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Minutes

Committee Hearing, March 8, 2006

Philadelphia City Council Committee HearingsMar 8, 2006

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Organizations mentioned

Council President Verna

The Chair recognizes Councilman Rizzo.

Councilman Rizzo

Thank you, Madam Chair. I have a story I must tell, because I know you have a difficult job. We keep you here busy. I don't think you're going to figure out, but I have to tell you this story. I can't remember what hurricane it was, Katrina or whatever, but I got a call, Madam President, I got a call from a constituent whose children were on their honeymoon in Mexico, and you know what happened to Mexico.

Mr. Hess

Right. Right.

Councilman Rizzo

They were stranded there for days, hadn't been able to contact their kids, and they were panicked. So I said to my steward, I 311 3/8/06 - WHOLE - BILL 060001, ETC. said, What do we do? I'm a Councilman in Philadelphia, not in Mexico. He said, Call Rob Hess. So Rob reached out to the agencies, the Red Cross, and believe it or not, they tracked these people down in Mexico, got them to a cell phone to call their mom and dad. I will never forget that. And I wanted to say publicly thank you, because they lived here in our City, their kids were stranded in Mexico, but you figured out a way to help them, and I appreciate that.

Mr. Hess

Thank you, Councilman. That was very kind of you to say. That was a Sunday morning, as I recall, and we were able to get the duty officer at the State Department to track them down. So I'm glad that that worked out.

Councilman Rizzo

And it was amazing. They were at a shelter and they had no communication, nothing, and 312 3/8/06 - WHOLE - BILL 060001, ETC. finally some kind person from the government of Mexico hooked them up on the cell phone and they called their mother and father. You made their day.

Mr. Hess

Thank you for that. Thank you, Councilman.

Councilman Rizzo

Thank you, Madam Chair.

Council President Verna

You're welcome. The Chair recognizes Councilwoman Brown.

Councilwoman Brown

Thank you, Madam President. Good afternoon.

Mr. Hess

Good afternoon, Councilwoman.

Councilwoman Brown

Councilwoman Tasco and I were just here talking about the Benefits Bank, and you may not have been here, but I've been posing that question to every department head in Social Services, because I think that is an enormously wonderful 313 3/8/06 - WHOLE - BILL 060001, ETC. opportunity and added approach to better serve the constituents that we're talking about who are so in need of those complex services. So, A, are you aware of it? Have you had an opportunity yet to make that a part of the OESS operations?

Mr. Hess

And I didn't even ask you to ask that question, Councilwoman. Let me begin by thanking you, first of all, for your coat, mitten, scarf drives every year and all the good work that you do in support of our department. Our department reached out for the first time over this past year to the Department of Commerce and received our first ever grant for the Department of Commerce. You might not associate the Department of Commerce with supporting homeless issues, but we have a very creative grants units under the direction of Roberta Sharpe that did that, and one of the outgrowths of or outcomes is we 314 3/8/06 - WHOLE - BILL 060001, ETC. were awarded a sizable grant that does a number of things for us, but one of the things it does for us is provide us direct access to the Benefits Bank.

Councilwoman Brown

Outstanding. Where are you housed?

Mr. Hess

So we are on top of that one, and all of our providers, all of our clients will have an opportunity to benefit from that in the years to come.

Councilwoman Brown

Where is it housed?

Ms. Sharpe

Currently it's operating at Honickman.

Councilwoman Brown

Hahnemann Hospital?

Ms. Sharpe

No. Honickman Comcast Learning Center. That's managed by Project HOME. So they were the kick-off site, but we're moving now. We've trained staff at several other non-profit provider agencies, including RHD, which runs Woodstock, and Travelers 315 3/8/06 - WHOLE - BILL 060001, ETC. Aid, which runs Kirkbride. PEC has also obtained the training, People's Emergency Center. So we think it's kind of growing among the provider community to see the value. We know that -- I mean, we were interested in including this in the grant, because thousands of dollars were returned to families hands through using the Benefit Bank to obtain benefits to which they're entitled.

Councilwoman Brown

Yes.

Ms. Sharpe

So we're excited to see --

Councilwoman Brown

Well, there's an interest on Council to build that into or connect that to the various systems in social service. So we'll do the needed work to try to make that happen. I'm pleased to hear of the efforts to better strengthen ties with CBH as it relates to homeless children who may need those type of services. So 316 3/8/06 - WHOLE - BILL 060001, ETC. because I missed the CBH leadership during their testimony, I'll ask the question, understanding that it was actually suited for them. Do you have any idea how long the waiting lists are for children who are on Medicaid but need CBH services?

Mr. Hess

Councilwoman, I do not, but I'm sure that we'll have that question answered for you through the President's office.

Councilwoman Brown

Okay. There's this plan to end homelessness in ten years and so hopefully we want to move farther and farther away from folks who basically fallen down on life in these large facilities and ultimately move them towards self-sufficiency, renting and home ownership.

Mr. Hess

That's right.

Councilwoman Brown

Is that a part of the long-term plan?

Mr. Hess

Absolutely. In fact, it's one of the objectives of the 317 3/8/06 - WHOLE - BILL 060001, ETC. plan, is long-term housing strategies would help achieve that goal. A number of plans are in the works, and, in fact, some were recently just presented to the Managing Director. And so I think we will be reviewing those internally with the Mayor and others over the coming weeks and should have a lot more to say about that in the near future. But you're right. It's absolutely critical that we shift our focus from a shelter being a solution, which of course it's not. It's a necessary point of entry.

Councilwoman Brown

Sure.

Mr. Hess

But we need to make sure that we do just as good a job as we can possibly do on the front end in prevention to keep people out of the need for shelter. We need to do the best job we can operating shelter facilities for as long as people need them, but at the end of the day, our highest and best outcome is when we can move folks back 318 3/8/06 - WHOLE - BILL 060001, ETC. into the community with whatever supports they may need. And so that will be a very serious focus in the coming weeks, months and years.

Councilwoman Brown

Is that to suggest then that there will be conversations and discussion those running the Housing Trust Fund?

Mr. Hess

I suspect that will happen, yes.

Councilwoman Brown

Okay. I think that that might be it. That is it for Blondell. Thank you. Thank you, Madam Chair.

Council President Verna

You're welcome. Do we have anyone else to question our witnesses? (No response.)

Council President Verna

Seeing none, I thank you very much.

Mr. Hess

Thank you, Madam President. If I could just for just 30 seconds, I would like to publicly thank 319 3/8/06 - WHOLE - BILL 060001, ETC. the OESS employees and all the employees of the City that work so hard during the Katrina effort. That was really an exceptional effort. People of this department and other departments worked around the clock for about eight weeks to house -- to move in and process 1,450 individuals, but also to relocate 194 families that wish to stay in Philadelphia, and we're just so grateful for the great work of the City employees and others on that task. And thank you, Madam President, for your support.

Council President Verna

You're welcome, sir.

Councilwoman Blackwell

Madam President.

Council President Verna

Yes. The Chair recognizes Councilwoman Blackwell.

Councilwoman Blackwell

As all of you know, and I guess I say every year this time, the late Lucien Blackwell really started this whole issue of 320 3/8/06 - WHOLE - BILL 060001, ETC. dealing with homelessness in a formal way during the Rizzo Administration. And I worked with a lot of directors over the years, and by far, I would say Rob Hess is the finest, and I commend him for the work he has done to help those at the bottom rung of the ladder. Thank you. (Applause.)_

Mr. Hess

Thank you, Councilwoman, for those kind words. With the daily interaction that we're able to have and access to the Council, it makes a difficult job that's a very rewarding one that much easier. We appreciate your incredible leadership and support on this issue as well.

Councilwoman Blackwell

Thank you.

Council President Verna

Thank you.

Mr. Hess

Thank you, Madam President.

Council President Verna

Thank you very much. 321 3/8/06 - WHOLE - BILL 060001, ETC. Our next department? MR. McPHERSON: Department of Human Services.

Council President Verna

Good afternoon. Kindly identify yourself for the record and proceed with your testimony. COMMISSIONER RANSOM-GARNER: Good afternoon, Madam President and members of City Council. I am Cheryl Ransom-Garner, Commissioner for the Department of Human Services.

