Committee Hearing, March 29, 2005

1683 - - - COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING - COMMITTEE OF THE WHOLE OPERATING BUDGET - - - Room 400, City Hall Philadelphia, Pennsylvania March 29, 2005 - - - BILL NOS. 050001, 050002, 050003, 040789, 040767, 050007, 050008. RESOLUTION NO. 050022 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE L. BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO - - - V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 1684 Whole - Operating Budget - 3/29/05 - - - P R O C E E D I N G S - - -

Good morning, everyone. This is a continued public hearing of the Committee of the Whole regarding Bill Numbers 050001, 050002, 050003, 040789, 040767, 050007, 050008, and Resolution Number 050022. The first department to testify this morning will be Public Property. I would ask that the Commissioner and whoever else is going to testify please approach the witness table. Good morning and welcome. COMMISSIONER SCHLOTTERBECK: Good morning.

Please identify yourself for the record and proceed with your testimony. COMMISSIONER SCHLOTTERBECK: Good morning. My name is Joan Schlotterbeck. I'm the Department of Public Property Commissioner. 1685 Whole - Operating Budget - 3/29/05 Council President Verna, members of Council, I am Joan Schlotterbeck, Department of Public Property Commissioner. It is my pleasure to appear before Council today in support of Public Property budget and request for fiscal year '06. With me today are Joseph James on my left, Deputy Commissioner for Communications. John Hersins' on my right, Deputy Commissioner for Real Estate and Administration; and George Hee, behind John, fiscal officer. Plus I have other staff members here if needed for questions.

Thank you. COMMISSIONER SCHLOTTERBECK: In my testimony I would like to briefly outline the role of Public Property and detail some of our accomplishments in '05 and '06. 5 percent over 2005 estimated obligations. 62 percent from '05, due to right-sizing initiatives. The department is budgeted for 170 positions, down from 185 filled in '05. 4 million from 2005. A. 3 million; an increase in the space rentals appropriation, in the amount of $150,000; and full funding of utilities resulting in an increase of approximately $79,000. million from 2005. In Class 400 we are requesting $42 million, reflecting no change from '05. million from 1687 Whole - Operating Budget - 3/29/05 2005. , the General Fund request includes $14 million for space rentals. And I'm rounding down and up in my testimony here. $26 million for utility charges, $12 million for telecommunication services, and $46 million for core department operations. In the water fund, we are requesting approximately $4 million in Class 200, an increase of approximately $1 million from the 2005 estimated obligations. 2 million from 2005 estimated obligation. 9 percent from 2005 estimated obligations. Facilities maintenance. In 2005 the department was instrumental in the movement of the Traffic Police Unit from the 26th and 1688 Whole - Operating Budget - 3/29/05 Master location to its new location at the Navy Yard. We also assisted in relocating the Police Accident Investigation Unit from Memorial Hall to 26th and Masters Street. The department was instrumental in the restoration of water damaged City Council Caucus Room. The scope for the caucus room 10 included restoration of the ceiling, lightings, furniture, as well as removal of the carpet. The department has a direct involvement with the completion of the One Parkway Building and the Municipal Services security upgrade projects, as well as City Hall security upgrade project that is now under way. Department also has assisted the Managing Director and the Capital Programs Office in making more efficient utilization of space for the Department of Human Services and the Department of Recreation, enabling us to relocate Fairmount Park Commission staff from Memorial Hall to One Parkway without 1689 Whole - Operating Budget - 3/29/05 incurring any additional rental cost. The department will undertake the consolidation of several maintenance operations into a centrally managed building services and operation maintenance group. The six departments identified are Fire, Health, Library, Streets, Recreation, and Fleet, that currently undertake building maintenance duties which will be consolidated under the Department of Public Property. The departments included in the consolidation will begin shifting resources and responsibility hopefully within this fiscal year, probably at the very end of 2005. The current dispersed structure presents the city from efficiently providing general maintenance services. , mechanical are consolidated, equipment and inventory are pulled, and vehicles are used more efficiently. 7 million through 2010. As a result of the study which found that facilities consolidation and improved inventory control has the potential to achieve a five to ten percent annual reduction in inventory related expenditures, the department is working with the Managing Director's Office to develop an inventory system, using a centralized model. The city will begin to create a centralized warehouse serving the entire city beginning in fiscal 2006, after selecting an implementation strategy. 2 million through 2010. Our communications group. The department has been challenged with a number of post implementation techniques with the new 800 megahertz radio communication systems. The issues mainly impact the police portion of the system and spanned from March through October of 2004.

1691 Whole - Operating Budget - 3/29/05 The department, in concert with the Managing Director's Office, Police Department and Fire Department, was successful in working with Motorola to remedy the issues, and is now in the process of recertifying the system. The department, in conjunction with Motorola and Verizon, is currently conducting a full preventive maintenance and testing of the system. A 90-day functional testing acceptance test will follow, resulting in a successful acceptance of the system. The radio system provides communications for the Police Department, the Fire Department, the Emergency Operation Center, the Philadelphia International Airport, and other city agencies, and enables them to communicate with one another at the same time in an event of an emergency. The department began an initiative in 2004 to reestablish the 3-1-1 Constituent Call Center. The plan involved eight existing department's call centers which 1692 Whole - Operating Budget - 3/29/05 would be collapsed into one city call intake and service delivery constituent call center. A citywide 3-1-1 number would be established, making it easier for constituents to access city government, as well as allowing the city to streamline processing and work flow activities for all departments. Due to staff shortages in the service delivery departments, the 3-1-1 constituent call center plans are now earmarked for fiscal 2009. However, in the interim, the department's call center has incorporated appointment calls for eight health centers, as well as Philadelphia Animal Care and Control Association hot line. And the department is collaborating with Streets and L & I to reengineer our work flow processes, strengthening the foundation for the 3-1-1 call center in the future. Space utilization. The department provides central support to all city departments for space and planning 1693 Whole - Operating Budget - 3/29/05 requirements as a member of the City Space Allocation Committee. The department collaborates with the Capital Program Office to assist the Finance Director, the Managing Director, and the Budget Director in evaluating requests by agencies and departments for additional space or replanning of existing space. The use of city-owned space is carefully monitored to ensure efficient allocation. Our real estate. The department implemented a real estate asset sale initiative in 2005 which will continue throughout the five-year plan. The properties which have been declared surplus by operating departments, as well as properties deemed inefficient or underutilized, have been earmarked for disposition at fair market value. The department also has received numerous expressions of interest in properties which are abandoned or have been demolished, and is making them available for sale, again at fair market value. 1694 Whole - Operating Budget - 3/29/05 Based on the received interest to date for purchasing these types of city properties, the initiative is expected to generate $10 million in fiscal '05 and an additional $24 million over the life of the five-year plan. Our special events side. The Department of Public Property will continue to provide much support for special events. Our facilities maintenance personnel erect and decorate stages and bleachers, deploy security barricades along major event routes for police use in crowd control. Our communications personnel install concert quality sound and public address systems, set up electrical wiring and power feeds, and hang holiday seasonal lighting. The events range in size from small community anti-drug rallies and mural unveilings, to complex events such as Welcome America, the First Union Pro Cycling Championship, the Mummers and Thanksgiving Day Parades, and the Greek Picnic. The department projects that it will 1695 Whole - Operating Budget - 3/29/05 expand over 17,000 hours for the number of city-sponsored events in 2005 and approximately 16,000 in fiscal '06.

I now close my testimony and would like to take this opportunity to thank you for your continued support of the Department of Public Property. I am available to answer any questions you might have.

Thank you very much. In your testimony you mention facilities maintenance and the consolidation into a central unit. Can you tell us how many employees will be in this central unit? COMMISSIONER SCHLOTTERBECK: Madam President, at this time we're actually in the process of establishing how many people are involved. I don't have that answer, but I think at one point in time when we did this several years back, we estimated to be approximately 300. That would include Public Property.

Well, what 1696 Whole - Operating Budget - 3/29/05 will the responsibilities of this unit be? COMMISSIONER SCHLOTTERBECK: We would be responsible to maintain all the facilities. The facilities, not the core mission of the departments. So, we would be doing the same thing we're doing for the departments currently under my jurisdiction, but we would be taking the Fire Department, libraries under our jurisdiction, health and...

I ask that question only because I am wondering if you're going to have sufficient resources in both manpower and materials and supplies to adequately maintain our facilities. I see that you're budgeted for 170 full-time positions in FY'06. And my question was going to be: Does this include the central staffing for the maintenance units. COMMISSIONER SCHLOTTERBECK: No, it does not. So, the intent is to... We currently have a consultant working for us, 1697 Whole - Operating Budget - 3/29/05 although it hasn't been approved yet by C.R.C. So, what I mean by that is, we've established who that person will be and is awaiting for C.R.C. approval. We're going to go out, analyze every department's staffing, their Class 200, 300 and 400 line items in their budget that would specifically relate to building maintenance and care, and then we will go forward with establishing zones throughout the city. Right now we're looking at approximately four. We would need to have an emergency response team. We would have to consider these special events aspect of our operation. So, we're in the serious planning stages. And what I hope is, by the end of the analysis, we may find that, through attrition, D.R.O.P., and also layoffs, the departments that I'm acquiring may have titles that I can use or can't use. And at the end of the day, if I go before a budget group and I say, you know 1698 Whole - Operating Budget - 3/29/05 what? I need another plumbers or 15 electricians, the justification is strong and defendable, based on my plan.

Well, when 6 do you think you would have all of this 7 information? Do you think it would be before 8 this budget is considered? 9 COMMISSIONER SCHLOTTERBECK: Right 10 now the plan is to have the strategic plan, 11 even if it's in its broad structure, by the 12 end of this fiscal year. And then to drill 13 down into the details after that. It has to 14 be approved by the Managing Director, of 15 course.

Understood. I see that we have a number of Council members that want to be recognized. I do have a couple questions, however, that I'd like to ask before recognizing them. On -46, you're requesting $61,700 for the Police Department rental at the Northeast Airport. Can you tell us what this is for and why this is not charged to 1699 Whole - Operating Budget - 3/29/05 the aviation fund? COMMISSIONER SCHLOTTERBECK: It's for -- It's the -- It's actually a hanger where we park the helicopters. And I believe it's because...

Police helicopters? COMMISSIONER SCHLOTTERBECK: Yes. I believe that the airport has leased that, and we're leasing it back. I think that's... But I'd have to get you the details of that. So, we're paying another entity. But I don't think that's an uncommon practice up there.

I really wish you would check into that and let us know. COMMISSIONER SCHLOTTERBECK: Absolutely.

On 17-28 you're requesting $12.9 million for telephone and communication. This is an increase of $2.3 million or 22 percent. Will you explain the reason for this large increase and justify why it is needed? 1700 Whole - Operating Budget - 3/29/05 COMMISSIONER SCHLOTTERBECK: Absolutely. But I'll have my Deputy Commissioner Joe James do that.

