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Minutes

Committee Hearing, June 9, 2010

Philadelphia City Council Committee HearingsJun 9, 2010

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COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON PUBLIC PROPERTY and PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 9, 2010, 3:10 p.m. - - - BILL 100375 - Held to the call of the Chair. BILL 100378 - Held to the call of the Chair. BILL 100466 - An ordinance authorizing the Commissioner Public Property, on behalf of the City of Philadelphia, to enter into a sublease agreement with the Philadelphia Authority for Industrial Development for use by the City of a premises located at 2800 South 20th Street, Philadelphia, Pennsylvania, all under certain terms and conditions. COMMITTEE MEMBERS PRESENT: Darrell C. Clarke, Chair James F. Kenney, Vice Chair W. Wilson Goode, Jr. William K. Greenlee Donna Reed Miller Frank Rizzo - - - 2 6/9/10- PUB PROP/PUB WORKS - BILL 100466

Councilman Clarke

Good afternoon. This is the meeting of the Committee on Public Property and Public Works public hearing. For the record, we have established a quorum: Councilman Rizzo, Councilman Kenney, Councilman Greenlee, and Councilwoman Miller. Let me say now here that we will be holding Bill No.'s 100375 and 100378 to the call of the Chair. Mr. Carter, please read the title of Bill No. 100466.

Mr. Carter

Bill No. 100466, an ordinance authorizing the Commissioner Public Property, on behalf of the City of Philadelphia, to enter into a sublease agreement with the Philadelphia Authority for Industrial Development for use by the City of a premises located at 2800 South 20th Street, Philadelphia, Pennsylvania, all under certain terms and conditions.

Councilman Clarke

Thank you. (Witnesses come forward.) 3 6/9/10- PUB PROP/PUB WORKS - BILL 100466

Councilman Clarke

Please proceed. COMM. SCHLOTTERBECK: Mr. Chair, is there a reason for us to discuss the amendment to the existing ordinance, or have you covered that? There's been an amendment to the bill.

Councilman Clarke

You can mention it. COMM. SCHLOTTERBECK: Actually, I don't know that I have the... I don't have the language in front of me.

Councilman Clarke

I will take the responsibility of doing that. This is an amendment offered by the sponsor of the bill. Essentially the amendment will reference the period not to exceed 30 years as it relates to the sublease in it. Mr. Gillison, did you want to speak on that? DEPT.

Mayor Gillison

Everett Gillison, Deputy Mayor for Public Safety. There's actually two 4 6/9/10- PUB PROP/PUB WORKS - BILL 100466 amendments, from what I have been told. One is the amendment that you just referenced. It is not to exceed. The other is one that was just recently agreed to. There was an exclusive-use matter, where they will allow the DVIC, or the Delaware Valley Intelligence Center, to go forward, but the expansive reading for public safety purposes, it would exclude certain uses. Those uses would not include things like a correctional center, which is not in any way, shape, or form supposed to be. And it was just as a technical matter to make sure that it would not be used for that purpose. Those two instances do not coalesce at all. This is highly homeland security focus-based, and I think that you would hear that both from the Commissioner's testimony --

Councilman Clarke

Okay. DEPT.

Mayor Gillison

And I have with me today Ed Atkins, who is the 5 6/9/10- PUB PROP/PUB WORKS - BILL 100466 regional coordinator for the Southeast Task Force, to provide testimony as well on that issue.

Councilman Clarke

Okay, great. Thank you. Commissioner? COMM. SCHLOTTERBECK: Good afternoon, Chairman Clarke and members of the Public Property and Public Works Committee. My name is Joan Schlotterbeck. I'm here today, as Commissioner of Public Property, to testify in support of Bill No. 100446, as amended, that authorizes me, as the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a sublease agreement with the Philadelphia Authority for Industrial Development for the use of by the City of a premises located at 28 South 20th Street, Philadelphia, Pennsylvania, all under certain terms and conditions. With me today is Deputy Mayor 6 6/9/10- PUB PROP/PUB WORKS - BILL 100466 for Public Safety Everett Gillison. This agreement will be a long-term lease whereby the premises shall be used as the Delaware Valley Intelligence Center also known as DVIC. The DVIC is an initiative of the Southeastern Pennsylvania Regional Task Force, or "Task Force." The City of Philadelphia is one of the five counties that compromise the task force. The DVIC will function primarily as a regional fusion center for information and intelligence-gathering from various criminal justice and public safety agencies related to terroristic threats, criminal activity, natural disasters, and other hazards. I would like to offer a proposed amendment to the bill, which limits the terms to not to exceed 30; and, in addition, as mentioned, earlier, there's a second amendment which restricts the use of the premises. The Department of Public 7 6/9/10- PUB PROP/PUB WORKS - BILL 100466 Property supports these measures and, accordingly, respectfully request that Council approve Bill No. 100446. And that Council suspends the rules so as to allow for first reading at the next session of Council. Thank you. We're here to answer any questions you may have.

Councilman Clarke

Anyone else to testify? DEPT.

Mayor Gillison

Just Mr. Atkins can answer question as needed.

Councilman Clarke

Okay. Real quick. This space, this is the quartermasters, in that vicinity? DEPT.

Mayor Gillison

Yes.

Councilman Clarke

Is it a space that needs to be fitted out or -- DEPT.

