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Minutes

Committee Hearing, December 2, 1999

Philadelphia City Council Committee HearingsDec 2, 1999

People mentioned

Names our system found in this transcript. Automatically extracted, so it can include anyone named in the record, not only officials or parties.

Organizations mentioned

m. 'S: 990144, 990148, 990456, 990457, 990458, 990459, 990460, 990461, 990462, 990530, 990531, 990646, 990647, 990648, 990672, 990674, 990676, 990677, 990684, 990713, 990720, 990721, 990725, 990726, 990727, 990754, 990756, 990763, 990765, 990766, 990811, 990814, 990815, 990816, 990834, 990835, 990837, 990839, 990840, 990845. 'S: 990557, 990558, 990559, 990603, 990649, 990714, 990813, 990832, 990833, and 990841 are withdrawn at the request of the sponsors. BILL NO. 990529, 990556 - continued to 12/9/99. ) PRESENT: COUNCILMAN FRANK DICICCO, Chairman COUNCIL PRESIDENT ANNA C. VERNA COUNCILMAN DAVID COHEN COUNCILMAN MICHAEL A. NUTTER COUNCILWOMAN DONNA REED MILLER COUNCILMAN RICHARD T. MARIANO COUNCILMAN W. THACHER LONGSTRETH COUNCILMAN FRANK RIZZO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 12/2/99 STREETS & SERVICES I N D E X Page Bill 990845 Joseph Doyle, Streets Lighting Engineer . . Streets Department 5 Joseph James, Deputy Commissioner . . . Public Property 6 Kimberly Krack, Local Market Manager. . . 11 Metricom, Inc. 7 Lee Gopadze, Senior Vice President. . . 23 Metricom, Inc. 8 9 Bill 990713 Paul Lonie, Survey Manager Streets Department 50 10 Martin Soffer, Planning Commission. . . 51 Joseph Cascerceri, Vice President . . . 52 Government & Community Relations, Drexel Univ. Bill 990457 Kasim Ali Acting Asst. Chief Traffic Engineer 64 Bill 990548 Kasim Ali Acting Asst. Chief Traffic Engineer 65 Bill 990549 Kasim Ali Acting Asst. Chief Traffic Engineer 66 Bill 990529 Kasim Ali Acting Asst. Chief Traffic Engineer 67 Bill 990530 Kasim Ali Acting Asst. Chief Traffic Engineer 69 Bill 990531 Kasim Ali Acting Asst. Chief Traffic Engineer 71 Bill 990835 Kasim Ali Acting Asst. Chief Traffic Engineer 72 Bill 990840 Kasim Ali Acting Asst. ) Bill 990462 Catherine Confair, Analyst, Parking Authority 78 Bill 990464 Catherine Confair, Analyst, Parking Authority 79 Bill 990647 Catherine Confair, Analyst, Parking Authority 80 Bill 990648 Catherine Confair, Analyst, Parking Authority 81 Bill 990674 and 990677 Robert McCloskey, Water Department. . . 83 Bill 990676 Robert McCloskey, Water Department. . . 86 Bill 990720 and 990721 Robert McCloskey, Water Department. . . 89 Bill 990763 Robert McCloskey, Water Department. . . 93 Bill 990456 Marty Soffer, Planning Commission . . . 96 Edward Duffy, PIDC and PAID . . . . . 97 Paul Lonie, Survey Manager, Streets Dept. . 99 Bill 990725 Paul Lonie, Survey Manager, Streets Dept. . 100 Marty Soffer, Planning Commission . . . 101 Bill 990756 Paul Lonie, Survey Manager, Streets Dept. . 103 Marty Soffer, Planning Commission . . . 104 Bill 990765 Paul Lonie, Survey Manager, Streets Dept. . 105 Marty Soffer, Planning Commission . . . 106 Bill 990811 Paul Lonie, Survey Manager, Streets Dept. . 107 Marty Soffer, Planning Commission . . . ) Bill 990816 Paul Lonie, Survey Manager, Streets Dept. . 109 Marty Soffer, Planning Commission . . . 109 Richard Bruno, representing Councilman O'Neill 110 Bill 990834 Paul Lonie, Survey Manager, Streets Dept. . 113 Marty Soffer, Planning Commission . . . 114 Elizabeth Bresse-Stoppe, Vice President . . 115 Executive Affairs University of the Sciences Bill 990754 Paul Lonie, Survey Manager, Streets Dept. . 116 Marty Soffer, Planning Commission . . . 116 Elizabeth Bresse-Stoppe, Vice President . . 118 Executive Affairs University of the Sciences Bill 990837 Paul Lonie, Survey Manager, Streets Dept. . 121 Marty Soffer, Planning Commission . . . 121 Vincent Dougherty, Enterprise Zone Manager. 122 Department of Commerce Bill 990839 Paul Lonie, Survey Manager, Streets Dept. . 124 Marty Soffer, Planning Commission . . . 124 Bill 990672 Paul Lonie, Survey Manager, Streets Dept. . 126 Marty Soffer, Planning Commission . . . 127 Marjorie Greenfield, East Falls Comm.

