Thank you, Madam President. Commissioner, how many actual structures is your department responsible for? How many buildings, facilities that you have jurisdiction directly over?
Jim, do you know 55 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 the answer? I, actually, don't --
Of those facilities, are those also under the jurisdiction of various departments? So, for example, do you have jurisdiction over a Streets Department facility, that's also under the jurisdiction of the Streets Commissioner? Or are these 170 buildings or so simply your domain?
Can you give me an idea like what, for example, the smallest facility would be and what, perhaps -- obviously, the largest facility is probably this building. But give can you give me some examples as to what it is you are responsible for, the types of buildings.
Well, we have all the Police, Fire, all Public Property. When I say that, you are right, City Hall, the 56 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 triplex, fleet management operations.
But as far as, for example, the Police Department is concerned, the capital needs of the police stations or fire stations, are they within the purview of each department head or solely your responsibility?
What happens with that is, we very actively sit down at the table with the capital people that work for the Police Department, and we prioritize the work because we would know better what items need to be replaced.
So you have a schedule of both maintenance and replacement schedules for all of the 170 or so buildings that you are responsible for?
Do you have a generalized number on the needs annually -- 57 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 not what's budgeted, but on the needs annually -- of the facilities you are responsible for? I asked a similar question yesterday of the Recreation Department. But, again, the Recreation Department, are they your buildings, too?
And I know I am going in different directions. But, which other departments are considered their own domain?
Libraries, Health, Department of Human Services, Streets, and Recreation.
So, okay. When you are assessing your capital needs on an 58 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 annual basis, next year and going forward, what are those numbers like? What do you determine are the needs to maintain the properties in an appropriate fashion?
Are you asking what we submitted as a capital request to capital planning people before it was determined what we were going to get?
What you submitted, what you think you really need, if that's a different number, and what you get back in the way of approval.
I don't know that I have that committed. Do you, Jim? I am going to ask Facilities Director, Jim Lewis, to answer this question.
Jim Lewis, Facilities Management Director. Councilman, typically what we have been trying to do, as the Commissioner stated, we have our slate of buildings that we do work on. We do our best to really try to keep 59 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 on top of the amount of work and time we spend in various buildings. Then as we sit down with the people in charge of the Police and Fire Department as they assemble their Capital Program, we make recommendations to them, per the work we have done, as to where they should probably submit a request for capital work. We focus typically on Public Property, mainly City Hall and the buildings within our jurisdiction, for our own capital requests. There are numbers that we do put in for requests. And we work with the Capital Program office and the Planning Commission on what we would like to have done and what we would recommend should be addressed in a Capital Program. And we do our best to coordinate with the Police and Fire, again, but --
They make their own requests. 60 FY '07 OPERATING BUDGET HEARINGS - 3/15/06
Just on your own facilities that you make a request for, what was the number requested in capital dollars for 2007?
Off the top of my head, Councilman, I would have to say we have requested upwards of 8 to 10 million dollars.
Maybe 5, with a large chunk of that being the City Hall exterior renovation. It is also prioritized. As we go through our requests, we do prioritize it.
Of the City Hall exterior restoration, how much does the 5 represent? You asked for 8, and you got back 5? 61 FY '07 OPERATING BUDGET HEARINGS - 3/15/06
The City Hall renovation is almost 80 percent of it. It is $4 million, at least, and it probably should be 5.
So there is a million dollars left for the other 170 buildings that you have jurisdiction over?
City Hall exterior side, what would you need, if you had -- if you were going to submit a rerequest, what would you be asking for?
Off the top of my head, I would say we would probably come back for, you know, just of needs that we immediately see, 8 to 10 million dollars.
How long have you been dealing with the facilities of the Department of Public Property? How long have you been dealing with it?
Me? I came onboard in July. But my history with the city is, I have 62 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 been working on and off with the city for the last years. 4
And not only 5 you, if anyone at the table can answer the 6 question, what is the long-term effect of not 7 meeting the 8 to 10 million dollar number on 8 the life span of the building, or the 9 facility, and on the increased costs of its 10 maintenance deferred or replacement? 11 Is there an analysis that's been 12 done by the department on what deferred maintenance and replacement ultimately costs the taxpayer?
But do you think that the $8 million -- again, excluding City Hall's $4 million need, or whatever -- is the minimum amount that you need to maintain your facilities in an appropriate manner?
