I know it's paying going forward, but how much does it actually buy?
I would think -- I'm not an expert on this, but I would DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. think it depends on what type of properties it would be, and we could probably provide you some information if you want on the types of properties that have been -- what they have used this money for, let's say, over the last year, if that would be good.
I'm just trying to figure out what the context of the $154,000 is related to.
Their overall operations? I think that's a fair question. I'll get that to you.
Thank you. Fleet Management. (Witness approached witness table.)
Good afternoon, Councilman Goode, Jr. and members of the DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. Appropriation Committee. My name is James Muller. I am the Fleet Manager of the City of Philadelphia. I am here today to testify on behalf of the Office of Fleet Management. The Office of Fleet Management requests additional funding of $2,965,000 for its General Fund Class 300 in order meet our increased obligation due to the dramatic increase in fuel pricing during the current fiscal year. That concludes my testimony, if you have any questions.
What percentage of this is due to increased fuel prices? Is it 100 percent or is it some of it due to more usage? Is it less usage --
Yes, Mr. Chairman. DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. First of all, I've been around long enough now to know the difference in prices that we've experienced over a five-year period. Whoever -- again, I always applaud you guys because you got into a requirements contract that locked fuel prices in right at a great time for the City of Philadelphia, and I know in one budget testimony, you quantified how much you saved the City of Philadelphia. I guess my question going forward is, do we have another rabbit to pull out of our hat like that or are we just going to have to bite the bullet on this?
I mean, I think that it's something that we're looking at going forward, what is the best strategy for fuel purchasing and for locking in prices. So that is something that we're looking at, and we are also -- we put an RFP out through the Budget Office for, you might have heard, for what's called an efficiency expert to look at certain DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. overhead costs to see if we can -- how we could do things more efficiently, more cost effective, and fuel is one of the many items that will be looked at. So your question directly addresses what's the best strategy for locking in price given the volatility in fuel, and that's something we'll be working on over the next few months.
Are some of those strategies inclusive of piggyback purchasing with the state and federal governments?
That could be. I mean, I think that's something that we're going to look at.
Because obviously the volume will probably give us a per unit.
That could be something that -- yes, we'll definitely look at that.
Because the state does allow for that, and it just DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. seems to make all the sense in the world.
We're doing that presently with vehicle purchasing off the state contracts.
All right. We'll look forward to the progress on that during the budget process. We're counting on you.
Thank you. Just one quick question with respect to the E911 spend, and, that is, will that be accomplished by year end?
That is the expectation. That's why we're asking for the money. The money needs to -- that we're going to spend that by the end of the year. DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC.
For the projects? Yeah, that is my understanding, because we went through several conversations to make sure that that money was expected to be needed by fiscal year end.
That's going to be spent by June 30th; that's your testimony?
Hold on a second. Are there any more questions for this witness? (No response.)
Thank you very much. DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC.
If it's not spent, it would lapse. The appropriation would lapse. So we would have to come back to you. I mean, we couldn't spend it if it wasn't spent by year end.
I understand what it means. (Witness approached witness table.)
Yeah, we're expecting to. For instance, on the MMS call prioritization, an RFP was posted on eContracts Philly. No contract has been awarded, but we're trying to get things --
How long will it take the Solicitor's Office to actually enter into a contract? DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC.
Well, you obligate the funds before you actually conform the contract. So you can obligate the funds right as soon as you award it.
I understand that. How long will it take the Solicitor's Office to actually enter into a contract with a third party? What is the typical time it takes?
So the money can't be spent under this contract until two to three months from now? The contractor cannot begin work --
You would not expend the funds, correct, but you would need the funds to obligate to conform the contract.
You can also DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. sometimes do what's called a notice to proceed.
It's called a notice to proceed. So while the contract is getting conformed, the Law Department, we sign a letter saying that the vendor can proceed while the contract is getting finalized.
Is there an intention to do a notice to proceed on this contract?
I wasn't aware of any indicated by the Fire Department because they haven't moved forward with an award yet. So usually you do that at the time of the award.
Okay. It's not clear to me based on that that this money can be spent this year.
Well, then -- okay. So -- I'm sorry, DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. Ms. Rhynhart. I don't know why you were shaking your head. Maybe you could --
No. Just right now? I think that the seven point -- the question is, is work going to be done in this fiscal year, right? That is the question? Because the funds can only be spent if the work is done in that fiscal year.