Council 153 Michael Markovitz, East Falls Resident. . 159 Antoinette Stone, East Falls Resident . . 163 Susan Rubinovitch, East Falls Resident. . 165 Bill 990684 Dwayne Bumb, Director of Commerce . . . ) Bill 990726 Dwayne Bumb, Director of Commerce . . . 183 Tim Lidiak, Assistant Director. . . . 187 Avenue of the Arts, Inc. Michelle Shannon, Director of Marketing . . 189 Center City District Kristen Young, Program Director . . . . 191 Rittenhouse Row Ashley Andrus, Chamber of Commerce. . . 192 Ruth Ann Madway, Executive Director . . . 194 East of Broad Improvement Association Otis Haigler, L&I . . . . . . . , Center City Res. Assoc. 207 Nancy Lavin, Chair, Philly Walks. . . . , Counsel . . . . . 223 Newsstand Operators Association . . . Otis Haigler, L&I . . . . . . . , Counsel . . . . . 227 Newsstand Operators Association Otis Haigler, L&I . . . . . . . 227 6 12/2/99 STREETS & SERVICES P R O C E E D I N G S

Councilman Dicicco

Good afternoon, everyone. The hearing on the committee of streets and services is now in session. In attendance today are, to my extreme right is Council President Anna Verna, Councilmember Rizzo, Councilmember Clarke, and Councilmember Nutter. We have about 45 bills today. We generally try to combine certain bills that relate to one department so that people don't have to keep getting up and coming back and forth to the witness table. Unfortunately, there are those who will all be left last, so there's no way of making everyone first. We're generally able to get through the hearings a lot quicker by combining various departments or agencies that have a cumulative number, a significant number of bills. So we will from time to time go out of the order that the public notice that you may have in your possession. The clerk will please read the title of the first bill.

The Clerk

The first bill is Bill No. 7 12/2/99 STREETS & SVCS. - BILL 990845 990845, an ordinance granting permission to Metricom Incorporated, a Delaware corporation registered to do business in Pennsylvania, and its successors, assigns, and agents to construct, install, maintain and operate, use repair, replace, and remove a communications system and appurtenances for the provision of wireless data communications services in, over, under, and across the public rights-of-way and City streets; and/or on certain City-owned or -controlled street light fixtures, street light poles, as designated by the Streets Commissioner and the Commissioner of Public Property; and/or within or on the existing facilities owned by other entities holding a grant of permission, pursuant to other City ordinances, all under certain terms and conditions.

Councilman Dicicco

Is there anyone here to testify for or against this bill? Would you please come to the witness table and identify yourself for the record, please. (Witnesses come forward.)

Councilman Dicicco

Good afternoon.

Mr. Doyle

Good afternoon. 8 12/2/99 STREETS & SVCS. - BILL 990845

Councilman Dicicco

State your name for the record and proceed with your testimony.

Mr. Doyle

Joseph M. Doyle, City Street Lighting Engineer.

Councilman Dicicco

Whoever's going to be testifying, testify first, Joe.

Mr. Doyle

Returned herewith is Bill 9 No. 990845, granting permission to Metricom, Incorporated, a Delaware corporation registered to do business in Pennsylvania, and its successors, assigns, and agents to construct, install, maintain and operate, use, repair, replace, and remove a communication system and appurtenances for the provision of wireless data communication services in, over, under, and across the public rights-of-way of way and City streets; and/or on certain City-owned and controlled street light fixtures, street light poles, and traffic signal poles, as designated by the Streets Commissioner and the Commissioner of Public Property; and/or within or on the existing facilities owned by other entities holding a grant of permission pursuant to other City ordinances; all under certain terms and conditions. 9 12/2/99 STREETS & SVCS. - BILL 990845 The Metricom plans to install radio transceivers on approximately 750 street light poles and will work with the Department to coordinate this without any disruption to street lighting operations. The Department of Streets Department, therefore, recommends the favorable consideration of this legislation.

Councilman Dicicco

State your name record.

Mr. James

Joseph James, Deputy Commissioner, Public Property. Councilman DiCicco and members of the committee, I'm here on behalf of the Department of Public Property to testify on behalf of Bill 990845, granting Metricom, Inc. To provide wireless data communication services on the public rights-of-way on City streets and on certain City-owned or -controlled street light fixtures, as designated by the Streets Commissioner. Based upon negotiations pursuant to this agreement, it is my recommendation that City Council give its approval for this transaction. Bill No. 990845 was introduced on November 18, 1999. Representatives from the Streets Department and the Department of Public 10 12/2/99 STREETS & SVCS. - BILL 990845 Property have engaged in continuous discussion with representatives from Metricom, Inc. concerning use of City property, as permitted by the bill. Through the negotiation process, we have sought terms that will best serve the needs of the citizens of the City and facilitate the efforts of Metricom to construct a very high-speed form of wireless data communications network. Metricom will deploy a new generation of wires technology that will make the City's information infrastructure competitive with other cities, such as New York, Los Angeles, San Francisco, Seattle, and the District of Columbia. The timing of this agreement would also position Metricom to showcase the city and this technology nationally during the upcoming Republican National Convention. The term of the agreement is for five years, with a provision for a five-year renewal, contingent upon acceptable performance of the agreement terms. Specifically, the terms include compensation in the forms of annual and (unintelligible) fee payments with phased guaranteed minimum payments, complimentary service 11 12/2/99 STREETS & SVCS. - BILL 990845 subscriptions, and discounts for equipment. In conclusion, the terms to which Metricom, Inc. is committed are acceptable to the Department. I respectfully ask the committee that the rules of Council be waived to allow this bill 7 to be reported out of committee and to have its first reading at the next Council session. I am now available to answer any questions that you may have.