I would say for FY '07, yes. 63 FY '07 OPERATING BUDGET HEARINGS - 3/15/06
So for FY '07, you guys would have appreciated the to 10, 4 as opposed to the 5 minus the 4 for City Hall, 5 which leaves you with a net of a million 6 dollars for an 8 to 10 million dollar request; 7 is that a pretty fair analysis? 8
Again, Madam President, I just, again, think that the record should reflect the similar conversation that we had yesterday with the Department of Recreation. These are city-owned facilities, owned by the taxpayers. The people who are responsible and knowledgeable in their needs, both in maintenance and replacement, and their life span, are making specific recommendations that are being ignored. For what reason, I do not know. Because long-term, both in the Recreation Department and in Public Property, and all the other departments we are talking about, this deferred maintenance has a cost. 64 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 And its cost is in higher replacement and higher repairs. And when somebody tells me that they need to million dollars to maintain their 6 buildings, and ultimately what they are 7 getting is 1 -- because if you subtract what 8 the City Hall exterior is costing from the $5 9 million they actually got, they are working 10 with $1 million for 2007 for 170 properties, with an 8 to 10 million dollar need. And I think that is bad management. Not on your part. I think it is bad management and bad government that we are not maintaining our facilities that we have in place and are talking about doing things that are new. So as far as Recreation and Public Property goes, I will be looking to do what we need to do to be responsible stewards of these facilities and maintain them the way they are appropriately supposed to be maintained. I think it is pretty simple management to do this, and for some reason or another this Administration decides they don't 65 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 want to. Thank you very much.
You are welcome. Are there any other questions from members of the committee for the Commissioner? Seeing none, Commissioner, I want to thank you. I was just saying I think you have done, you and your staff have done, a superb job. I think you have had a great, great challenge. And I don't think you have had one week where something has not happened that required your full attention. I commend all of you. I think you have done a fabulous job.
Thank you. MR. McPHERSON: Fleet Management is the next department.
Good morning. Please identify yourself for the record. I would ask you to please abbreviate your testimony, since we do have a copy of your prepared. Which, we will give a copy to 66 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 the stenographer, it will be transcribed in full. So if you can abbreviate your testimony, we would really appreciate it.
Thank you, Madam Chair. James Muller, Fleet Manager for the City of Philadelphia. Good morning, President Verna and distinguished members of City Council. Here with me to my left is my Administrative Services Director, Bob Fox; on my right is Tim Lynch, the Fleet Operations Director. Thank you very much for the opportunity to present testimony in support of my FY 2007 Operating Budget request for the Office of Fleet Management. OFM's FY 2007 general budget request is $55,173,836, including $12,600,000 for the purchase of new vehicles. The FY 2007 General Fund budget is $2,247,558 less than in FY 2006 estimated obligations. Budgetary variances in FY 2007 are the result of a variety of factors. Class 100 increase by $485,442, mainly due to wage increases. Class 300 67 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 decrease by $1,700,000, due to trends suggesting decreases in fuel. Class 400, decreased by $1,033,000 for vehicle acquisition. The fleet. The City of Philadelphia has a diverse fleet in terms of vehicle size, complexity, and function, with an asset value exceeding $248 million, including vehicles supported by both water and aviation funds. The fleet represents a significant investment of public funds. Currently OFM maintains a fleet size of 6,000 vehicles, including 787 that are specialized vehicles. Availability average is 90 percent, which means 5,400 vehicles are available each day, meeting most daily vehicle department needs. Initiatives. Police cars. Over the last ten years, radio patrol cars were produced only by Ford Motor Company, the Ford Crown Victoria rear-wheel-drive V-8 engine offered at a price of $30,500. Now the Chevy Impala offers -- Chevy now offers the Impala as a patrol car at a 68 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 price of $25,000. OFM, with the cooperation of the Philadelphia Police Department, researched the Impala and found that many other cities had been quite satisfied with their performance. Continued initiatives. Currently OFM is changing specifications on a number of vehicles. There have been a number of advances in technology, and we are responding to these changes; such as, multiplex wiring systems. Trucks are now ordered, when possible, with multiplex wiring for cleaner and more direct connections between the superstructure and the chassises. Another technology is LED lamps, lighting illuminating diodes. The lamp lasts longer because they withstand road vibrations, shock, and much more efficient than bulbs. Thirdly, utilizing synthetic oils in our drive train systems, such as, engine transmissions and differentials, resulting in longer oil life. Additionally, OFM has included 69 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 long0life engine coolant. This increases the overall life of the components of all cooling systems. Internet auctioning. OFM, along with the Procurement Department, is in the process of listing online vehicles that have passed their useful life cycle. E-auctions are now conducted in many cities. Through the E-auction process, competition is increased, as well as potential selling price of auctioned vehicles. Trade journals report approximately percent 14 increase in revenues collected. 15 In conclusion, I want to express my deepest appreciation to all the employees of the Office of Fleet Management for their commitment and dedication to our mission of economy, delivering safe and reliable vehicles to all city departments. That concludes my testimony, and I would be happy to answer any questions at this time.