Sure. DEPUTY COMMISSIONER JAMES: Good morning.

Good morning. DEPUTY COMMISSIONER JAMES: The increase reflects a reestablishment of really where the spending levels have been in the past for the communications. In the previous year, we took a significant reduction in telecommunications expense, as part of the overall cuts in our budget. And we were able to do that because we were successful in achieving a credit from Verizon for some overbilling items, that gave us a bit of a -- kind of a stopgap to cover us during the previous year where we had less funding. So, part of it is to kind of get back to the previous spending levels. The 1701 Whole - Operating Budget - 3/29/05 other part of it is that we have planned activity in the upcoming fiscal year for specific projects where we expect to have an additional need for funding. In particular, one of the projects that we have on the drawing boards which is an operating expense, as has been talked about in the past, the 800 megahertz radio system, is there's a need for an additional communications facilities as backups at each of these remote tower sites that was not in the original plan when the system was built. And over the summer, as you know, when we had some of the issues, we felt the need that we need to put in additional facilities to get even further backup. So, that's one of our identified projects that is in there. There's also a need for an additional funding in the budget for our citynet system for our data network because some of the departments are expanding. And they're trying to do more with less as they try to kind of offset where they have 1702 Whole - Operating Budget - 3/29/05 reductions in staff from the layoffs, and they're trying to implement more and more technology. So, we have some additional needs on the citynet side that we need to have this additional funding for expenditures.

Can you break that amount down in various components, please? DEPUTY COMMISSIONER JAMES: Sure.

You don't have to do it now. But if you would let us know in writing, it would be helpful. DEPUTY COMMISSIONER JAMES: Be glad to do that.

On 17-44 you're requesting $351,000 for moving expenses in FY'06. This represents an increase of $156,000 over FY'05. What are the moves you are anticipating in '06? COMMISSIONER SCHLOTTERBECK: Well, one of the major moves that will happen will be the Juvenile Justice, the Youth Study Center move. And right now, believe it or 1703 Whole - Operating Budget - 3/29/05 not, I'm drawing a blank on the other moves. We do have some moves around. I can get you that detail. I have it somewhere.

Other than the Youth Study Center, what other moves would there be, to your knowledge? COMMISSIONER SCHLOTTERBECK: Forgot. The District Attorney.

Oh, I didn't know she was moving. Where is she going? COMMISSIONER SCHLOTTERBECK: Well, we're actually in negotiations right now.

Okay. COMMISSIONER SCHLOTTERBECK: But the result is...

Is it more space? COMMISSIONER SCHLOTTERBECK: A little bit more space but less money at this point.

Oh. COMMISSIONER SCHLOTTERBECK: So it's a net savings on our budget, and it's an 1704 Whole - Operating Budget - 3/29/05 acceptable move to her.

But it's not reflected in the budget. COMMISSIONER SCHLOTTERBECK: That's correct, because we have -- we don't have -- It's not done. We're actually right now negotiating with the owner. Expect to have an answer within the month.

What do you expect the savings to be? COMMISSIONER SCHLOTTERBECK: I'll have to get back to you on that. We're still... Like I said, we're negotiating.

Okay. I do want to recognize some of my colleagues, however. Under the real estate title you indicate that the department implemented a real estate asset sale initiative in '05. And I know that last week Councilman DiCicco seemed rather concerned because he said he had approximately six surplus -- whether they were buildings or whatever they were -- in his district and had been waiting 1705 Whole - Operating Budget - 3/29/05 for, I guess, well over a year-and-a-half or two years. And he can't understand why it's taking so long before the city is in a position to sell the properties. Can anybody tell us why that's happening? COMMISSIONER SCHLOTTERBECK: Well, I'd like to start off. And then I'll let John Hersins take it, my deputy for real estate. Well, first off, I can only speak about the last year since I've been Commissioner. We actually went before the Productivity Bank and applied for a loan to get appraisal funds. That was approved. And we have been working very closely with every Council person on all real estate issues. But there are some specifics that delay the appraisal. And I'll let John explain those.

Thank you.

There are a couple of factors that come into play on how long it takes for appraisals to come in with their appraised value. 1706 Whole - Operating Budget - 3/29/05 One that we have been dealing with is that just the sheer volume of appraisals. I think in the last half a year we have commissioned probably over more than 80 appraisals in a relatively short time frame. And each of the appraisers we're working with are working on multiple appraisals, not just for us but for the very hot real estate market in general in this city. And sometimes the nature of the available information on the site is conflicting. We may find that different public records show city ownership, and when we go to do a title search it is in fact different from the listing on the B.R.T. site. So we have to sort out the title searches. But now we're kind of ordering them up front to... Now that we've worked through that problem, we kind of order them up front to delay, you know, waiting for that to come through. And also the contract approval 1707 Whole - Operating Budget - 3/29/05 process. Once an appraisal has been approved for usage, P.I.D.C., when we are using them, will have to get approval from their board for -- to use that. So there are factors coming in. And also, when we try to determine the best use for the site, sometimes the site may be zoned currently industrial. And we try to determine what would be the best reuse, whether it be commercial or residential. So, that takes some a little bit of time. But we are responding to Councilman DiCicco specifically. We will prepare a response for him on his appraisals. The ones we are working with in his district, I don't know about former or what happened a year or two ago, but the ones we are working on, we expect all of his appraisals to come in in the very near future. We've only been working on his specifically for a number of months.

What was the amount of the productivity loan that you 1708 Whole - Operating Budget - 3/29/05 received.

$200,000.

How many appraisers do we have?

We're currently using roughly... Probably about to 15. 8

For 80 9 properties? 10

We generally -- We 11 have a list of M.A.A. approved appraisers 12 that are certified appraisers. And when we need a property appraised, we use -- we contact various appraisers to see their availability. Some of them say they couldn't do it, you know, for six months. Some have availability. So we have a list that we use from. So does P.I.D.C.

What is the cost per appraisal; do you know?

It could run anywhere from $1,500 to $4,000 to $5,000, depending on the size.

The size 1709 Whole - Operating Budget - 3/29/05 of the building and how complicated it becomes.

Right.

I know that you indicate that hopefully we'll be generating $10 million in FY'05 from the sale of the surplus properties. How much have we actually been able to sell as of this date? And what has that generated? COMMISSIONER SCHLOTTERBECK: We had our first sale yesterday and it was for $512,000. It was for the original city morgue on North 13th Street.

Oh, the college. COMMISSIONER SCHLOTTERBECK: Yes.

The school. COMMISSIONER SCHLOTTERBECK: And I'm going to let John take over again. We have a few more that are close, and have identified numbers for them.

We have the old Mercantile Library which we have selected a 1710 Whole - Operating Budget - 3/29/05 buyer for that which should bring in $1.5 million before the end of the fiscal year. We have a number of properties that are coming up for a hearing on Monday. We have appraisals for them and potential buyers for them, as well as a few of the parcels we're putting out or P.I.D.C. is putting out R.F.P.s on the sites.

Okay. I will now go to the Council members who would like to be recognized. For the first go around they will be given five minutes. The Chair recognizes Councilwoman Brown.

Thank you, Madam President. I just have one question. Good morning. COMMISSIONER SCHLOTTERBECK: Good morning.

Some time ago, in the last couple years, City Controller Jonathan Saidel produced a report that advocated for the commercial usage of some 1711 Whole - Operating Budget - 3/29/05 parts of City Hall. And it was fairly successful, indicating that it would show strong -- it could be a strong revenue generator for the city. I'm particularly interested in whether or not a study has ever been done to consider a child care center in City Hall. I've have had informal conversations. But has that ever been explored, talked about at any level in Public Property, particularly especially for city employees? COMMISSIONER SCHLOTTERBECK: To the best of my knowledge, I've never had a discussion with anyone about it. But I am familiar with the study that the City Controller did several years ago.

May I -- And I do know that there are a couple of other cities across the country, although I don't remember as I sit here which have that type of space available in their municipal buildings. May I ask at some point that your 1712 Whole - Operating Budget - 3/29/05 department look to at least investigate that idea, see if it's even possible, given all the heavy regulations and specs that come with having a child care center of any scale. COMMISSIONER SCHLOTTERBECK: No 7 problem. We'll take a look at it.

Thank you very much. Thank you, Madam Chair.

You're welcome. The Chair recognizes Councilman Goode.

Thank you, Madam President. Good morning, Commissioner. COMMISSIONER SCHLOTTERBECK: Good morning.

Your department oversees the S.E.P.T.A. subsidy; is that correct? COMMISSIONER SCHLOTTERBECK: That's correct.

Can you explain 1713 Whole - Operating Budget - 3/29/05 for the record why that is? COMMISSIONER SCHLOTTERBECK: Actually, I cannot.

Okay. My next question is, are you aware the city's lease with S.E.P.T.A. expires at the end of the year? COMMISSIONER SCHLOTTERBECK: Yes, I am.

Is your department involved at all in those negotiations? COMMISSIONER SCHLOTTERBECK: Yes, I am, and I will be. It expires December 31, '05.

And how are you involved in the negotiations, your department? COMMISSIONER SCHLOTTERBECK: We will be actively participating in the discussions about how our relationship proceeds into the future.

As part of that discussion, has your department prepared an 1714 Whole - Operating Budget - 3/29/05 inventory of public transportation infrastructure? I mean, do you know what the city owns and what S.E.P.T.A. owns? COMMISSIONER SCHLOTTERBECK: I believe that the City of Philadelphia does know. I do not know. I believe the Finance Department does know that.

Should Public Property know what the city owns and what S.E.P.T.A. owns? COMMISSIONER SCHLOTTERBECK: Actually, I'm going to ask Chris Zierfoss to come up and answer those questions for me, if he would.

Thank you.

Good morning, Madam President, other members of City Council. I'm Chris Zierfoss from the Office of Strategic Planning. The City of Philadelphia owns the entire Broad-Ridge Subway System, the Frankford half of the Market-Frankford Line, in other words the part north of Arch Street up to Bridge Street. We own the subway 1715 Whole - Operating Budget - 3/29/05 surface trolley tunnel under the U of P campus, and we own one of the trackless trolley lines in Northeast Philadelphia.

So the lease as written in 1968 stands, in terms of how the properties were distributed.

Yes. It's the mechanism by which we lease to S.E.P.T.A. those city-owned portions of the system that I just described.

Can you forward through the Chair a formal response to that question, just actually acknowledging that the lease stands as it was in 1968 and delineating what S.E.P.T.A. actually owns and what the city owns?

I can prepare that for the Commissioner and get it to you in and the members of Council, yes.

Thank you. Thank you, Madam President.

You're welcome. The Chair recognizes Councilman 1716 Whole - Operating Budget - 3/29/05 Rizzo.