Councilman Dicicco

Is there anyone else who is going to be testifying at the table? (Kimberly Krack comes forward.)

Councilman Dicicco

Please identify yourself for the record, ma'am.

Ms. Krack

Yes, my name is Kimberly Krack, and I'm with Metricom.

Councilman Dicicco

Excuse me. Our wireless system -- we have a wired communication system here that doesn't work well. If you can fix this, we can vote this out quickly today.

Ms. Krack

Thank you. My name is Kimberly Krack, and I'm the local market manager with Metricom, Inc. Thank you very much, Chairman DiCicco and committee 12 12/2/99 STREETS & SVCS. - BILL 990845 members for allowing me to appear here today. With me is Mr. Lee Gopadze, senior vice president of Metricom. I am responsible for the deployment of Metricom's wireless data system throughout the greater Philadelphia region. Metricom, Inc. is a leading provider of wireless Internet access for computer users in the corporate, public service, consumer, and education market sectors, using an advanced spread spectrum, packet radio technology. Our Ricochet service provides the pipeline to wireless Internet access and data communications services.

Councilman Cohen

Ma'am -- Mr. Chairman, may I ask that you ask the witness to just go a little bit slower.

Councilman Dicicco

You've already.

Ms. Krack

Asked I'm trying to speed it up for all of you who are --

Councilman Dicicco

Thank you.

Ms. Krack

Thank you very much. I --

Councilman Cohen

We're not at a race 13 12/2/99 STREETS & SVCS. - BILL 990845 track, and for us, it's the first time hearing this so --

Ms. Krack

I understand.

Councilman Cohen

We have to understand what it is.

Ms. Krack

I understand. Thank you. The Ricochet service provides the pipeline to wireless Internet access and data communications services that provide subscribers with a portable, high-performance alternative to existing wire line and wireless network access services at a very low cost. Very simply put, what you currently do with a modem and a telephone line, you can do with a Ricochet modem, which we have here, wirelessly. At incredible speeds of 128 kilobytes per second, Ricochet provides subscribers wireless Internet, e-mail, local-area network access from literally anywhere within the coverage areas, without the confines of an office or even a wall jack. Ricochet offers the fastest data connection speeds, "always-on" connections, flat-rate, "all-you-can-use" pricing, no metered roaming fees, and true mobility to 70 miles per 14 12/2/99 STREETS & SVCS. - BILL 990845 hour for productive mass transiting. Metricom is currently providing Ricochet service in the San Francisco Bay area and in the Seattle and Washington, DC metropolitan areas. Philadelphia will join other 7 metropolitan areas across the United States 8 boasting of 128 kilobytes-per-second wireless 9 service by mid-2000. 10 The Metricom network consists of a 11 shoebox-sized radio transceiver -- I have one on the back window sill there -- which are typically mounted to the mast arms of street lights, as depicted up front, without penetrating the mast arm itself. There is no penetration to the facility. No trenching, cable or street hardware is needed. To achieve complete coverage, approximately six to eight radios per square mile are installed, utilizing less than 3 percent of your street lights. How odes it work? When you send a message or dial into the Internet, the message is sent wirelessly from this modem to the pole-top radio. The radio ricochets the message to a collection site for transfer to a telephone line, 15 12/2/99 STREETS & SVCS. - BILL 990845 and you're connected. Today many cities recognize the unlimited potential that wireless access provides the police-service segments and the public-service segments of their community. The Port of Seattle Police Department is one of those on the leading edge by digitally scanning crime-scene photos, digital fingerprints, and other information for immediate and widespread use. The Chevy Chase, Maryland Police Department uses Ricochet to prepare and process police reports as well as access the police database from the field. Their Police Department is also able to research license plate numbers, background checks, and other important information within minutes, right from the police cruiser, using Ricochet. Ricochet is used by schools and libraries to help bring the Internet to those who normally wouldn't have access. San Francisco, Sunnyvale, and Richmond, California are using bookmobiles equipped with Ricochet to access underserved children and senior citizens to provide them use of the public library as well as access to the Internet. San Leandro, California 16 12/2/99 STREETS & SVCS. - BILL 990845 uses Ricochet to connect the city library back to the city network. The school districts use Ricochet in their operations as well as classrooms. The County School Board of Fairfax, Virginia has Ricochet by field service and maintenance personnel, as well as in their portable classrooms. Are there any other wireless alternatives today? Sure. 8 kilobytes per second, significantly slower than Ricochet's 128 kilobyte-per-second speed. A cable modem provides high-speed access, but that cable doesn't stretch from your connection to the street or to the police cruiser or to the children's center Ricochet is the only technology available today that provides untethered, high-speed access. In conclusion, the availability of Ricochet service throughout the City and County of Philadelphia provides new ways of communicating without wires. With the Ricochet network and wireless technology, public safety and 17 12/2/99 STREETS & SVCS.

Ms. Krack

- BILL 990845 community-service opportunities are available anytime, anywhere. Thank you for taking the time to consider our proposal. Mr. Gopadze and I are also available to answer any questions that you might have.

Councilman Dicicco

Thank you. Before we entertain questions, I just want the record to reflect that Councilmember Cohen and Councilmember Mariano are in attendance. The Chair recognizes Councilman Rizzo.

