COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING BEFORE THE COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Monday, June 7, 2004 10:10 a.m. - - - Bill 040553 - Ordinance authorizing PAID to purchase certain tracts of land situate at 1601 and 1603 South 49th Street, etc. Bill 040555 - Ordinance authorizing the Commissioner of Public Property to execute and deliver to PAID, without consideration, a deed conveying fee simple title to a certain tract of City-owned land, etc. Bill 040556 - Ordinance authorizing the Commissioner of Public Property on behalf of the City to purchase from the School District of Philadelphia a parcel of land located on the grounds of Mayfair Elementary School, 3001 Princeton Avenue, etc. Bill 040558 - Ordinance authorizing a trial program under which advance approval is given to the Philadelphia Facilities Management Corporation, etc. Bill 040570 - Ordinance authorizing the Commissioner of Public Property to execute and deliver to PAID, etc. PRESENT: COUNCILMAN DARRELL L. CLARKE, (Chair) COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN DONNA REED MILLER COUNCILMAN JAMES KENNEY COUNCILMAN JACK KELLY COUNCILWOMAN JOAN KRAJEWSKI COUNCILMAN FRANK RIZZO COUNCILWOMAN JANNIE BLACKWELL - - - V A R A L L O Incorporated 2 6/7/04 - Public Property & Public Works Hearing
Good morning. The Committee on Public Property and Public Works is now in session. On my right is Councilman James Kenney, Councilwoman Donna Miller and Councilwoman Joan Krajewski. Will the clerk please read the title of the first bill.
Bill No. 040553, an ordinance authorizing the Philadelphia Authority for Industrial Development to purchase certain tracts of land situate at 1601 and 1603 South 49th Street for consideration not to exceed $50,000 under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement between the City, PAID, and the Philadelphia Industrial Development Corporation.
Does anyone want to testify on this bill? Please read your name for the record.
My name is Thomas J. Dalfo. I'm a vice president with the Philadelphia Industrial Development Corporation.
Good morning, Mr. Chairman 3 6/7/04 - Public Property & Public Works Hearing and members of the committee. My name is Thomas Dalfo, and I represent the Philadelphia Industrial Development Corporation and the Philadelphia Authority for Industrial Development. I'm here today to testify in support of Bill No. 040553. This bill authorizes PAID to acquire a vacant 4.4 acre industrial site located at 1601 to 1603 South 49th Street for 50,000 using the City's industrial and commercial revolving fund also known as the Landbank. This site, formerly occupied by Dita Oil Company, includes frontage on the western bank of the Schuylkill River which will allow for the continuation of the Schuylkill River Trail along the western edge of the river. Currently, the Schuylkill River Trail runs from the Art Museum to Locust Street on the eastern bank of the river. When fully developed, the trail will also run along the western bank of the Schuylkill River and the Grays Ferry Avenue Bridge to Fort Mifflin on the Delaware River. As presently configured, the trail has added an important amenity to the Center City neighborhoods that adjoin it. The continued 4 6/7/04 - Public Property & Public Works Hearing development of the trail on the western bank of the river will enable neighborhood residents to reconnect with the Schuylkill River as well. The trail will also connect with Historic Bartram's Garden, which will allow a much wider audience to enjoy this Philadelphia asset. This site represents an important first step in the assembly of riverfront parcels on the western bank of the Schuylkill River. I would ask that the committee consider this bill favorably and that the rules of Council be suspended to permit first reading at the next regularly scheduled meeting of council. Thank you for the opportunity to testify. I will be more than happy to answer any questions you have about this ordinance.
Will this parcel of land ultimately be conveyed to Fairmount Park Commission?
At this point it is not clear what the final disposition of any of the trail parcels would be on either the eastern edge of the river or the western side. One discussion is the possibility that Fairmount Park may be the final 5 6/7/04 - Public Property & Public Works Hearing recipient of it. It may stay with a nonprofit such as the Schuylkill River Development Council. I don't think there has been any kind of definitive resolution on the best way to proceed with that.