Thank you, Madam Chair. Many of the questions that I had have already been addressed. So, I'll just go to my closing statement, that I have lots of interaction, Commissioner, with your department. And all I can say is that I think you've put it mildly in your testimony about the problems that we had with our new 800 trunking radio system. And I want to thank you for your always availability on the issue and your Deputy Commissioner, Joe James and Frank Punzo, who never tried to sugarcoat the problems that we had, and always candid with me and not try to come up with something that wasn't realistic. And also, you talk about the various special events that we have. George... We have to be there to a lot of these parades and everything. And they're always so well done. 1717 Whole - Operating Budget - 3/29/05 And as a matter of fact, the Cardinal mentioned how pleased he was with being able to leave the cathedral and see the beautiful flags that go up and down the Parkway and in various streets around the cathedral. So, all I can say is, I know you've got a lot on your plate. And I appreciate always, again, your availability to my office and the people that work with you. It's a good operation, and I'm pleased to tell you that. COMMISSIONER SCHLOTTERBECK: Thank you, Councilman.

Thanks. That's it for me, Madam Chair.

Thank you. The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam President, and good morning. COMMISSIONER SCHLOTTERBECK: Good morning. COUNCILMAN DiCICCO: I understand 1718 Whole - Operating Budget - 3/29/05 that the Council President has asked some questions earlier concerning appraisals. Last week... I don't remember what department it was. COMMISSIONER SCHLOTTERBECK: Department of Recreation. COUNCILMAN DiCICCO: Managing Director? Managing Director. You were listening to the Department of Recreation testimony. COMMISSIONER SCHLOTTERBECK: Listening, yes. COUNCILMAN DiCICCO: Well, it goes back to the same subject. Managing Director's Office, I think we had asked a question. How many appraisers are we engaged with?

Probably about 12 to 15. And I have responded to your question, so you'll be getting that response. COUNCILMAN DiCICCO: Oh, in writing?

Right. COUNCILMAN DiCICCO: Could you just summarize a little bit what that response 1719 Whole - Operating Budget - 3/29/05 was? I need to know the number of appraisers which you just told me. What is the length of time -- What is the average length of time to get an appraisal back?

Usually 45 to 60 days. And I had mentioned earlier in today's testimony that just the sheer volume we're working with, as well as title search problems, declaring -- making sure public records confirm that the city does have clear title to it, trying to figure out the best use for the appraisal, whether we're going to have it appraised as residential, commercial or industrial. All those different factors come into play, as well as the contract approval process for P.I.D.C., once you've identified an appraiser to use. But generally 45 to 60 days after... That has been the rule since we have been doing them in the past year. COUNCILMAN DiCICCO: I'm a little concerned. Help me with this one. You said title search, make sure who owns it. I'm 1720 Whole - Operating Budget - 3/29/05 talking about city-owned property, not property that is vacant property out there that we're trying to find out who owns, city parking lots, fleet management buildings, whatever, that I would assume the city already owns. I mean, we are operating them.

There again -- There again, when we check, like, the B.R.T. records or some other records where it says the City of Philadelphia does in fact own it, when we go to then pull a deed on the property, we find in fact we do not own it. So, it's... COUNCILMAN DiCICCO: I'm sorry. (Laughing.) How does that happen?

Are taxes being paid? COUNCILMAN DiCICCO: So, the parking lot, the infamous parking lot on the 1300 block of South 12th Street, that may not be owned by us? COMMISSIONER SCHLOTTERBECK: We own it.

No. We own that. No. 1721 Whole - Operating Budget - 3/29/05 We had an appraisal of that. COUNCILMAN DiCICCO: I just got... COMMISSIONER SCHLOTTERBECK: There's an issue with the 11th and Reed because of the way the building -- We have to... COUNCILMAN DiCICCO: The Fleet Management building? COMMISSIONER SCHLOTTERBECK: Yeah. We have to identify addresses for it. It's not... What's the legal... What's the description? We have -- In other words, there's not... I can't sell it right now -- COUNCILMAN DiCICCO: There are multiple addresses. COMMISSIONER SCHLOTTERBECK: Yeah, but it's not clear. So, we have to survey it, you know, give it an address, and then move forward with the sale. COUNCILMAN DiCICCO: I guess that's where I have a problem, that I don't think it should be taking all that long. I mean, that Fleet Management building has been used as a Fleet Management building -- I'm going take a wild guess -- 30 years. 1722 Whole - Operating Budget - 3/29/05 I mean, it was part of the former Moyamensing Prison which was across the street. And as long as I could remember, it was a public building. Whether it was leased or owned, I don't know. But I'm assuming it was owned because the prison was owned by the City of Philadelphia. Why would it take -- COMMISSIONER SCHLOTTERBECK: It has something to do with the legal description when we began to go into the details for the transfer of the title. That's when we have to have everything -- all the i's crossed... COUNCILMAN DiCICCO: Yeah. I know. I'm familiar with legal description. I mean, it's in any real estate transaction. But this is something that has been on the city's inventory list for... I don't know when Moyamensing Prison was built. 100 years ago. COMMISSIONER SCHLOTTERBECK: But for 100 years we haven't looked at the legal description of it. That's the frank part of it. We haven't looked at it. COUNCILMAN DiCICCO: I'm not laughing. I just find this all kind of... 1723 Whole - Operating Budget - 3/29/05 COMMISSIONER SCHLOTTERBECK: That's the truth. We have not looked at it. And the other thing, we have not officially decided to put it up for sale until very recently. COUNCILMAN DiCICCO: I understand. COMMISSIONER SCHLOTTERBECK: So, the delay is because we didn't make that final determination. COUNCILMAN DiCICCO: So, is it safe, then, to say that most, if not all, public property we don't have legal descriptions for them until we're ready? COMMISSIONER SCHLOTTERBECK: That's not true, but there are some complications when we get down for certain parcels. COUNCILMAN DiCICCO: What I'm trying to get at is -- COMMISSIONER SCHLOTTERBECK: Most often they're -- COUNCILMAN DiCICCO: -- what do we need to do to get this so that we can make these transactions a lot more quick? If we have these buildings, lots, 1724 Whole - Operating Budget - 3/29/05 vacant pieces of land, buildings, whatever, in our inventory... I mean, I have a home. And I have a mortgage. But I have a legal description that is part of the survey. COMMISSIONER SCHLOTTERBECK: Right. COUNCILMAN DiCICCO: We don't have that for our properties? COMMISSIONER SCHLOTTERBECK: I wouldn't say we don't have it. I would say that, given that we acquired it whenever the prison was there, no one's looked at it. We've used it as our facility. And now we're deciding that we want to take a serious look at selling it. And it's -- we have some work to do before we can sell it. COUNCILMAN DiCICCO: So, are we doing this for all of our properties now? COMMISSIONER SCHLOTTERBECK: No. 20 This is more the exception than the rule.

What usually happens sometimes, Councilman, is when we ask the Law Department to prepare the ordinance, when they try to come up with the legal description, they inform us that there may be 1725 Whole - Operating Budget - 3/29/05 a problem with the... trying to, you know, specifically zone out the parcel for the ordinance. So, then we may have to get into a title search in that instance. COUNCILMAN DiCICCO: I understand about title searches. I mean, even if it's city-owned property, it could be a judgment against it. Someone filed a suit because they fell on it. Those things I understand, but...

But generally... COUNCILMAN DiCICCO: The legal description, I guess, is what concerns me. I mean, I don't know of anyone who owns a property, even if they don't own it outright, and there's a mortgage on it, there is a legal description. And you go -- Before you sell it, it goes through another process to identify and make sure that everything is actually correct. But appraisals don't normally take but a few days, unless they're really, really complicated. And then they... you know, 1726 Whole - Operating Budget - 3/29/05 someone was left -- property was left in an estate, and somebody took over a piece of ground next to it that didn't belong to them. I mean, those things do happen, I understand. But these cases are properties that we've been occupying and using for decades. And the frustration is that the administration -- And there's no fault of yours. Administration... We're on this mission, if you will, to sell off as much inventory, surplus inventory as we have. And it's just a frustrating process that it's taking so long, when we are faced with budget issues of reducing the hours of libraries, reducing -- realigning fire stations because we don't have enough money to pay for those, where a lot of this inventory, if we were able to get it out there and in the best case scenario sell it quickly, that's revenue that we get back in the General Fund, and we can maybe prevent some of these other issues from having to happen. That's the frustrating part. I mean, it may be July, it may be 1727 Whole - Operating Budget - 3/29/05 August before some of these legal descriptions and other issues are resolved. We won't be here. The budget might be done by July 4th this year. I don't know. But if it's done, you know, we may still be stuck with a situation where there's not enough money to fully fund the libraries to keep them open full-time, or the -- 10 fire stations that we're looking to realign. 11 I mean, that's the frustrating part. 12 I mean, if -- and if we didn't have 13 to worry about it, time was not an issue 14 here, I guess we can live with this. It's 15 just frustrating.

Fortunately, Councilman, in your district I think that is the only one we have had a problem with the title search. All the rest we've had the appraisals come ordered without a problem. COUNCILMAN DiCICCO: Then I need the prices, the sales prices on Fonteleon Pool, and...

We have that. COUNCILMAN DiCICCO: And 1300 block 1728 Whole - Operating Budget - 3/29/05 South 12th...

We have them. COUNCILMAN DiCICCO: Well, we know that went from $90,000 to $450,000. And the Fleet Management. Have you been successful as of yet to find a suitable relocation site for that Fleet Management facility? COMMISSIONER SCHLOTTERBECK: I'm working on it. COUNCILMAN DiCICCO: You're still working on that? COMMISSIONER SCHLOTTERBECK: It's part of the consolidation issue. COUNCILMAN DiCICCO: Okay. Thank you. Thank you, Madam President.

You're welcome. Councilman, I know that you have asked for the names of the assessors. Has that been provided to you? COUNCILMAN DiCICCO: Was that in writing? 1729 Whole - Operating Budget - 3/29/05 COMMISSIONER SCHLOTTERBECK: Yes. COUNCILMAN DiCICCO: I didn't get it yet. COMMISSIONER SCHLOTTERBECK: We submitted it in writing.

You're submitting it in writing?

Yes.

Thank you. The Chair recognizes Councilman Clarke.

Thank you, Madam President. Good morning. COMMISSIONER SCHLOTTERBECK: Good morning.

Briefly, can you give me the status of the cable franchise that we recently opposed? DEPUTY COMMISSIONER JAMES: Good morning.

Where are we at with that? Has that gone before the FCC for an override or... DEPUTY COMMISSIONER JAMES: At the 1730 Whole - Operating Budget - 3/29/05 present time there has really been no action by the applicant since Council made its decision at the last hearing. There has been a schedule meeting that was to occur between the Law Department and legal folks from Time-Warner. I was not party to that meeting, so I don't know what the outcome of that meeting was. But the information I have as of today is that there's been no action by Time-Warner. They have not appealed this to the FCC. They have not filed any action against the city directly about not approving it. And the city has not taken any action further since the vote. So, at the present time the franchise still remains under the control of Urban Cable Works.