And the answer was that the funds will be obligated, but not spent this year.
Well, we'll have work done in June. You won't get an invoice until July.
Well, no. You would have the obligation, the purchase order, this year that is used.
No. If you actually do the work in the fiscal year, DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. you can -- if the work is done in the fiscal year, you can use the appropriation.
So we're going to obligate ourselves to $7.9 million of spend in 30 days in June? The work will be done for $7.9 million?
The expectation is that the work will be done by then. If the work is not --
All of the work will be completed by June 30th of this year?
There are probably a few contracts that will flow into next year. There could be. DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC.
Are there any other questions for this witness? (No response.)
Ms. Rhynhart, I did not receive any written testimony for Bill 171.
I think because it was included -- for the hotel tax? I think because it was included in my overall bill. Do you want a specific explanation of that? I'm happy to provide that.
I want to know why there was not separate testimony offered.
I had thought it was sufficient to put it in my testimony because it's a -- but if you want something more specific, I think we'd be happy to provide that to you.
Can the Commerce Director come to the table? DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC.
Under this proposed ordinance, this money would go to your department?
It flows through our department, yes. It doesn't actually let in there.
It flows through our department, but it doesn't end there. It goes to the various convention and --
A lot of money flows through your department but doesn't end there. I know you do a lot of contracting. That wasn't the question. The question is, money goes to DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. your department?
I think, again, it was -- I had thought that it was sufficient since it was related to the Hotel Tax Fund to be included as part of my testimony, because it's basically a pass-through mechanism. But we'd be happy, Councilman, to provide you with testimony or with anything you would like.
Well, there are members of the Committee, including the Majority Leader and Vice Chair of the Committee, who have separate issues with the Commerce Department, and the fact that testimony was not offered in this particular bill and they thought that it would suffice to have the Budget Director to offer testimony just seems strange to me and I think some other members of the DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. Committee. There's some issues which I would like the Commerce Director to discuss with the Vice Chair of the Committee. I think we're going to take action on this bill today, but at the same time, I don't think this bill is going to move as quickly as the other bills, although there's a lot of other information that we have requested, and I'll just run through my list of things. Councilman Jones also asked for information on court programs. Councilman Green asked for information on a specific City Controller contract. I asked for LBE and DBE information for appraiser contracts. A lot of us asked for information on Office of Property Data. Councilman Green asked for information on the 9-1-1 spend. We need more information on the OHCD program. And so we actually scheduled this hearing. You got us information quickly, but we need that information DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. provided through the Chair to the Committee. And in addition, I think Councilman Jones wants to have an offline conversation with the Commerce Director.
Thank you. Is this money that we are -- this money is basically coming because of a surplus in hotel stays; more money has come into that fund than necessary?
And so how do we -- how do the organizations that we are -- are we legally required to give the money to the organizations that are getting this money in the amounts that DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. we're giving to them under state law or can we as Council appropriate different amounts to different entities that are required to get this money under state law?
Yeah. My understanding is that the way the funds flow to Convention and Visitors Bureau, Convention Authority and GPTMC are designated by a Council ordinance.
That's right, which we do every year. But we're giving people money with three months left with no -- it wasn't in their budget, with no understanding of how they intend to spend that money to fulfill their mission with, at least as far as we know -- perhaps you know -- how the different organizations are going to spend this money that is showing up three DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. months before year end, and can you tell us how they're going to spend it?
I don't know other than the generic promotional activities that each of those three organizations do.
So use of the term "pass-through" is a problem, even if you were not going to be prepared to offer testimony, because you viewed it as a pass-through. Ms. Rhynhart should have brought those groups here to talk about how they intend to spend the money.
We'd be happy to get you that information. I think that because there is a binding document and it's a Council ordinance, but there is an agreement. So from our perspective, it was that hotel tax is up 10 percent from where it was a year ago, and that we did DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. not expect that type of increase in the budget, and so that's why we need additional appropriations. But in terms of how they plan to spend the money, that's a fair question and we'd be happy to reach out to them and get back to you.
Because we could always appropriate more to one or the other entity after having heard their explanation of what they'd like to use the funds for.
I assume through another ordinance, but I may be wrong about that.
Sure. We can appropriate it -- we have -- I wonder whether or not in fact this is proper authorization given how the Council ordinance works about how these organizations get money, but we'll take a look at that in next week. So I think I'm going to be -- Mr. Chairman. DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC.