Council President Verna

Welcome. COMMISSIONER RANSOM-GARNER: Thank you. Today I will present to you the Department's FY07 operating budget request. I will also report on our significant progress, outline our plans for moving forward, and detail how DHS is responding to the changing needs of Philadelphia's children and families. I invite your comments and questions and 322 3/8/06 - WHOLE - BILL 060001, ETC. look forward to discussing these important issues with you. DHS's FY07 General Fund budget request is $609,479,164, which represents an increase of nine percent over the Department's FY06 estimated obligations of $559,261,284. DHS also receives $20,827,437 in Grants Revenue Funding, placing our grand total of funds at $630,306,601. There is a level of risk associated with these budget figures, as they are based on current assumptions regarding the state budget. Changes in the final state budget that is passed by the legislature and signed by the Governor may impact this request. To date, we have not yet received our final allocation, nor have we received clarification of what programs have been approved. Our budget assumes that House Bill 1192 that unanimously passed the Pennsylvania House of Representatives calling for an increase in the percentage 323 3/8/06 - WHOLE - BILL 060001, ETC. of adoption subsidies paid will also pass the Senate. DHS has 1,725 General Fund positions currently filled as of December 2005 and a requested total of 1,758 full-time positions for FY07. And what I'll do is probably try to be brief in this testimony and do many of the highlights. The changing dynamics of placement services: Ten years ago, our foster care system was filled with young children. Today more than 57 percent of children and youth in dependent placement are 12 years of age or older. During recess years, we have made great strides in achieving permanent outcomes for young children. Duplicating this success for older youth presents an even greater challenge. Our system is shifting to address and serve these youth to find them safe, loving and permanent homes and, most important, equip them with the skills and knowledge to thrive on their 324 3/8/06 - WHOLE - BILL 060001, ETC. own as they enter adulthood. In conjunction with more targeted services to the youth, we are increasing efforts to reunify children and youth with their parents by offering parents the services that address the issues that led to the removal of their children. The changing dynamic of violence: The violence that is tearing at the fabric of our neighborhoods and families is different than in the past. Simple arguments that used to result in fist fights now end up in homicides and 80 percent are committed with guns. Even more disturbing is the increasing frequency with which this violence affects our children. Ten percent of the victims of gun violence are juveniles. As with child abuse, violence is often a symptom of other issues, including drug and alcohol abuse and mental illness, among others. DHS's involvement in programs like the Youth Violence Reduction Partnership and the Adolescent 325 3/8/06 - WHOLE - BILL 060001, ETC. Violence Reduction Partnership are examples of social services shifting and refocusing to address the changing needs of our clients. The changing dynamics of social services: To address the shifting face of child welfare, DHS has increased its focus on collaboration with other social service agencies. We are breaking down historic barriers to partnership and we're working more closely with neighborhood groups, law enforcement, advocates, the School District, the courts and private providers. We are concentrating on outcomes, implementing performance measures, and utilizing data-driven best practices to guide program development. A focus on prevention: Historically, the only way a family could obtain assistance from the child welfare system was after they had been reported for child abuse or neglect.

Council President Verna

In Philadelphia, this is no longer the case, 326 3/8/06 - WHOLE - BILL 060001, ETC. thanks in large part to the development of our division of community-based prevention services. DHS has a network of programs that provide families with a safety net of support by helping them to address the challenges that so often undermine parental functioning and lead to abuse, neglect or juvenile delinquency. Philadelphia's prevention services have drawn national and international attention, including calls from child welfare systems in Virginia, New York and the National League of Cities. Paramount among the efforts drawing interest from other systems is a program DHS launched in early 2005 called the Achieving Reunification Center, the ARC. The ARC represents Philadelphia's raising of the bar, not merely to comply with the Adoption and Safe Families Act mandate to make reasonable efforts to reunite children with their families in a timely manner, but also to actually give 327 3/8/06 - WHOLE - BILL 060001, ETC. parents a substantive tool to help in the process. With multiply on-site partners, ARC staff are prepared to help clients address a myriad of issues, including housing, unemployment and mental health, as well as parenting support and supervised visitation. Permanency improvements: In resent years, DHS has realized great success in reducing the number of dependent children in placement, from 7,895 in FY03 to 6,728 as of December 2005, a reduction of nearly percent. 15 Major catalysts for this success were the development and implementation of performance-based contracting for foster care agencies and continual efforts to move the Department and our service providers towards an outcome-based service delivery system. We have also been very successful in achieving permanency for the children in our care through increased reunifications, aggressive 328 3/8/06 - WHOLE - BILL 060001, ETC. adoptive parent recruitment efforts, and full implementation of permanent legal custodianship. As I mentioned earlier, teenagers are coming into the foster care system at increasing rates, and while we're making great strides in achieving permanency, DHS has a responsibility to ensure that these teenagers are prepared for adulthood when they exit our system. Building collaborations: At DHS, we recognize the need to collaborate with other systems, and we continually look to maximize our effectiveness by bringing partners to the table. In addition to the Achieving Reunification Center and Achieving Independence Center, other recent examples are evidenced in efforts to reduce truancy by targeting truants early in the process before it becomes a chronic problem. By working with the School District and Family Court, we have successfully lowered the threshold for truancy from to eight 25 days of unexcused absences, allowing us 329 3/8/06 - WHOLE - BILL 060001, ETC. to intervene before larger problems develop. We have also realized success through partnerships at the Youth Study Center where overcrowding was a chronic problem. In collaboration with Family Court and other key stakeholders in the Philadelphia juvenile justice system, we have been able to steadily decrease the average daily population at the center, reduce the average length of stay for youth, and consistently move the youth out to treatment sites once they are adjudicated. These efforts were recognized in a 2003 report published by the National Center for Juvenile Justice, the major research organization analyzing juvenile justice data nationwide, and again in October 2005 in a MacArthur Foundation report called Keystones for Reform. Aside from the obvious benefits to the youth, reduction in the Youth Study Center daily population has also resulted in overtime savings. 330 3/8/06 - WHOLE - BILL 060001, ETC. Additionally, the Department's plan to relocate the Youth Study Center from its current location to a brand new state-of-the-art facility to be constructed in West Philadelphia is proceeding.

Council President Verna

We've had several meetings with community residents in the area and have garnered widespread support for our efforts. Our plans are to relocate by late 2007. Advancing the agenda of supporting families: DHS, along with our sister agencies within the Division of Social Services and a cadre of partners, are prepared to expand our efforts to support Philadelphia's children and families. Many efforts to address the changing dynamics of clients and their needs have already begun. Others will reach full implementation on the next fiscal year. Influx of teens into the system: We are continuing development of our Older Youth Initiative often referred 331 3/8/06 - WHOLE - BILL 060001, ETC. to as the Teen Strategy, which address the influx of teens into the system with a multi-faceted approach. In this population, abuse and neglect are often secondary issues to escalating parent-child conflict and behavior problems. These youth often come to our attention as a result of truancy and/or pre-delinquent behaviors that cause parents to reach a critical point where they feel they can no longer cope with their child's behavior. Parents often voluntarily request that DHS place their children in the foster care system. Historically, it has been perceived that there has been little assistance or support available for these cases other than out-of-home placements. In FY07, we will implement a placement diversion program for youth between the ages of 13 and 17 who come to the attention of DHS. The tenets of this program are rapid response, focused attention and de-escalation skills for 332 3/8/06 - WHOLE - BILL 060001, ETC. the family and youth, which will provide the family with the support to safely maintain a youth in his or her own home. Also, we have a program that will allow immediate assistance to families to get them service immediately. We think that providing immediate service will allow a family to stabilize and address the crisis within a significant early period of time. Addressing the violence - intensive involvement with youth: In FY07, full implementation of the Adolescent Violence Reduction Partnership known as AVRP will occur. Based on best-practice research of programs successful in protecting youth between the ages of 10 and 15 from becoming perpetrators or victims of violence, AVRP requires youth to regularly attend a center-based program in their community and will offer the Get Real About Violence curriculum and Aggression Replacement Training, Balanced and 333 3/8/06 - WHOLE - BILL 060001, ETC. Restorative Justice, known as BARJ, services, and parenting education programs that focus on working with strong-willed children will be provided. In addition to implementing these approaches AVRP will provide regular and intensive supervision to these youth modeled on the work of the Youth Violence Reduction Partnership. AVRP will also link youth to the continuum of existing supports for adolescents, including behavioral health, treatment services, adolescent health initiatives, literacy programs, mentoring, youth development, family counseling, delinquency prevention programs, and alternative education programs. Another component of AVRP is a community engagement and youth worker services function. Youth workers will conduct street community outreach in formal and informal community settings to establish partnerships with key community 334 3/8/06 - WHOLE - BILL 060001, ETC. groups for identifying youth at risk of delinquency or violence. The youth worker will also work with faith-based groups and community organizations to assist in responding to critical situations related to school, family and personal life that impact on the youth. In FY07, an additional 2,300 youth and their families will be engaged in services and will be supported by this program.