Thank you very much. 70 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 The Chair recognizes Councilman Rizzo.
Thank you, Madam President. Good afternoon. Or still good morning, Mr. Muller. I just wanted to complement Fleet Management on the great work that you do. And I can tell you that I have visitors come from all over, especially police and firefighters that visit the city. And one thing they are always impressed with, it is tough for them to even detect the age of some of our vehicles. And I explained to them the little system we have with the year -- the first two numbers are the year of the vehicle. And they are always amazed by the cleanliness in our police fleet. Again, the Impala has caught on to other places since people have seen it here. But being a person that's watched the fleet the best part of my adult life really can tell you, for a fleet that works 71 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 hard, the sanitation vehicles that are, you know, worked into the ground, that I think we have a first-class looking fleet. And I know you have done a lot of good things to make sure that it is managed effectively. So all I can tell you is that, I think I speak with some experience and do understand how tough it is to run a big-city fleet. And I hope some day we can put you in the position -- one of the comments that I must say is that they can't believe that we have some vehicles as old as they are. And I'm sure you just mentioned the auction, the online auction, which is going to be, I think, a bigger bang for our buck. We will get more because four-wheel drives are a vehicle that's wanted all over the world. And I think now that we are going to spread out and get more people interested in buying our used vehicles, that maybe we will be in a position -- and I believe you monitored that very carefully. If you get a vehicle that starts to suck up a lot of money 72 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 on maintenance, it gets put down. So that's one area that I would like to be able to see your budget increased. And the firefighters, I was down at a firefighters' union event, and they were thrilled. I think that you have ordered some brand-new equipment for them, six or maybe even more new fire engines. So, that's great to hear. What exactly is that all about? Because they are thrilled about the fact that you have been able to figure out a way to get them some new equipment.
We had an additional $6 million given to our acquisition budget, so we purchased six new American LaFrance pumpers -- ordered, I am saying -- and two new ladders. And that's what happened with 6 million.
That's the way I like to see our money spent, on making sure that our firefighters have the best equipment. But, again, thank you. You have a tough job, but it is done well.
Thank you, Councilman. A lot of the support we get from the 73 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 other departments makes our job a lot easier, people maintaining their vehicles and caring about what the appearance of the vehicles look like. So a lot of that has to go along with other departments helping us make our job a lot easier.
Am I correct the minute you see -- because when I see some of the vehicles that are 10, years old, some 12 of the passenger vehicles that are still on the street, is there some computer alert that that vehicle, once it starts to cost us some money, even though you don't have the money to buy new vehicles, you try to spend the minimum amount on it?
It is hard for me to believe that we have some vehicles out there that are 10 -- am I exaggerating, 10, 12 years old?
Thank you, Madam 74 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 President.
You are welcome. I just have one question, if I may. On of your testimony, under Revenue Generation, you indicate you expect to receive $400,000 in FY '06 and $300,000 in FY '07 in the General Fund for sale of vehicles; is that correct?
The FY '07 estimate right now is $300,000 for the General Fund.
All right. Now, I was somewhat confused. Because on the budget in brief, the revenue estimates are $600,000 and $700,000 respectfully for the sale of vehicles. Can you explain this discrepancy and which numbers are correct? And what is the impact on the budget and plan?
Yes. When the budget was prepared, we had estimates that we believed were going to be higher. We have had a couple of auctions 75 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 since that, to when the speech was -- testimony was written, and we have adjusted those numbers down. It doesn't reflect on our budget, because we don't keep the money that is generated from the auctions; but, it obviously affects the General Fund.
Is Ms. Reed here? Would you approach the table, please. Identify yourself, for the record. I would suggest that you look at of the budget in brief.
Dianne Reed, Budget Director. I didn't quite understand the question.
We are told that they are not going to generate the type of revenue that appears on that page. So, how are we going to rectify that?
We will have to make an adjustment at some time later in the process.
Yes, I will look into it. 76 FY '07 OPERATING BUDGET HEARINGS - 3/15/06
Thank you, Madam President. Good morning, gentlemen. A few weeks ago this Council unanimously passed an ordinance requiring fleet division to consider hybrid vehicle purchases, when the price was appropriate, before regular cars. The Mayor has until Thursday, tomorrow, to either veto the bill or sign it or allow it to become law without his signature. In the event that the Mayor vetoes the bill, which is what I am -- some of the information I am getting, and I think the fact that my name is on it almost assures that it will be vetoed, and the Council overrides the veto, what do you plan to do?
Thank you. That's not the answer I expected, but I 77 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 appreciate your honesty. Thank you. That's it. He is going to follow the law. Thank you very much.