Councilman Rizzo

Thank you. One of my questions was going to be to look to see what the attachment to the street light would be. The Streets Department, obviously, has no concern about this additional attachment. Do you know what it weighs? UNIDENTIFIED SPEAKER: It's relatively light-weight, three pounds. In discussions that we've had with the City Law Department and the Public Property, the attachment of it should not present any problem whatsoever to the operation of the street light or the safety of the public. As 18 12/2/99 STREETS & SVCS. - BILL 990845 far as the attachment of it to itself, the responsibility would be that of Metricom's to operate and maintain it so that if any problem did develop from their end of it, it would be their responsibility.

Councilman Dicicco

And let the record reflect that this young lady can carry the box in one hand, without any effort.

Councilman Rizzo

It appears that -- and Joe Doyle can answer this question. It appears that this is tied into the photocell that operates the street light. Now, you're under contract with PECO Energy for a fixed for energy to operate the street lights. How is PECO Energy being compensated for the energy that this light uses -- that this device uses?

Ms. Krack

We enter into separate agreement with the prevailing utility company, and either use existing tariff or have a new tariff developed to compensate PECO for all the electricity that's used. It is an unmetered use.

Councilman Rizzo

And that has not been done yet? 19 12/2/99 STREETS & SVCS. - BILL 990845

Ms. Krack

Those agreements are not finalized yet. No, sir.

Councilman Rizzo

We also -- and this is to the to the Deputy Commissioner. I remember when a particular wireless company came to this region to establish their service, that we prohibited that utility company, or that particular wireless company, from attaching their antennas and cell sites to utility poles that were within the County of Philadelphia. What's changing here? Are they now going to be permitted to -- for reconsideration, to attach antennae and cell sites within the County of Philadelphia?

Mr. James

Councilman Rizzo, to answer your question, we had not opposed the deployment of the wires technology in the City and County, only in the manner and the method that they went about pursuing that, because it wasn't a direct attachment to an existing -- if you want to call it "street furniture." What it involved was the replacement of poles to a higher level of height that was over and above the standard that we have in the City, 20 12/2/99 STREETS & SVCS. - BILL 990845 and it also added additional height and weight to the pole itself. As you see in this device, and in many cases, we think its innocuous to most people as far as its appearance at that height, and it doesn't add anything more to the street furniture that already exists.

Councilman Rizzo

My final question. There's a Pennsylvania Real Estate Act, and from what I understand, you use contractors for site acquisitions. And according to the Pennsylvania Real Estate Act, it is unlawful to conduct business without a licensee or a registration certificate. Do you plan to use the site acquisition people that conform to the Pennsylvania Real Estate Act?

Ms. Krack

Yes. We've subcontracted the work for the site acquisition services that you're referring to WFI. WFI employs Gavin and Associates and Gale Telecommunications, who are licensed real-estate agents within the Commonwealth of Pennsylvania.

Councilman Rizzo

And they conform with Section 301 of the Pennsylvania Real Estate 21 12/2/99 STREETS & SVCS. - BILL 990845 Act?

Ms. Krack

I don't know specifically what that paragraph states, so I'm not. . .

Councilman Rizzo

Could you check on that point and get back to the Chair with that information?

Ms. Krack

Absolutely.

Councilman Cohen

And so that others members on the committee know what both of you were talking about, could somebody tell us? I've been trying to follow this conversation on this last question.

Councilman Rizzo

Excuse me, Councilman?

Councilman Cohen

I know nothing about that act.

Councilman Rizzo

There is a act --

Councilman Cohen

You apparently got a memorandum from somebody or from your staff or somewhere on this, but could you tell me --

Councilman Rizzo

No, I just --

Councilman Cohen

Could you just tell us what this is about.

Councilman Rizzo

I just know these 22 12/2/99 STREETS & SVCS. - BILL 990845 things.

Councilman Cohen

Huh?

Councilman Rizzo

No, I just know these things. There is an act in the State of Pennsylvania, the Pennsylvania Real Estate Act, that has requirements for firms, individuals -- correct me if I'm wrong.

Councilman Cohen

To do what?

Councilman Rizzo

To do site acquisitions. If a company --

Councilman Cohen

For any purpose?

Councilman Rizzo

For any purpose, when they want to attach a transmitter and receiver at a particular location and they have to rent a space on, let's say, a water tower on the Boulevard, they approach the ownership of that tower and negotiate a lease. Well, that person must be a licensed person with the licensing credentials. They have to have a license or a registration certificate. And it --

Councilman Cohen

To do what?

Councilman Rizzo

To involve themselves in the negotiations for site 23 12/2/99 STREETS & SVCS. - BILL 990845 acquisition.

Councilman Cohen

Just for any kind of -- to buy a building, for example?

Councilman Rizzo

No, to negotiate a lease to attach a device to a facility. In other words, if you want a water tower, AT&T Wireless would come to you and say, Look, we need to attach an antenna to that tower. We'll pay you $1,000 a month. The person that does that negotiation for AT&T Wireless, or for Metricom, needs to be licensed by the State of Pennsylvania.

Councilman Cohen

Well, suppose they want to attach a billboard, something --

Councilman Rizzo

They make any negotiation for that lease.

Councilman Cohen

For anything?

Councilman Rizzo

Yes, from what I understand.

Mr. Gopadze

Chairman DiCicco, I might also point out that our proposed agreement --

Councilman Dicicco

Excuse me. Could you please identify yourself for the record.