Is there a time line when some action must be taken on behalf of the applicant? DEPUTY COMMISSIONER JAMES: No. 24

This can go on forever. 1731 Whole - Operating Budget - 3/29/05 DEPUTY COMMISSIONER JAMES: Well, when -- I mean, they submitted an application for a transfer. Council made a decision to deny it.

Right. DEPUTY COMMISSIONER JAMES: That was the city's action: That application is denied. They have a choice of either challenging that, you know, through the FCC or through the courts or at some point in time resubmitting an application that maybe the administration and the Council would support.

Are they required to resubmit it? DEPUTY COMMISSIONER JAMES: If they wish to make a transfer, yes, they would have to resubmit or, again, take another course of action to try to litigate it.

Okay. As it relates to publicly owned property, is there a policy currently within your department, Commissioner, an advertisement on publicly 1732 Whole - Operating Budget - 3/29/05 owned property? As an example, the concourse outside of City Hall in the Dilworth Plaza, I understand that's owned by the City of Philadelphia. COMMISSIONER SCHLOTTERBECK: That's correct.

Is there an internal policy, as it relates to applicants or potential providers for advertisement, on publicly owned property? COMMISSIONER SCHLOTTERBECK: Actually, to the best of my knowledge, there isn't a policy right now. But the Managing Director, Finance Director's Office, they're working on making that policy exist within government. And they've actually hired a group called Civic Entertainment Group. And they are meeting with department heads across the city to come up with opportunities to produce revenue for -- as a, you know, for advertising on our publicly owned properties, facilities, parking lots, underground 1733 Whole - Operating Budget - 3/29/05 concourses.

You anticipate that to take how long? COMMISSIONER SCHLOTTERBECK: Actually, there's another meeting tomorrow on the subject. I think they're working on it to be aggressively in some kind of place by the next fiscal year.

Normally the authorization to have advertisement on public property goes through -- is by Council ordinance. COMMISSIONER SCHLOTTERBECK: Right now it's some -- it's in concessions. And we also have one with the... a concession with the bus shelters. We see the shelters for buses. Public Property gets that revenue.

So, Council just approves the contract. It doesn't authorize the placement in a particular area or does it do both? COMMISSIONER SCHLOTTERBECK: To the best of my knowledge, they authorize the contract. They do not get involved in the 1734 Whole - Operating Budget - 3/29/05 placement. It's not to say they couldn't.

So, if someone, say, for instance, Councilman of the 5th District was interested in having advertisement in the concourse, the city-owned portion of the concourse under Dilworth Plaza and West Market, and that Council person introduced an ordinance to authorize an advertisement on that publicly owned property. What would happen? COMMISSIONER SCHLOTTERBECK: I guess provided that the type of advertising was acceptable, I guess we could entertain the idea of having it done. I don't think anybody's ever asked me.

Assuming that the ordinance was passed and voted, would that automatically trigger some action by Public Property or would Procurement to... COMMISSIONER SCHLOTTERBECK: Right. We'd have to enter into some kind of a contract, sure, or a concession or a license agreement. We would -- You know, then we would 1735 Whole - Operating Budget - 3/29/05 have to go and contract for whatever advertising we want.

Mm-hmm. With respects to the conversations with... You just said the Managing Director and what agency? COMMISSIONER SCHLOTTERBECK: The Mayor's Office, Managing Director and the Finance Department. We're working on...

Are you guys in it? COMMISSIONER SCHLOTTERBECK: Yeah. I've met with the Civic Entertainment Group, yes, probably three weeks ago. And basically as Public Property Commissioner they asked me in so many... What are your opportunities? And I mentioned the underground concourses. There's a huge potential.

How do we determine that that was the entity that we should be talking to... COMMISSIONER SCHLOTTERBECK: I can't answer that. 1736 Whole - Operating Budget - 3/29/05

Bid contract, no 3 bid, sole source. COMMISSIONER SCHLOTTERBECK: I'd have to get back to you. I can't answer that.

What level of discussions are we having with that organization? COMMISSIONER SCHLOTTERBECK: Well..

Are they just exploratory or is it talking about entertaining a contract with them or... COMMISSIONER SCHLOTTERBECK: You know, I actually don't know. I was invited to the meeting as the department head. And it was chaired, like I said, by Managing Director and Finance staff. And it's a Mayoral... You know, it's a Mayor initiative.

Okay. COMMISSIONER SCHLOTTERBECK: I mean, I'd have to ask the finance people and get back to you with that.

Yeah. I'd be 1737 Whole - Operating Budget - 3/29/05 interested in knowing if we're entertaining this process. COMMISSIONER SCHLOTTERBECK: Okay.

I would like to know what the process is, as it relates to opportunities for other agencies, or do we just pick somebody who provides a service in another city? And I'm just interested to know how we decided to entertain that.

Councilman, I think Diane Reed is here. I don't know if she's able to answer the question. Are you able to answer the question?

(Shakes head from side to side.)

No? Thanks.

No one from the Managing Director's Office? COMMISSIONER SCHLOTTERBECK: Well, I can tell you that the group is the group that is very successful at producing... I want to say they saved $40 million in revenue for the 1738 Whole - Operating Budget - 3/29/05 City of New York by taking the Snapple Company and telling them, in your schools and in certain areas you can advertise -- you can sell and advertise this product that, then, in more parts you can advertise and sell all the other products, in other words, water and juice for the children and everything else for others. And then they did sports advertising. That's how they communicated their abilities to me as a department head.

Did they come to us or did we solicit their -- COMMISSIONER SCHLOTTERBECK: I don't know. I was invited as -- like I said, as a department head.

Okay. COMMISSIONER SCHLOTTERBECK: I'll find out, and you'll get a response back.

Okay. There was an earlier question by Councilwoman Blondell Reynolds Brown as it related to City Hall -- COMMISSIONER SCHLOTTERBECK: Yes.

-- and its use 1739 Whole - Operating Budget - 3/29/05 via Controller's report. COMMISSIONER SCHLOTTERBECK: Yes.

We actually in Council introduced a resolution. We'll be having a public hearing shortly to discuss that. So, you may want to get a copy of that report prior to that hearing. COMMISSIONER SCHLOTTERBECK: Okay.

Because we will be asking you to respond to that particular proposal and other issues, as it relates to City Hall. COMMISSIONER SCHLOTTERBECK: Okay.

Okay. COMMISSIONER SCHLOTTERBECK: But the Councilwoman was specifically interested in day care. I thought when you talked to me about it, it was more in a commercial vein of general...

Well, that's actually... you know, actually got -- And she may have met with the same person that came in my office, and was looking to have space for day care in City Hall which I 1740 Whole - Operating Budget - 3/29/05 thought was a, you know, kind of a decent idea. But there were -- There was an earlier report issued by the Controller -- and I think actually other people that talked about -- having restaurants. It was pretty exotic recommendations. COMMISSIONER SCHLOTTERBECK: I heard about it.

During the Rendell administration, I believe, that initially came up. So, we will be having that hearing. We'll be asking for you to respond on that. COMMISSIONER SCHLOTTERBECK: Okay.

Okay. Is my time up. Do you want me to come back?

You could come back.

All right.

If you don't mind. The Chair recognizes Councilman DiCicco. 1741 Whole - Operating Budget - 3/29/05 COUNCILMAN DiCICCO: Thank you, Madam President. I want to follow up on Councilman Clarke's question, with the looking into doing advertising to generate revenue on public buildings. COMMISSIONER SCHLOTTERBECK: Yes. COUNCILMAN DiCICCO: And I attempted to do something like that a few years ago, and I met with some resistance from a group called SCRUB who were basically opposed to any outdoor advertising. And the media, at least the editorial people in the media, were very hostile towards me in those days about... I think they even referenced City Hall, that I was putting up the golden arches on City Hall or something like that. And the reason I'm -- I think it's a good idea. And I never moved from that point. But I'm a little bit reluctant to introduce any legislation that would provide for that yet. But I bring that up as a point of 1742 Whole - Operating Budget - 3/29/05 information, that there was significant opposition to that, not only because it was public buildings. Outdoor advertising in general. Public buildings were one of the areas that I concentrated on where I thought we could raise revenue. So, I don't know if it would be your position. The administration, the Managing Director, somebody should start at least speaking to those interested parties who were opposed to this type of proposal of using public buildings for advertising now as opposed to later, because unless... I can't imagine that their position changing, but it would be important for us because there may be some legislation that would be required going forward, that they're engaged in that process, "they" meaning SCRUB. I'm using SCRUB as the key group of folks. They were engaged in that process early on. Just a point of information. COMMISSIONER SCHLOTTERBECK: Okay. COUNCILMAN DiCICCO: I was beat up in the press for about six months for that 1743 Whole - Operating Budget - 3/29/05 stuff. So... It's a good idea, I thought. Thank you, Madam President.

You're welcome. The Chair recognizes Councilman Clarke.

I'm back. I've actually just been informed by a tech staff that there apparently has been a contract let. COMMISSIONER SCHLOTTERBECK: Okay.

It was actually mentioned in earlier testimony by the Managing Director about a marketing strategy. So these people apparently are under some sort of contract with the city -- COMMISSIONER SCHLOTTERBECK: Okay.

-- to make recommendations on how we proceed on that. So, that will be helpful if you can get that specific information. COMMISSIONER SCHLOTTERBECK: Okay.

In the process of which that entity was selected. All 1744 Whole - Operating Budget - 3/29/05 right? COMMISSIONER SCHLOTTERBECK: Yep.

One last thing. We also... Actually, I think that may be next week. We have a hearing on placement of -- potential placement of security cameras to combat crime in the City of Philadelphia. And I notice over the last several weeks there's actually been some discussion with the -- and by the Police Department about possibly locating some of these security cameras. Assuming that's done on the public right-of-way, would there -- would there need to be an ordinance to authorize a placement of the security camera? I recall when I had the discussion when Commissioner Timoney was here, and there was a request by some residents in Center City to have cameras placed in the Rittenhouse Square area. And Commissioner Timoney was adamant in his opposition to that proposal. And I had the understanding that at that time the 1745 Whole - Operating Budget - 3/29/05 City Council had to authorize some sort of placement. Where are we at? DEPUTY COMMISSIONER JAMES: I mean, the history of that proposal for Rittenhouse involved the... I believe the community group wanted to put up the cameras, and they were going to be the ones who were funding that project. And they were going to...

It started out that way until... DEPUTY COMMISSIONER JAMES: Yeah, until they found out how much it cost. And then I believe they wanted the city to fund it. And then the other issue is, they wanted to have a station, a monitoring station, within the proximity of the park.