Council President Verna

Programs promoting safe behaviors: Research continually demonstrates that effective after-school and youth development programs contribute to higher educational achievement and school attendance, reduced exposure to risk behaviors, juvenile crime and victimization. To that end, we will continue our investment in these programs, and in FY07, we will expand the Beacons program in neighborhoods with high-risk indicators for child abuse, neglect, out-of-home placement, school 335 3/8/06 - WHOLE - BILL 060001, ETC. failure and behavioral health problems. Beacons are community-based programs providing after-school, youth development and family support activities. These opportunities provide focused attention to dependency and/or delinquency prevention services, with the goals of deterring the need for placement and providing step-down services and community supports to assist youth to leave placement and return home successfully. These expanded services, along with other community-based services, are considerably less expensive than out-of-home placement and are a cost-effective means of reducing risk behaviors leading to dependency, delinquency and placements. These opportunities can result in fewer older youth in the target populations requiring formal dependency and/or delinquency services which can often lead to out-of-home placements. 336 3/8/06 - WHOLE - BILL 060001, ETC. In FY07, an additional 2,700 youth and their families will be served in these new Beacons. Improved support for delinquent youth: To support delinquent youth returning home from court-ordered residential placement, DHS is implementing a revised Aftercare Services model. As outlined in our FY05 plan, DHS and Juvenile Probation implemented a revised Aftercare Services model which began operating in February 2005 under the auspices of Juvenile Probation and DHS, in collaboration with other juvenile justice system stakeholders. The new Aftercare and Reintegration model requires planning for a youth's return to the community at the moment of disposition, family involvement while the youth is in placement, and increased community supports for all youth once they return home, to increase the potential for successful reintegration. A unique component of the model is the 337 3/8/06 - WHOLE - BILL 060001, ETC. inclusion of opportunities for some delinquent youth to attend the E-3 Centers, which stand for education, employment and empowerment, where they will receive education, counseling, employment assistance and life skills to reduce recidivism. In closing, I would like to reinforce the Department of Human Services' commitment to providing a safety net of support for the children and families in Philadelphia through prevention services. They deserve the best Department of Human Services possible, and while we have made great strides toward greater accountability, accessibility, integration and excellence, we have a vision to reach even higher in our service to the most vulnerable citizens in this City. As always, we thank you, City Council, for your unwavering support of our mission. Together we can and will make Philadelphia the safest, most 338 3/8/06 - WHOLE - BILL 060001, ETC. nurturing place for a child to grow and to succeed. Thank you.

Council President Verna

The Chair recognizes Councilman Rizzo.

Councilman Rizzo

Thank you, Madam Chair. There's an issue that I've been contacted about, and I'd appreciate getting some information about the preferred-based contracting. I don't think I need to read the letter that I received, but I think after reading it, it's an important issue, especially when we're dealing with agencies outside the region to replace the vendors that once provided this service. So could you just tell us what performance-based contracting is and what the controversy currently is? COMMISSIONER RANSOM-GARNER: Performance-based contracting is an incentivized model to promote permanency for children in foster care and kinship 339 3/8/06 - WHOLE - BILL 060001, ETC. care. It's a model that we worked on for about a year with our providers in terms of designing the model. We went to Chicago to review the model and felt that it would be good for Philadelphia, because our permanency rates were not as high as we would like them to have been. We began in March of 2003, and it's a model that really sets a certain caseload for providers and a certain permanency rate. For example, it's incentivized if the provider reaches the permanent rate, there are monetary incentives. If the provider does not meet the threshold that's established, there are monetary disincentives in terms of taking back funding. So we work with the providers in terms of reviewing the permanencies, talk about different challenges that may come up. For Philadelphia, it has worked very well. Our permanencies have increased since we initiated performance-based contracting. Before 340 3/8/06 - WHOLE - BILL 060001, ETC. that, we had a system that did not -- had no incentives. A provider would get a set rate regardless of if the child stayed ten days or five years.

Councilman Rizzo

Then what's the controversy? Why did this PSI, one of the larger PVC agencies, and the relationship with us, what happened there, and then what did you do? COMMISSIONER RANSOM-GARNER: PSI is a provider that has been in the system, the DHS system, for several years, decided out of the clear blue, I had no prior warning, that they no longer wanted to do business in Philadelphia. They serve approximately 200 children in kinship and foster care. They're a large minority-run foster care program.

Councilman Rizzo

Then as a result of that, you went with two new non-Philadelphia-based companies to replace PSI. How did that happen and why couldn't we deal with -- there was no 25 local people available? Tell us about 341 3/8/06 - WHOLE - BILL 060001, ETC. these two companies, non-Philadelphians, who replaced PSI. COMMISSIONER RANSOM-GARNER: PSI asked for a meeting with me and indicated that they did not -- the agency did not want to continue to do business in Philadelphia and indicated that they wanted to assign the contract to two other providers that they had done research on or were doing research on. Those two providers, one is called Second Chance that is out of Pittsburgh, but has a contract in Philadelphia doing business in Philadelphia. The other one is Progressive Life Center that is also doing -- many of our providers do business in other cities. Progressive Life works in DC, but also has a contract in Philadelphia doing business with DHS.

Councilman Rizzo

So PSI walks on us, comes in and recommends two organizations from outside the City and we accepted that? COMMISSIONER RANSOM-GARNER: 342 3/8/06 - WHOLE - BILL 060001, ETC. These agencies are within the City and they have contracts with DHS.

Councilman Rizzo

But you're confusing me, or I'm just confused. PSI ended out of the blue their relationship. They recommended these two agencies that you just referred to. You accepted the recommendation. Does PSI get any financial gain from this referral? COMMISSIONER RANSOM-GARNER: PSI is a non-profit organization.

Councilman Rizzo

But they still collect money, though. COMMISSIONER RANSOM-GARNER: Yes. The discussion with PSI was that this was very abrupt. The termination date is March 31st. They indicated that these agencies were willing to accept the clients, the foster homes and the staff, to make it a seamless transition, and that's called assigning the contract, which we do have language in our contracts around assignment. I looked at the number of 343 3/8/06 - WHOLE - BILL 060001, ETC. children, the short period of time, the agencies that were involved, and indicated to the Pennsylvania Council for Children, Youth and Family Services that I had verbally accepted the assignment, but I would consider a proposal from the providers. I also talked to them about it being unreasonable to take 200 children and try to distribute all of those services among providers. 13 The group had an emergency 14 meeting, took that information to the 15 meeting, came back with a proposal that 16 indicated that they prefer to distribute 17 those 200 children in foster homes among 18 23 providers. To me, that's an 19 unacceptable solution. 20

Councilman Rizzo

So before 21 these two non-Philadelphia organizations 22 got involved, I have that we had 23 remaining companies that were working 24 under capacity, that you decided that that would not be good for these children 344 3/8/06 - WHOLE - BILL 060001, ETC. to assign them to these 24, and you brought in the two that were recommended by the agency. And again I ask the question, does the PSI organization get any financial gain from this transaction that you accepted? COMMISSIONER RANSOM-GARNER: There is no financial gain that I'm aware of that they would get. Also, I'd like to add that I did put a proposal on the table to the Pennsylvania Council that I would look at an agency out of the 14 that wanted to step forward to take the 15 homes, the children and the staff as 16 well. My final discussion was that I 17 would consider the two assignments that 18 were on the table in addition to looking 19 at some of the cases that could go to the 20 providers that had not met their referral 21 number. 22

Councilman Rizzo

Since this 23 was kind of, how do I say, you had a 24 short span of time to deal with this, how much longer will these two 345 3/8/06 - WHOLE - BILL 060001, ETC. non-Philadelphian companies be able to do this work before you put it out for bid or revisit the issue? I mean, in other words, how much longer are they going to be engaged? And what again are the name of the two that took over the PSI's work? COMMISSIONER RANSOM-GARNER: Second Chance, and they haven't -- nothing has been confirmed yet. They haven't taken over yet. They're doing due diligence and making sure that the agency is sound, has no financial crisis going on. But Second Chance and Progressive Life Center.