Until that determination is made, who will maintain the property?
PAID would own the property and, until the trail development occurs, we would maintain the property.
Yes; I would say on a parcel this size it shouldn't be an issue.
Any questions of this witness from members of the committee? Thank you. Thank you for your testimony. The clerk will please read the title of the next bill. Bill No. 040555, an ordinance 23 authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development, without consideration, a 6 6/7/04 - Public Property & Public Works Hearing deed conveying fee simple title to a certain tract of City-owned land with buildings and improvements thereon situate at 3033-63 East Ontario Street generally under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development agreement between the City, PAID, and the Philadelphia Industrial Development Corporation.
For the record, please note that Councilman Frank Rizzo is in attendance. Please give your name.
Mr. Chairman, members of the committee, my name is Ken Sipos. I'm with the Department of Public Property. I'm a real estate specialist. Good morning, Chairman Clarke and members of the committee. I'm here to testify in support of Bill 040555, an ordinance authorizing the commissioner to execute and deliver to PAID a deed conveying title of a certain tract of City-owned land with the buildings and improvements at 3033 to 63 East Ontario Street under and subject to the terms of the industrial and commercial development 7 6/7/04 - Public Property & Public Works Hearing agreement between the city, PAID and PIDC Corporation. The bill will enable the sale of this city asset to George Gilman, who owns Temple Enterprises, a business adjacent to the site. He is seeking to fence in the lot to prevent dumping of trash on it. Proceeds will be deposited in the city general fund. The department of Public Property supports this measure, and, accordingly, I respectfully ask that City Council approve Bill No. 13 040555. I also ask that the rules be suspended so that the ordinance may be passed upon the second reading at Council. Thank you. I will be happy to answer any questions you may have.
Thank you. Any questions of this witness? Anyone else to testify on this bill? Please proceed.
Thomas Dalfo, PIDC. Good morning, Mr. Chairman again and members of the committee. My name is Thomas J. Dalfo, and I represent the Philadelphia Industrial 8 6/7/04 - Public Property & Public Works Hearing Development Corporation and the Philadelphia Authority for Industrial Development. I am here today to testify in support of Bill No. 040555. This bill authorizes the City to convey a parcel containing .43 acres of vacant land at 3033 to 63 East Ontario Street to PAID. After acquisition by PAID, this property will be sold to George Gilman, owner of Temple Enterprises, a private company located at 3065 East Ontario Street. This company intends to clear, fence and make use of this lot as parking for its business located adjacent to the site. This bill also authorizes PAID to negotiate a sale to Temple Enterprises in accordance with the terms and conditions of the Philadelphia Industrial and Commercial Development agreement between the City, PAID and PIDC. This sale will be based on two independent appraisals of the property and its use as an industrial site. The net proceeds from the sale of this land will go to the general fund. I would also ask that the committee consider this bill favorably and that the rules of Council be suspended to permit next reading at the 9 6/7/04 - Public Property & Public Works Hearing next regularly scheduled meeting of Council. Thank you for the opportunity to testify. I'm available for any questions you may have.
Thank you. Any questions of this witness? Anybody else to testify on this bill? Thank you. Will the clerk please read the title of the next bill?
Bill No. 040556, an ordinance authorizing the commissioner of public property on behalf of the City of Philadelphia to purchase from the School District of Philadelphia a certain parcel of land located on the grounds of the Mayfair Elementary School, 3001 Princeton Avenue, and to lease that parcel to the Mayfair Community Development Corporation, all under certain terms and conditions.