Right. DEPUTY COMMISSIONER JAMES: As well as be able to provide the feed to the Police headquarters. And I believe Commissioner Timoney was -- that was one of his largest opposition, is to have people dedicated to 1746 Whole - Operating Budget - 3/29/05 watch the cameras that were specific for that one community, as opposed to something that was broader in scope. There was a lot of technical issues trying to make that operate which I think brought up the cost issue. And one of the issues that I think at the time was, if it was going to be in the public right-of-way and there was some issue about ownership or at least a responsibility of ownership having to do with the community, that was going to require Council ordinance. Since that whole project kind of -- kind of dissipated, it never went any further. But my understanding in talking with Commissioner Brennan on it is that if it's in the public -- It's public safety, is what -- and it's under the police control -- that that kind of camera installation which is portable. It's not permanently mounted. Wouldn't necessarily require right-of-way because it would be the city giving itself a right-of-way to do policing. So...

So... 1747 Whole - Operating Budget - 3/29/05 DEPUTY COMMISSIONER JAMES: I think the issue -- And I can verify it with the Law Department. I believe the issue is that if it's, you know, Police Department are using it for their policing action, they don't really require an ordinance from City Council. One, it's not permanent, and two it's in the role of police doing their police powers.

If it were permanent, would it require an ordinance? DEPUTY COMMISSIONER JAMES: I think there may be a question about its permanent mounting. But I think the other overwhelming issue, if it's police doing their policing powers, there's a question of whether or not that falls within their realm of responsibilities and whether that order would require a City Council ordinance for that. I can talk to Commissioner Brennan and see if he's researched it any further, and also verify with the Law Department and get back to you with an answer on it. 1748 Whole - Operating Budget - 3/29/05

Okay. Yeah, I mean, I'm assuming we'll have that discussion. Actually, I would expect you to be at that particular hearing if you haven't gotten a notice because that is going to be one of the issues. I mean, this is obviously an issue that's going to have people on both sides, you know. Actually, Commissioner Timoney's biggest opposition to that proposal was the civil liberties. He did not think that, you know, we had the right to post cameras -- DEPUTY COMMISSIONER JAMES: Right.

-- on areas that were not high crime areas. And he insisted that he would not be supportive because of that, and the issue as it related to the cost. DEPUTY COMMISSIONER JAMES: Right. And -- But now it's become a common police tool for doing policing in a lot of different jurisdictions: Baltimore, Chicago, Washington.

Yeah. Well, I 1749 Whole - Operating Budget - 3/29/05 think currently, not to belabor the point, that -- and I'm obviously not a police officer. But, you know, policing as it relates to investigating a particular crime, as opposed to placement of cameras from a preventive standpoint is a little different, because I think what we'll be talking about is placing -- potentially placing cameras in areas that there's the potential of crime, therefore creating an environment that we hopefully will stop the crime before it even happens. DEPUTY COMMISSIONER JAMES: The deterrent, yeah. The way they do it in Chicago, they actually put the cameras up with strobe blue lights...

Right. DEPUTY COMMISSIONER JAMES: ...so that people know that it's there.

Right. DEPUTY COMMISSIONER JAMES: The whole purpose is to kind of deter people from trying to do something when they know they could be watched. 1750 Whole - Operating Budget - 3/29/05

Right. Okay. All right. Well, we'll talk more at another time. DEPUTY COMMISSIONER JAMES: Sure.

Thank you, Madam President.

You're welcome. Commissioner, on -60 you're projecting a saving in the city's gas and steam budgets. Give me your secret. How do you do that? Because I'd love to do that at home with the gas bills that we're receiving. However, I would like you to explain how you expect to achieve these fundings. COMMISSIONER SCHLOTTERBECK: I'm going to have to ask Kent Miller from the Municipal Energy Office to come up and explain that for me.

Mr. Miller, please identify yourself for the record.

My name is Kent Miller. I'm Executive Director of the Municipal 1751 Whole - Operating Budget - 3/29/05 Energy Office. You're referring specifically to the FY'06 forecasted budget?

Yes.

Well, of course --

As I said, it's on .

Right. Well, of course, the major way in which we reduce energy costs is to reduce energy use. And the city has an active program to reduce energy costs. Beginning in July of last year, the city's departments were provided with a target energy budget which was below past use. And we have been working with them to encourage them and provide them with information to reduce their energy use. So, that's the primary way we reduce energy costs, is by reducing energy use.

Can you be a little more specific? Where would this be?

Well, the city has --

And I don't see how we've reduced it, but... 1752 Whole - Operating Budget - 3/29/05

How do you mean?

That's neither here nor there. Can you tell us... And the cost of the commodities have gone up. So, I just don't understand how we would be able to save the amount of money that you're projecting --

During --

-- for '06.

Right. During the first six months of this fiscal year, we have reduced energy costs in this General Fund utility budget by about $700,000 by reducing energy use, by reducing the number of kilowatt hours we use, by --

It's not reflected in the budget. If you can point that out to me on section 17.

Well, the difference between the FY'04 budget which $28.2 million, and the FY'05 budget is a reduction of about $1.8 million.

But aren't 1753 Whole - Operating Budget - 3/29/05 we just talking about gas and steam?

Well, and electricity. All three are included in this.

But I think --

Pardon?

I think on ... Again, if you would refer to it... it certainly appears that the gas services are reduced by $401,000, I believe, it's $800.

Yeah.

And the steam for heating is reduced by $136,000 plus.

Well, that's just based on our estimate of what the usage will be for next fiscal year, and what we estimate the cost will be per unit of gas used. It's usually priced under 1,000 cubic feet. And we actually asked PGW what their forecasted prices are for the coming year. So, it's a combination of our forecasts about the cost per unit of energy and the usage per 1754 Whole - Operating Budget - 3/29/05 unit of energy.

Well, did the gas company inform you, sir, that the cost of gas will be cheaper next year?

Well --

I don't know how you come to this conclusion.

Well, when we did this forecast they were forecasting that the prices would be about the same, but we believed that we're going to be using less gas. So, we have two factors in the equation.

Where?

We're using less gas now because we're turning back thermostats, we're closing windows when people are leaving them open, we're doing night setbacks -- we're turning the thermostats down at night. Those are ways in which we can reduce the usage of gas. We have been successful so far this year in reducing gas usage.

Again, I'm referring to . And I don't mean to be 1755 Whole - Operating Budget - 3/29/05 controversial, but I didn't see that reflected in the budget. I really don't. So, maybe you could review that and send us something in writing, if you will.

All right.

Thank you.

We shall.

Commissioner, on -63 you're requesting $260,000-plus for the Philadelphia Municipal Authority compensation agreements. Can you explain what the agreement is? COMMISSIONER SCHLOTTERBECK: It's the administrative contract for the Philadelphia Municipal Authority.

That's just administrative piece? COMMISSIONER SCHLOTTERBECK: Salaries, benefits, rent.

Again, can you send us a breakdown? COMMISSIONER SCHLOTTERBECK: Absolutely.

As to what 1756 Whole - Operating Budget - 3/29/05 they are. COMMISSIONER SCHLOTTERBECK: Absolutely.

And I think my first line of questioning was about the consolidation. COMMISSIONER SCHLOTTERBECK: Yes.

I think it's a dream. But if you have more information that you could share with us, I'd appreciate it. COMMISSIONER SCHLOTTERBECK: Sure.

Okay. The Chair recognizes Councilman Nutter.

Thank you, Madam Chair. Good morning, commissioner. I just really have one question. We've had some discussion about this in the past. I wanted to get a sense from you of the variety of parking lots -- COMMISSIONER SCHLOTTERBECK: Yes.

-- that we have. 1757 Whole - Operating Budget - 3/29/05 And I know from when I was here earlier, Councilman DiCicco was talking about the parking lots, but I didn't get the full gist of that discussion. But we have had our own discussions about how we're managing the variety of lots. Has there been... And if you've covered this territory, just tell me and I'll go away. COMMISSIONER SCHLOTTERBECK: I'm sorry?

If you've already covered this territory, just tell me, and I'll go away. COMMISSIONER SCHLOTTERBECK: I did not. I did not. But you can go away. (Laughter.) COMMISSIONER SCHLOTTERBECK: Sorry.

You have to know how to take a joke. COMMISSIONER SCHLOTTERBECK: Couldn't resist.

Commissioner, I really like you, you know. There have been 1758 Whole - Operating Budget - 3/29/05 so many people at that table who have been wanting to say that for so long. And you just did it. (Laughter.)

You know, I have no further questions. No. 8 (Laughter.)

Okay. So, now let me pull out the 100 I was planning to ask. COMMISSIONER SCHLOTTERBECK: No. 13 No. 14 (Laughter.)

We have a variety of lots all over the place. COMMISSIONER SCHLOTTERBECK: Yes.

And I know, through our previous discussion, the department has been trying to figure out what to do with these lots. We've evolved all kinds of relationships and arrangements over time. Can you give us an update on what is the current status of parking lot policy in 1759 Whole - Operating Budget - 3/29/05 the city? COMMISSIONER SCHLOTTERBECK: Well, I mean, the specific issue that we're having the most difficulties with, as you know, is indemnification and liabilities. Do we have... And we have been working with the Law Department, with the Office of Risk Management, with the Philadelphia Parking Authority. So, we have done some outreach work. I'll have John give us an update.

And also the Law Department is working with Risk to come up with... if they could identify those five particular parking lots we met about in Manayunk and Roxborough, to see if there is some way to -- for them to find out how much indemnity would cost on that group basis. So we haven't gotten than information back, but...

Okay. All right. Well, I mean, I would only say... I mean, we have the lots that we discussed in those neighborhoods. 1760 Whole - Operating Budget - 3/29/05 I mean, I will make the big leap and assume I'm not the only person with a variety of publicly owned lots that are not really operated as parking lots. And I know I also have a couple in the West Philadelphia part of the district as well. So, putting aside whatever we may do in a, you know, programmatic fashion for those five lots in those two neighborhoods, what I'm really looking for is a broader policy on just how are we handling these things, all of them, throughout the city going forward. Is there any one standard way of dealing with these -- COMMISSIONER SCHLOTTERBECK: At this point in time, no. 19

-- publicly owned pieces of property that function as parking lots? COMMISSIONER SCHLOTTERBECK: No, there's not one policy at this point in time.

Okay. Do you anticipate the development of one in the 1761 Whole - Operating Budget - 3/29/05 future? COMMISSIONER SCHLOTTERBECK: Actually, we are trying to... That's part of the outreach, like how does the Parking Authority do their indemnification? Can we partner with them on their policy? I mean, I think each situation should be handled uniquely, but I agree with you that that's sort of how we got into this situation we are in. So, we are trying to establish a policy.