Mayor Gillison

Yes.

Councilman Clarke

What is the extent of the fit-out, and who's paying for the fit-out? DEPT.

Mayor Gillison

The task 8 6/9/10- PUB PROP/PUB WORKS - BILL 100466 force has accumulated approximately $11 million in federal funding that will allow us to defray the cost when it comes to the fit-out as well. And I can just read a couple of things just so that the committee is aware. The full fit-out will cost us somewhere around $20 million to do in general. What we are able to do now is to use this money to begin that process. We are applying for Homeland Security dollars. And we have already, through the task force and the regional cooperation that we've had, they've already said that they will be putting about a million dollars to help us defray various costs on a yearly basis to help us with the -- amortize the operating costs. So not only do we have money in hand right now to actually move the project forward and help us with the fit-out; but also, we are working together to make sure that we are 9 6/9/10- PUB PROP/PUB WORKS - BILL 100466 minimizing the exposure to the City. And by moving certain police functions into this area, we hope to have a net cost, and I'm looking for a net zero. I know that Ms. Schlotterbeck has said that we'll probably have to put in about another 400 to $500,000 as we go forward, but I'm hoping for a net zero. But having a brand-new building, fusing all the intelligence together, that will really enable us in homeland security and in regular policing to push this matter forward. So I'm excited about the possibilities that we have here. And I know that, since we have the money in federal grants, they're paying for the majority of the work.

Councilman Clarke

Okay. Understanding that there's relatively substantial costs associated with the fit-out, what's the contractual relationship with the entity, or entities, who will do the fit-out? 10 6/9/10- PUB PROP/PUB WORKS - BILL 100466 DEPT.

Mayor Gillison

The way that the Southeast Task Force is compromised -- and perhaps I should defer to the chairman, but they now have a financial agent that has been brought onboard to manage all of the Southeast Task Force dollars, the contractual arrangements would be with the Southeast Task Force appropriating those dollars going forward. And, obviously, with the City being in the vice chair position that we currently hold, along with working with our partners, we will be pushing that process forward. But I'll defer to Chairman Atkins to give any additional answers to that question.

Mr. Atkins

Actually, the Deputy Mayor has it exact -- I'm sorry. I'm Ed Atkins, the Director of Emergency Services for Chester County and Chairman of the Southeast Pennsylvania Regional Task Force. 11 6/9/10- PUB PROP/PUB WORKS - BILL 100466 And the Deputy Mayor has very well articulated the way this will work. We have a fiduciary agent that will be handling the money, will be the contractual obligations. The task force has been behind this since 2005, and we're very much behind it now, as the Deputy Mayor said.

Councilman Clarke

Okay. Let me get a little more detail in terms of where I'm going with this. $20 million retrofit. You have a fiduciary agent who will handle that $20 million for the contract? Who will be the contractor, or do you not know that yet?

Mr. Atkins

We have --

Councilman Clarke

And if you don't know that yet --

Mr. Atkins

We don't know that --

Councilman Clarke

-- who will be responsible for ensuring, as it relates to subcontractors, the 12 6/9/10- PUB PROP/PUB WORKS - BILL 100466 participation of Philadelphians, the whole nine yards, as it relates to --

Councilman Clarke

-- 'cause $20 million is a nice --

Mr. Atkins

Oh, yeah.

Councilman Clarke

It falls within the guidelines of the EOP language. DEPT.

Mayor Gillison

Oh, we are -- obviously, this is one of those areas that is highly specialized, but we are making sure that as we go forward -- there has been a consultant that has been engaged by the task force for the past four years?

Mr. Atkins

Yes, sir. DEPT.

Mayor Gillison

And it's been the (indiscernible) company, and they are a national-security, basically, kind of firm. They have been driving the designs of what needs to be done. That kind of stuff is -- now we have the plans going forward, but we do not have, you 13 6/9/10- PUB PROP/PUB WORKS - BILL 100466 know, who's actually going to be the one building the things, going forward.

Councilman Kenney

Point of information on that same point. Are there any requirements or restrictions on security clearances or -- DEPT.

Mayor Gillison

Oh, absolutely. To get into this facility?

Councilman Kenney

No, no, no, no. To get to build it.

Councilman Clarke

The structure.

Councilman Kenney

The structure of it, knowing the insides of it, knowing the design. And I assume there is some -- DEPT.

Mayor Gillison

Yes.

Councilman Kenney

So will that constrict our ability to -- are there certain contractors that have those clearances and certain ones that don't? DEPT.

Mayor Gillison

There will be because of the homeland security nature of the building. The answer is 14 6/9/10- PUB PROP/PUB WORKS - BILL 100466 yes.

Councilman Kenney

Okay. DEPT.

Mayor Gillison

Because those are basically federal guidelines that we have to be in parallel with.

Councilman Kenney

Okay. DEPT.

Mayor Gillison

However, I'm very sensitive, as the Chair knows, to the fact that wherever we have the opportunity, that our EOP materials and our EOP guidelines would be followed. And that's a part of the City's role in this matter.