Mr. Chairman, my name is Ken Sipos, the Department of Public Property. I'm here today to testify in support of Bill No. 040556, an ordinance authorizing the commissioner of public 10 6/7/04 - Public Property & Public Works Hearing property on behalf of the City to purchase from the School District of the City a certain parcel of land located on the grounds of the Mayfair Elementary School at 3001 Princeton Avenue and, further, to lease the parcel to the Mayfair Community and Development Corporation. This bill will enable the leasing of recreation sites to local nonprofit participants. This is one of the sites that is presently leased from the School Board for a dollar and subleased to the nonprofits, and the School Board wants to get out of the leasing business, I guess. The Department of Public Property supports this measure and, accordingly, I respectfully ask that City Council approve Bill 17 040556. I also ask that the rules be suspended so that the ordinance my be passed upon the second reading at Council. Thank you. I will be happy to answer any questions that you may have.
Thank you. Any questions of this witness? Anyone else to testify on this bill? 11 6/7/04 - Public Property & Public Works Hearing There being none, will the clerk please read the title of the next bill. For the record, will the stenographer please note that Councilwoman Jannie Blackwell is present.
Bill No. 040570, an ordinance authorizing the commissioner of public property to execute and deliver to the Philadelphia Authority for Industrial Development, without consideration, a deed conveying fee simple title to a certain tract of City-owned land with the buildings and improvements thereon situate at 815 Spring Garden Street, generally under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development agreement between the City, the PAID, and the Philadelphia Industrial Development Corporation.
Good morning, Chairman Clarke and members of the committee of Public Property and Public Works. My name is Ken Sipos from the Department of Public Property. I'm here to testify in support of Bill 040570, an ordinance authorizing the 12 6/7/04 - Public Property & Public Works Hearing commissioner of public property to execute and deliver to the Philadelphia Authority for Industrial Development a deed conveying title to a certain tract of City-owned land situate at 815 Spring Garden Street subject to the permanent easement of the Center City commuter connection portal that lies beneath the lot and generally under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development agreement between the City, PAID and the Philadelphia Industrial Development Corporation. This bill will enable the sale of a City asset to Pearl Pressman Liberty Communications Group, a commercial printing company located adjacent to the site. They are seeking to use the lot to provide loading and parking for their business. Proceeds will be deposited in the general fund, and, also, 80 percent of the proceeds will be returned to the Urban Mass Transit Authority because they gave us the funds to buy the land for the Center City commuter connection. The Department of Public Property supports this measure and, accordingly, I respectfully ask that City Council approve Bill 13 6/7/04 - Public Property & Public Works Hearing 040570. I also ask that the rules be suspended so that the ordinance may be passed upon the second reading at Council. Thank you. I will be happy to answer any questions that you may have.
The Urban Mass Transit Authority is the transportation division of the federal government that gave us the funding for the Center City commuter connection.
They don't want to hear that. All right. Thank you. Any questions of this witness by members of the committee? Anyone else to testify on this bill? Please proceed.
My name is Thomas Dalfo with PIDC. 14 6/7/04 - Public Property & Public Works Hearing Good morning, Mr. Chairman and members of the committee. My name is Thomas J. Dalfo, and I represent the Philadelphia Industrial Development Corporation and the Philadelphia Authority for Industrial Development. I'm here today to testify in support of Bill No. 040570. This bill authorizes the City to convey a parcel containing approximately .19 acres of vacant land at 815 Spring Garden Street to PAID. After acquisition by PAID, this property will be sold to Pearl Pressman Liberty Communications Group, a commercial printing company located adjacent to the site. Currently Pearl Pressman leases its space and has use of the lot at 815 Spring Garden Street, which its landlord licenses on an annual basis from the City of Philadelphia. The lot is located atop the SEPTA commuter tunnel. Pearl Pressman uses the lot for accessory parking and vehicle loading to its building. Pearl Pressman proposes to continue to use the lot for parking after it acquires it from the City. The lot will be conveyed with an access easement that permits the City, SEPTA or their 15 6/7/04 - Public Property & Public Works Hearing agents to access the site at any time to maintain, repair or replace the deck of the commuter tunnel. This requirement will prohibit Pearl Pressman from constructing any structure on the lot that will prevent or hinder access to the commuter tunnel. This bill also authorizes PAID to negotiate a sale to Pearl Pressman Liberty Communications Group in accordance with the terms and conditions of the Philadelphia Industrial and Commercial Development agreement between the City, PAID and PIDC. This sale will be based on two independent appraisals of the property and its redevelopment as a parking site. This sale will enable Philadelphia to retain an important industrial employer. The net proceeds from the sale of this land will go to the general fund. I would ask that the committee consider this bill favorably and that the rules of Council be suspended to permit first reading at the next regularly scheduled meeting of Council. Thank you for the opportunity to testify. If you have any questions, I would be more than happy to answer them.