Right. What have we done in terms of outreach? And I have my own issues with some people who are in the for-profit side of the parking business. But putting that aside for a moment, what have we done in terms of outreach to, you know, people who are in the parking business, to see whether there might be some partnerships either with the department or with community-based organizations? COMMISSIONER SCHLOTTERBECK: Well, I actually haven't gone out into the business 1762 Whole - Operating Budget - 3/29/05 world yet. I haven't gotten that far. But the main thing I was trying to, frankly, conclude at least successfully or somewhat successfully was the issue of indemnification, specifically for the five we met about, but knowing that ultimately it was a bigger picture than that. It's not just about those areas.

Okay. All right. We'll continue to work on that? COMMISSIONER SCHLOTTERBECK: Yes.

Okay. I will now go away. Thank you. COMMISSIONER SCHLOTTERBECK: Thank you.

Thank you, Madam Chair.

Thank you. Are there any other questions or comments by members of the committee? (No response.)

Seeing none, I thank you all very much. And I just want you to know that we all appreciate the 1763 Whole - Operating Budget - 3/29/05 wonderful work you do. COMMISSIONER SCHLOTTERBECK: Thank you.

Thank you. Fleet management will be next, please. Good afternoon.

How are you?

I think it's afternoon. No. I wish it were. Good morning. Please identify yourself for the record and proceed with your testimony.

President Verna and distinguished members of City Council, I am James Muller, Fleet Manager for the City of Philadelphia. Here with me today is Bob Fox, my assistant administrative director, and... That's it. Thank you for the opportunity to present testimony in support of the FY'06 operating budget request for the Office of Fleet Management. 2 million for the purchase of new vehicles. 7 million less than FY2005 estimated obligations. There are a variety of factors that contributed to the budgetary variances. Class 100 decreased by $1 million, mainly due to the reduction of employees. 11 Class 300 increased by $600,000 due to 12 escalating fuel prices. And Class 400 13 increased by $2 million for vehicle 14 acquisition. 15 The City of Philadelphia has a 16 diverse fleet, in terms of vehicle size 17 complexity and function, with an asset value 18 exceeding $248 million, including vehicles 19 supported by Water and Aviation. 20 The fleet represents a significant 21 investment of public funds. M. maintains an active fleet size of 6,000 vehicles, including 787 that are specialized vehicles. Availability averages 90 percent 1765 Whole - Operating Budget - 3/29/05 which means 5,400 vehicles are available each day, meeting most daily vehicle targets. We could not meet these targets without the continued dedication and commitment of the employees of the Office of Fleet Management. In April 2004, the city launched an aggressive and innovative fleet reduction project. The project's goal was to reduce the size of the fleet, avoiding millions of dollars in parking, maintenance, fuel, and vehicle parts costs. As of today, 329 underutilized vehicles are slated for relinquishment, facilitating a cost avoidance of $9 million during the next five years. In the future, rather than using city-owned vehicles for passenger transportation, many city employees will use convenient and economical transportation alternatives. Due to the balanced and innovative approach to fleet reduction, there have been no adverse impacts recorded to date, 1766 Whole - Operating Budget - 3/29/05 administrative or otherwise. The city has partnered with the Philadelphia-based automated vehicle sharing provider, Philly Car Share for vehicle sharing. S. is a non-profit organization dedicated to reduce the automobile dependency in Philadelphia. S. operates a rapidly growing fleet of primarily gas-electric hybrid sedans. Approximately 1,100 employees participated in this program. Vehicles can be obtained from Center City and 14 University City locations and can be rented 15 by the hour. 16 Automated vehicle sharing helps 17 decrease fleet size, reduce costs and improve utilization by enabling multiple drivers to easily use the same vehicle. Available technology enables reliability, secure an automatic 7-day, 24-hour access to vehicles [sic]. Automated scheduling and vehicle access systems process all administrative, scheduling, key management, usage tracking, 1767 Whole - Operating Budget - 3/29/05 and billing tasks. In FY'05 the automated vehicle sharing program has garnered tremendous attention across the country. At least 51 news sources have covered the story, including 46 newspapers, 6 unique articles, 4 television programs, and 1 radio broadcast. Additionally, Governing Magazine, the National Association of Fleet and Equipment, have covered Philadelphia's implementation of the program. M. to finance the purchase of certain public safety vehicles, through the Philadelphia Municipal Authority. Fleet has budged $820,000 in Class 200 to lease 41 vehicles, including trash trucks and concrete mixers, all of which are vital to the city services. A. A. P. 1768 Whole - Operating Budget - 3/29/05 process. 4 million for the Water Fund, and $219,515 for the Aviation Fund. M. estimates an annual reduction revenue to be $400,000 for the General, $160,000 for Water, and $20,000 for the Aviation Fund. M.

estimates annual revenues to be $300,000 for the General Fund, $120,000 for the Water Fund, and $20,000 for the Aviation Fund. M. E. master certification program. M. began to provide free training programs to help prepare technicians for this examination. To obtain this prestigious 1769 Whole - Operating Budget - 3/29/05 certification, automotive technicians must successfully complete an accredited course that teaches vehicle diagnostic skills. E. certification. L. driver's license. E. certified this year. M. 5 million. In FY'04 Fleet again secured a contract that fixed prices for fuel and guaranteed that the city will be able to purchase fuel at the lowest possible cost. According to the terms of the contract, the cost per gallon of fuel is set by Platts, the cost of fuel without a markup. The only additional cost is for 1770 Whole - Operating Budget - 3/29/05 transportation. As a result, the city expects to save approximately $250,000 this year on a commodity that has increased by nearly 40 percent over the last two years. This year the Office of the Director of Finance and Fleet Management worked in partnership to automate the department's payment process for vehicle parts. , which has the second highest volume of invoices in the city, has been transmitting invoice data for manual entry by the Finance Department. M. implemented a document management system that is now fully functional and consists of scanning, automated data capture and storage and retrieval of images on a local imaging system. This system will enable Fleet to reduce overtime expense in the accounts payable unit by 50 percent, saving approximately $40,000 during FY'05 and every year thereafter. The scanning system, which 1771 Whole - Operating Budget - 3/29/05 cost $100,000, will pay for itself in less than three years. Finally, within the next two years Fleet will be scanning all of its work orders and payroll sheets, and this will allow for the reduction of one full-time position. This concludes my testimony at this time, and I will respond to your questions. Thank you.

Thank you very much. You mention in your testimony that you Class 300 requirements increased by $600,000 due to escalating fuel prices. Can you explain why -3 of your detailed budget reflects a $2.7 million decrease in your Class 300 budget?

Good morning.

Good morning.

My name is Robert Fox, Administrative Director for Fleet Management.

Welcome, Mr. Fox. 1772 Whole - Operating Budget - 3/29/05

That was a mistake. The $600,000 is an increase over estimated obligations to $2.7 -- I mean, the $600,000 is an increase over the adopted budget. The $2.7 million decrease is when it is compared to the estimated obligations. That was a mistake on my part. I compared the estimated obligations in the one and the adopted budget for the other.

Okay. You mention on of your testimony, due to the balanced and innovative approach to fleet reduction, there have been no adverse impacts recorded to date, administrative or otherwise. Will you please explain what you mean by that statement? What does it mean?

We have had continuing meetings --

For the stenographer, Mr. Fox is responding.

-- through a series of meetings and calls with fleet liaisons in the departments. We have been monitoring whether or 1773 Whole - Operating Budget - 3/29/05 not the Fleet reduction has hurt their operations. And we've also been monitoring the use of Philly Car Share, and to date no 5 one has complained.

For the record, would you explain how Philly Car Share operates?

Yes, Madam. Robert Fox. Philly Car Share is a non-profit organization that makes vehicles available citywide. You can go on line or you can call them. You can reserve the car as soon as an hour before you need it. There are cars located in --

Who can people call? Do they call Fleet Management or do they call a non-profit --

They call Philly Car Share or they can go on to the computer and log in and reserve the car. They could then go to eight different garages throughout the city. And they'll have what they call a key fob that they will take with them. And the key fob is 1774 Whole - Operating Budget - 3/29/05 assigned to them from Philly Car Share. They will identify themselves to the parking garage. They will bring the vehicle down. The key fob will then open the door to the vehicle, and the key will be attached to the dashboard. They can then drive that vehicle for as long as they have reserved it, and then return it, and Philly Car Share will charge them for the hours that they utilize it.

Thank you. What is the impact to the fleet if we do not approve the lease?

President Verna, we believe that it would be devastating, especially with the compactors. What normally happens, because the money is tough, we normally buy police and fire equipment, and the other departments have for years and years get less and less. And it's getting to a point now we're starting to hurt with compactors. We're running, like, 28 percent down right on compactors every day. 1775 Whole - Operating Budget - 3/29/05 So, some of that adverse equipment is affected because we can't buy it. And we need to buy the police and fire equipment first.

May I ask why you haven't gone to the productivity bank for the funding of the vehicles?

Well, the problem was being able to repay it back. We don't have that much money. See, we figure with the $820,000 we could afford that, with our budget, and get a lot of vehicles and pay it off in time.

Well, you're going to have to pay it back anyway.

Yeah. It's pay me now or pay me later. You know, that's the way it works.

Well, what is the comparison in costs, I'd be curious to know, between using the productivity bank and the direction that you want to go?

Council President, we did never -- we have never thought to utilize the 1776 Whole - Operating Budget - 3/29/05 productivity bank for something that was this expensive. Maybe we should have.

Well, on you're estimating to spend $820,000 in FY'05 in vehicle lease payments. Since we haven't even approved the ordinance needed to lease them, and there are only three months left in the year, how can you possibly expect to spend this money? That's a lot of money, $820,000.

Actually, Councilwoman, it would be considerably more than that. If Council was to approve the bill, we would be purchasing as much as $6 million worth of vehicles. And that $6 million worth of vehicles, if Council would approve it in April or in early May, the Procurement Department has citywide contracts already available that we could purchase against.

But isn't this for lease payment?

The $820,000 would be for lease payment, but I thought you meant the 1777 Whole - Operating Budget - 3/29/05 total amount of vehicles that we would be purchasing.

No. No. 5 I'm talking about the lease payment.

We would make one lease payment before June 30th. We would only have to make the payment once a year.

And how much would that be?

We would make a payment of $820,000 --

$820,000 every year.

Yes, ma'am.

For how many years?

Ten years.

Even though there are only three months left to this year, we would still pay $820,000 in lease payment. Does that make sense?

Councilwoman, the way you described it there, no, it does not. But we had hoped, when we introduced it last year 1778 Whole - Operating Budget - 3/29/05 and described what we were doing, we had hoped to be able to have --

Well, I don't recall us getting an ordinance last year on this.

No, but we put it in our budget last year, and explained what we were going to try to do. But unfortunately, there's been a lot of controversy as to... and consternation as to whether or not we should do it at all.

I know. And I'm fully aware that of that, believe me. On -26, you're requesting $25,000 for Public Financial Management. What services do they provide?