Councilman Clarke

All right. I want to get a little more detail. And I understand there are certain federal guidelines associated with the structure because of the nature of the ultimate operation. But at the end of the day, it's going to be $20 million to retrofit a building in the City of Philadelphia, where the City is a partner in this. And understanding, given the nature of the 15 6/9/10- PUB PROP/PUB WORKS - BILL 100466 funding -- and we just went through this and would have had further discussion today on the Family Court building 'cause it was a State-funded project. The question is: What will be the guidelines associated with ensuring that, as Councilman Kenney said, there are people who will pass clearance or whatever clearance is required? And I'm sure that there are people that are MBE/WBE-certified both in terms of the ability to do the work and the ability to pass clearance. What's the strategy associated with that retrofit in the hiring? And not only that, and Philadelphians, to construct or rehab the building?

Councilman Kenney

Mr. Chairman, the point of my question was that I know, in the past, we have attempted to assist minority contractors with bonding issues when they weren't capable of achieving some levels of 16 6/9/10- PUB PROP/PUB WORKS - BILL 100466 bonding and insurance, and I'm wondering if we can't include that assistance, being getting clearance, in the same thought process. 'Cause I think that if we leave it out there and we don't attack the problem of not having the clearance and try to get them cleared, then they won't ever qualify. So I just wanted to add that clearance issue to the other help that we give and assist relative to bonding and other types of things, 'cause I know that would be an additional not usual hurdle for a project like that, 'cause we usually don't need security clearance for EOP plans. DEPT.

Mayor Gillison

My answer is going to be the same. It's going to be that we are going to utilize our role as the City, the way that we have been doing it for the last four years in pulling this project together, to make sure when we finally are able to 17 6/9/10- PUB PROP/PUB WORKS - BILL 100466 award contracts, that our guidelines are followed. We are not at that point yet because we're at the point of just right now trying to negotiate where the place is going to be. We've settled on the fact that this is going to be in the City of Philadelphia as opposed to a different place. Now that we're able to do that, we're able to have -- and just to let you know how quickly these things have come together, we just had the financial manager for the entire Southeast Task Force just came on in the past two months, so we now have the structure that wasn't there before. It used to be that Bucks County was the financial agent for the entire task force; now we have a separate agency managing, to make sure that we all are at the table, on an equal basis. Where this project is located makes it -- I will tell you, we will be 18 6/9/10- PUB PROP/PUB WORKS - BILL 100466 applying the City of Philadelphia standards to this project going forward. We haven't written 'em because none of this is there yet but --

Councilman Clarke

How can you do that if it's not a City-funded project? DEPT.

Mayor Gillison

Because of our relationship with the Southeast Task Force.

Councilman Clarke

And you know why I'm asking these questions, because we had these conversations about -- DEPT.

Mayor Gillison

Right. It's --

Councilman Clarke

-- the Family Court building and their requirements are on the State level. DEPT.

Mayor Gillison

Right.

Councilman Clarke

This is a federally-funded program. DEPT.

Mayor Gillison

In essence -- 19 6/9/10- PUB PROP/PUB WORKS - BILL 100466

Councilman Clarke

So I just need to know, not only for myself, but my assumption is, members of the committee, what's the strategy and what's the plan? 'cause you guys are not coming back to Council for any other additional approvals; am I correct? DEPT.

Mayor Gillison

This is the lease. We will need approvals for the -- well, let's see. We've already the grants. We won't need -- COMM. SCHLOTTERBECK: We won't be coming back. This is --

Councilman Clarke

So saying that is that this is the last bite of the apple for this committee in terms of ensuring that there is a strategy plan -- i.e. plan -- associated with ensuring reasonable participation on this and a strategy, as Councilman Kenney said, to that we do everything we can to maximize those opportunities. DEPT.

Mayor Gillison

Mm-hmm.

Councilman Clarke

So if you 20 6/9/10- PUB PROP/PUB WORKS - BILL 100466 can't give us that now -- and I hear you verbally, and I trust you 'cause I've interacted with you. We traditionally require EOP; that's just what we do here -- DEPT.

Mayor Gillison

I understand that. Believe me, I understand.

Councilman Clarke

-- before we pass an ordinance. So I'm assuming you don't have an EOP at this point in time. DEPT.

Mayor Gillison

No. We haven't -- COMM. SCHLOTTERBECK: We haven't negotiated -- DEPT.

Mayor Gillison

We haven't negotiated. I mean, it's kind of putting the cart before the horse. We need to get this --

Councilman Clarke

Well, it's never putting the cart before the horse, 'cause I hear that and I've heard that for the last ten years. When people come 21 6/9/10- PUB PROP/PUB WORKS - BILL 100466 here and they know that these questions are going to be asked, they say, Well, you know, we're not there yet. Well, why don't you get there first and then do everything else after, 'cause you know that's going to be the question. So if you can't do that, what can you give members of this committee, and subsequently members of Council, in writing to ensure that there's some level of commitment from all parties that will not be circumvented by some federal regulation that say, Well, we don't have to -- frankly speaking, this is funded by us, and we don't have to adhere to any of that. DEPT.

Mayor Gillison

I understand. And as I've said, and I'll try and just make it plain: We are committed to making sure that this building, and all buildings, especially I can tell you from public safety, 'cause that's the area that I more than anything else deal with. 22 6/9/10- PUB PROP/PUB WORKS - BILL 100466 We are committed to making sure that our minority participation and all of the goals that we can put on a project are not only spelled out but spelled out in advance. I will put that in writing.