Have we had to pay 16 6/7/04 - Public Property & Public Works Hearing any of the proceeds during the lease terms on this arrangement. Any of the proceeds that we have gotten as a result of our lease with this company, have we ever had to pay any of that to the federal government?
As far as I know, the license that the landlord has, it is not between Pearl Pressman Liberty; it is between their landlord and the City, and Pearl Pressman leases its building which it is planning on purchasing. The parking lot they have always had as use related to that. I guess my understanding is that the license agreement between the landlord, whatever company that is, and the City was at nominal consideration. Because it was on an annual basis and because of the presence of the commuter tunnel, it pretty much inhibits its value to just about anybody because at any time the federal government or SEPTA most likely could come in and say you have to get off the lot because we need to fix the commuter tunnel and it is out of service for you for a year or two years, whatever it takes to complete the tunnel repair. I don't think there has been much by way 17 6/7/04 - Public Property & Public Works Hearing of any kind of rent payments.
So on the second page of your testimony where it says "retail," it's a typo; it should say parking.
That is a typo. It is only for the accessory parking use that it is currently used for now.
I was wondering. On one paragraph it says you can't build the structure and then the next sentence says retail. It kind of threw me off.
Any other questions of this witness by members of the committee? Councilwoman Blackwell.
Thank you. I came here to speak because we had PGW represented. I have spoken with them privately. They will get back to me before the end of the day, so the issue I came to discuss will wait, and we will see them again tomorrow anyway. 18 6/7/04 - Public Property & Public Works Hearing
That is on an old PGW issue. So thank you, Mr. Chairman.
You're welcome, Councilwoman. Any questions? Anyone else to testify? Will the clerk please read the title of the next bill.
Bill No. 040558, an ordinance authorizing a trial program under which advanced approval is given to the Philadelphia Facilities Management Corporation to enter into certain contracts and transactions arising thereunder for the purchase, storage, distribution, transportation and/or transmission of natural and other gas on behalf of the Philadelphia Gas Works, subject to certain terms and conditions.
Good morning, Mr. Chairman and members of the committee. My name is Janet Parrish, P-A-R-R-I-S-H. I'm the executive director 19 6/7/04 - Public Property & Public Works Hearing of the Philadelphia Gas Commission. I'm here this morning on behalf of the commissioners and appreciate this opportunity to testify to you in support of Bill 040558. Let me note that I have submitted written testimony. I will not be reading that but would like to provide a few highlights if I may, and I would also note that attached to that testimony as an appendix for your review is a copy of the Gas Commission's order and resolution dated May of 12 this year, which embodies the Gas Commission's 13 recommendations to you and has as an appendix to it 14 a recommended form of ordinance, which is in fact 15 the substance of this bill that is before your 16 committee today. This is a draft of the bill which 17 was submitted via the Gas Commission with approval 18 of the Law Department through the Mayor's office to this Council. This bill, I would note, is the companion, if you will, to Bill 040367, on which I had the opportunity to testify to your committee about ten days ago and which you have reported out as amended favorably and I think had first reading this past Thursday. 20 6/7/04 - Public Property & Public Works Hearing So, again, what is before you is the requirements of the agreement between the City of Philadelphia and the Philadelphia Facilities Management Corporation, the manager of the Gas Works, with respect to gas purchases. The agreement generally requires that such contracts first be reviewed by the Gas Commission and recommendations made to Council, which in turn would have final approval over those contracts. There has been significant changes in the market conditions during the past 30 years since the time that this requirement was first formulated, and so what we have done, as I briefly described to you in my prior testimony, is engage in a pretty lengthy collaborative process involving the Gas Commission, staff, representatives of PGW, representatives of City Council, technical staff and the Council's chief financial officer. As well, that work product, that joint work product, was shared with the public advocate who, in turn, shared it with his expert industry consultant, and also, of