Public Financial Management was the corporation that we chose to help us with our fleet reduction. And we are going to continue fleet reduction. We're not stopping it just because we finished one program. There still are, we believe, plenty of vehicles that are underutilized. And they 1779 Whole - Operating Budget - 3/29/05 assist us in that process.

Very well. I have a couple other questions, but I see that Council members would like to be recognized. The Chair recognizes Councilwoman Brown.

Thank you, Madam President. Good morning, gentlemen. In recent years during budget testimony I've always been encouraged by the department's commitment to your internship and apprenticeship programs because it's one of the very unique ways that young people get a chance to get in the pipeline and ultimately acquire employment with the City of Philadelphia in that particular department. I've learned recently that from Ann Cohen, President of Local 1637, that regrettably this year both the automotive internship and the apprenticeship program will be eliminated. 1780 Whole - Operating Budget - 3/29/05 So, my question is, have they both -- have both programs indeed been discontinued?

For this year they have been. But just to let you know, some of the best technicians at the body shop at 11th and Reed were through this program. But according to cutbacks we had to, you know, cut the program this year.

How much will you save through those reductions or through those -- through the discontinuation of those programs?

I don't have the numbers on me, but I will get them for you.

Could you please? As quickly as you can, because that could and should be a part of Council's budget deliberations.

No problem.

So, if we could get that, that would be extremely helpful. How many employees have been hired that had prior history through the high 1781 Whole - Operating Budget - 3/29/05 school? And can you provide that kind of information? Maybe over the past four or five years, as part of the material you'll be forwarding to the Chair?

Yes. Yes.

Okay. In both of those programs, both the internship and the apprenticeship program, the dollar amount that you'll be saving and the number of employees that have been hired through both of those programs. That is it.

Thank you very much.

Thank you very much. Thank you, Madam Chair.

The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam President, and good morning, gentlemen.

How you doing? COUNCILMAN DiCICCO: In your testimony you indicate that you will be spending $4.2 million for the purchase of new vehicles. 1782 Whole - Operating Budget - 3/29/05 What portion of the $4.2 million will go towards the purchase of cars that are non-emergency vehicles, not police vehicles, not sanitation vehicles, just cars in general? Council...

None is expected. COUNCILMAN DiCICCO: None. Well, that's good. I have -- Are any -- Do we have any hybrid cars in our fleet yet?

Yes. COUNCILMAN DiCICCO: We do.

We have five. COUNCILMAN DiCICCO: Are there plans to purchase more? Are they working out?

We're looking. We're looking. Right now we're trying to get a demo from Ford for the Ford Escape hybrid, give it to the Police Department and let them drive it and see. COUNCILMAN DiCICCO: For a number of years I've always asked this question. And I'll pose it again. I've never gotten an answer. 1783 Whole - Operating Budget - 3/29/05 I was always wondering whether there would be a cost savings to the city for certain individuals, elected officials as an example, Council members, the Mayor, City Controller. We have access to city vehicles, if it would be less expensive if those elected officials were given a stipend, similar to what the state legislature and the senators do throughout, and lease their own car, pay for their own gas, pay for general maintenance, all those things, including insurance. I guess -- I don't know if any of us have been -- I don't even have a car. I gave my car up months ago. I don't even have a city car any more. But for those of us who still do, from time to time you may get in an accident. There's a claim. We're self-insured, but it's a cost to the taxpayers. Has any analysis ever been done? And again I'm not faulting you here. You're new at the helm, compared to what the number of people there prior to you. I've been 1784 Whole - Operating Budget - 3/29/05 asking this for probably four or five years. Has any analysis ever been done, to see if that makes more sense economically?

Right. We -- The Managing Director had asked us for some cost-saving measures, and we did look at privatizing City Council cars and Commissioners' cars. We have some information back at the office, that we could share it with you, if that's what you're looking for. COUNCILMAN DiCICCO: Yeah. I'm only curious if it does save money. And I don't know what the magic number is. I think the state house people get $500 a month. It's a political issue for us.

Yes. COUNCILMAN DiCICCO: I mean, it would become a highly volatile issue. But I think if we can explain that there actually -- if there is a savings and it's significant, it may make sense to do that. And Council as a whole may decide, if that's the way they might want to go. I'm 1785 Whole - Operating Budget - 3/29/05 not saying they will. I'm just... It's dollars and cents, again.

Right. We had a lease company come in. I can't remember the lease company. And we had asked them. And they were going to look and see if City Council people or Commissioners could go pick out their own car, and drive it and then maintain it, you know, pay for the service and all. And I've got that information back at the office. COUNCILMAN DiCICCO: And lease it through Fleet Management?

Well, the city would lease it. You would have your choice to pick out which vehicle you would like to drive. COUNCILMAN DiCICCO: Yeah, but it's still costing the taxpayers --

It will be costing money, right. COUNCILMAN DiCICCO: -- for the cost of the lease.

But that was another 1786 Whole - Operating Budget - 3/29/05 avenue that we looked at. COUNCILMAN DiCICCO: Okay.

For us to lease the vehicles for Council people. And the other was to give Council people a stipend, and let them purchase their own vehicle, and give them a stipend to maintain and fuel the vehicle. COUNCILMAN DiCICCO: Do all of the departments that have access to Fleet Management vehicles, are they responsible for parking violations within their department?

Yes, they are. COUNCILMAN DiCICCO: So, Fleet Management doesn't pick up any of those parking violation funds?

No, sir. What normally happens is, when I get information from the Parking Authority, I send a letter, draft a letter, and send to it the Commissioner, to his attention, and they process it. COUNCILMAN DiCICCO: How many cars -- I'm sorry. I didn't mean to 1787 Whole - Operating Budget - 3/29/05 interrupt you. How many vehicles are assigned to the courts? Is that part of the Fleet Management inventory?

About 50 vehicles. COUNCILMAN DiCICCO: 50?

Yes. They have a lot of maintenance vehicles for the courts. COUNCILMAN DiCICCO: Maintenance vehicles?

They do their own maintenance. Vans, pick-ups. COUNCILMAN DiCICCO: If you can give me... If it's possible to give me a cost breakout of what those 50 or so vehicles are costing us in terms of acquisition, maintenance, a general number. I'm curious to know. Thank you. Thank you, Madam President.

You're welcome. The Chair recognizes Councilman Rizzo.

Good morning. 1788 Whole - Operating Budget - 3/29/05

Good morning.

Good morning.

First of all, I'd like to point out that it's good to see an organization that's motivated on their own to adopt cost-saving techniques like the accounts payable invoice scanning. It's not like information -- As a matter of fact, from what I recollect, you guys got to push a little bit to even get this. And it should be the opposite way, around where the information technology people should be coming to you. But I know you pushed very hard. So, it's good to see that you're staying current and using some of the modern techniques to contain costs. Also, I want to point out the fact that it's also good to see the fact that you've diversified the fleet, when it comes to the police vehicles, where you introduce the front wheel drive, lest cost Chevrolet Impala that runs... I think you get a lot more patrol miles per gallon of fuel. It's 1789 Whole - Operating Budget - 3/29/05 front wheel drive. It goes better in the snow. So, I think that was great to suggest that to the Police Department. And from what I understand, it's a well received vehicle. It's not like you're just eliminating the Crown Vic. Am I correct?

Yes.

You saved a significant amount of money on the cost of the vehicle, and its operation expenses have reduced. Could you comment on that?

That's correct. The Chevy Impala cost us $5,700 less per vehicle. It's a front-wheel drive vehicle. It's a V-6, not a V-8, which we have in the Crown Victorias. Not only -- I know it's a smaller vehicle, and some police officers don't like it; but, you know, it's the best we can do. And so far the Chevy seems to be doing a great job for us. But that's the way it is.

Well, that's good. We have the bigger one for the bigger officers, and then we can use the smaller one 1790 Whole - Operating Budget - 3/29/05 for the smaller officers. Makes sense.

Yes.

The other issue that I have is that I understand that we're in need of a new fire boat. Could you bring us current on where we are with that? Because with all the growth along the river, I understand we have two very old but well maintained fire boats.

That's correct.

Where are we with the purchase of a new fire boat?

We have Homeland Security money. And what I'll do is, I'd like to bring up Tim Lynch, my Deputy Commissioner for Operations to answer that question for you, since he's been handling this issue.

Because I wouldn't want to see us put off too long -- with rapid growth along the river, put off too long the engineering and the spec process. So, I'd love to hear where we are with that. 1791 Whole - Operating Budget - 3/29/05 Hi, Mr. Lynch.

Timothy Lynch, Deputy Fleet Manager. We've been working for the past four years to build a boat spec, and we finally found the money through Homeland Securities, the Emergency Operations Center, Mike Nucci. There was originally $2 million from the Pennsylvania Regional Grant. When we had the boat price recalculated to today's figures, we needed some more money. Mike was able to find those numbers. We are now having the specification updated to the 2005 specifications. And my guess is that probably before June we'll have it back into the state's hands to be bid. And the boat is approximately 66 feet and has the capabilities of going 28 knots. We'll have a medical triage center on the boat that can be handled, you know, for the Fire Department, to the best of their ability, until they can transport to land.

The current boats are quite old; am I right? 1792 Whole - Operating Budget - 3/29/05

1949, 1950. And it's becoming very, very hard to maintain.

Well, if you looked at it, it looks good. But again, its capabilities, I understand, leave a lot to be desired. So, based on this June date, when do you think... Is it a couple years out before we'd actually see the boat?

Yes. Probably about a year-and-a-half to two years.

Well, again, I appreciate you have that on the radar, too. That's good to hear, because it's growing by the minute down there. And I talked to a few people that have businesses and also warehousing along there, that they are concerned, because their insurance providers are concerned, about what kind of coverage the Philadelphia Fire Department has along the river. And one of the issues was the fact that our fire boats are on the -- I don't want to say on our last leg, but close to it. 1793 Whole - Operating Budget - 3/29/05

Please don't say last legs because we're holding them up.

Exactly. Well, again, congratulations. You guys do a great job. You keep the fleet running even with fewer people. And you should be congratulated for that.

Thank you. I'd like to add one other thing, Councilman Rizzo. I'd like to thank M.O.I.S. for their assistance in our imaging system. They helped us out tremendously to get it through. And as you said, you know, technology; a lot of people are afraid of it. But when you're in budget cuts you have no 18 other choice.

That's great. Thank you. Thank you all for the good work you do.

The Chair recognizes Councilwoman Blackwell.

Thank you, Madam President. 1794 Whole - Operating Budget - 3/29/05 I believe in earlier discussions we were told that there would be no significant monetary impact. We wanted to verify that. And using this program, that it would be the cost -- give us a cost savings, and also ask you where they do this in other cities, and what their results have been.

I missed the question. I'm sorry.

Okay. Our understanding is, because I heard the President asking you about the costs. And my understanding is that we were told this would be cost effective or have no real impact. Is that true?

The vehicle leasing program?

Right

Yes.