I would just appreciate for the record -- and I know you are giving an honest answer, and I respect your honesty. In the event that someone from either the Administration or the Law Department contacts you and tells you not to follow the law, I would appreciate at least the Council President being informed that you have been told otherwise. Okay?
Thank you. Thank you all very much. We have no 22 other questions, so we appreciate your coming in. Thank you.
The next 78 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 department to testify? MR. McPHERSON: Historical Commission.
Madam President, may I speak to Dianne Reed, while she is still here. Just one quick question.
Thank you, Ms. Reed. We have been having some discussion today and yesterday relative to capital spending and capital needs. Are you aware of what the debt policy is for the City of Philadelphia?
I think it is under revision, so I haven't seen the latest draft.
Do you know when the last time was the debt policy was revised?
Well, according to staff, it was revised in 1995, was the last time the debt policy of the City of Philadelphia was revised. And it was revised 79 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 to a 6.5 percent of revenues. Do you know what we are currently at right now?
Why is that? 10 Isn't it important for our ability 11 to manage and for our rating agencies to rate 12 that we follow our policy or update a policy 13 that's now 11 years old and sorely out of 14 balance with the original policy of 6.5, and 15 your testimony is we are at 15? Why wouldn't we have done anything about that policy up -- why are we still revising it?
The debt policy needs to be revised because of changing circumstances. The ten-year moving average of, you know, assessed valuation constrains us. What gets counted in the debt makes a difference. And I am not directly participating in the revision discussions. 80 FY '07 OPERATING BUDGET HEARINGS - 3/15/06
Do you think that it is problematic that a 1995 policy of 6.5 percent is actually at 15? Someone from the outside reading that in our disclosure documents, would that not raise a red flag that our debt policy is at 6.5, but we are spending at percent 14 levels? 15 Would that bother you, as someone who was an outsider looking at the finances of the city and its way it borrows and spends?
The rating agencies are quite comprehensive in their review of the city's finances. When debt-to-revenue ratio starts to get into upper ranges, you know, they think about very carefully the entire revenue picture and expenditure picture for the jurisdiction. 81 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 And the Finance Director has periodic conference calls with all of the raiding agencies, and all of these elements are reviewed.
Can you think of any reason why the debt policy would not have been updated since 1995? I know you have only been here a short time.
I would request, Madam President -- the Revenue Commissioner is responsible for this?
That the Finance commissioner be asked either in writing or in a call-back to explain the lack of an update in debt policy since 1995, and why we are so far out of balance with our original -- our current debt policy, although it is old, why we are at 15 percent, and what are we doing about it. Thank you.
It will be done. Thank you. 82 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 Are there any other questions from members of the committee of this witness? Seeing none. MR. McPHERSON: The Historical Commission.
Good morning, gentlemen. I would ask you to identify yourself, for the record. We do have a copy of your testimony. I would ask you to please abbreviate it. A copy will be given to the stenographer, and it will be transcribed in full. So please identify yourself, for the record, and proceed.
Good morning, Council President Verna and members of City Council. I am John Farnham, Acting Historic Preservation Director of the Philadelphia Historical Commission; and Michael Sklaroff, Chair of the Commission, joins me. I am pleased to present for your review and consideration the Historical Commission's operating budget request in the 83 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 amount of $321,743 for Fiscal Year 2007, an addition of $8,581 over estimated obligations for Fiscal Year 2006, all of which will fund Class 100 salary increases. The proposed budget will fund six staff positions and support the current level of service; including prompt processing of building permit applications, prompt review of federally assisted projects, and provision of technical and research assistance to a broad range of constituents. Thank you, members of City Council, for your attention. And we are now happy to address any questions you might have.
Thank you. Mr. Sklaroff, is there anything you would like to add to your testimony?