Councilman Rizzo

Madam President, I think we need to get some feedback here to see if it is appropriate for a contract that was assigned to one organization, maybe the Law Department needs to get back with us on this, whether they can just assign a contract without going through the process. It sounds like there is no process here. It sounds as though the decision was made. 346 3/8/06 - WHOLE - BILL 060001, ETC. PSI, this other organization, walked on us, said we're leaving abruptly, but here are two, which could be good or bad, organizations that want to take up the work that we did, and we're about to transfer that responsibility from PSI to these two other agencies, when we have 9 remaining agencies that apparently, at 10 least from the information I have, have 11 the capability of doing the work because 12 they're running under capacity. So why 13 are we going to two that we've had no 14 significant experience with? I mean, 15 that's my question. 16 COMMISSIONER RANSOM-GARNER: 17 Second Chance has a tremendous credible 18 relationship in serving kinship families 19 and is in Philadelphia working with our 20 kinship parents. 21 Progressive Life is also in 22 Philadelphia working with our treatment 23 foster care children. 24

Councilman Rizzo

Do you have business relationships presently with 347 3/8/06 - WHOLE - BILL 060001, ETC. both of those companies? COMMISSIONER RANSOM-GARNER: Yes.

Councilwoman Tasco

Are they operating in Philadelphia and were they operating in Philadelphia prior to this transition? COMMISSIONER RANSOM-GARNER: Yes. They were in Philadelphia prior to this transaction -- transition.

Councilman Rizzo

But I am still questioning then, what is the issue, what is the controversy, the fact that remaining agencies are not 16 working at capacity. Was the suggestion 17 that you should have split this up 18 between the 24 and not given all of the 19 200 children to these two agencies? Is 20 that the deal? 21 COMMISSIONER RANSOM-GARNER: I 22 have said that I am willing to not give 23 all of the foster care homes and families 24 to the other two agencies. I've said that to the Pennsylvania Council. 348 3/8/06 - WHOLE - BILL 060001, ETC.

Councilman Rizzo

Then what is the controversy? COMMISSIONER RANSOM-GARNER: The Pennsylvania Council wants none of the homes and children to go to the other two agencies, and I've said to the Council --

Councilman Rizzo

None? COMMISSIONER RANSOM-GARNER: None. I've said to the Council, We never established PVC to say that no other capable provider would be able to come into that system and provide those services. We never said that.

Councilman Rizzo

Go back and explain the Council so I understand what you're referring to better. COMMISSIONER RANSOM-GARNER: Many of the Philadelphia private providers of out-of-home services and in-home services are part of an organization that's -- the organization is a membership organization where they pay dues. They are represented. They 349 3/8/06 - WHOLE - BILL 060001, ETC. talk about the types of training they need. They network with each other. That organization represents them on different fronts, legislative issues.

Councilman Rizzo

I got it. So what am I hearing today, that the 200 are not all going to go to these two providers that you mentioned from out of town, that you're going to reconsider the -- the agencies will be 12 considered, the existing providers will 13 have an opportunity -- 14 COMMISSIONER RANSOM-GARNER: 15 What I said to Margaret Zukowski, who is 16 a representative of the Council, that I 17 will keep on the table the assignment to 18 the two providers, Second Chance and 19 Progressive Life. However, there will be 20 60 cases or so that can be distributed, 21 and probably more, because I'm looking to 22 those providers that have not met the 23 referral level. As you said, they're not 24 at capacity. They're able to take more children. However, it will be based on 350 3/8/06 - WHOLE - BILL 060001, ETC. performance, who has performed.

Councilman Rizzo

I'm all with you. I love that word. COMMISSIONER RANSOM-GARNER: But my proposal to her last night was that I would consider giving some of those cases to those providers, and my understanding is that they were to have a meeting at 8:30 this morning about that.

Councilman Rizzo

So you're going to hold on any decisions until all this is worked out? COMMISSIONER RANSOM-GARNER: Yes. I expect her to come back to me today with a result of the meeting this morning at 8:30. We will look at how many of those cases can go to those providers, but I really object to providers having the position that no 21 other capable organization can do this business.

Councilman Rizzo

Is those two providers that you mentioned, Second Chance, part of their organization? 351 3/8/06 - WHOLE - BILL 060001, ETC. COMMISSIONER RANSOM-GARNER: Progressive Life is a member of the organization.

Councilman Rizzo

Okay. Well, there's obviously controversy, and I don't want to be in a position where you say that it's a done deal and these other folks don't have an opportunity. COMMISSIONER RANSOM-GARNER: No. I've spoken to Margaret every day. I've indicated what I was willing to do. I said that I would accept a proposal. I did. They came back and said they wanted them split among 23. I said that's not acceptable. I gave another proposal that I was willing to --

Councilman Rizzo

That's fair enough. The words you're using I like, if it's based on performance and it isn't just being given to one and the others is being left out are local people. That's your decision, but I just want to make sure that the decision is made after all the input. It's your call, but just 352 3/8/06 - WHOLE - BILL 060001, ETC. treat them appropriately, and I'm sure you will do that. COMMISSIONER RANSOM-GARNER: Yes.

Councilman Rizzo

Thank you, Madam Chair.

Council President Verna

You're welcome. The Chair recognizes Councilwoman Tasco.

Councilwoman Tasco

Thank you. I don't want to be belabor this. I just want to ask you since PSI was a minority vendor, provider, are either of the other two minority providers and how many other are minority providers? COMMISSIONER RANSOM-GARNER: The two are minority providers.

Councilman Nutter

Are or are not?

Councilwoman Tasco

Are. Do they help meet your goal? We always are concerned about having 353 3/8/06 - WHOLE - BILL 060001, ETC. minority providers. Do they help you meet your goal? COMMISSIONER RANSOM-GARNER: Unfortunately not because they're all non-profit. We used to have the affidavit where we could count them, but that has been discontinued. But all of these providers that we're speaking about, those and those two, are all 11 non-profits. 12

Councilwoman Tasco

Do you 13 know how many of them are minorities? 14 COMMISSIONER RANSOM-GARNER: 15 Yes. Progressive Life is minority. 16 Second Chance is minority. PSI is 17 minority. 18

Councilwoman Tasco

What about 19 the others? 20 COMMISSIONER RANSOM-GARNER: 21 There are a few that have minority 22 executive directors. There are a couple 23 Hispanic, but the rest are non-minority.

Councilwoman Tasco

Thank you. Okay. Let me just go to something else. 354 3/8/06 - WHOLE - BILL 060001, ETC. In your testimony you talk about that you're not sure what's going to happen with the state budget in terms of the adoption subsidies legislation that was passed in the House. You do say it's going to be passed in the Senate. What gives you that assurance that it will be passed in the Senate? If it's not passed in the Senate, what happens to your budget and what programs might be cut? COMMISSIONER RANSOM-GARNER: Well, we believe that it will pass in the Senate. We certainly don't know that for sure, and it is a budget assumption. And we've certainly thought about what happens if it doesn't pass. What we will do is look at our entire budget to look at where we can reduce costs, look at where we can be more efficient. We believe the state should really provide sustainable funding for prevention services. So we're hoping we can make that point as well. But we would look at just being more efficient and look at 355 3/8/06 - WHOLE - BILL 060001, ETC. possibly which prevention programs have the least impact. We think they're all important and they really have been working and we think they have made a difference in reducing the number of children that are coming into placement. So it would really be a shame to have to cut any prevention programs.