Councilman Clarke

All right. DEPT.

Mayor Gillison

And I will give that to the Chair, and I will have that done. But I wanted to make sure what we are able to do is -- and as I have informed you, in our negotiations for this lease, the part of the issues that we have is that a lot of the money that we have currently in this project are monies that are being sunsetted if we are to be able to move the project forward. I believe it's about $6 million that is expiring, basically, by the end of this year. We are making sure, without doing any public-lease negotiations, but I think it's safe to say that we know the place, we are active in making the 23 6/9/10- PUB PROP/PUB WORKS - BILL 100466 connections, we have other parties that we are interested in joining us. And in order to make sure that the project moves, we -- that's why we are here, to ask for permission to do the lease. I think that to see that the task force chair works with us and works with us intricately, is very well aware of our minority participation rules and what we are asking for are here in the City of Philadelphia. We have done, I think, a yeoman's work to make sure that people understand that we're going to do this building the right way. That's my commitment. And as soon as I'm able to push the -- you know, I get past and the Commissioner can negotiate the lease, once I have the deal, then I can now sit down and say, Okay, this is what we do next, this is how we're going to establish it. And I will put those matters in 24 6/9/10- PUB PROP/PUB WORKS - BILL 100466 writing and send it to the Chair and each member of Council so that you will be comfortable with where we are.

Councilman Clarke

Before the passage of the bill. DEPT.

Mayor Gillison

I'm sorry?

Councilman Clarke

Before the passage of the bill. DEPT.

Mayor Gillison

If the bill doesn't pass, I won't be able to --

Councilman Clarke

I said before the pass-out. Everett, we don't normally pass anything out of here above a million dollars unless it has a EOP attached. DEPT.

Mayor Gillison

I understand.

Councilman Clarke

I understand the sensitivity and the sense of urgency getting this done, all right? And so, we're being asked, and I think everybody supports it 'cause this is a much-needed development. 25 6/9/10- PUB PROP/PUB WORKS - BILL 100466 DEPT.

Mayor Gillison

Right.

Councilman Clarke

To pass something without a written document, which we require for everybody, all right? So -- DEPT.

Mayor Gillison

I mean, I can put that in writing to you.

Councilman Clarke

If you can put something in writing and -- DEPT.

Mayor Gillison

Oh, absolutely.

Councilman Clarke

-- something that's going to be able to withstand any challenges from any federal sources. And, obviously, that will mean you can't commit something beyond what is within your capability as a member of is this administration. So I would really like to have something prior to the passage of the bill in writing; is that okay? DEPT.

Mayor Gillison

I'll put it in writing. If you're looking for the exact -- the numbers that we're looking 6/9/10- PUB PROP/PUB WORKS - BILL 100466 for in the areas where we believe we will able to achieve minority participation in the matter, I can turn to that point, and I'll be able to do that; that's not a problem. Much like I had indicated to the Chair to do with Family Court; I was prepared to give the Chair on that issue what the State requirements are and what we had tried to be able to push things down with the State. So within the various guideline areas we are working on that, and I can provide that to the Chair. And I can do that in writing. That's not the issue that I was here today to talk about, but I'm always willing to talk about that.

Councilman Clarke

You should always expect to talk about that when you come before this Council. DEPT.

Mayor Gillison

That's not a problem.

Councilman Clarke

All right? 27 6/9/10- PUB PROP/PUB WORKS - BILL 100466 DEPT.

Mayor Gillison

I mean I'm prepared to talk about it, obviously, but I'm not prepared --

Councilman Clarke

As important as this matter is -- and it is extremely important, but at the end of the day, it's important for us that if there's substantial dollars spent, or any dollars spent in the City of Philadelphia, that it should reflect -- the workforce should reflect the makeup of the -- the demographics of the City of Philadelphia. DEPT.

Mayor Gillison

You have no argument from me.

Councilman Clarke

That doesn't seem like a unreasonable request. Okay, Councilman Rizzo.

Councilman Rizzo

I want to get beyond the construction. It's still not clear to me who's going to occupy it. Is it state, federal -- DEPT.

Mayor Gillison

The Philadelphia police primarily, and with 28 6/9/10- PUB PROP/PUB WORKS - BILL 100466 the members of the task force starting out virtually and then moving in as needed.

Councilman Rizzo

When you say "members of the task force," are you talking about law enforcement from other communities? DEPT.

Mayor Gillison

Yes.

Councilman Rizzo

Well, then, once we get it operational, who's going to pay for the tab for the electric, the utilities? It's obviously a tax-exempt building. Who pays all the bills, going into the future, the air-conditioning and all of that stuff? COMM. SCHLOTTERBECK: It's all part of the lease negotiation.

Councilman Rizzo

Well, who pays? COMM. SCHLOTTERBECK: The City.

Councilman Rizzo

Why are we paying for -- COMM. SCHLOTTERBECK: Well, we will pay, and there will be other 29 6/9/10- PUB PROP/PUB WORKS - BILL 100466 relationships with the other tenants in the building so we'll get reimbursed.

Councilman Rizzo

Well, I'd like to see that arrangement, that agreement, for the operating costs on how we are going to get reimbursed and who from. DEPT.