Yes, I would. Michael Sklaroff, Chair, Philadelphia Historic Commission. This level of funding allows us six employees, which allows us to continue the level of service that is now being provided to the citizens of the City of Philadelphia. 84 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 However, this is a staff level that is woefully inadequate for the obligations and opportunities of a city like Philadelphia, which is unparalleled, I would say number one in the country, in terms of historic resources, historic treasures. To do the job that we need to do, we need at least two more employees. The additional funding would be approximately $100,000. We have met this past -- Wednesday a week ago with the Mayor of the City of Philadelphia, the Managing Director, the Budget Director, and the Commissioner of Public Property to discuss this. The Mayor said to us that he was sympathetic to the needs, he understood them, he recognized them, and was going to see whether he could make a place in the budget for the funding of two additional positions. He did say, however, that it was subject to other important priorities of the city and subject, also, to regulatory oversight. 85 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 So we are here to express what Dr. Farnham has expressed, but also to make the case for two additional employees. It is a fact that, given the number of buildings, the number of sites, and the number of districts, we compare at the very bottom of the list when you look at the national situation. The City of New York has fewer than twice -- although it is many, many times our population, fewer than twice as many historic buildings as the City of Philadelphia. And I would say that our buildings are better and more significant. But, they have eight times the staff that the Philadelphia Commission has. We are now, thankfully, in a period of boon in the City of Philadelphia in terms of the repopulation of certain areas, the growth in the residential market. And much of that, much of that, is the product of the fact that we have an unparalleled historic treasure. There are new buildings that are 86 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 being built on historic sites, there is adaptive reuse of historic buildings, there are additions all over the city of -- that people make to their own homes and to larger facilities in historic buildings that requires the oversight and input of the Commission staff, who do a remarkable job. So we are helping, I think, in significant ways the boon by protecting these treasures. And we would like to continue to do so. But over a period of time, I think the last four or five years, we have grown from a little bit more than a thousand applications per year, to almost 1,500. We need more help. And the staff has been wonderful with the resources it has, and we hope that room could be found in the budget. Thank you.
Thank you, Madam President. 87 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 Mr. Farnham, when were you appointed acting director?
I have served as the Acting Historic Preservation Officer from the retirement of Richard Tyler in June of 2005 until January of this year. In January of this year, my title was changed to Director, from Preservation Officer.
Thank you very much. So you have been around since when, again?
I started with the Commission in the spring of 2002. So just about four years exactly.
Thank you. On of the testimony, you mention in the first -- in the second paragraph that, due to the number of applications, those in East Falls, West, and Northeast Philadelphia have not been completed, those applications. So you note that in the paragraph. Now, my question, again, is, as you 88 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 know, we have had many meetings. You reference a task force. I have its report here. The issues that it concerns, which are basically three: How we ensure that the process is inclusive, how we deal with financial burdens, and how we ensure that NTI is not negatively affected. Now, given that, and given the fact that these questions are raised, but not answered, I ask you, where you are with regard to West Philadelphia. As you know, and as is also mentioned in that report on , that Spruce Hill is a -- quote, It appears to be the case of Spruce Hill where the perceptions are that not all the community was aware of its nomination. I ask where you are with regard to your statement that the application is not completed.
Well, the processing of the application is not yet complete. And we certainly wouldn't move forward with that processing of the 89 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 application until we have met with, of course, with your office and held additional community meetings.
Madam President, as you know, we introduced a bill 7 on January 22, '04, that dealt with Council inclusion not to undermine the Commission, but only to make sure that we had some way of knowing that those who were for, as well as those who were against, were included in nominations. I know we have been talking about a conservation district, as well. And Council people, District Council people especially, could have a problem if they are not sure that -- if certain people or individuals apply, and then you process it and act as if all the community is included. And then we could have a problem with communities not included. And I raise these issues because when you say that it is not completed, the application isn't completed, we have to be sure that that means that you are not moving 90 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 full steam ahead without us being assured that all members of the community are included. Now, we in good faith agreed to hold up this bill. But we have to be sure that, in good faith, we are not put in a light that we are not supporting our communities or all communities who are concerned about the issue of inclusion, expense, NTI, and development overall. Mr. Sklaroff.
Council President, if I may respond to Councilwoman Blackwell's comments, which are very well taken. The first rule in an agency like ours, dealing with other government officials, especially elected officials, is that there should be no surprises. That's number one. Number two is, I think the Spruce Hill situation and the task force that was convened by Councilwoman Blackwell has really taught us some lessons. And the primary lesson that comes out of that is that, historic preservation -- and this has been a theme -- is not the 91 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 preserve of an elite group of preservationists. It has to be community-based. So the second rule is that, we go only where we are welcomed. And we are -- nothing further has happened during the pendency of this period where the task force has operated with regard to Spruce Hill. The process on Spruce Hill would be first to meet with the District Councilwoman and her staff, whoever she decides; and then to agree on a process of additional hearings so that the community understands the pluses and minuses. So we are very much committed only to going where we are welcomed, and that's been the history of the other districts. The request for additional staff will allow us to be more inclusive, to have more information, and to fulfill that part of our mission which we are not really able to do now; and that is, the educational mission of the commission, which is also embedded in the ordinance, to teach people about what historic 92 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 preservation means for communities, as well as for individual properties. So in going forward, Councilwoman Blackwell, we are very mindful of our obligation to make sure that this is a transparent process and that the information is spread throughout the community so that people can have an opportunity to comment one way or another.