Mr. Gopadze

I'm sorry. My name is Lee Gopadze, and I'm the senior vice president for 24 12/2/99 STREETS & SVCS. - BILL 990845 Metricom, Inc. I also might point out that our proposed agreement with the City requires that we comply with all applicable statutes and laws regarding the placement of any facilities within the City. So it would certainly be our intent to comply with the law that you're speaking of.

Councilman Rizzo

The concern, obviously, is that some of the companies that are involved in site acquisition do not have the credentials that this act states, and we would hope that you would only use people that would conform with the act.

Mr. Gopadze

We would make sure that happened.

Councilman Rizzo

Thank you.

Councilman Dicicco

Thank you. Councilmember Cohen?

Councilman Cohen

Mr. James, is there any indication that any current users of these poles beyond the City of Philadelphia -- are there any other current users, or would this be the first company that would be attaching something to these poles? 25 12/2/99 STREETS & SVCS. - BILL 990845

Mr. James

Councilman Cohen, to our record, this is the first that we have of a company of this type that's deploying the technology on the City streets.

Councilman Cohen

Is there any company of any other type that's attached anything to the poles?

Mr. James

Not that I have any record of. I don't know if the Streets Department -- the Streets Department acknowledges that there's no 12 one else out there like this.

Councilman Cohen

And have there been objections from whoever uses the poles now, the telephone companies, the electric companies, whoever uses the poles? Is there any objections from them?

Mr. James

We're not aware of any objections from any of the utility companies or any of the owners of the poles themselves to object to this? And, of course, they have to ensure that the light fixture belongs to the City, and they have to get the permission of --

Councilman Cohen

And we're not going to get calls from our constituents saying that 12/2/99 STREETS & SVCS. - BILL 990845 ever since they put that thing on there, our lights have been flickering on and off and never did that before? That's usually what happens, you know, when this type of --

Mr. James

I don't believe that that will happen, but I cannot guarantee it because we have not had that experience before, but I will assure you that if, in fact, we had a complaint from a constituent that since the implementation of that device has affected the function of the street light pole, it will be upon Metricom to rectify that immediately.

Councilman Cohen

And that would apply if there's any interference with TV or telephone, that we suddenly get strange noises or the lights flicker?

Mr. James

I believe Metricom can answer that question, but they would affirm that they would do what is necessary to make sure that they are not imposing themselves upon any of the constituents?

Councilman Cohen

And what do we know about Metricom as a company? Because it took 27 12/2/99 STREETS & SVCS. - BILL 990845 Public Property and the Law Department quite a long time, apparently, to reach this final conclusion that it's okay. So forgive us if we have to take some time to find out why it took you that long.

Mr. James

That's quite all right. We spent a good deal of time -- I would say over a year -- in discussions with Metricom on this, and we have checked with the other cities that have the service -- in particular San Francisco. We've talked to both their law department and their public works folks. We've talked to the City of New York, to their technology people as well as their public works folks. And the District of Columbia, as well as some other cities and counties that are local, to find out what is their experience with Metricom. And it was our conclusion that they are a good operator, that they do not create an undue burden on the city, and that they do not create an unnecessary risk in deploying this technology.

Councilman Cohen

About how old a company are they?

Mr. James

I think they're better able 28 12/2/99 STREETS & SVCS. - BILL 990845 to answer that question than I am, Councilman.

Ms. Krack

We were incorporated in 1985.

Councilman Cohen

And how many employees do you have?

Ms. Krack

Currently?

Mr. Gopadze

We have approximately 500 employees today.

Councilman Cohen

Are they scattered throughout the country?

Mr. Gopadze

Scattered throughout the country, in approximately 13 different locations. But the majority of those, approximately 250, are located in Los Gatos, California.

Councilman Cohen

And what is the nature of the work of those employees? Are hey technical employees, are they salespeople, are they office people?

Mr. Gopadze

Today, they are primarily technical and operations in nature, as we are building out these systems across the country.

Councilman Cohen

Now, could you, in a simple way to a totally non-literate, non- computer-literate person, explain what this would 29 12/2/99 STREETS & SVCS. - BILL 990845 do? What is it that we're dealing with?

Ms. Krack

Very simply, right now, if you were to --

Councilman Cohen

And, you know, don't overwhelm me with your knowledge and your speed.

Ms. Krack

All right.

Mr. Gopadze

Councilman, I think the easiest way to perhaps describe what our product does is the freedom that you have with a cellular telephone today, the freedom to go wherever you may, that same capability for the use of a laptop computer or a personal digital assistant would accrue to the subscriber to the Ricochet service. They would not need to have their computer be wired into the wall. They would be able to take that laptop or computer, if it were portable, and move it from any location to any other location within the coverage area; and merely by turning it on, be able to access either the Internet or a private Intranet, such as the City of Philadelphia may have for itself, to access databases, to access information, or to do other work that requires a computer.

Councilman Cohen

So that, 30 12/2/99 STREETS & SVCS. - BILL 990845 essentially, it's a technique which improves the capability of computers or people who use computers. For people who don't use computers at all, does it play any role at all?

Mr. Gopadze

Go ahead.