Councilwoman Tasco

Well, I agree with you on all of that, but you know that we have a state legislature that is just not very predictable in terms of how it will operate during the budget cycle, and I want to know if you have Plan B. COMMISSIONER RANSOM-GARNER: Well, part of Plan B is also looking at revenue, how we can enhance revenues to bring more revenues into the City, which would offset any assumptions that don't come to pass.

Councilwoman Tasco

So where would the revenue come from? COMMISSIONER RANSOM-GARNER: We 356 3/8/06 - WHOLE - BILL 060001, ETC. have 4-E reimbursement where there's administrative costs where we bring in 4-E dollars to the City. We will look at enhancing that, and that really means making sure that all of our clients are eligible so we can collect 4-E reimbursement from the federal government. That's one.

Councilwoman Tasco

Well, that should be ongoing. COMMISSIONER RANSOM-GARNER: Yes. That's ongoing, but we're always looking at how to enhance that or how do maximize on those dollars. Also, we're involved with inmate realignment with the Department of Behavioral Health, which really takes the payment for behavioral health services and puts it over in the behavioral health stream. There's a different funding mix when we do that. When DHS pays for it, it's a 60/40, that the state pays 60 percent, the Department pays 40 percent. When that shifts over to the Department 357 3/8/06 - WHOLE - BILL 060001, ETC. of Behavioral Health and services that we pay for those children, we shift to an 80/20 percent reimbursement with the City paying percent. So that's another way 6 to garnish some savings. 7

Councilwoman Tasco

So you 8 take the service back? 9 COMMISSIONER RANSOM-GARNER: 10 No, we don't take the service back. If 11 this child comes back and needs to step 12 down, it becomes 80 percent/20 percent 13 instead of 60 percent/40 percent. It's 14 just a different funding mix that allows 15 us to save dollars. 16

Councilwoman Tasco

Well, 17 let's hope for the best. 18 COMMISSIONER RANSOM-GARNER: 19 Yes. 20

Councilwoman Tasco

On and of the budget detail, 800,000 and 8.3 million in new Fiscal Year '07 funds are allocated to the Adolescent Violence Reduction Partnership. What is the time line in 358 3/8/06 - WHOLE - BILL 060001, ETC. selecting a vendor for this program, and what will the vendor's responsibilities be? COMMISSIONER RANSOM-GARNER: Right now we're running a pilot with three organizations. We issued an RFQ back in December, and we're looking to implement the pilot at the end of this month in the 12th and 25th Police Districts. We're using Men United for a Better Philadelphia, Congreso and PAAN, the Philadelphia Anti-Crime Anti-Drug Network.

Councilwoman Tasco

So they're operating the pilot program? COMMISSIONER RANSOM-GARNER: Yes. We did an RFQ and those were the providers that were selected. And the 8.3 million will really address going full-scale July 1st, serving 2,330 young people, 10 to 15, working in eight service areas across the City.

Councilwoman Tasco

Can you describe the difference between this 359 3/8/06 - WHOLE - BILL 060001, ETC. program and the Youth Violence Reduction Partnership? COMMISSIONER RANSOM-GARNER: Yes. The Youth Violence Reduction Partnership serves the older youth, up 7 to, I believe, age 24, those youth that 8 are at risk to kill or be killed. The 9 Adolescent Reduction Partnership program 10 targets the younger children, 10 to 15. 11

Councilwoman Tasco

Who 12 coordinates the Youth Violence Reduction 13 Partnership? How does that work? 14 COMMISSIONER RANSOM-GARNER: 15 The Youth Violence Reduction --

Councilwoman Tasco

Does that come under your department? COMMISSIONER RANSOM-GARNER: There's some involvement from my department, but actually the Managing Director's Office has hired a Youth Violence Reduction Partnership coordinator that is now coordinating that program. It really stemmed from a grant and involved different partners around 360 3/8/06 - WHOLE - BILL 060001, ETC. the City, DHS, the District Attorney's Office, Family Court. Different stakeholders were involved in developing the model.

Councilwoman Tasco

Was this for the Blueprint? Was this as a result of the Blueprint for Philadelphia? COMMISSIONER RANSOM-GARNER: Part, I believe -- and I'm not the expert on that. I would have to get you some specific information. But let me turn to YVRP in this document.

Councilwoman Tasco

Are there any City General funds in that budget, Youth Violence program? COMMISSIONER RANSOM-GARNER: This partnership is a multi-agency anti-violence initiative in the 24th, 25th and 12th Police Districts. The goal is to keep youth from -- those that at risk of being killed or that will kill.

Councilwoman Tasco

So you have appropriations in the program as well as other City departments and it's 361 3/8/06 - WHOLE - BILL 060001, ETC. run out of the Managing Director's Office? COMMISSIONER RANSOM-GARNER: The Managing Director is coordinating it out of its office to make sure that the different -- also, there will be expansion of YVRP, and since there were different stakeholders involved, it was felt that there needed to be a coordinator to make sure that the program -- and I have help here to help me answer the question.

Councilwoman Tasco

Could you explain the program to us, please, and the operation?

Ms. Clayton

I certainly can. My name is Denise Clayton. I am the coordinator of the Youth Violence Reduction Partnership that has recently been appointed in the Managing Director's Office. This is the seventh year for Youth Violence Reduction Partnership in the City of Philadelphia, and, yes, the 362 3/8/06 - WHOLE - BILL 060001, ETC. Blueprint for a Safer Philadelphia, both Year One and Year Two, YVRP was the recipient of some of the funds that came out of the Blueprint for a Safer Philadelphia. But prior to that, the initiative was funded by the Juvenile Accountability Incentive Block Grants. That's where the initial funding began seven years ago. It's a project that was modeled after the Boston Miracle, when there were a large number of homicides going on in the city of Boston. If you recall, Reverend Eugene Rivers and his 10 point coalition came together and they put together this partnership that addressed the whole issue of reducing youth homicides in Boston, and at the same time, Philadelphia as other urban settings were experiencing similar phenomenas, and a group of people went up to Boston to kind of take a look at what was going on there and brought back some of the ideas that they learned, and we began the Youth Violence Reduction 363 3/8/06 - WHOLE - BILL 060001, ETC. Partnership in Philadelphia, very much modeled after that in Boston, but of course Philadelphia is different than Boston. We took a look at where the most occurring homicides were at that time in 1998, and the decision was to begin in the 25th Police District. We soon moved into the 24th Police District and then into the 12th Police District. We recently moved into the 19th Police District, and in the next month to six weeks, we'll be going into the 22nd.

Councilwoman Tasco

So what is the partnership? How does it work? What happens?

Ms. Clayton

Very good question. Young people are referred to YVRP by a number of different criteria, the number one being are these young people the ones most likely to kill or be killed. Needless to say that 99 percent of the young people, they're called youth partners, in YVRP are on adult or 364 3/8/06 - WHOLE - BILL 060001, ETC. juvenile probation. These are young people who have a long history of juvenile as well as moving into adult criminal histories, and as such, they are back on the streets for whatever reasons. Most of them have been incarcerated or in different kinds of placement facilities during their growing years, but at this point in their life, they are back out on the street, and it raises great concern to their own lives, as well as to the lives of others, that we watch them. And so their names are given to the Youth Violence Reduction Partnership.

Councilwoman Tasco

Who is that?

Ms. Clayton

It's the District Attorney's Office, Juvenile Probation, Adult Probation, Department of Human Services, Philadelphia Safe and Sound, the Police Department, Philadelphia Anti-Drug Anti-Violence Network. They provide the street-workers element. So what you have is, this young 365 3/8/06 - WHOLE - BILL 060001, ETC. person who is on -- let's take, for instance, juvenile probation, and instead of their being assigned to the juvenile probation officer in their geographic district -- let's say that they were part of the Northwest quadrant of the City -- they would have had a probation officer normally assigned to that geographic area. They are assigned to a YVRP probation officer. The number of home visits and surveillance and accountabilities are extraordinarily different. The intensive surveillance of that young person, everything they do, is monitored very strictly, with the understanding that should they mess up, they will be picked up, that we are watching you, we have concern for your life and we have concern for the life of others given what's going on. This other side of that same piece of caring for this young person is this whole thing called positive 366 3/8/06 - WHOLE - BILL 060001, ETC. supports. We know that keeping them alive is not good enough. Of course, if we don't do that, we've done nothing, we've failed. But we have to turn these young kids around into productive, contributing citizens. Just getting them to --

Councilwoman Tasco

Well, I know all of that, but I'm trying to figure out how do you do it.