On of Mr. Gallery's statement, he states in the bottom line that the 1955 Council ordinance 14 didn't allow for the creation of historic districts, but did allow for individual properties. And I think this is one of the issues. If you have one organization, and its officers who say they are for one -- again, I mentioned Spruce Hill. And it is my district, and I support my Spruce Hill organization. We work monthly on zoning issues. I live in Spruce Hill. But certainly I don't want to be put in a position where it is perceived that I am 93 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 not supporting my community organization, when the community organization again approaches the Commission and says they want a district. And many people within the district, you get into a debate, Madam President, we have had with people who have, people who don't. We have had discussions about maybe doing -- Mr. Sklaroff knows this, Mr. Farnham might know this -- about maybe we allow some part of the building or the front of buildings to be preserved historically with certain materials, and maybe the rear of the buildings or the side of buildings not have to invest in that. And, so, there are many complicated issues that come up with this. Obviously we support state and federal funding for it; that's not the issue. The issue is what -- those three points that are mentioned in the report, the task force report, about who is included, what the expense is, and how other areas, how other projects including NTI are affected. Let me ask another question in that 94 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 regard. One of our previous concerns was a recommendation in terms of the materials, what one has to buy, where one has to buy it, who recommends it. And all those things, we have found, were one-stop shop. And we wondered where the Commission is in that regard, as well. We thought -- obviously we had some concerns when the Commission says you have to use X material, you get at X place, you have to buy this much of it, all of that in a closed shop manner, and that everyone got from the one office upstairs, as well. Would you respond to that, as well.
If I may, there are, in historic preservation, certain norms, certain requirements. And we try to do the best in balancing the financial demands on citizens in the City of Philadelphia and the need for preservation. We don't, to my knowledge, the staff doesn't recommend, where to buy materials. And there is a very liberal hardship process so that people of limited means are not held 95 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 to the same standards as people of wealth. And we are very conscious of the need to make this accessible and feasible for people of limited means. I would hope there would be some funding. And I thought in NTI -- and you may know more about this, Councilwoman Blackwell, than I -- there were funds available to finance historic preservation improvements for low- and moderate-income people. I don't know what the status of that program is. Doctor Farnham, do you know?
Yes. I believe the Home Repair Program, just run through OHCD, and with the Preservation Alliance, is just getting underway, and approximately $1 million to help low- and moderate-income homeowners meet the standards not only of the Philadelphia Historical Commission, but the state and federal standards, as well, for historic properties.
Absolutely. We were happy to support the Commission in trying to make this a designation. 96 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 But, as many of my colleagues realize, if you have to use a certain kind of material, if you point your brick, if you have to use a certain kind of windows, the million dollars will not go very far. It is a very, very expensive undertaking. Certainly when we have so many considerations, people in need who have nothing, and then people who have to use just certain materials that are very expensive, certainly it puts us in the position of having to choose. And, again, that's one of the reasons why this issue was so very -- is so very sensitive to we who believe that, in the city there has to be a space for historic preservation, as well as new construction. And I believe that the study, and I guess our last two years dealing with the issue, I think that perhaps we have raised as many questions as we have attempted to answer, and that we don't have this issue resolved. We will hold at least for now and we will continue to hold our bill. But we 97 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 certainly consider that anything that happens within our districts -- and I am sure I speak for all the District Council people -- when I say that we do not want the Commission to move ahead; but, we have to be included in the process. And if we feel we are not, then it puts us in a position of again pushing ahead on a bill that legislates that we be included before any decisions are made. My final question, Mr. Farnham and Mr. Sklaroff, are with regard to the 4200 to 4800 blocks of Chester Avenue. And this is where SEPTA has put in an application to be exempted from historic preservation where there are cobblestones in the middle of the street within those boundaries. My question is, I assume that SEPTA made the application to you. And what do you expect to come out of the engineering report? What do you expect to find, and what does that mean to us? Who makes the decision? I have already been in touch with the community in that regard. But, so, what 98 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 happens then? SEPTA applies to you, and then what happens? What will the engineering report say to you, and then what are the next steps for us?
I think this is an open, transparent process. The community will be involved. When we had a similar presentation on behalf of the Pennsylvania Department of Transportation and the Department of Public Property for Germantown Avenue, it was a very full process of hearing. The community will be heard. The engineering report will discuss the feasibility of preservation, as opposed to the question as to whether the granite block must be removed. So it will be a full, complete discussion. The community is welcome. The Councilwoman and her staff are welcome to be part of that discussion. I don't think we can judge what the report will say. But, it will give us the costs, I'm sure, of full preservation, at least what's left, of the historic fabric and 99 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 the differences. Mr. Farnham, do you have anything to add to that?