Ms. Krack

Absolutely. It also gives people that currently don't have access to the Internet, such as children in areas of our city that perhaps are less fortunate, that they do not have computers or Internet access at home, it allows us to place Ricochet a modem and a portable computer or a desktop on a bookmobile and take into their neighborhoods. So now the children that didn't have the ability to either research on the Internet or view what's out there from other countries or from the Smithsonian Institute are now able to do that just by hopping onto their bookmobile. They're always connected into the Internet without having to find that telephone line.

Councilman Cohen

Well, I know the City library system has been equipping all of their libraries with computer facilities that enable them to have access to these various 31 12/2/99 STREETS & SVCS. - BILL 990845 groups. I don't mention them because I may mention the wrong ones. I don't know anything about how computers work. I don't say that proudly, but merely state it as a fact. Have they been brought in? Does Elliot Shelkrot, the president of the library system, feel that this would increase the capabilities and the usefulness of his library system?

Mr. James

Well, the overall strategy for deployment of technology in the City is something that we discussed with all of the departments, and we have had discussions with departments like the libraries.

Councilman Cohen

And the Police Commissioner?

Mr. James

Like the Police Department, like the Recreation Department, like opportunities for like the PALs, who are not the traditional type of environment where the City would be deploying a wire-line technology would have the opportunity to use this technology. Recreation centers who don't have a lot of computers and it would be over cost to build in that technology for one or two computers where they could deploy this 32 12/2/99 STREETS & SVCS. - BILL 990845 type of technology and it would be cost-effective. So while I can't say that Mr. Shelkrot himself is aware of it, there are other people within the various departments who understand the direction and the strategy of the City to deploy the most advanced type technology at less of a cost to the City.

Councilman Cohen

And does the City -- you refer in one of the statements to compensation, and I think you indicate there's some temporary compensation and some later compensation? I'm not sure exactly what --

Mr. James

There are two things.

Councilman Cohen

Could you tell us the nature of the compensation? What is it in terms and agreements?

Mr. James

There's two forms of -- well, there's actually three forms of compensation.

Councilman Cohen

There's no agreement before us, I see.

Mr. James

There's three forms of compensation. There is a pole fee for each pole that they attach their light fixture to. 33 12/2/99 STREETS & SVCS. - BILL 990845

Councilman Cohen

What is that?

Mr. James

About $60 per pole.

Councilman Cohen

Per. . . ?

Mr. James

Per pole.

Councilman Cohen

Forever?

Mr. James

For the life of the agreement. It's a five-year agreement for each pole, on an annual basis each year of $60.

Councilman Cohen

On an annual basis.

Councilman Cohen

An annual basis.

Mr. James

Right. There is also a guaranteed minimum revenue-sharing with Metricom, that the City receives either 5 percent of the adjusted gross income or a guaranteed minimum that is scalable. In the first two years, it's $100,000 each year; in Year 3, it's 200,000; and in Year 4 5, it's 250,000. And in addition to that financial compensation --

Councilman Cohen

And what could that amount to?

Mr. James

The total amount is $1,125,000 minimum guaranteed to the City for 5 34 12/2/99 STREETS & SVCS. - BILL 990845 years. There is also, as you were talking about earlier, there is a program that Metricom has entered into with the City for the use of 150 subscriptions, where we could provide 150 subscriptions to those -- that type of opportunities, whether they're the recreation centers, PAL centers, or whatever opportunities, where they would be a need to deploy this technology. And in addition, there would be 150 discount for the modems, these actual devices that we need acquire to use this technology.

Councilman Cohen

That's for the City?

Mr. James

That's for the City.

Councilman Cohen

For use by the City.

Mr. James

Right. And that -- the City would use that to deploy, you know, based upon where the most critical need is. And, of course, as this technology becomes deployed, I see there's opportunities where the City will probably be buying subscriptions as well to deploy it in certain opportunities where it would be more cost- 35 12/2/99 STREETS & SVCS. - BILL 990845 effective than building a wired-line connection.

Councilman Cohen

All right. Now, in the past, this Council has authorized the City to take fees from companies. I'm thinking of the field of public access. And at least since 1983, I've never been able to find out whether there has been money paid or not, but the amount involves many millions of dollars by now. There was supposed to have been by cable companies a 5 percent fee for public access. Now, is there any provision, since we are giving this company, if this gets past an approval, is there any such form of compensation? A number of us in Council -- how many there will be, only a vote will ultimately determine. At one point in 1983, I think the unanimous Council insisted on having the cable companies provide the financing for public access. Is there any requirement being made of this company to perform a similar kind of service? And the second part of that question is, how does this technology affect, if it does in any way, whether it benefits or hurts or has no impact on the question of public access? 36 12/2/99 STREETS & SVCS. - BILL 990845

Mr. James

To answer your question --

Councilman Cohen

Yes.

Mr. James

One, it has nothing to do with public access?

Councilman Cohen

It what?

Mr. James

It has no relationship with public access.

Councilman Cohen

It neither improves, nor --

Mr. James

As viewed by the cable franchise, it has nothing to do with cable access.

Councilman Cohen

Okay.

Mr. James

Okay. And number two, the benefits that I just explained to you, the financial benefits, do accrue to the City, and it's not a set-aside, it's not a "we're going to do it." The monies, the encumbrance fees are paid, and they're paid to the City. The monies that you can view, that are being provided for the free subscriptions is complementary to what you might consider to be public access. We are providing free access on their network to citizens and are providing this service to the communities at no cost to them, as 37 12/2/99 STREETS & SVCS. - BILL 990845 Metricom is providing to the City.

