We recognize the ability to balance -- if anybody in this Commonwealth recognizes the ability to balance, it might be this group and the people on the second floor. I am not suggesting that we do this and eat the entire cost. What I'm suggesting is that if the emphasis was trying to get from Point A to Point Z or Point P first, and then have a joint 1809 PUBLIC HEARING - COMMITTEE OF THE WHOLE discussion -- City, State, SEPTA -- on how to get there, perhaps it makes sense for the City, for SEPTA, for the State, or a combination of the three, to try to get where we want to be. Obviously, on the common good, no one will argue that getting kids to school every day consistently is best not only for them, the children themselves, but for an improved workforce, an improved opportunity for these children to grow up and to work in the City or in the suburbs. So this is not something that's in a vacuum; it's something that affects all of us and affects SEPTA's future ridership. I'm not suggesting that you go back today and cut the tokens for free and eat the $10 million. What I'm suggesting is that we have a goal of trying to get to a point where we can offer some relief or some extra added incentive to get to school for these families and for these children and then come up with a plan that shares the pain with everybody. Now, that's my only request and suggestion.
Councilman, I think the idea of dialogue is really good. And in a certain 1810 PUBLIC HEARING - COMMITTEE OF THE WHOLE sense, we in the welfare-to-work world, we've managed to come up with transitional passes in a manner that didn't harm SEPTA's budget, and it was very productive, and perhaps, you know, the dialogue can reach that end. I just want to -- we as an organization really have had an unchanged budget for three consecutive years now, so the case of balance is really extreme in our case.
But dialogue perhaps -- and even within that balanced constant we have, we've been able to negotiate and shift and meet one particular need, so perhaps the dialogue can move forward.