Ms. Clayton

That's the second part. So we have intensive probation, but we also have this other partner that works with the probation officer. They're in tandem. It's called a street-worker, and they work very closely with the family and the young person in their homes. And it's through the combination of the probation officer and the street-worker that -- and an intensive case management review system to ensure that there are literacy programs available to these young people, employment opportunities, schooling. 367 3/8/06 - WHOLE - BILL 060001, ETC.

Councilwoman Tasco

Are these workers and all the people who provide services, do they come under you as the coordinator?

Ms. Clayton

I am the coordinator. No. They answer to the entity in which they're employed. But for the first seven years, this partnership was truly what it says, a partnership, and the decision was among the partners that if we ever were fortunate to get expansion dollars and we were able to then go to another district, that we really wanted to institutionalize YVRP in City government to make sure that there was a place that it sat, it lived. Because to four, it was truly this unprecedented partnership.

Councilwoman Tasco

How long have you been there?

Ms. Clayton

Since the beginning I was involved in YVRP. I happen to have been at Safe and Sound, but I was asked to become the Youth 368 3/8/06 - WHOLE - BILL 060001, ETC. Violence Reduction Partner coordinator in January, and that's the -- it's the first appointment of that position. DEPUTY COMMISSIONER RANDOLPH: If I may, my name is Jim Randolph. I'm the Deputy Commissioner for the Department of Human Services responsible for juvenile justice. I've been apart, as has Denise, of the YVRP effort since its inception, and I think that what it might be said was that the original partner has always been a handshake agreement among these various agencies, Adult Probation, Juvenile Probation, DHS, Family Court, all of us trying to work to stem the tide of the young folk who are most likely to get killed or to do the killing. And this new move was to try to institutionalize some of this so that we'll have an ongoing effort, as Denise described, to institutionalize some of those things that we've been doing, able to do, to stem that tide. 369 3/8/06 - WHOLE - BILL 060001, ETC. The Department has been involved with it from its beginning. Not always in funding. We don't fund the whole thing. We've always funded a part of it, and that's been -- and we also provide leadership in the Steering Committee and Operations Committee from its inception. It's been a major effort by the Department since it began in 1999.

Councilwoman Tasco

Okay. Thank you. One other question. For the past three years, DHS has allocated over 32 million each year to Safe and Sound. How does Safe and Sound use these funds and how is Safe and Sound evaluated with regard to program outcomes and deliverables to ensure that the City is receiving the best value for this substantial sum of money? COMMISSIONER RANSOM-GARNER: Safe and Sound is a subcontractor under DHS and it provides subcontracts with many of the after-school programs that 370 3/8/06 - WHOLE - BILL 060001, ETC. are around the City. In addition, it helps the Department with research in terms of best practice, different models. For example, they researched the model that we're using for AVRP. Because the Department -- we need to get programs off the ground and often we don't have the time or the staff to really devote to get the best information that we need. So in addition to being a subcontractor for the after-school providers, Safe and Sound provides that research arm for us and also does some evaluating of programs, training of providers, helping us to look at best practice to make sure we are implementing the best practice and that we are changing according to our environment. We're dealing with teenagers now instead of younger children. The majority are teenagers coming into our system. Helping us design different programs to be effective, looking at how to measure. They will also be providing the 371 3/8/06 - WHOLE - BILL 060001, ETC. evaluation method for the AVRP program. We must monitor and measure to make sure that it's working so that we have an indication that we're being successful.

Councilwoman Tasco

One last question. You talked about the Youth Study Center and you said you hope it will be done by the end of 2007. Where is it going to be located and when do you start construction to be finished by 2007? COMMISSIONER RANSOM-GARNER: We're in the design phase, which takes about a year. So we're about six months in that process. We're looking at the site of 48th and Haverford.

Councilwoman Tasco

Is the Capital Projects Office overseeing that project? COMMISSIONER RANSOM-GARNER: Yes. Yes. Capital Programs, yes.

Councilwoman Tasco

You won't be done by 2007. Thank you. 372 3/8/06 - WHOLE - BILL 060001, ETC.

Council President Verna

Councilwoman, I think I heard you ask if the monies for the Youth Study Center were in the capital budget. I don't know that I heard the answer.

Councilwoman Tasco

No. I just asked her -- she said they're in the design phase. I didn't ask about the appropriation for it. Is it in the capital budget? I asked her was the Capital Programs Office going to oversee the project, and I said good luck to be finished by 2007.

Council President Verna

As long as we're on the issue, can you tell us how it's go to be funded?

Mr. Zanier

Good afternoon. I'm John Zanier, DHS Budget Director. I believe that the City is going to go to an authority and lease the facility back from the authority, sell bonds.

Council President Verna

373 3/8/06 - WHOLE - BILL 060001, ETC. You're going to have to walk us through this, please. I don't think he told us everything he knows. Maybe he doesn't -- okay. Councilwoman Blackwell, do you know anything about this funding since it's in your district?

Councilwoman Blackwell

Absolutely not.

Council President Verna

And it's in design. Okay. Ms. Reed?

Ms. Reed

Dianne Reed, Budget Director. As I understand, there will be a borrowing for this project. The borrowing is going to be $80 million, 70 of which --

Council President Verna

I'm sorry. It's how much?

Ms. Reed

A borrowing of 80 million, a debt service about five, which is covered by DHS state funding. So the 374 3/8/06 - WHOLE - BILL 060001, ETC. debt service will be covered for this because it supports the --

Council President Verna

Is it covered by --

Ms. Reed

-- domiciling of children.

Council President Verna

Is it covered by 100 percent?

Ms. Reed

Yes. Is that right, John?

Mr. Zanier

No. This is John Zanier. Under the state funding formula, we'll be able to charge the state 50 percent of the cost of the payback.

Ms. Reed

But the bills have not come to Council yet for the authorization of this.

Council President Verna

Who is going to pay the debt service?

Ms. Reed

We'll have to get somebody from Finance. I mean, I really don't know the details. We will get that 375 3/8/06 - WHOLE - BILL 060001, ETC. information back to you, though.

Council President Verna

I asked who is paying.

Ms. Reed

It's not in the capital budget, so I think it must be through an agency.

Councilman Nutter

Then there must be money in the debt service on it.

Ms. Reed

We'll have to get that from Finance. I don't have that information with me.

Council President Verna

I don't know how this ever gets completed by 2007.

Councilman Nutter

Well, we don't even know where the money is in 2006.

Council President Verna

But they're in design and it's going to be completed by 2007.

Councilman Nutter

We just don't know who is paying for it.

Ms. Reed

I just was looking at the capital budget. I don't see a 376 3/8/06 - WHOLE - BILL 060001, ETC. line for Human Services.

Councilwoman Tasco

So who is paying for the design? Who is paying for the design?

Mr. Zanier

The design money for the facility is in the capital budget. I believe there's $5 million.

Council President Verna

How much was in the budget for the design work? Apparently that was in the budget many years ago.

Mr. Zanier

Correct.

Council President Verna

How much; do you recall?

Mr. Zanier

I don't recall off the top of my head.

Council President Verna

Our memory is not serving us either.

Ms. Reed

I have been informed that this is not in the capital budget because it is a Philadelphia municipal authority project.

Councilman Nutter

So let's go back to the original question of who is 377 3/8/06 - WHOLE - BILL 060001, ETC. paying for the debt service.

Council President Verna

Who is paying for the debt service?

Ms. Reed

I have to get back to you on that. I don't have that information.

Councilman Nutter

And I'm assuming some bill has to come over here for this project.

Council President Verna

I would certainly think so.

Councilman Nutter

You need a bill.

Ms. Reed

I think they're prepared.