Have they done this in other places, and have they had cost savings? Can you name a few?

Boston, New York. 1795 Whole - Operating Budget - 3/29/05 Every city in America. Baltimore is doing it.

Okay. Thank you very much. Thanks.

Point of information.

The Chair recognizes Councilman Rizzo for a point of information.

Public utilities have been doing this leasing program for 30 years now. And I scratch my head sometimes wondering why we haven't done that. And maybe it's the difference between the government and the private sector. But I think if it's good enough for P.P. & L. and P.E.C.O. and the rest, it should be something we consider. I may not understand all the ins and outs of it, but that's one of the problems I think we have in government. We ought to do more what the private sector does, and we might not be fighting for every dime that we need to run some of these departments. 1796 Whole - Operating Budget - 3/29/05 Thanks. Thanks, Madam President.

You're welcome. Are there any other questions or comments from members of the committee?

Council President?

Yes.

Excuse me. I have one comment on... You had asked earlier about the productivity bank.

Yes.

And the Budget Director has told me that it's not an appropriate use of the funds.

May I ask why?

In her note she said efficiency studies were technology such as automation.

I don't think you should be talking for her. If she's here, she ought to come forward and explain why. 1797 Whole - Operating Budget - 3/29/05

Okay.

Please identify yourself for the record.

Diane Reed, Budget Director. The question is why we would not purchase or lease vehicles from the productivity bank. The productivity bank is not that big a fund. It was set up for departments to apply for efficiency funding to, for example, purchase computer software that would allow them to automate processes that are currently manually done.

Well, we just heard from Public Property that they were able to receive $200,000 from the productivity bank for assessors.

That money is going to be repaid. That will be captured in the sale price. It will be a direct payback.

You know...

The listing of all of the 1798 Whole - Operating Budget - 3/29/05 loans does appear in the quarterly City Manager's report.

And how much was done for revenue; do you recall?

No. 7

Well, I think there's some disagreements, as far as we're concerned.

Well, the Fleet Office can send over an application to be considered by the board of the productivity bank, and... But I'm just saying, I doubt that it would be an appropriate expenditure. We can't, you know, fund the fleet out of this little fund.

How small is the little fund?

Given all the projects that we have in the pipeline, I think it's only got about $15 million.

No. How much is in the fund today?

I will have to get back to you on that.

Can you 1799 Whole - Operating Budget - 3/29/05 give us a rough estimate?

I think the fund was about $30 million at the beginning of the year.

That's a small fund. That is a small fund. Okay. Thank you. The Chair recognizes Councilwoman Brown.

Thank you, Madam President. A quick follow-up, only for the subsequent trigger steps on this side of the table with Council colleagues. How soon do you think you may be able to provide the information requested regarding the apprenticeship programs?

As soon as I get back to the office this afternoon. Would that be okay?

That would be terrific.

I have my H.R. director, Carla Hill, will get that for you. 1800 Whole - Operating Budget - 3/29/05

Terrific. Thank you so much.

Thank you. Any other questions or comments from members of the committee? (No response.)

Seeing none, thank you very much.

Thank you.

Thank you. We will now hear from the Historical Commission.

Doctor, welcome.

Thank you.

Please identify yourself for the record and proceed with your testimony.

Thank you. I am Richard Tyler, Historic Preservation Officer for the Philadelphia Historical Commission. The proposed budget for fiscal year 2006 requests $316,325. With this budget, the commission can reasonably expect to 1801 Whole - Operating Budget - 3/29/05 maintain its present levels of service of permanent review under the Historic Preservation Ordinance, and the many commercial revitalization ordinances, and also in the conduct of the federally-mandated historic resource assessments. I should be pleased to attempt to answer any questions members of Council may have. Thank you.

Thank you. Dr. Tyler, I certainly want to say congratulations. Can you hear me?

Yes.

Congratulations on a well earned and well deserved upcoming retirement.

Thank you.

You have been a tremendous asset to this city. And I can't imagine anybody who's going to be able to fill your shoes. You have been terrific. I think I may have just one question, if you'll bear with me. I have one question. On -4 of your detail, it 1802 Whole - Operating Budget - 3/29/05 reflects a reduction of $37,470. And I believe that's for eliminating a position.

I'm sorry?

What position has been eliminated, and will this reduction impact your operation?

Can you... I'm sorry. Where are you, please?

the detail. You probably don't need it. There's -- It reflects a reduction of $37,470. I believe that's for elimination of one position.

We will continue to have the six positions we now have. The explanation for that is perhaps there is no 18 signing bonus this year. Most staff are members of A.F.S.C.M.E. And also, with my leaving there will be a salary savings.

There will be a salary what? I believe that's -- Is that for one position? 1803 Whole - Operating Budget - 3/29/05

I'm rather caught short. I'm not aware of a reduction going into an eliminated position.

Well, as you see, the budget detail does reflect that.

Yeah. I'm at a loss.

All right. Would you please check into it and communicate with us, please?

Sorry?

Would you check into it and communicate with us. You said you didn't know about this.

My hearing is going, too. Sorry.

This will be your last budget hearing; will it not?

Yes, it will.

When is your last day?

The 30th of June.

Of June. That soon. Well, again, I certainly want to 1804 Whole - Operating Budget - 3/29/05 congratulate you and wish you the very, very best.

Thank you.

Thank you. Are there questions? Oh, yes, there are. The Chair recognizes Councilman Nutter.

Thank you, Madam Chair. Just one question, Dr. Tyler. And I echo the comments of the Council President with regard to your service. I have enjoyed working with you and knowing you over many, many years. What I wanted to find out is, what is the current status of these pending Historic Preservation District designations for both Overbrook Farms and East Falls?

To be realistic, given the demands on the staff as it now exists, you'll notice in the full written testimony, there was an increase of 13 percent in the number of building permits we processed last year. 1805 Whole - Operating Budget - 3/29/05 We're now doing about percent of what L & I does, building permits. I don't see how, with the present staffing, we can take on more districts.

Well, I can 7 appreciate that. 8 But if you could maybe give me a 9 little more information with regard to -- I 10 mean, what is the cost of reviewing the applications and performing the designation process? I mean, what's the actual cost of...

The actual cost?

Of processing one of these historic preservation districts?

Well, to us what's involved is the notice to owners and that -- the cost of that would vary, depending upon the number. It's an extensive notice requirement. Holding the hearings. Where the real difficulty comes in, I think, in terms of staffing, is the processing of building permits subsequent to the creation of the 1806 Whole - Operating Budget - 3/29/05 district. Some only take two or three minutes. Consider something like the Naval Home. For a few permits, literally weeks of staff time were spent. I can't quantify it any better than that for you.

But those are building permits as a result of people deciding to upgrade their property or do something to their property; is that correct?

Well, whenever they do any work, it requires a permit to come to us.

Right. I understand.

About 85 percent of them are processed by the staff over the counter.

Right, but that's after you have --

After the creation of the district, yes.

Right. So I'm just trying to understand. What would you estimate the cost to be for the review process for the historic district application 1807 Whole - Operating Budget - 3/29/05 itself? I mean, just because I don't know. I mean, how involved is this?

What's involved is... The first step is fairly easy. Staff would read the nomination, see if it is complete and correct. That's not extensive. Where we get into a lot of time is, a part of the nomination is an evaluative inventory property by property, descriptive and evaluative of every property within the district. Commonly, you know, somebody prepares a nomination. We don't. But that inventory is so important to us, in terms of processing the permits of what was the existing condition at the time of designation, that we go out and actually confirm in the street every entry. A small district such as the one proposed in East Falls, only 200 properties...

Right.

...that could be done in a few days, I would think. 1808 Whole - Operating Budget - 3/29/05 Old City, which had about 800 properties, and we had a very poor nomination submitted, in terms of that, it took weeks...

Right.

...to get that inventory into shape to submit to the commission. Then there are the hearings.

Right.

Both committee and commission. Committee usually holds -- The Committee on Historic Designation -- about three hearings. The commission would hold a minimum of three. Our practice has always been at least one hearing would be held in the community in the evening to be assured that everyone gets an opportunity to be heard. And then the notice afterwards and the photography of it all. I guess 20,000, 30,000, depending upon the magnitude of the district.

I understand. I mean, and lastly, I guess I would 1809 Whole - Operating Budget - 3/29/05 just say that, only speaking for those two areas, I mean, it seems that a significant amount of work has been done by the residents in those communities for both of those proposals. Obviously the residents, you know, care very deeply about their community. They have done the research. They want to preserve the historical nature of those neighborhoods. And it would just, I think, be a tragedy to have all of that work done by, you know, our residents to now get to the point where they cannot move forward because of, at least at the moment, a temporary inability to literally process an application. And it seems that it just frustrates the efforts of so many who care very deeply about their communities. And if you're saying that, I mean, it is purely a financial issue, then I guess it's something for this Council to take a look at. But I think it certainly, you know, frustrates the good efforts of people who are 1810 Whole - Operating Budget - 3/29/05 trying to do the right thing.

Well, the other thing to keep in mind, Councilman -- I know about East Falls, of course. We also have documentation for Spruce Hill, for Overbrook Farms, and a preliminary --

Right.

-- submission for Parkside. I think it might be prudent, at least, as you're well aware, and Councilwoman Blackwell put together a task force to examine the whole designation process.

No. I recall.

They are preparing their final recommendations now.

Mm-hmm.

And until we know what the shape of that is --

Okay.

-- you know, I am very hesitant to say to you, oh, yes, if we do this, then the following.

Okay. All 1811 Whole - Operating Budget - 3/29/05 right. I understand. I assume this discussion will continue. And as I said, I know that there might be other districts out there. For the moment, you know, these two have, I think, moved as far as they can on their own --

Right. It was mutual.

-- through this process, and are now right at the door, literally, of the Historic Commission. And... You know, I'm just trying to give the constituents as much information as possible and some direction as to what those next steps should be. But thank you very much for the information.

Thank you.

Thank you, Madam Chair.

The Chair recognizes Councilwoman Blackwell.

Thank you, Madam President. I, too, would like to thank Dick 1812 Whole - Operating Budget - 3/29/05 Tyler, who comes from my district, for his hard work in this area; albeit we've many discussions and a task force to deal with the Spruce Hill issue. The East Parkside one, I think, will be a lot easier because there is the unanimity -- seems to be unanimity of opinion on that one. But certainly I say to my colleague, I have learned a whole lot about this, more than I ever wanted to know. But I think that the whole issue of the role of a historic commission, what they should do, who should get funded, why and how, are being discussed. And that's important. And who should make decisions about what neighborhoods want, what residential neighborhoods want, insofar as historic designations are concerned. But having said all of that, Dick Tyler has been very sincere and has worked very hard. And we thank him for his years of service. Thank you.

Thank you. 1813 Whole - Operating Budget - 3/29/05

Thank you. The Chair recognizes Councilwoman Miller.