Mayor Gillison

And, Councilman, perhaps I can just sum this up. The way that we're trying to make sure this happens is at follows: The building in and of itself, it's in the City of Philadelphia, and we are going to collapse certain groups. Basically our Homeland Security office is going to end up being part and parcel of this building. That will form the core basis of the building. The Homeland Security Unit is currently in another location that we pay rent, so we're basically transferring the rent that we pay at one building to the other. 30 6/9/10- PUB PROP/PUB WORKS - BILL 100466 In addition to that, we are actually taking money that we've worked out with the task force, and they're committing to approximately a million dollars a year to help us with the operating costs as we go forward. So we have a million dollars for the task force that they are contributing, because this is not just the City of Philadelphia operation; it is a regional task force. So they are putting, as they say, skin in the game to help us with that, and we are putting the bodies in. As needed, we are also bringing in other members, depending on what is happening, depending on threat levels and everything else from the federal government. The way that we have designed this building is really unlike any other building in the country. We are trying to make sure that we invite other partners to come in electronically at 31 6/9/10- PUB PROP/PUB WORKS - BILL 100466 first, so just virtually. We will invite people from Jersey, Delaware, Maryland to join us. So this building will basically house virtually all of these public safety entities together. But primarily, this is a City of Philadelphia task and City of Philadelphia-manned function, and that's why we have the kind of role to make sure that things that happen for the City of Philadelphia get to happen because we're the primary tenants of the building.

Councilman Rizzo

So if you wanted to, you could have just called this a divisional building of the Philadelphia Police Department and got your assistance in another way for people that would benefit from this facility within the City of Philadelphia. I'm concerned about the utilities, I'm discerned about all of the expenses to operate this building that we're going to have the burden to take care of. 32 6/9/10- PUB PROP/PUB WORKS - BILL 100466 And, you know, you're pushing -- you're throwing a lot at me quickly. How long has this process been going on? This is the first time I heard of this process, and I pay attention. So how long has this been going on? DEPT.

Mayor Gillison

When you say -- how long the task force has been going on?

Councilman Rizzo

Well, no, this -- DEPT.

Mayor Gillison

Or the project?

Councilman Rizzo

Yeah. DEPT.

Mayor Gillison

The project goes back --

Mr. Atkins

Five years. COMM. SCHLOTTERBECK: About five years. DEPT.

Mayor Gillison

-- before I even got here. I mean, this was in the previous administration when it started. I was given a briefing when I 33 6/9/10- PUB PROP/PUB WORKS - BILL 100466 got here, and I've been trying to make sure that it didn't get derailed, quite frankly.

Councilman Rizzo

Okay. But those utility costs could be substantial in the future and all of the other costs to operate the building, and I think you need to show us a document or at least give us something that shows how all of that is going to happen. DEPT.

Mayor Gillison

Well, I believe, sir, that the idea is that the -- that's exactly what the lease negotiations allow us to do. I mean, what you're talking about is what you're giving us permission to negotiate.

Councilman Rizzo

But like my colleague the Chair said, once we pass this, it's kind of your deal, and we can't really do much to correct things that we don't like. Like I want to -- before I vote in favor of this, I would want to know, and I would like to see something that 34 6/9/10- PUB PROP/PUB WORKS - BILL 100466 explains how the City gets reimbursed from a task force that's going to spread to New Jersey, to Bucks, Montgomery, Chester, Delaware Counties, what their piece of the pie is. And I don't know if that's in here. DEPT.

Mayor Gillison

I can provide that to the Chair, but I believe the reason why we have the chairman here and because of what I just said, the million dollars is really what they are saying they are saying, they're going forward. And depending on what the dollar value is of the lease, we'll be able to -- I think we'll be able to meet all of those questions that you might have, and we'll do it in writing. And I can provide it to the Chair.

Councilman Rizzo

That million dollars -- and I'm not questioning the fact that that's going to be there when they say it's going to be there, but I've been around long enough to know that if 35 6/9/10- PUB PROP/PUB WORKS - BILL 100466 something happens with that million dollars, we're going to eat it. DEPT.

Mayor Gillison

Okay. But I can provide the outline to the Chair, and I'll give that --

Councilman Rizzo

Thank you. DEPT.

Mayor Gillison

But I'm quite -- I'm quite comfortable that we'll be able to meet that question, given the outliers of what I'm hoping we can get.

Councilman Rizzo

Okay. You know the budget crunch we're having is probably in all of those counties that are going to be supporting this facility. So that's my concern. Mr. Chairman, I've said my piece.

Councilman Clarke

Thank you. Thank you, Councilman.

Mr. Atkins

Just if I could, sir, real quickly.

Councilman Clarke

Yes.

Mr. Atkins

The million dollars that we're talking about from the 36 6/9/10- PUB PROP/PUB WORKS - BILL 100466 task force, that's not the county contributions to that; that's actually federal money that we get through the Department of Homeland Security.

Councilman Rizzo

(Not entirely audible; off-mic.) Every year. There's no guarantee that that --

Mr. Atkins

No, sir. I mean, as best as we could tell, it will.