No. I think that's exactly what we are hoping for. The application raises some technical issues that we on the staff and the Commission are not used to dealing with. So we are looking for an engineer to provide us with an independent assessment of the financial feasibility of preservation.
Again, let me say, we don't want to be included in discussion; we want to be pivotal in raising the discussions. And that is always my issue with the Historic Commission. Don't include me in the discussion. We have to drive it. You don't know who from the community should be pulling the community together in these discussions. Certainly you can ask for a study. But when that study comes back to you, don't include us in any community discussions; we have to drive those community discussions. 100 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 And that is always where we end up, Madam President. That's my problem with the Commission. Don't include me in things in my area; we have to drive those discussions. I have already, as soon as I got this title that says 4200 to 4800 blocks of Chester Avenue, then I called the ward leader who runs the health center a block away, whose husband is a retired professor at University of the Sciences of Philadelphia, people who are able to participate fully and who know who should be included in the discussion. Don't include us; let us drive the community discussion when it comes to the Historic Commission. You can't ask us to fund you and fund positions, and then you make discussions -- you have discussions and you make decisions for us. That's why we introduced a bill. Historic preservation works in many areas and many neighborhoods, but you don't have the right to ask us to fund your decisions. We are elected to make these 101 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 decisions. Don't include us in discussions; let us drive those discussions so that we assure there is community inclusion. Madam President, that's all I have to say on the issue. I have tried to make my position as clear as I can. We who are District Council people have to drive community discussions. And we are going to ask that you do that. Any questions -- when you get findings from this engineering report, and you are ready for community discussions, call us before you meet with anybody in our communities. And we would like you to commit to that.
Thank you, 102 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 Madam President. Good morning, good afternoon. I have a couple of questions primarily around the issue of preservation, and how you remove a historic designation from a property that remains vacant year after year after year. The designation is probably what's caused it, or is probably the barrier to its development, because it increases the price. And the building just sits there, becomes an eyesore, is very blighted year after year. I think this one particular building has been vacant for about years. And at 15 this point I have put in to have it 16 demolished. The church wants it demolished, 17 that's next door. The neighbors across the 18 street, which is Germantown Friends School, 19 they want it demolished. It just sits there. 20 So, how do we remove that?
Actually, I think I know the property on Germantown Avenue.
And I have done legal work for Germantown Friends School. And I 103 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 think, in that particular case, a discussion with the Commission would be very helpful and, I think, might resolve the question.
Because I have put in, again, to have that demolished. Everybody, you know, everybody wants that building demolished.
I think, if I know the circumstances, that a building in that condition basically has expired, its useful life is over. And I think there is maybe more of a reluctance to address that than there could be, and I think that can be resolved.
I think, Councilwoman Miller, if somebody from your staff or from Germantown Friends School would contact the staff of the Commission -- I would not be involved, because I have invested 30 years in tuitions in that school, and I have done some pro bono legal work. But if you would speak to Dr. 104 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 Farnham, I'm sure we could at least tee it up and see whether it is a candidate for removal. I don't think we have had a request before.
We have, actually, been putting in a request for some time. Now, maybe through L & I more than through the Historical. But I know I have brought this up with Mr. Tyler in the past, because the building just continues to sit there, and now it is imminently dangerous.
This is on the other side -- it is on Germantown Avenue, and it is sort of coming apart.
We were involved in the parking lot application. So I know the building, I can almost picture it, and it is coming apart at the schemes, really.
If somebody at your office can contact Dr. Farnham, I think that 105 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 can be resolved.
Thank you. Any other questions or comments from members of the committee? Seeing none, gentlemen, thank you very much.
This committee will stand in recess until 1:15. Thank you very much. (Short recess.)
The Committee of the Whole has now reconvened. MR. McPHERSON: Department of Licenses and Inspections.