Councilman Cohen

All right, thank you.

Councilman Dicicco

Thank you. The Chair recognizes Councilman Mariano.

Councilman Mariano

Thank you, Mr. Chairman. I have a couple questions. When I go out into my Council district and at public meetings, a lot of times, people want to know questions, and there's information I can access on my computers upstairs that I can't access -- for instance, real estate, as well as water bills, that's a big concern of people. Now, I tried to get something through the Council's offices here with Comcast Metrophone, and they offered something, but there's nowhere to plug into. So we can use this for that purpose?

Ms. Krack

Absolutely.

Councilman Mariano

Because I can't get through to the file where the City's got this big secret file that we can't get through. I know that's doable, because we can think of it, it's 38 12/2/99 STREETS & SVCS. - BILL 990845 already been thought of by much brighter people, so it's down to this point now. Now, will the City be able to do that? Is this part of the deal? Do all ten District Council offices get that access free for a while, or can we get a discounted rate? Or can I, as a private citizen, buy this?

Mr. James

There's -- the plan has a set-aside for a certain amount of free subscriptions. There is also discounts on their regular cost for the subscription.

Councilman Mariano

And how much is a regular subscription?

Mr. Gopadze

We are still looking at that since we won't be ruling out for another six months, but it's our expectation that that cost would be somewhere between 50 and $75, depending upon the services that you would subscribe to.

Councilman Mariano

Now, in the vein of my alleged esteemed colleague here, Councilman Cohen --

Councilman Dicicco

Is that monthly?

Councilman Mariano

Monthly, right, $70 monthly. 39 12/2/99 STREETS & SVCS. - BILL 990845

Mr. Gopadze

That is correct.

Councilman Mariano

Then will it be the case where we start out with $20, and then it will be up to $2,000? My cable bill's $39 now, and it was -- you know, what Councilman Cohen was talking about, it was in them days. I mean, 8 you know, is that what's going to happen here? 9 Will you give us discounts up front and get us to 10 realize we can't live without this and this and 11 that we can't live without that and everything's 12 going off at once and it's how much we're going to 13 pay every month? 14 I mean, the citizens of Philadelphia 15 ultimately pay. If we can get that at a discounted rate, I can give them better service. But as a private citizen, that should be offered to me, but is there any kind of limit where you can raise your fees so much in five years? 'Cause this is bigger than I think any of us realize.

Councilman Dicicco

Yeah, but I think that's going to be market-driven. People will have a choice.

Councilman Mariano

Yeah, yeah.

Councilman Dicicco

Just like you do 40 12/2/99 STREETS & SVCS. - BILL 990845 with certain programs in cable. I choose not to have HBO and some of the other things 'cause I'm never home so I just have basic.

Mr. Gopadze

I would point out, I think, to the Council two things that typically, or at least until recently, cable has not had significant competition, and that's what allowed them to drive.

Councilman Dicicco

Right.

Mr. Gopadze

This is a nonexclusive agreement with the City, number one. And, number two, there are alternate service-providers, and we would expect that the market will --

Councilman Mariano

Drive the price up?

Mr. Gopadze

No, we actually expect that it will go down over time as more competition develops.

Councilman Mariano

Well, you're obviously offering us some kind of a discounted rate or free because you want to come here and get us to say yes. And probably, we will.

Mr. Gopadze

Certainly, we do. 41 12/2/99 STREETS & SVCS. - BILL 990845

Councilman Mariano

You're offering us -- I mean, there's a carrot, there's always the proverbial carrot. And this is the carrot: we're going to give some rec centers access to stuff that they probably already get over a hard cable already. Can I yield to Councilman Cohen?

Councilman Cohen

Just a moment. One of the carrots we would like to see is, as Councilman Mariano have brought out, that this would have specific advantages for Councilmembers. We would like to see, as part of the agreement, that each Council -- that we don't get confronted with the fact, Well, our Council budget cannot afford to pay for this. Since it's clear that it would be very useful to City Council, we would like to suggest, Mr. James, an agreement that at least Council offices, and maybe other City offices, should be furnished with this, you know, without compensation.

Mr. James

I think, Councilman, I would disagree with your request. All I'm saying to you is that we're talking 150 subscriptions, so 42 12/2/99 STREETS & SVCS. - BILL 990845 if you're talk or or -- 3

Councilman Cohen

Well, there's 17 4 Councilmembers. 5

Mr. James

Since there's only 17 here, 6 then we're not talking, you know, about a big 7 demand and a need to do anything special to 8 provide for the Council. 9 The only thing I would consider is that 10 the technology is also available for what they're 11 talking about in a LAN line in your environment 12 today. And that I think, more to what Councilman 13 Mariano said, is the type of situation that we 14 want to be able to provide the service for is when 15 you go out in the field and you have a critical 16 need where there is no service today and you have 17 the need where you want to get to your databases 18 or your e-mail, that's where we would like to see 19 it. We would not like to see 17 of them sitting in offices right next to computers that already have line locations. They would be available to you to be deployed in the field.

Councilman Mariano

(Inaudible, off mike.)

Mr. James

Sure. 43 12/2/99 STREETS & SVCS. - BILL 990845

Councilman Mariano

(Inaudible, off mike.)