Councilman Rizzo

Who's going to help us pay the utilities? COMM. SCHLOTTERBECK: Councilman, in order not to negotiate in a public way, we have done a lot of homework internally in the City, understanding costs, understanding budget impact, understanding the move from our current rent into this building. Believe me, I think we know where we are and where we need to be. And this million dollars is a part of our budget forecast. And I understand that you're concerned about what if, at some point in 37 6/9/10- PUB PROP/PUB WORKS - BILL 100466 the future, federal dollars are moved. We do -- I do leases like this all the time, and I never know what's going to happen in the future. We just have to put our best foot forward. So, I mean, we're going to negotiate the best deal we can get for the City.

Councilman Rizzo

Who's paying the utilities? COMM. SCHLOTTERBECK: The operating expenses will be part of the lease, and they will be shared with the City and with the other tenants.

Councilman Rizzo

Again say the tenants, besides the city. COMM. SCHLOTTERBECK: The tenants will be -- who are the other people? Where's the other money coming; that's the question he's asking, the million dollars.

Councilman Rizzo

Beyond the million. We know the million is from the feds -- 38 6/9/10- PUB PROP/PUB WORKS - BILL 100466 (Indiscernible; parties talking over each other.) at once

Mr. Atkins

The million dollars is all I can really speak to. You know, the million dollars is part of the money that comes down to the task force. We've put -- out of that $11 million the Deputy Mayor talked about earlier, 4.7 came from the task force. We've said this money we want to put into the DVIC because we think that's important enough and we need to make that happen. What we are looking going forward is around a million a year, continuing. And we view ourselves then becoming more and more as a funding partner in this, that there will be other organizations, other things in a very Philadelphia-centric facility. But we, the task force, say we want to put about a million of our money every year into this to keep it going to 39 6/9/10- PUB PROP/PUB WORKS - BILL 100466 pay the utilities, to pay the rent, to do all those kinds of things. DEPT.

Mayor Gillison

And the uniqueness of it, if I may, Councilman, is that when you're say who's ultimately going to be responsible? yes, the City of Philadelphia is the one that is authorized to do the -- you know, sign on the bottom line. But we also have the task force as the financial fiduciary that is managing the money. One of the things that we were able to do this year is to raise the level of our tier participation from a Tier 2 homeland security city to a Tier 1, which makes us more eligible for even more dollars. And one of the things that the federal government has been doing is to make sure that fusion centers like this are their number-one priority, especially when it comes to us now being a Tier 1. We have a lot of work to do to catch up with a lot of the dollars that 40 6/9/10- PUB PROP/PUB WORKS - BILL 100466 other Tier 1 cities got, and I'm looking forward to, and have looked forward to, going down to Washington, talking with the secretary about the new investments that are being made. We are going to be able to apply for -- and it has already worked where we've gotten, through Congressman Fattah, some additional money for cameras as a result of us being already elevated from a Tier 2 to a Tier 1. It was easier for him to make that argument because of our threat level and because of moving up in that area. I'm looking forward to other opportunities. We're looking for formula money. That's always going to be happening through the Southeast Task Force, but you can see that the way that we work together here, and this is the signature project not only for us as the City of Philadelphia but for us as a regional center. And that's what the federal 41 6/9/10- PUB PROP/PUB WORKS - BILL 100466 government is really, really emphasizing. And we're at the cutting edge now. So I really don't have any hesitation to say that we should not be in the position to carry what we are going to be able to carry. I'm trying to make sure that we are using dollars, obviously, in this budget environment, especially in public safety, I want to make sure that this becomes not only a signature project but something that's going to last long in excess of the time that I'm gone and Ed is gone. But we've written in our relationship and written into the various documents that we get that kind of support.

Councilman Rizzo

And I hear everything you're saying, and I'm going to end it. But I just want to make sure that the taxpayers of this city and this government don't carry the entire burden. DEPT.

Mayor Gillison

42 6/9/10- PUB PROP/PUB WORKS - BILL 100466 Absolutely.

Councilman Rizzo

And that it's clear as a bell whose responsibility it is what, even though we were just told that that million dollars could be pulled anytime and we could be carrying the nut. Thank you, Mr. Chair.

Councilman Clarke

Thank you, Councilman. Councilwoman Miller.

Councilwoman Miller

Thank you, Mr. Chair. I just had some of the same concerns as Councilman Rizzo. I guess I wanted to make sure that Philadelphia was not going to carry the entire financial burden, particularly when other counties and cities are involved. And I'm glad you did say -- 'cause I was also going to ask the questions, with us being raised to Tier 1, would that mean we'd be eligible for additional cameras? We always ask you about more and more and more and more 43 6/9/10- PUB PROP/PUB WORKS - BILL 100466 cameras 'cause we need them. Who will ultimately be supervising that center? Ed, are you going to be the supervisor? What is your title again?

Mr. Atkins

My daytime job is, I'm the Director of Emergency Services for Chester County.

Councilwoman Miller

Okay.

Mr. Atkins

As one of the five members of the executive board, my colleagues elected me to be chairman of the task force.

Councilwoman Miller

Okay.

Mr. Atkins

But to answer your specific question, no, no, ma'am, I will not be the day-to-day operational supervisor of the facility.

Councilwoman Miller

Well, I guess what city, county, or does the task force have some type of organizational setup, or will Philadelphia be in charge of this infusion -- regional fusion center? 44 6/9/10- PUB PROP/PUB WORKS - BILL 100466

Mr. Atkins

This will be a Philadelphia operation.

Councilwoman Miller

Okay.