How you doing, Commissioner? So the question is -- I know it is done by ordinance from City Council for the pass-through for specific funds. Is there a cap or is there a percentage of the surplus that is in the contract, as you say, Rebecca, with the recipients of the funds from the hotel tax?
I'm not aware of a cap. I'm just aware of the percentage split.
I'm not aware of the cap, but I want to double check that.
So if you have a 10 percent increase, they would get increased funding?
That's right. That's exactly right. They would get increased funding. For example, when the economy went downhill, they got decreased DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. funding, and now we're seeing an uptick in that revenue.
Do they submit a budget to the Commerce Department on the funds that they need for a fiscal year?
Thank you. Is there anyone else to testify on any of these bills? (No response.)
Any questions or comments from the Committee? (No response.)
Seeing none, we will move from our public hearing into a public meeting to consider Bills No. 21 120169, 120170, 120171 and 120172. The Chair recognizes Councilman Jones, Vice Chair of the Committee, for a motion on Bill No. 120169.
Thank you, DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. Mr. Chairman. I move that Bill No. 3 120169 be moved with a favorable recommendation and further move that the rules of Council be suspended to permit first reading of this bill at our next session of Council. (Duly seconded.)
Inspired by the Chairman's comments in the hearing, I think it's sound policy for us to not approve bills that are combined and that we request in the future that all appropriations bills come department by department so that they can be individually adjusted, held or whatever. I am for most of what has been requested. I am opposed to specific appropriations, some of which I asked questions about and made clear during the testimony. For that reason, I am not DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. going to vote for this bill and I don't think we should move forward until we get separate appropriations. I recognize I will be in the minority.
I wish you had had that conversation with me, because we're at the beginning of this process of a new Appropriation Committee. I believe the Budget Director and all the departments now understand that we're going to approach this differently and get this information as quickly as possible and before bills are actually introduced. The other way to accomplish this is to simply amend the bills, take out that which we don't want in it. So we actually can save the process a bit now and in the future. The best way to save the process is to get the information early and to split up the bills, if necessary. The other way to accomplish that is if people try to basically put the bills in bulk, thinking DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. that we're not going to vote against all the bills, we don't have to vote against all the bills; we'll just amend the bills and take out what we don't like. Any more comments or questions? (No response.)
The ayes have it. Bill No. 120169 is reported out of Committee with a favorable recommendation and suspension of the rules to allow first reading at our next Council session. The Chair recognizes Councilman Jones for a motion on Bill No. 120170.
Thank you, Mr. Chairman. I move that Bill No. 24 120170 be reported out of this Committee with a favorable recommendation and DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. further move that the rules of Council be suspended to permit the first reading of this bill at our next session of Council. (Duly seconded.)
Bill No. 13 120170 is reported out of Committee with a favorable recommendation and suspension of the rules to allow its first reading at the next Council session. The Chair recognizes Councilman Jones for a motion on Bill No. 120171.
Thank you, Mr. Chair. I move that Bill No. 120171 be reported out of Committee with a favorable recommendation and further move that the rules of Council be suspended to permit first reading of this bill at our next session of Council. DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC. (Duly seconded.)
Thank you. I would really urge my colleagues to vote against this bill. We do not know how this money is going to be spent by the various agencies. I think we should have that information at the Committee level, with an opportunity to ask on the record questions of organizations who are receiving millions of dollars for funds that we tax, and I just would like us to not approve this bill or hold this bill. So I make a motion to table. (No response.)
All those in favor? (Aye.) DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC.
Bill No. 6 120171 is reported out of Committee with a favorable recommendation and suspension of the rules to allow first reading at the next Council session. The Chair recognizes Councilman Jones for a motion on Bill No. 120172.
Thank you, Mr. Chair. I move that Bill No. 120172 be reported out of this Committee with a favorable recommendation and further move that the rules of Council be suspended to permit first reading of this bill at our next session of Council. (Duly seconded.)
Those opposed? (No response.) DiscoveryWorks Global 888.557.8650 www.dw-global.com 3/21/12 - APPROPRIATIONS - BILL 120169, ETC.
Bill No. 3 120172 is reported out of Committee with a favorable recommendation and suspension of the rules to allow its first reading at our next Council session. Thank you very much. This concludes our public meeting. com CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on March 21, 2012, and that this is a true and correct transcript of same. -------------------- MICHELE L.