Sorry for the delay. Please identify yourself, for the record. May I suggest that you abbreviate your testimony, since we have copies of it. We will give a copy to the stenographer, and it will be transcribed in full. 106 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 MR. ROBERT D. SOLVIBILE, SR.: Good afternoon, Council President Verna and members of Council. I am Robert D. Solvibile, Senior, Commissioner of the Department of Licensing and Inspections. Accompanying me today are key members of the department's management team. Eileen Evans, to my left; and Dominic Verdi next to her; and, to my left, Fran Burns and Bridget Greenwald. We appreciate the opportunity to present our Fiscal Year 2007 Operating Budget request. The Department of Licenses and Inspections is requesting a total Fiscal Year '07 budget of $65,725,132, of which $28,787,801 is in the city's General Fund; $36,088,027 is in the general grant revenue fund; and $849,304 is the in the community development fund. The General Fund budget represents an increase of $222,005 from our Fiscal Year '06 estimated obligations. This increase reflects a 3 percent wage increase. We offset 107 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 that by a delay in hiring of filling our positions. The '07 request will fund 362 General Fund positions, a decrease of 6 positions when compared to Fiscal Year '06 7 General Fund position level. The decrease in positions will not impact service delivery. We will continue to prioritize emergency and public safety concerns and will maximize productivity with current resources. We have achieved a multiple of accomplishments in Fiscal Year '06; most notably, the execution of a majority of our automation projects, our commitment to improving the permit approval process, and ability to electronically image building plans. In addition to plans undertaken in Fiscal Year '06, we will continue in Fiscal Year '07. The department has identified key '07 initiatives, including moving forward with the next phase of our automation efforts, which will include placing a majority of our 108 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 applications on the web and expanding the types of permits and licenses the public can access and purchase online; professionalizing our inspectional staff by consolidation of our business enforcement efforts to create a fully cross-functional and specialist staff, thus gaining productivity efficiencies; conducting a time and work flow study to determine the most appropriate use of space in our dedicated area of the concourse; and making our electronic building plans available to other city agencies, such as the Fire Department and the Board of Revision of Taxes. Overall the department is making great strides, and will continue to do so in the upcoming fiscal year. I am grateful to work with the dedicated staff that has been able to make these achievements possible. This concludes my testimony. I welcome questions.
Thank you very much. What is the amount budgeted for demolition in 2007? 109 FY '07 OPERATING BUDGET HEARINGS - 3/15/06
The average cost of demolition this year is $21,500, and we project it to be relatively stable in the coming fiscal year. That does not include the cost of the stucco.
It does not include the cost of the stucco; that's just to demolish the property.
Per wall. Now, Council President, every building that gets demolished, the wall does not necessarily get stuccoed. It is only attached occupied properties that we treat the party wall. 110 FY '07 OPERATING BUDGET HEARINGS - 3/15/06
Wouldn't you say there are more of them than there are of single?
In the curbside demolitions, there is more of the party walls that need to be stuccoed than in the NTI program inspections. But, in some cases, it will be a stand-alone house or there will only be a party wall on one side or sometimes free-standing. It is not always a stucco involved. Rule of thumb is about 60 percent of the demolitions will create a stucco.
How many buildings do you anticipate that we will demolish in 2007?
Approximately 275 buildings will be demolished next fiscal year, imminently dangerous buildings. 111 FY '07 OPERATING BUDGET HEARINGS - 3/15/06
And can you tell me what the amount is in the out years of the Five-Year Plan for demolition?
I believe that the work of the last several years, working with the NTI-targeted demolitions and the curbside work we have done, the decrease is a lot less on buildings that are imminently dangerous. The private market in areas that were -- in a lot of areas, the private market is stepping in and rehabilitating the problems -- rehabilitating the properties and not making demolition necessary. 112 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 We are finding more and more people, when we send them the violation notice, will comply with the violation, and not let us tear it down.
One of the items we discussed last year, if you recall, was the number of illegal billboards. Can you update us on the status of their removal?
There is a federal and state lawsuit against the city at the present time. And I cannot really comment at the time because it is an ongoing lawsuit that they are in the middle of working in the Law Department, working out.
Really? I didn't know that. Councilman Kelly. COMMISSIONER KELLY: I would like to ask the Commissioner, who is the lawsuit.
The best of my knowledge, the billboard owners are suing the 113 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 city in State and Federal Court.
Yes. Well, I'm pretty sure it is the Philadelphia area. I'm not really sure of the extent of -- if it goes beyond Philadelphia, the lawsuit.
Is it possible to send the Chair a list of the people who are involved in that suit?
Is somebody here from the Law Department? Do you mind coming up and addressing this issue, please. I think you heard Councilman Kelly's question. Would you be able to respond? If so, please give your name, for the record.
Thank you, Council President. I am Andrew Ross, Divisional 114 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 Deputy City Solicitor. The plaintiff in the lawsuits -- there are two separate suits, one in State Court, one in Federal Court. The plaintiff is an entity called Free Speech, which was -- is a coalition, as I understand it, of several of the larger billboard companies. And they have, of course, used that name in part because they are raising constitutional challenges to the ordinances. It is my understanding that Free Speech consists, at least in part, of Clear Channel and CBS, which used to be Viacom. There may be some others, as well.
Mr. Ross, how many companies are involved, do you know?
I think those two are the only companies directly involved in the litigation.
That's my understanding. COMMISSIONER KELLY: I just have a followup question, Madam Chair, if I could. 115 FY '07 OPERATING BUDGET HEARINGS - 3/15/06 Okay. I will wait.