Mr. Atkins

And there have been some very talented, hardworking folks in the Police Department that have been helping us all along to make this a reality.

Councilwoman Miller

So where will those police officers move from to this center? Where are they now? DEPT.

Mayor Gillison

The Homeland Security Unit is currently in the Frankford Arsenal, and they will be moving from there down to this facility when it is stood up.

Councilwoman Miller

Okay. And will you have any other employment opportunities other than the homeland security officers? DEPT.

Mayor Gillison

In this particular facility, it would only be the homeland security officers. It would only be the homeland security-related 45 6/9/10- PUB PROP/PUB WORKS - BILL 100466 matters. It's a small, dedicated unit, and they're moving on. We are hoping to grow this into a larger public-safety area, but it starts first with Philadelphia and the square footage that is needed for us to begin that process and the investment that is needed.

Councilwoman Miller

Okay. And I don't expect you to negotiate the lease in public, but I would assume the $20 million fit-out will, hopefully, be a factor in the final cost of the rent. COMM. SCHLOTTERBECK: Oh, Absolutely.

Councilwoman Miller

Okay. COMM. SCHLOTTERBECK: Absolutely.

Councilwoman Miller

I think that's it. Thank you, Mr. Chair.

Councilman Clarke

Sorry. Thank you, Councilwoman. Councilman Kenney. 46 6/9/10- PUB PROP/PUB WORKS - BILL 100466

Councilman Kenney

Thank you very much. Let me try to summarize it to my mind so I can -- I understand it. I understand the concerns about the cost of operating the building, but it seems to me that one of the few areas of government investment that goes up regularly since 2001 is issues relative to homeland security. I mean, we're putting more and more money into these types of operations. And it seems to me likely that that won't change anytime soon as long as we're in Afghanistan and Iraq and we're having even closer folks, American-born Al-Qaeda-trained folks trying to leave the country to get over to there. So it seems like that won't be an area that the government is going to get out of the business of anytime soon. But it also seems that this is an opportunity, a unique opportunity, for Philadelphia to be elevated not only in 47 6/9/10- PUB PROP/PUB WORKS - BILL 100466 threat level but in regional esteem, because we're going to be the headquarters of the facility or the unit that's going to hopefully protect the region. So in many ways, I -- the way I read it on the other side is that for all the Philadelphia bashing that we get, at least we'll have the opportunity to say to the counties, We're here to protect you and we're in this together. So in other areas of governmental funding, we have a relationship, and we've dealt with the Chester County folks, we're dealing with the Montgomery County and Delaware County folks, even the folks in New Jersey, which don't affect our budgetary issues, but maybe when it comes to raising a toll on the DRPA, we won't get as much grief if they know that we're all in this together. I also think logistically, the selection of this site is opportune and 48 6/9/10- PUB PROP/PUB WORKS - BILL 100466 that it is so close to the airport, a major -- a potential major target, close to four major bridges and has highway access to just about anywhere in the region, it seems to be a kind of an opportune place to deal with this. But I also think -- again, I can't underestimate the raising of Philadelphia's profile as the protector -- the locality of the protectorate for the region; I think that's very important not to lose sight of. And I'm glad that we're not fighting Montgomery County or Chester County over the location of this facility, and I think Philadelphia should be proud that, you know, not only are we at the forefront of this and the cutting edge of this technology, but it's going to be based here.

Mr. Atkins

Thank you, sir. That's something we've been pushing for a long, long time. Not only will it give 49 6/9/10- PUB PROP/PUB WORKS - BILL 100466 us an opportunity to show the rest of the Commonwealth and the surrounding state, this is looking fairly unique in the country. And I'll be leaving in a couple weeks to go to a National Urban Area Conference, and we're doing a lot of really good things, and we understand -- or I understand your concerns, very valid concerns, but this is going to be a very high-level, a national model. We're doing great things to protect all of our citizens. And it's fairly unique that I think we have such a high level of cooperation in the region between the City and the four surrounding counties. So thank you, sir.

Councilman Kenney

You're welcome. I would also suspect that this is going to be a center for training, where we're going to have folks come in from around the country, perhaps even 50 6/9/10- PUB PROP/PUB WORKS - BILL 100466 around the world, that are going to come in and view this facility, maybe train at this facility, and put us more on a national world stage as a city and as a region.

Mr. Atkins

I would suspect you're exactly right, sir. In fact, there is a lot of training that goes on in the southeast region. A large majority of it, in fact, involves Philadelphia. I think you're exactly right. There will be more of that.

Councilman Kenney

I'll have to sleep in a hotel room, I guess. DEPT.

Mayor Gillison

I would suggest that the reason why I was smiling is because when you -- once we get past Phase I and you start to imagine what the possibilities are for us as not only a city but as a region and as a regional leader, it is exactly within the parameters of not only the possible but the probable that we will be able to begin to really open up and see what the 51 6/9/10- PUB PROP/PUB WORKS - BILL 100466 parameters can be.

Councilman Kenney

All right. Thanks.

Councilman Clarke

Thank you, Councilman. Real quick, based on the amendments, at least one of the amendments, my assumption is that there have been some conversations with the local community? COMM. SCHLOTTERBECK: Absolutely. DEPT.

Mayor Gillison

Oh, God, yes. COMM. SCHLOTTERBECK: Yes. We have complete support of the community. Kathy Murray is here if you want to talk to her.