course, the Law Department had input. So as a result of this collaborative process, we have come up with a pragmatic framework 21 6/7/04 - Public Property & Public Works Hearing for effectuating the requirements of the management agreement, which provides basically an umbrella authorization to PGW and PFMC to purchase gas pursuant to contracts with certain predefined parameters. And that is really the detail that is contained in the bill. To try to balance out this authorization, the bill provides that there will be reporting and disclosure I think fairly extensively to both the Gas Commission, to the public advocate and to this Council. And, again, I can go through this in a little more detail if you would like, or if you have specific questions, I can respond to those. Let me just note that this bill does propose approximately a two-year trial period for this approach, so that this would authorize transactions which would have to be done prior to August 31, 2006 for purchases that would be made prior to August 31, 2007. There is provision for early termination of program by Council should it deem it necessary or for renewal of this program under the same or different terms and conditions as would be deemed 22 6/7/04 - Public Property & Public Works Hearing appropriate based on the reporting and how the implementation actually works. It's important to note that certain transactions are excluded from this blanket approval, things that would be beyond the ordinary course of business such as financial hedging transactions, such as outsourcing of a substantial part or all of PGW's gas procurement setup.
These would be excluded from approvals similar or really identical to the previous bill that was before you. We have dollar cost maximums imposed on the amount of the purchases that could be made by PGW. There is an obligation to follow a least cost fuel procurement policy, which is a requirement of the Public Utility Commission. There is provision for all contracts to state that payments would be made only from PGW revenues; that is, there would not be recourse to the City general fund, and I guess it's important to note that there are two aspects of the collaborative work product that the Gas Commission chose to modify somewhat when this package came before it for final approval and recommendation to you here in Council similar to Bill 040367. 23 6/7/04 - Public Property & Public Works Hearing We have two other mechanisms, two other safeguards. One is that Council would reserve the right to direct PFMC at any time by resolution to either terminate a specific contract or to stop entering into any additional transactions under that contract. If for some reason it was deemed to be, you know, untenable or the conditions changed and it was unacceptable, that provision is there. And, similarly -- and this is in Section 11 1-A2 of the bill -- there is provision for advanced written approval from, as you may recall from the other bill, the City solicitor, the president of City Council and the chair of the Gas Commission should PGW wish to enter into a term that materially was different from the standard gas contract that is the industry norm, and it was a provision that had some specific impact on the liabilities or the respective obligations of the parties or the City. There would also be provision for a two-business day turnaround time frame for decision on any such special provisions. And this is something that the Gas Commission felt was necessary, as I say, as an additional safeguard to ensure some oversight for those out-of-the-ordinary 24 6/7/04 - Public Property & Public Works Hearing possibilities that might arise.
Miss Parrish, the support of the Gas Commission was unanimous?
Councilwoman Tasco actually had to leave the Commission meeting before the vote being taken because of pressing business over here in Council, but it was a unanimous vote of the three commissioners who were present, Commissioner Stephanie Franklin Suber -- actually, I had offered the one motion and alternate Commissioner John Foulks had offered the other, and then Commissioner Roy O. Brown were the three who were present at the time of the vote.
So we don't know if Councilwoman Tasco was supportive of it or not?
I think I can reassure you that she was a hundred percent supportive of it, although she was not able to be there. 25 6/7/04 - Public Property & Public Works Hearing
Well, she is our person on the Commission, and if she is supportive of this particular issue, I think we can be on board. And you have submitted your entire testimony?
Yes, I did, and the only thing is I would request a suspension of the rules so that first reading can occur at the next regularly scheduled Council session.
Thank you very much. Any questions of this witness by members of the committee?