Councilman Cohen

Well, what I'm suggesting is an easy solution, which is to raise your 150 to 175 so that when we call "public property," you may not be there, and you may the head of some other department at the time. We can say we had an agreement that there would be enough provided so that whenever Council needed them, they'd be available. That's all I'm asking. Whether in the office or out. If you think 150 is necessary, we would like to have a general memorandum of understanding between the City of Philadelphia and the Council that that number would include -- would enable the City to fulfill any requests from Councilmembers in connection with their official Council work, you know, whether it's in the office or not. That's all we're seeking.

Councilman Dicicco

Thank you, thank you.

Councilman Cohen

Because that would be very helpful and that would --.

Councilman Dicicco

I would just like 44 12/2/99 STREETS & SVCS. - BILL 990845 to remind this committee that we have 42 other bills, and I know these questions are important and I don't want to rush it but --

Councilman Cohen

Yeah. So I yield back to Councilman Mariano.

Councilman Mariano

Thank you, Councilman. All right. My second question is the mobile data terminal that the police use. What system do they use now? Is it something similar to this?

Mr. James

The police currently use a Bell Atlantic Mobile technology called "Cellular Data Packet," and it's CDPD service. And it's at 19.2 speed; it's not at the 128 speed that they were referring to earlier.

Councilman Mariano

Well, they would probably like to be at 128.

Mr. James

Sure, they would like to be there. Again, we need to see the technology deployed, we need to see it operate. And then there has to be some technical consideration whether or not in moving to that platform, we're going to provide the police with any more 45 12/2/99 STREETS & SVCS. - BILL 990845 efficiency. And if so, then I think that's where we see the opportunities where we're actually going to be buying the service --

Councilman Mariano

That we could possibly get there in a sense.

Mr. James

Yeah. We're going to be buying the service, and if, it's going to provide competition for the folks at Bell Atlantic Mobile to increase their speed to be competitive.

Councilman Mariano

Because if you live a boring life like I do and you listen to the police scanner, they are terribly slow. I mean, I know we're working on that, but the data terminals are slow too, and if they could get this, they could have less down and more time doing police work. My third and final question. You talked, about applicable necessary applications and fees and licenses. Who will be getting all the licenses when somebody actually installs it? We're talking about two different things here. We need to install these things. Who will do the installation? Will Metricom do the installation? Or you hire subcontractors, I suppose? 46 12/2/99 STREETS & SVCS. - BILL 990845

Ms. Krack

No, Metricom will not be doing the installation. We would go ahead and open it up to bidding within the local area to companies that are able to go ahead and deploy the service to install the radios and then maintain the radios throughout the life of the agreement.

Councilman Mariano

So they would probably be licensed communications --

Ms. Krack

They would be licensed, correct. There are standards that we lay out, that they have to be licensed, they have to pay prevailing wage, etc., etc. They have to have the ability, the wherewithal, the licenses, and the technology to go ahead and install.

Councilman Mariano

Where are you with your minority business, you know, for women and minorities to be able to get on the bidding list?

Ms. Krack

Absolutely. We would invite the bidding to minority-owned businesses, women-owned businesses. And we'll also have a bidding conference for those companies that aren't quite sure exactly what we are doing, because this is a little bit different, to be able to explain to them the parameters of the job. 47 12/2/99 STREETS & SVCS. - BILL 990845

Councilman Mariano

Do you think there's anybody around here that absolutely -- I mean, the technology's new, so you're going to have to have technicians to teach, somebody that's done this somewhere else to teach the crews to do this stuff.

Ms. Krack

Absolutely. There's very detailed instructions that the Metricom personnel provide and training that they provide to whatever company would do the installation.

Councilman Mariano

Will I get to see Joe Doyle up on a cherry picker actually installing some of these? Joe, I'll go with you.

Councilman Dicicco

Any further questions? Come on.

Mr. Doyle

Councilman, we'll do whatever we have to do.

Councilman Mariano

Thank you, Joe. Thank you very much.

Councilman Dicicco

Councilmember Rizzo.

Councilman Mariano

Councilman, it's early. 48 12/2/99 STREETS & SVCS. - BILL 990845

Councilman Rizzo

The -- this goes to Joe Doyle. This configuration now puts an interface between the photocell and the head of the street light. Do you have a contract with a maintenance company? We're talking 700 sites just mounted to street lights?

Ms. Krack

It's approximately 950.

Councilman Rizzo

950. Now, Mr. Doyle, the interface becomes the problem and the street-light maintenance gets a call that there's a street light out. They get out there, they find the problem's defective interface, and the reason for the call-out for the maintenance contractor wasn't related to the street; it was related the device. Who pays?

Mr. Doyle

Well, right now, our maintenance contract with PECO is a lump sum number every month, so there's no specific payment for each individual call-out. Clearly, a contractor would have to notify us if, in fact, he felt that the device was somehow interfering with the operation of the street light. Because we have an agreement with Metricom, and presumably they would be interested 49 12/2/99 STREETS & SVCS. - BILL 990845 in having it renegotiated, then I would expect that they would be very quick to remedy whatever problem arose, either directly compensating PECO for the call or making whatever collection action they have with their own people. So right, now the technology seems to be pretty straightforward, that the City's photo control plugs into this device and that device plugs into the City's luminary. I do not expect there to be any ripple effect here back to the contractor to cause him any additional service calls.

Councilman Rizzo

I'm hearing you say today that you don't think that 950 of these devices that we are going to have failures associated with that device that's going to cause a street light to go out?