Councilman Clarke

(Addressing Ms. Murray.) You don't want to testify? Okay. DEPT.

Mayor Gillison

We've been able to meet all of those matters, and we've worked very extensively with 52 6/9/10- PUB PROP/PUB WORKS - BILL 100466 the Council President.

Councilman Clarke

Okay. All right. If there are no other questions of these witnesses, then we'll just ask the representatives from the local community to come up. (Witnesses come forward.)

Councilman Clarke

Good afternoon.

Ms. Della Barba

Good afternoon.

Councilman Clarke

Just state your name for the record.

Ms. Della Barba

Okay. My name is Jody Della Barba. I'm the president of Girard Estate Area Residents. We represent the residential area immediate to the north of the facility.

Councilman Clarke

Okay. Please proceed with your testimony.

Ms. Della Barba

Okay. Based on the letter agreement and deed restrictions signed by GEAR, Broad Street 53 6/9/10- PUB PROP/PUB WORKS - BILL 100466 West, and Defense Realty in 2005, we submit the following: We the, undersigned members of the Executive Board of Directors of the Girard Estate Area Residents, a/k/a GEAR, believe Bill No. 100446 would be a win/win situation for both the community served by GEAR, the City, and the property owners. In the past, the property was occupied by the U.S. government as a center for manufacturing uniforms for the Army and other white-collar employees of the Department of Defense. At that time, our area was booming with employees, who frequented local businesses such as supermarkets, restaurants, and retail establishments. Also, it was well-maintained, and a feeling of safety surrounded the property. Since the closing of the facility, it has been mostly empty except for a manufacturing facility in the rear 54 6/9/10- PUB PROP/PUB WORKS - BILL 100466 of the property, a high school training center, and a shopping center that was erected around 2003. None of the previous venues have brought the boost to the economy and general feeling of safety back to our area that we believe the new Intelligence Center DVIC will bring. And we ask that this committee vote for this project.

Councilman Clarke

Okay, thank you. I guess having a Homeland Security facility in your neighborhood makes your home feel pretty safe.

Ms. Della Barba

Yes. Maybe it will make our property values go up a little bit, too, in this economy.

Councilman Clarke

All right, good. That works, that works. Okay. Please proceed, sir.

Mr. Fury

Good afternoon, Mr. Chairman and members of the committee. My name is John Fury, President of the Broad Street West Civic 55 6/9/10- PUB PROP/PUB WORKS - BILL 100466 Association. We represent the residential community adjoining GEAR, close to the 20th Street location. We've been interacting with the owners of the location for a number of years. One of our biggest problems is the -- rejuvenating Oregon Avenue Street corridor. It's -- because of the economy, there's a lot of empty properties there, business properties. And this particular property occupies a large portion of that corridor. And it's always been a military facility and it's been vacant for years and years. We're in the process, like I said, of rejuvenating Oregon Avenue. And we need the support of the business community and especially a sizeable property like this to help us with the streetscapes and the employment and what have you. We hope something of nature and this scope will stimulate the economy in the area and help us with all of these 56 6/9/10- PUB PROP/PUB WORKS - BILL 100466 vacant properties. So we're looking forward to supporting this project, and we submit a letter of support for this.

Councilman Clarke

Okay, great.

Mr. Fury

Thank you.

Councilman Clarke

Okay. Thank you very much for your testimony. And I'll look forward to a future phase of the Homeland Security locating in my neighborhood.

Mr. Fury

We'll open site offices. Thank you so much.

Councilman Clarke

Okay. Anyone else to testify on this bill? (No response.)

Councilman Clarke

There being none, this concludes the public hearing. We will now go into the public meeting. * * * 57 6/9/10 PUBLIC PROPERTY PUBLIC MEETING

Councilman Clarke

Councilman Kenney, can I please have a motion on Bill No. 100446.

Councilman Kenney

Mr. Chairman, I move that the amendments offered to Bill No. 100446 be approved. (Motion duly seconded.)

Councilman Clarke

The amendments to Bill No. 100446 have been approved -- I'm sorry, have been offered and approved. No, I'm sorry. Let me slow down; it's been a long day. All those in favor? Those opposed? The ayes have it. The amendments to Bill No. 100446 are approved. Councilman Kenney.

Councilman Kenney

Thank you, Mr. Chair. I move that Bill No. 100446, as amended, be reported out of this committee with a favorable recommendation and a request made for a rules suspension 58 6/9/10 PUBLIC PROPERTY PUBLIC MEETING to allow for first reading at our next Council session. (Motion duly seconded.)

Councilman Clarke

Thank you. Those approved? Those opposed? The ayes have it. Bill No. 100446, as amended, has been approved and will be reported out of committee with a favorable recommendation and with a rules suspension to allow for first reading at our next session of Council. This concludes the public meeting. Thank you very much. (Proceedings end at 4:05 p.m.) * * * 59 C E R T I F I C A T E I HEREBY CERTIFY that the proceedings of the City of Philadelphia Council Committee on Public Property and Public Works are contained fully and accurately in the stenographic notes taken by me on Wednesday, June 9, 2010, and that this is a true and correct statement of same. __________________________________ JOSEPHINE CARDILLO Registered Professional Reporter (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)