May I just say one last thing? I should also note I was authorized to indicate to you that both the Philadelphia Gas Works and the Public Advocate are fully in support of this bill.
For the record, we have a letter from Community Legal Services in support of this bill. This will be in the record.
Thank you. Thank you very 6/7/04 - Public Property & Public Works Hearing much.
You're welcome. Any other witnesses to testify on this bill? There being none, Clerk, is that the last bill.
We will now convene the public hearing and move into the public meeting. (The hearing adjourned at 10:35 a.m.) 27 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING BEFORE THE COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Monday, June 7, 2004 10:35 a.m. - - - Bill 040553 - Ordinance authorizing PAID to purchase certain tracts of land situate at 1601 and 1603 South 49th Street, etc. Bill 040555 - Ordinance authorizing the Commissioner of Public Property to execute and deliver to PAID, without consideration, a deed conveying fee simple title to a certain tract of City-owned land, etc. Bill 040556 - Ordinance authorizing the Commissioner of Public Property on behalf of the City to purchase from the School District of Philadelphia a parcel of land located on the grounds of Mayfair Elementary School, 3001 Princeton Avenue, etc. Bill 040558 - Ordinance authorizing a trial program under which advance approval is given to the Philadelphia Facilities Management Corporation, etc. Bill 040570 - Ordinance authorizing the Commissioner of Public Property to execute and deliver to PAID, etc. PRESENT: COUNCILMAN DARRELL L. CLARKE, (Chair) COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN DONNA REED MILLER COUNCILMAN JAMES KENNEY COUNCILMAN JACK KELLY COUNCILWOMAN JOAN KRAJEWSKI COUNCILMAN FRANK RIZZO COUNCILWOMAN JANNIE BLACKWELL - - - V A R A L L O Incorporated. 28 6/7/04 - Public Property & Public Works Meeting
Councilwoman Miller, can I get a motion on Bill No. 040553?
I move that Bill 5 040553 be reported out of this committee with a favorable recommendation and further request that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.)
Please note that there was a request for suspension of the rules for this bill.
Did you request suspension? Okay. Councilwoman Krajewski, can I ask for a motion on Bill No. 040555?
Mr. Chairman, I move that Bill 040555 be reported out of this committee with a favorable recommendation with the suspension of rules as to permit first reading at our next session of Council. (Duly seconded.) 29 6/7/04 - Public Property & Public Works Meeting
Bill No. 040555 will be reported out of committee with favorable recommendation and a request for suspension of the rules. Councilwoman Krajewski, can I ask for a motion on Bill No. 040556?
Mr. Chairman, I move the Bill 040556 be reported out of this committee with a favorable recommendation with the suspension of rules so as to permit first reading at our next session of Council. (Duly seconded.)
Bill No. 040556 will be reported out of committee with a favorable recommendation. Councilwoman Miller, a motion on Bill 30 6/7/04 - Public Property & Public Works Meeting No. 040558.
Thank you, Mr. Chair. I move that Bill No. 040558 be reported out of this committee with a favorable recommendation and further request that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.)
Bill No. 040558 will be reported out of committee with a favorable recommendation. Councilwoman Miller, can I ask for a motion on Bill 040570?
Mr. Chair, I move that Bill No. 040570 be reported out of this committee with a favorable recommendation and further request that the rules of Council be suspended so as to permit first reading at our next session. 31 6/7/04 - Public Property & Public Works Meeting (Duly seconded.)
Bill No. 040570 will be reported out of this committee with a favorable recommendation. Any other questions? Any other testimony? This concludes the meeting on the Committee of Public Property and Public Works. Thank you all very much for your time. (The meeting adjourned at 10:40 a.m.) 32 CERTIFICATE I HEREBY CERTIFY that the foregoing proceedings of the Committee on Public Property and Public Works of the Council of the City of Philadelphia of June 7, 2004, were reported fully and accurately by me, and that this is a correct transcript of same. ______________________________ Cynthia A. Whyte, RPR (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)