Councilman Nutter

Do you know when they're coming?

Ms. Reed

No, I don't.

Councilman Nutter

Okay. So whose project is this? COMMISSIONER RANSOM-GARNER: The City's project.

Councilman Nutter

I did start with that base of knowledge. 378 3/8/06 - WHOLE - BILL 060001, ETC. COMMISSIONER RANSOM-GARNER: Well, Capital Programs is taking the lead.

Councilman Nutter

Capital Programs is taking the lead, okay. And who is securing the financing and taking care of that part?

Ms. Reed

That's a Finance question.

Councilman Nutter

There's no 12 one here from Finance today?

Councilman Nutter

Finance took the day off, okay. Those were not my original questions. I just have a couple questions.

Council President Verna

Well, I think Councilwoman Brown was ahead of you.

Councilman Nutter

I'm sorry.

Council President Verna

So if you don't mind. Councilwoman Brown. 379 3/8/06 - WHOLE - BILL 060001, ETC.

Councilwoman Brown

Thank you, Madam President. Continuing the line of questioning with regards to the Youth Study Center, can you outline for me what protections will be put in place once the design is complete and the building is built? During the interim period, while the building is being built, are there young people going to remain at the existing facility? COMMISSIONER RANSOM-GARNER: Yes. We will be able to stay in the -- we hope, if our time lines are realized, we will be able to stay at 20th and the Parkway.

Councilwoman Brown

Go back to the line of questioning around PCCYFS. Thank you for the background. The only part I was a little troubled by was, even in your effort to ID service providers that are minority, which was a big concern of members of this Council last year, it still has not moved you to where 380 3/8/06 - WHOLE - BILL 060001, ETC. you might want to be with regards to MBE, WBE participation, and I mention that because Section 3, Subsection (h) of the Executive Order, there's discussion about non-profits and what our City could or should be doing along those lines. So if not now, later what I need to hear is, does the Department comply with the provisions of this section of the Executive Order, number one? Have any policies or procedures been implemented in cooperation with MBEC to facilitate compliance of this section, which again is Section 3, Subsection (h)? And if yes, then tell us how and what you're doing to ensure that there's an effort underway to honor what this particular subsection speaks to. And then, finally, can you give an accounting to us in terms of actual dollars and percentages for the total for-profit MBE, WBE activity versus non-profit MBE, WBE activity. And if it's helpful to you, I have -- you want to attempt some of that 381 3/8/06 - WHOLE - BILL 060001, ETC. now? COMMISSIONER RANSOM-GARNER: Yes.

Councilwoman Brown

Oh, okay. COMMISSIONER RANSOM-GARNER: DHS takes the minority business and Executive Order very seriously. We started working with our for-profits in our MIS department to have them work with MBEC. They gave us the names of minority firms so that those for-profit MIS companies could subcontract. So we've gotten those providers, and this is a stipulation that they must do business with a minority firm. So that's in our MIS. The majority of our contracts are with for-profit -- I mean non-profits, and I'll read you some numbers in a minute. Because the majority are non-profit, you really don't get the credit, because you must be a certified provider to get the credit to have it listed and documented. 382 3/8/06 - WHOLE - BILL 060001, ETC.

Councilwoman Brown

Let me just ask you to pause there. Credit by whom? MBEC? COMMISSIONER RANSOM-GARNER: Yes; for percentages, to meet your goals as a department.

Councilwoman Brown

I see. I see. So with that reality being what it is, for me it would still be encouraging to know that internally there are efforts underway to ensure that business is happening with MBE, WBE non-profits in spite of the fact that MBEC doesn't give you the credit. COMMISSIONER RANSOM-GARNER: Yes. All of our RFPs and RFQs, it includes the Executive Order, it includes the solicitation forms for the providers to solicit. Now, what we do for the non-profits, we say to them that they must look at their operation to determine what certified for-profit vendor they could do business with by paper, 383 3/8/06 - WHOLE - BILL 060001, ETC. maintenance services, even --

Councilwoman Brown

Food, catering, uniforms. COMMISSIONER RANSOM-GARNER: Exactly. So we're working to get that message across, and we know we have to do a better job, because we just issued an RFQ and some of the non-profits really didn't respond effectively to the calls from some of the certified vendors who wanted to see if they could be a subcontractor for that non-profit. So we know at our next bidder's conference we have to put a greater emphasis on the obligation of the non-profit to utilize minority vendors.

Councilwoman Brown

Absolutely. So with that, the expectation is made clear. Is there a monitoring mechanism of any type? I mean, we know your plate is full trying to deliver quality services to young people, but MBE, WBE participation remains a high priority as well. 384 3/8/06 - WHOLE - BILL 060001, ETC. COMMISSIONER RANSOM-GARNER: Yes. We've asked the MBEC office to review the solicitation forms to make sure they're correct. They've gotten back to us. They confirm whether the organizations selected or the vendors selected are certified. They've given us leads on or recommendations of who could be possible vendors for the non-profits to use. And we will certainly within DHS make sure that our providers are clear about what they are to do and make sure they have a link to the MBEC office to get the information they need to follow through.

Councilwoman Brown

Now, is there a penalty attached for those non-profits who just don't get it? COMMISSIONER RANSOM-GARNER: First of all, if they don't get it and if they're not in compliance, they're not going to be considered to do business with DHS. For example, they cannot indicate that they're going to use a 385 3/8/06 - WHOLE - BILL 060001, ETC. vendor and then don't do that, or fill out the form falsely and not carry through.

Councilwoman Brown

Yes. Because we know those kind of games continue to be played. COMMISSIONER RANSOM-GARNER: Yes. And just to give you an example, the total for-profit dollars for DHS is 47 million. The total non-profit dollars that are spent is 468 million.

Councilwoman Brown

Huge. COMMISSIONER RANSOM-GARNER: Right. So the majority of our business is with non-profits.

Councilwoman Brown

Okay. COMMISSIONER RANSOM-GARNER: The other thing we've done is, we've worked to bring on minority providers and then we work with them to get certified.

Councilwoman Brown

So you provide technical assistance kind of services to help them become certified? COMMISSIONER RANSOM-GARNER: 386 3/8/06 - WHOLE - BILL 060001, ETC. Well, to hook them into the Minority Business Office, give them a particular person to contact, and also I understand that the MBEC has streamlined their certification process to make it easier for vendors to become certified.

Councilwoman Brown

So in terms of policies and procedures, they're actually written in your RFP and provided to those agencies that want to do business with DHS? COMMISSIONER RANSOM-GARNER: That's a requirement of the RFP, and if it's not satisfied, that is deemed as not fully complying with the RFP.

Councilwoman Brown

Okay. Let's move to another topic, foster children that are lucky enough to end up being adopted. And thank you for the partnership we enjoy in trying to make a difference for this particular constituency. This is a unique case, but it only takes one that falls through the 387 3/8/06 - WHOLE - BILL 060001, ETC. crack, and our goal here is to figure out how we can serve this parent, the details of which I'll share with your staff. But this is a newborn baby, born to a City employee, who is out on sick leave, Family Medical Leave, who can't collect medical insurance for the baby because she's on Family Medical Leave. Now, this is not a foreign-born baby. It's a domestic-born baby. And currently as we sit here, she's been told by Blue Cross, where she doesn't meet the criteria, that she has to wait until she comes back to work full time before the baby can collect -- and when I say "baby," I mean like a week old -- before the baby can benefit from benefits, health benefits, but the mother has taken up medical leave, and newborns need a lot of care those first six months. So I guess the question is, it appears to me that a gap exists for this mother who has taken a newborn baby and can't get the insurance. She doesn't qualify for CHIP. It's a 388 3/8/06 - WHOLE - BILL 060001, ETC. convoluted matter. So what systems are in place to help parents who opt to become adoptive parents to ensure that at the point they get that child, health care is in place for them? Here it is: While waiting for the adoption to become final, she cannot benefit from Medicare. Because now she has to prove that the baby is hers so that paperwork is getting -- is just gutting the availability of healthcare. COMMISSIONER RANSOM-GARNER: Councilwoman, Deputy Commissioner John McGee is here and he has knowledge about the case. This is a private adoption that really deals with a benefits matter, and I just had a meeting with my administrators this morning and had a presentation about FLMA --

Councilwoman Brown

Which is what? FLMA, that's an acronym for? COMMISSIONER RANSOM-GARNER: Family Medical Leave. By law, it 389 3/8/06 - WHOLE - BILL 060001, ETC. operates under certain rules and regulations, and people were really saddened or upset by the rules, because it does things like we're going to talk about. So that's an issue, and John can... DEPUTY COMMISSIONER McGEE: Good afternoon, Councilwoman. John McGee, Deputy Commissioner for Children and Youth. I just read the letter about an hour ago, and it seems to me a couple points. This is a private adoption, I believe, and --

Councilwoman Brown

So that's the first nuance of this case. DEPUTY COMMISSIONER McGEE: That's the first issue. And the adoptive parent is a City employee. And the way I read the letter, it's really a City benefits issue and it seems to me that I think Blue Cross in the letter said that the City contract with Blue Cross permits -- there's no provision that 390 3/8/06 - WHOLE - BILL 060001, ETC. would forbid the baby from being covered even though the adoption isn't finalized. There's a period of waiting by statute of 30 days to allow mother to change her mind, and there's another period of time here that is referenced of three additional months. I'm not sure what that refers to. I'd have to read the letter again. But I think the bottom line here is that it seemed to me that the City benefits could cover this baby immediately if it were City policy to do so while the adoption finalization was pending, because the child is free for adoption, as I understand it, in the care of this City employee.

Councilwoman Brown

That's right. As we speak. DEPUTY COMMISSIONER McGEE: As we speak.

Councilwoman Brown

So the fact that this is a private adoption should not be a factor in -- DEPUTY COMMISSIONER McGEE: It 391 3/8/06 - WHOLE - BILL 060001, ETC. should not be. I guess the point I was making was, it's not a DHS matter per se at this point. We were not involved.

Councilwoman Brown

Okay. That's helpful. And from what you can gather, this particular circumstance can be fixed. DEPUTY COMMISSIONER McGEE: I would think so. As I read the letter, it would seem to me to be a matter of interpretation of the City benefits policy, and according to Blue Cross, Blue Cross would allow the City to cover the baby in this circumstance pending the final adoption, which may be as soon as, I understand, as soon as this 30 days or perhaps up to four months expires, the adoption would be final.

Councilwoman Brown

Is this an anomaly? DEPUTY COMMISSIONER McGEE: It's the first that I heard it, Councilwoman, in terms of coverage. Normally when DHS is involved, the baby 392 3/8/06 - WHOLE - BILL 060001, ETC. would be covered by medical assistance while the adoption is pending.

Councilwoman Brown

I see. So that answers my question. DEPUTY COMMISSIONER McGEE: Okay.

Councilwoman Brown

All right, then. Well, thank you. Thank you very, very much. We've given considerable discussion to the PCCYFS matter and Youth Study Center. Teen court prevention, there's been a dramatic rise in the use of the program over the last few years. Just help me understand why you think that's so. Is this due to more truants or are we giving them this option as opposed to others? COMMISSIONER RANSOM-GARNER: Truancy court or teen court?

Councilwoman Brown

Teen court, the teen court prevention program discussed on . According to the information, there's been a dramatic rise 393 3/8/06 - WHOLE - BILL 060001, ETC. in the use of that over the last few years. COMMISSIONER RANSOM-GARNER: The teen courts are the courts where they're in the schools.

Councilwoman Brown

Oh, okay. COMMISSIONER RANSOM-GARNER: That's why I was wondering if you were saying truancy or teen.

Councilwoman Brown

Well I did say truancy because also discussed on there is information about more truants. COMMISSIONER RANSOM-GARNER: One thing about the truant children, we're looking at the absences earlier. Instead of days, we're looking at 19 eight days. 20

Councilwoman Brown

Eight? 21 COMMISSIONER RANSOM-GARNER: 22 Eight. 23

Councilwoman Brown

That's an 24 improvement. 25 COMMISSIONER RANSOM-GARNER: 394 3/8/06 - WHOLE - BILL 060001, ETC. And we'd like to even get down to lesser days. We're working with the School District around their data to get more real-time data so that we can even get in earlier.

Councilwoman Brown

Are you optimistic that the School District will come around to what you desire? COMMISSIONER RANSOM-GARNER: We actually have a signed agreement. We actually had to, under Judge Field, have her sign a court order, but it just seems like there are different snags that come along with the School District data. They moved. That was one piece of delay. But we're optimistic and we're at the table, and we'll continue to talk about how we partner and work together to get the data that we need.

Councilwoman Brown

So is that to suggest then that there's a team of professionals from those various worlds that are meeting on a regular basis, Family Court, DHS, the School District? 395 3/8/06 - WHOLE - BILL 060001, ETC. COMMISSIONER RANSOM-GARNER: Well, we're going to use Jackie Burnett, the Secretary of Education, to really help us coordinate some of these meetings and to get the right people at the table.

Councilwoman Brown

My final question is around foster care children who drop out of school. Children who are not in foster care, stats show that about half of those children who start in ninth grade do not graduate, and we know that DHS has a number of prevention programs, but what type of steps are in place to support a foster child's success in school? COMMISSIONER RANSOM-GARNER: We're doing a couple things. One is, we have a major youth initiative, a teen initiative. We are very concerned about the number of teenagers that are coming into our system, the numbers that are in group homes. We believe that teenagers can achieve permanency in group homes. However, we're looking to change some of 396 3/8/06 - WHOLE - BILL 060001, ETC. our standards and philosophy with our providers around serving children in group homes. We're looking at them being better advocates for the child's education, giving them life skills, having a standard life skill program, helping them develop as a young person their social skills, helping them connect back into the community, not assuming that they will just grow up and grow out of a group home setting. We also have the Achieving Independence Center at the Mellon Bank Building at the old -- the Mellon Building at 7th and Market where it's a youth-centered --

Councilwoman Brown

I've been there. It's a wonderful place and needed. COMMISSIONER RANSOM-GARNER: Yes. And our foster children can come up there up to age to get services. 24

Councilwoman Brown

That's a place for the long haul. I mean, there's 397 3/8/06 - WHOLE - BILL 060001, ETC. adequate funding for that to capture those young people when they age out, correct? COMMISSIONER RANSOM-GARNER: Yes. It's funded by the federal government, and we've put in a wonderful mentoring program for the girls. We're looking to do a mentoring program for the young men. There's computer training, there's job development, there's a housing component.

Councilwoman Brown

All funded by the feds? COMMISSIONER RANSOM-GARNER: Yes. The majority of it is funded -- the vast majority is funded by the federal government.

Councilwoman Brown

Okay. Well, thank you very much. COMMISSIONER RANSOM-GARNER: You're welcome.

Councilwoman Brown

Thank you, Madam Chair.

Council President Verna

398 3/8/06 - WHOLE - BILL 060001, ETC. You're welcome. The Chair recognizes Councilman Nutter.

Councilman Nutter

Thank you, Madam Chair. Good afternoon, Commissioner. COMMISSIONER RANSOM-GARNER: Good afternoon.

Councilman Nutter

Just a couple items. I was a little perplexed by one response you gave to Councilwoman Tasco. She asked you about, I guess it was from your testimony, regarding the previous issues that Councilman Rizzo had raised with regard to a couple providers, and she asked you did bringing them on help you with your minority goals, and I thought your first answer was no because they were non-profits, and I really didn't understand that answer, and then you went further based on the Q and A to talk about some of the minority providers and what you're trying to get done in that area. So I didn't really understand 399 3/8/06 - WHOLE - BILL 060001, ETC. the response. Could you explain that? COMMISSIONER RANSOM-GARNER: Well, with regard to MBEC goals and reports and what you can count in terms of minority participation, as it stands today you're really not able to count participation by a non-profit agency. You can count their purchasing with for-profit vendors, but you cannot count -- for example, we have $468 million that we spend with non-profit organizations. Some years ago the state would not reimburse DHS if it did business with a for-profit provider. Those providers went to the Hill and were successful in getting legislation changed, so that now we are able to get state reimbursement if we do business with for-profit providers.